TMC — Investor Presentation 2018

Sep 13, 2018

Taiwan Mask Corporation??2018/Q2 Financial Status

1

Revenue and Margin

In NTD $K
2

QoQ Income Statement

3

YoY Income Statement

4

Year-to-Date YoY I/S

5

Turnover Status

6

2018 Revenue Trend

3E

2.5E

In NTD $K
2018 Sales
2017 Sales

TMC Group??Strategic Plan

8

Actions from New Management Team

2017 Jun. new management team build-up:
Chairman: K.J. Wu (chairman of Browave[a fiber-optical company])
President: Yarn Chen(former president of Sunplus[IC design house])
Executive vice president: Vincent Tsai (former chairman of Miracle Technology)
2017 Oct. merged Miracle Technology
Miracle introduced 2 major customers for TMC ever since Miracle was merged into TMC (t Foundry in Taiwan, D Foundry in Korea)
Based on the locations in China of Miracle, to help TMC expanding the market in China
Increased utilization rate
Had professional repair maintenance vendor to recover down-machines
Average UT rate in 2017 is 40%~50%; now is 80%~85%
2018 Aug. announced to merge Weida Hi-tech
Weida is an IC design house focus on touch panel driver IC
Planning to consolidate Miracle and package, testing technology to provide SIP(System in Package) turnkey solutions to our customers

TMC Turnkey Solution

Miracle (Agent)
Weida (IC Design)
Foundry FAB
Package/ Testing
美祿：橋樑
＋
IP Provider

＋
Mask
TMC
10

Introduction of Companies in TMC Group

11

Product Introduction

Mask Size：
Mainly in 6”, could be applied in 6”/8”/12” wafer
(9”/14”)Large size mask, applied in LCD monitor or wafer scale package
Mask Process：
0.35um(mainly for 6” wafer)
0.18um (mainly for 8” wafer)
0.11um~90nm (mainly for 12” wafer)
Product Application: mature processes for IoT, Motor, LED lighting are the main focus of current market, but eventually the application is decided by IC design house.
Quantity:
Wafer layers mean the quantity of mask (pcs)(1:1)
Wafer layers are decided by the process(more layers are needed when moving towards to more sophisticated process)
One product of one IC design house needs only one set of mask, the second set of mask is only needed when allocating to another FAB.
12

Competition in Mask Industry

13

Customer Combination

Area：
Taiwan：70%
Others：30%
Source：
Foundry FAB：70%
IC design house：30%

14

Profit Power Engine

New customers introduced by Miracle
Foundry FAB
Customers in China area
Utilization rate increase
Selected customers and product mixed
Lower cost, upper efficiency

15

Future Planning

Standing tall in mature process(90nm~0.35um)
Moving towards advanced process(60nm~45nm)
Planning to invest over 20M USD in year 2019~2020 to build up advanced technology capacity
Expanding China market through the channel prepared by Miracle

16

Miracle Technology

Focus：helping IC design house to search capacity in Foundry FAB
Know-how：helping customers to integrate FAB, testing house to improve the yeild, reduce design risk , increase CP value
Locations：Taiwan, China, HongKong, Shenzen
Allied FAB：FABs in Taiwan and Korea
Customers：small and medium sized IC design houses in Taiwan and China
Revenue：around 1~1.2 billion NTD
Future Planning：provide turnkey solution to IC design houses
17

Weida Hi-Tech

Focus: Touch panel driver IC (for NB, tablet, AIO, electronic white board and large size LCD Panel)
End Customers: HP, Dell, Samsung and Panel makers
Locations: HsinChu, ShangHai
Future Planning:
Expanding product lines in touch panel driver IC, get into the market in panel makers for mass production
Planning to consolidate Miracle and package, testing technology to provide SIP(System in Package) turnkey solutions to our customers