TRI — Investor Presentation 2019

Nov 8, 2019

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Test Research, Inc. www.tri.com.tw

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Test Research, Inc.

• Establishment: April, 1989

• Founder & CEO: Jason Chen

• Capital: TWD 2362 million

( USD 78 million)

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Main Product Line

• IT(Image Tester)

• SPI(Solder Paste Inspection)

• � Pre-reflow AOI / Post-reflow AOI � AXI(Automatic X-ray Inspection)

• BT(In-Circuit Board Tester)

• � MDA � ICT

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One Stop Solution Provider in PCBA Production

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Global Service Network

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TRI Office
Distributors
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Electronic Industry/Revenue Movement

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6
8
Industrial/Defense
12
Automobile
26
15
Household/Game
14
27
Network/Phone
21
29
PC/NB/Peripheral
20
Semiconductor/IC
11 11
201801-201809 201901-201909
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Major Competitors

� Korea: Koh Young � Japan: Omron � China: Jutze/Sinic-Tek/Holly � Malaysia: Vitrox � USA: Keysight/Teradyne � Europe: Viscom/SPEA

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10000 Annual Sales
NTD Million -
Uncertainty of global economy
9000
-Delay of 3D AOI launch
-Low price competition in China
-
8000 Economic
Increase of smart
mobile devices recovery
Decline of PC/NB
application
7000 application - Blue-ocean
Rush capacity
5870
6000 buy triggered by
economic recovery
5388
4919
5000 4754
New AOI 7500 New FCT
is not launched +7500/L/D 4084
4000 until ’06. T 3778 [3894] 3601
New 7500 Economic
+7006L recession 3100
New SPI
3000 7006
2541
+7100EP
2055 2074
2000 New AOI 1706
7100 1553 1470
1000 569 [777] [902]
0
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18
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CONFIDENTIAL

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Red & Blue-ocean Market Movement in Revenue
NTD Million
Blue-ocean Red-ocean Gross margin %
8,000 80%
Blue-ocean:
-
3D AOI
7,000
-
Dimensional metrology for electronic parts
- 70%
Semiconductor process
6,000 -
AXI
-
BT
5,000
60%
57%
55%
53%
4,000 53% 53%
1,856 50%
3,000 46%
1,592
1,076
3,123
1,517
2,000
4,955
3,063
40%
(62%) 2,162
2,009
1,000 1,631 1,583
(67%)
914 (56%)
(34%) (51%)
(16%)
0 30%
2014 2015 2016 2017 2018 2019 Q3
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Integration of Vision Technologies for the Demands of Dimensional Metrology for Electronic Parts & Semiconductor Process TRI’s AOI Solution in Metrology - 2D + 3D Calibration 校正技術 Laser TRI AOI Metrology Linear 共線性

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DFF
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Fringe
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Linearity

Upgrade DFF 3D Technology

� Optimal focus position 0.5 µm � Clearer 2D Images 1 � µm Sharper images � Shadow-free 3D Image Ultra High Resolution

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11

TRI New TRI Measurement Functions

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• UI: New designed and friendly user interface

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� Features: More complete measurement functions will be available

Measure Feature Construction Method Measure Target Assign System

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� High Flexibility: Multi-Layer measurements

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12

TRI 3D AOI Product Roadmap

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TR7700Q SII/TR7700QE SII/ TR7500QE SII

TR7700Q/TR7700QE/ TR7500QE • 4M/15um,12M/10um

• • 4 x Angled Cameras

• 4x DLP + Omni color RGBW lighting

• • Optional Laser module

• TR7500QE SII: Top 12M Camera/ 15,10um +1 DLP + 4 Angled Cameras

• 25 % speed up

• AOM and AI capability

• Omni color RGBW lighting

• Optional Laser module

• Optional DFF module

• Optional DFF module

• TR7700QE-S 5.5um/3.45um (for 0201M, Die/Wire bonding)

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2018

2020

2019

2021

A Full Line of 3D In-Line AXI

TR7600 SIII

a new generation of TRI’s hallmark inline PCBA inspection solutions. Designed for 100% inspection coverage at production line speed, industry’s fastest high resolution imaging speed with greatly improved image quality in the industry's most advanced automatic X-ray inspection.

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TR7600TL SIII TR7600F3D high performance and highest image quality high speed 3D AXI for the maximize production largest server, networking yields on any and power PCBs. TRI's production line Planar CT technology brings true 3D solder joint review for maximum inspection accuracy

BT Parallel Test for Different DUTs (Multi-Program)

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TR5001 SII Quad-code System
Testing Time Comparision
10
101.1%
100% 100.2%
9
TR5001 SII Single-Core TR5001 SII Dual-Core TR5001 SII Quad-Core
(100.0%) (100.2%) (101.1%)
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TRI Support Closed Loop Solutions TRI SPI, AOI, AXI Inspection Integration CFX ( data ) /HERMES ( M2M )

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D ata & I Ski b d
mage p oar
Feedback Feedforward
Feedback data
P re-re fl ow P os t -re fl ow
SPI AXI
AOI AOI
TR7007QI TR7600 SIII
TR7710 TR7700QE
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YMS 4.0 Support Industry 4.0 TRI combines SPI, AOI & AXI Data to Improve Yields with Yield Management System (YMS) by:

• Overall Image and Data Integration

• SPC Trend Monitoring

• Drill Down Root Cause Analysis

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TRI AI Application

� Front Section

• For Defect & Appearance inspection/OCR/Measurement Assistance

• Purpose: Improve the over-kill and under-kill rate.

� Rear Section

• Repair Station: After AOI machine, review the defects and classify between real defects and false alarms.

• Purpose: To decrease the loading of operators.

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In-house RD Team

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.
•Optical Dept. • system S/W
• Mechanical Dept. YMS, R/S
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•PLC control
•Lighting control
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IT
BT
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180[+]RD

Outside Support

Department of Computer science, National Taiwan Univ. - Image processing / Understanding Department of Power Mechanical, Tsing Hua Univ., Taiwan - X-ray 3D Reconstruction/Digital Tomosynsis Algorithm/ CT algorithm Center of Measurement Standards, Industrial Technology Research Institute Taiwan

• -- Length/ Camera / Color calibration

Recent Awards

• 2015 EM Asia Innovation Award

• � 2015 Global Technology Award

• � 2016 EM Asia Best Supplier Award

• � 2016 Global Technology Award

• � 2017 EM Asia Innovation Award � 2017 Circuits Assembly NPI Award

• � 2018 Circuits Assembly NPI Award

• � 2018 EM Asia Innovation Award � 2018 EM Asia Best Supplier Award

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EPS
7
6.43
6
5.34
4.87
5 4.67 [5.03]
4.48
4.51
4.23
4.45
4
3.41
3.19
3
2.53
2.17 2.52
2
1.82
1 1.02
0
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18
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Safe Harbor Notice

TRI’s statements of its current expectations are forward looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

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Better Testing Better Quality

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THANK YOU! For more information about Test Research, Inc. Please visit: www.tri.com.tw

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