TXC — Interim / Quarterly Report 2020

Sep 11, 2020

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法人說明會 109年9月14日

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TXC Confidential and Proprietary

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 forwardlooking 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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TXC Confidential and Proprietary

1

財務績效 財務報告, 每股盈餘, 每股股利, 資本支出

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TXC Confidential and Proprietary

2

歷年營收與出貨紀錄 Steady and Organic Volume Growth

Unit: USD M

Unit: Billion PCS

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REVENUE SHIPPING QUANTITY
US$350 6.0
US$323
US$310
US$302
US$294
US$300 US$272 US$281 5.0 2020
FCST shipment :
US$250
4.0 > 4.0 billion pcs
3.4
3.3 3.3
US$200 3.1
2.8
3.0
2.6
US$150
2.0
US$100
1.0
US$50
US$0 -
2014 2015 2016 2017 2018 2019
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TXC Confidential and Proprietary

3

每季財務績效

營收

		2,151 2,524 20.Q1 20.Q2 2020’H1 NT$ 4,675M (yoy +31.0%)
0 500 1,000 1,500 2,000 2,500 3,000 3,500 單位:新台	2017 NT$ 8,782M (yoy -8.9%) 2018 NT$ 8,156M (yoy -7.1%) 2019 NT$ 8,431M (yoy +3.4%) 幣百萬元	2020’H1 NT$ 4,675M (yoy +31.0%)
	2,133 2,114 2,267 2,269 1,869 1,862 2,267 2,158 1,623 1,945 2,428 2,434	2,151 2,524
	17.Q1 17.Q2 17.Q3 17.Q4 18.Q1 18.Q2 18.Q3 18.Q4 19.Q1 19.Q2 19.Q3 19.Q4	20.Q1 20.Q2

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TXC Confidential and Proprietary

4

每季財務績效

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營業毛利
29.9%
29.8%
28.3%
25.2%
24.3% 24.6%
23.6% 23.6% 22.6% 23.4%
22.5%
22.2% 22.3%
20.9%
17.Q1 17.Q2 17.Q3 17.Q4 18.Q1 18.Q2 18.Q3 18.Q4 19.Q1 19.Q2 19.Q3 19.Q4 20.Q1 20.Q2
2017 2018 2019 2020’H1
NT$ 2,186M NT$ 1,828M NT$ 2,007M NT$ 1,396M
(yoy -14.4%) (yoy -16.4%) (yoy +9.8%) (yoy +75.5%)
800 755
641
603 597 615
600 535 534
513 513
486
456
415 415
400 339
200
0
17.Q1 17.Q2 17.Q3 17.Q4 18.Q1 18.Q2 18.Q3 18.Q4 19.Q1 19.Q2 19.Q3 19.Q4 20.Q1 20.Q2
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毛利率(%)

營業毛利

單位 : 新台幣百萬元

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每季財務績效

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稅後淨利
15.1%
14.6%
11.9%
稅後淨利率 10.8%
10.7%
10.0%
(%) 9.4% 9.7% 9.1%
8.0%
7.0%
6.2%
4.8%
4.5%
17.Q1 17.Q2 17.Q3 17.Q4 18.Q1 18.Q2 18.Q3 18.Q4 19.Q1 19.Q2 19.Q3 19.Q4 20.Q1 20.Q2
2017 2018 2019 2020’H1
: 新台幣百萬元 NT$ 963M NT$ 644M NT$ 672M NT$ 626M
(yoy -5.3%) (yoy -33.1%) (yoy +4.3%) (yoy +192.1%)
400
369
321
300
257
246 242
227 234 221
203
200 169
137
116
84 78
100
0
17.Q1 17.Q2 17.Q3 17.Q4 18.Q1 18.Q2 18.Q3 18.Q4 19.Q1 19.Q2 19.Q3 19.Q4 20.Q1 20.Q2
TXC Confidential and Proprietary 6
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稅後淨利

單位 : 新台幣百萬元

綜合損益表

Unit：NT$ in Million 2017 2018 2019	2020 Q1 2020 Q2 2020 H1
Net Revenue 8,782 8,156 8,431 Gross Profit 2,186 1,828 2,007 Operating Profit 802 533 632 Non-Operating Items 273 200 132 Income before Tax 1,075 733 765 Net Income to Shareholders of the Parent Company 963 644 672 Basic EPS (NT$) 3.11 2.08 2.17	2,151 2,524 4,675 641 755 1,396 276 357 633 22 56 77 298 412 710 257 369 626 0.83 1.19 2.02
Gross Margin(%) 24.9% 22.4% 23.8% OPEX(%) 15.8% 15.9% 16.3% Operating Margin(%) 9.1% 6.5% 7.5% Income before Tax Margin(%) 12.2% 9.0% 9.1% Net Profit Margin(%) 11.0% 7.9% 8.0%	29.8% 29.9% 29.9% 16.9% 15.8% 16.3% 12.8% 14.1% 13.5% 13.9% 16.3% 15.2% 11.9% 14.6% 13.4%

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TXC Confidential and Proprietary

7

資產負債表

Unit：NT$ Million 2017 2018 2019

2020 Mar. 2020 Jun.

Cash & Marketable Securities 2,331 1,305 1,986 NR+AR 2,651 2,726 2,889 Inventories 1,504 1,817 2,039 Current Assets 7,983 7,117 7,945 PP&E 4,370 4,111 4,054 Total Assets 13,403 12,562 13,369 Current Liabilities 2,277 2,089 2,797 Non-current Liabilities 1,961 1,722 1,875 Total Liabilities 4,238 3,811 4,671 Total Shareholders' Equity 9,165 8,751 8,698 A/R Turnover Days 119 120 122 Inventory Turnover Days 84 96 110 Current Ratio(%) 350.6% 340.7% 284.1% Debt Ratio(%) 31.6% 30.3% 34.9% Book Value Per Share(NT$) 29.59 28.25 28.08

