TXC — Call Transcript 2025

Aug 19, 2025

TXC Corporation Investor Conference August 20, 2025

Making Every Connections Better Precise Clock for Seamless Synchronization & Ultimate Data Transmission

Agenda 14:00~15:00

Topic Opening

Presenter

Opening Peter Lin, CEO Trends & Market Outlook Oak Yu, Marketing & Sales Center Financial Performance Muriel Chen, Financial Division Q & A Peter Lin, CEO

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Disclaimer

 Except for statements in respect of historical matters, the statements in this release are forwardlooking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance, financial condition or results of operations of TXC to be materially different form what may be implied by such forward-looking statements.

 The financial forecasts and forward-looking statements in the release reflect the current belief of TXC as of the date of this release and TXC undertakes no obligation to update these forecasts and forward-looking statements for events or circumstances that occur subsequent to such date.

 The statements in respect of historical matters may contain unaudited information, which may have certain deficiency or weakness so as not to fairly present financial condition or the results of operations of TXC.

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Opening & Introduction Building Sustainable Revenue Portfolios Peter Lin, CEO

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Insight from Executive’s Summary

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Accelerate “ Design Wins ” by target higher win rates by compressing sample-to-production cycles

Leverage Geopolitical Strengths & Segment-Tailored Positioning by identification of Potential Regional Business

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Trends and Key Segments Key Growth Factors & Market Outlook Oak Yu, Marketing & Sales Center

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Re-ca on Ke Se ment Blue rint Overview p y g p

Focus Segments and Identify Overall Potential Business Opportunities & Challenge

5G A

AI

Automotive

E merging

AOM +20% YoY AOM+TCXO, 15% of Total Sales

25% of Total Sales

~10% by 2030

• AI Infrastructure + 5G-A Deployment

• Global Tier 1 Penetration

• New Segment Development

Initiate pre-developing as new industry segment to deploy potential business opportunities.

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-
5G A
Infrastructure
• 5G RU construction will be saturated
• Developing towards AI-RAN & 6G
• Key Area penetration increase
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AI
Infrastructure
• Transmission Protocols Upgrade
• Precise Timing for Data Computing
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High Speed
Interconnection
• High Speed Data Throughput
• Ultra Low Data Latency for Computation
• Increase Node-to-Node Connection
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Product Solution & Approaches

• Miniature (5.0x3.2mm)

• Power-Saving (7.0x5.0mm)

• Xterneti (AI-Powered OCXO)

• Miniature (2.0x1.6mm)

• Ultra Low Jitter (<30fs typ)

• Xterneti (AI-Powered OCXO)

• Ultra High Frequency (625MHz)

• Miniature (2.0x1.6mm)

• Ultra Low Jitter (<30fs typ)

Data Center Architecture Design Data Transmission Distance & Type Per Standard

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< 20-120 km ER/ZR Optical Module (SM)
IDC
Core
Core Network
< 10-20 km LR
< 2-10 km FR/LR Optical Module (SM)
Spine
< 500 m DR
Optical Module (MM) Active Electrical Cable (AEC)
< 50 m SR
Leaf/
Edge < 5-10 m Within
a Rack
Note: High-speed cable can be further divided into DAC, ACC(using in NV switch to server within a rack ) and AEC(using in customized switch to server within a rack)
Note: SR: Short Reach(<100m), DR: Datacenter(~500m), FR: Fiber Reach(~2km), LR: Long Reach(~10km), ER: Extended Reach(~40km), ZR: Ze Best Range(>80km)
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2025 Automotive Market Outlook

Key Applications : Camera / Radar / Lidar / ADAS & Cockpit SoC

↑ Increasing Penetration Rate of ADAS (L2L3L4)

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↑ Key ADAS Components for Autonomous Driving

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↑Smart Cockpit Integration

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Key Strategy Blueprint :

■ Global Tier 1 Key Accounts : AVL Passed & Key Target Penetration

■ Existing Business Share Rate : Increase Allocation from Global Tier 1

■ Oscillator Expansion for ADAS Applications

AI RAN

AI CLOUD

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AI ON DEVICES
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(Always On, Always Connected)
Synchronization Communication Hybrid Connectivity Computation
Physical AI
(Embodied AI)
Agentic AI
Generative AI IEEE 1588
Perception AI Edge AI Perception Automation & Robotics
Sensing
Enhanced
Cloud Computing Decision
Smart Healthcare
Execution
Ethernet, PCIe, Serdes, Edge Servers
NVLink, etc. Protocols
IEEE 1588 PTP AI in Automotive
Base Station & Internet Datacenter
Microwave Radio
AIoTs
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Power Grid AI
Virtualization and Automation Agriculture Automation Life Science Digitalization
1 Energy Management 3 Industrial IoT 6 Farming Automation 8 Telemedicine
2 4 Digital Twin
Energy Inverter 9
7 Hearing Aid
Lifestock Management
5 Robotics
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Emer in
g g Market : AI-Enable Smart Health Strategy
On-time monitoring, Remote Diagnostic
Frequency Range
Health Management Rehabilitations Remote Diagnosis
400M
FPGA CT、MRI
200M
AI Core B / Color Ultrasound
ASCI 160M
148.5M
50M
48M
MCU 39M
Hearing Biochemical
BGM
ASIC 38.4M Aid
CGM qEEG Analysis
Sensor BLE 32M Capsule
AI Core Insulin Bump Gastroscopy
30M Non-Inv. Pathology
Ventilator EQP.
8/16/24M Health
Health Care Ring
32.768K
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	43.80% Global Market CAGR% 2025 - 2033 Market Size by 2032, USD : 41.02B (from USD 2.24b in 2025) Unit Shipments Insight: Interact estimates ~40,000 units/year by 2032,up to forecasts 2M/Y by 2035 Decision Making AI Chips / ASIC Algorithm Deep Learning Sensing Camera LiDar Ultra Sonic Radar mmWave Radar Enviroment Sensors Rotating Angle Power (Battery System) Fingers Linear Angle Actuation Actuator Part Side Motor MCU Rotating Angle Shoulder 3 6 12 Bot 0 3 6 Wrist 1 2 4 Elbow 0 3 6 Linear Angle Wrist 2 4 4 Knee 2 4 4 Ankle 2 4 4 Elbow 1 2 2 Fingers Knuckles 6 12 12 Total 40 54 50~100pcs, per Robotic set (Note : Below calculation excludes the AI Processor & clock for sensors integration	50~100pcs, per Robotic set (Note : Below calculation excludes the AI Processor & clock for sensors integration
		Actuator Part Side Motor MCU
		Rotating Angle Shoulder 3 6 12 Bot 0 3 6 Wrist 1 2 4 Elbow 0 3 6
		Linear Angle Wrist 2 4 4 Knee 2 4 4 Ankle 2 4 4 Elbow 1 2 2
		Fingers Knuckles 6 12 12
		Total 40 54

(Note : Below calculation excludes the AI Processor & clock for sensors integration.)

Ultra Miniature with Low Power & Low Hysteresis Mobile Communication/Wearable/AIoT 32.768kHz

Miniature Trend with High Frequency & Low PN & PJ Super NIC/800G/1.6T/3.2T

High Frequency with Low Slope & PJ

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Excellent Holdover
& Stability
Low Slope & PJ
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(Crystal & TSX)
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(kHz & MHz XO)
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Ultra Low Jitter
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(Differential XO)
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Oscillator
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Product Solution Key Features

• Miniature Crystal : 0.8x0.6mm

• High Frequency Crystal for HPC

• New Generation TSX for 6G

• Low Power MHz XO : (< 2 mA)

• Low Power kHz XO : ( 0.25uA typ)

• Miniature : 1.2x1.0mm

• Ultra Low Jitter : < 30 fs typ • Miniature : 5.0x3.2mm • Ultra High Frequency : ~ 625MHz • Ultra Stability : ± 5ppb, -40 to +105C • Ultra Stability : ± 0.1 ppm ~ ± 20ppm • Extended Holdover : Xterneti

• Domain Expert AI Generative AI System Integration

• • • • Process Monitor Chat TXC Solid

• • • Trouble Shooting PM Expert Improvement of

• • • Simulation MoM per capita

• • • Image Recognition Handover contribution

• • • Yield Prediction Translation

• • • • Equipment Monitor SOP Improving

• • • SPC Monitor KM Efficiency

• • Parameter Optimization

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Data Collection and Visualization
AI Driven Abnormal Detection
AiX Transformation
AI Transformation, Sustainability, & Geo-politic Diversification
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Product Optimization

AI Automated Decision

AI Smart Factory

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Financial Performance Financial Results, CAPEX, DPS, ESG Muriel Chen, Financial Division

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Highlights

Key Market Segments

5G-A, Automotive, AI-Powered Comprehensive Ecosystem With Double Digits Revenue Growth

Optimized Product Portfolio

Miniature / Higher Frequency / Tighter Stability Low Phase Noise / Low Power Consumption Ultra-Stability Precise Oscillator

New Production Facilities

Initiate Oversea Facility Plan for N+1 # Oumori in Japan # Surabaya in Indonesia

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Ke Industr Se ment Breakdown y y g

Focus on Potential Market with Sustainable Growth

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Unit: NT$Million	Q2'25 Q1'25 QoQ YOY	H1'25 H1'24 YoY
Net Revenue	3,367 3,166 6.32% 15.19%	6,533 5,676 15.09%
Gross Profit	1,131 1,120 0.98% 5.33%	2,252 2,074 8.59%
Operating Expenses	582 605 -3.84% 3.54%	1,187 1,096 8.31%
Operating Profit	550 515 6.64% 7.28%	1,065 978 8.91%
Non-Operating Items	-143 62 -332.25% -226.82%	-81 294 -127.67%
Income before Tax	407 577 -29.52% -34.94%	984 1,272 -22.68%
Net Income (attributed to the parent)	370 472 -21.50% -28.40%	842 1,054 -20.14%
Basic EPS (NT$)	1.08 1.38 -21.74% -35.33%	2.46 3.40 -27.65%
Gross Margin(%)	33.61% 35.39%	34.47% 36.53%
OPEX(%)	17.28% 19.11%	18.17% 19.30%
Operating Margin(%)	16.33% 16.28%	16.30% 17.23%
Income before Tax Margin(%)	12.08% 18.22%	15.06% 22.41%
Net Income(%) (attributed to the parent)	11.00% 14.90%	12.89% 18.58%

Unit: NT$Million	Q2'25 Q1'25 QoQ YOY	H1'25 H1'24 YoY
Net Revenue	3,367 3,166 6.32% 15.19%	6,533 5,676 15.09%
Gross Profit	1,131 1,120 0.98% 5.33%	2,252 2,074 8.59%
Operating Expenses	582 605 -3.84% 3.54%	1,187 1,096 8.31%
Operating Profit	550 515 6.64% 7.28%	1,065 978 8.91%
Non-Operating Items	-143 62 -332.25% -226.82%	-81 294 -127.67%
Income before Tax	407 577 -29.52% -34.94%	984 1,272 -22.68%
Net Income (attributed to the parent)	370 472 -21.50% -28.40%	842 1,054 -20.14%
Basic EPS (NT$)	1.08 1.38 -21.74% -35.33%	2.46 3.40 -27.65%
Gross Margin(%)	33.61% 35.39%	34.47% 36.53%
OPEX(%)	17.28% 19.11%	18.17% 19.30%
Operating Margin(%)	16.33% 16.28%	16.30% 17.23%
Income before Tax Margin(%)	12.08% 18.22%	15.06% 22.41%
Net Income(%) (attributed to the parent)	11.00% 14.90%	12.89% 18.58%

Unit: NT$ Million Item	Jun. '25	Dec. '24 Amount %	Jun. '24 Amount %
	Amount %
Cash & Cash equivalents	5,943 25.7%	3,906 17.6%	5,646 26.1%
NR+AR	3,332 14.4%	3,760 17.0%	3,050 14.1%
Inventories	2,789 12.0%	2,825 12.7%	2,844 13.2%
Current Assets	14,063 60.8%	12,559 56.6%	12,776 59.1%
Total Assets	23,147 100.0%	22,171 100.0%	21,602 100.0%
Current Liabilities	6,689 28.9%	4,199 18.9%	6,044 28.0%
Non-current Liabilities	1,789 7.7%	1,527 6.9%	3,454 16.0%
Total Liabilities	8,478 36.6%	5,726 25.8%	9,497 44.0%
Total Shareholders' Equity	14,669 63.4%	16,444 74.2%	12,104 56.0%
AR Turnover Days	99	101	102
InventoryTurnover Days	120	118	135
Current Ratio(%)	210%	299%	211%
Debt Ratio(%)	36.6%	25.8%	44.0%
ROA(%)	7.6%	10.6%	10.7%
ROE(%)	10.8%	15.1%	17.6%

	EPS & DPS	EPS & DPS
	High Dividends Payout, with Sustainable Business					Growth
		EPS(NTD) Cash Dividend(NTD)						10.06	9.06
	Average80%+ Payout Ratio							7.5	7.0	5.53	6.55
							4.61
		3.03	3.28	3.11	2.08	2.17	3.8			4.5	5.2
		2.5	2.8	2.5	2.0	2.5
	Year	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
	Share Price	41.1	44.5	39.0	36.0	44.0	99.8	98.0	89.4	105.5	100.5
	Payout Ratio(%)	82.5%	85.4%	80.4%	96.2%	115.2%	82.4%	74.6%	77.3%	81.4%	79.4%
	EPS (NTD)	3.03	3.28	3.11	2.08	2.17	4.61	10.06	9.06	5.53	6.55
	Cash Dividend(NTD)	2.5	2.8	2.5	2.0	2.5	3.8	7.5	7.0	4.5	5.2
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Unit: NT$ Million
（ New Factory ）
(Capacity +)
(Capacity
(Wafer Capacity &
+)
Technology Upgrade)
(Wafer & IM Capacity)
2024
Deferred
1,013M
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Key Segments of CAPEX

 A+ Enhancements

• Smart Factory

• Core Technology

• Smart Manufacturing

 Advanced Process

 Automation and Robotics

 Innovation Capability

 Data Analytics and AI

 N+1 New Factory

 ESG Sustainability

 Environment  Social Responsibility  Governance

• Indonesia

• Japan  Asia

E nvironments, S ustainability, Governance

ESG Risk Rating 19.9

(Low Risk)

pts

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Thank You Think of Frequency, Think of TXC

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Copyright & Trademarks Statement All Rights Reserved.
All content (texts, trademarks, illustrations, photos, graphics, files, designs, arrangements, etc.) on this
document of the TXC corporation are protected by copyright and other protective laws.
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