2,059 1,981 2,704 2,868 2,400 2,580 8,229 8,672 4,070 4,315 13,817 14,556 2,753 4,318 2,104 1,819 4,857 6,137 8,960 8,419 119 112 134 129 298.9% 200.8% 35.2% 42.2% 28.93 27.18

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8

每股盈餘與每股股利

High Dividends payout

High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元	High Dividends payout 單位: 新台幣元
YEAR 2011 2012 2013 2014 2015 2016 2.2 2.2 2.2 2.5 2.5 2.8 0 0.5 1 1.5 2 2.5 3 3.5 4 ~~2011~~ ~~2012~~ ~~2013~~ ~~2014~~ ~~2015~~ ~~2016~~
		2.2 2.2 2.2 2.5 2.5 2.8															2.5 2.0 2.5 Earnings Per Share Cash Dividends Per Share
			.2 2.2 2.2 2.5 2.5														2.5
		2011 2012 2013 2014 2015 2016 ~~2011~~ ~~2012~~ ~~2013~~ ~~2014~~ ~~2015~~ ~~2016~~															2017 ~~2017~~				2018 2019 ~~2018~~ ~~2019~~
Earnings Per Share		3.48		3.79		3.02		3.21				3.03				3.28	3.11				2.08	2.17
Cash Dividends Per Share		2.2		2.2		2.2		2.5				2.5				2.8	2.5				2.0	2.5
Stock Price(Apr.)		43.6		46.0		43.6		39.9				41.1				44.5	39.0				36.0	44.0
Payout Ratio(%)		63.2		58.0		72.8		77.9				82.5				85.4	80.4				**96.2 **	115.2
Yields(%)		5.1		4.8		5.1		6.3				6.1				6.3	6.4				5.6	5.7

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TXC Confidential and Proprietary

9

2020 資本支出計畫

Expand the Economy of Scale Capacity expansion for new products, and to satisfy market demands

單位: 新台幣百萬元

Amount: NT$550M

• MEMS

• Miniature SMD Crystal

• Amount: NT$300M  Facility  Miniature SMD Crystal

Amount: NT$350M  Miniature SMD Crystal  SMD Oscillator

總金額: NT$1,200M

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10

市場展望 產值, 排名, 產品應用

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TXC Confidential and Proprietary

11

石英元件整體產值

• Overall, the total market for Crystals and Oscillators decreased 2.6% in CY2019 to $3.04 billion usd.

• The semiconductor forecasts for 2020 are all over the place. No one quite knows what the real impact of COVID-19 will be on the full year. However, we still can expect the market will gain business potential back with positive growth.

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4,000 8.0%
▆ Revenue (Millions of Dollars) [▂] Revenue YoY (%)
3,500 3,271 6.0%
3,122
3,041
2,921
3,000 2,829 2,870 4.0%
2,500 2.0%
4.0%
2,000 0.0%
1.4% 1.8%
-2.6%
1,500 -4.5% -2.0%
1,000 -4.0%
-6.9%
500 -6.0%
0 -8.0%
2017 2018 2019 2020 2021 2022
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Source: 2019-20 WORLDWIDE WW CRYSTAL & OSCILLATORS Report, CS&A, June 2020, TXC Estimation

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TXC Confidential and Proprietary

12

石英元件整體產量

Forecasting Stable growth during 2020-2022

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▂
▆ Shipment (Millions of Units) Units YoY (%)
19,000 6.0%
18,500 4.0%
18,276 18,290
18,068
17,932
18,000 5.5% 2.0%
0.1%
17,539
2.2%
17,500 0.0%
-1.2% 17,279
1.5%
17,000 -2.0%
-4.4%
16,500 -4.0%
16,000 -6.0%
2017 2018 2019 2020 2021 2022
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Source: 2019-20 WORLDWIDE WW CRYSTAL & OSCILLATORS Report, CS&A, June 2020, TXC Estimation

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TXC Confidential and Proprietary

13

世界排名

Strong Market Penetration

世界排名 Strong Market Penetration	世界排名 Strong Market Penetration	世界排名 Strong Market Penetration	世界排名 Strong Market Penetration	世界排名 Strong Market Penetration	世界排名 Strong Market Penetration	世界排名 Strong Market Penetration	世界排名 Strong Market Penetration	世界排名 Strong Market Penetration
Source: CS&A 2020
				Revenue( M_USD )			Market Share(%)
2018 Rank	2019 Rank		Company Name	2018	2019	Percent Change	2018	2019
1 1 Seiko Epson $365 $355 -2.8% 11.7% 11.7%
2 2 NDK $358 $336 -6.5% 11.5% 11.0%
4		3		$272	$281	3.2%	8.7%	9.2%
3 4 KCD $285 $257 -10.9% 9.1% 8.5%
5 5 KDS $191 $192 0.5% 6.1% 6.3%
6 6 Microchip (Vectron) $176 $171 -2.9% 5.6% 5.6%
7 7 Murata $94 $89 -5.6% 3.0% 2.9%
9 8 Harmony $92 $88 -4.5% 2.9% 2.9%
8 9 Hosonic $94 $86 -9.3% 3.0% 2.8%
11 10 SiTime $85 $84 -1.2% 2.7% 2.8%
Other Companies $1,110 $1,102 -0.7% 35.6% 36.2%
Total Revenue $3,122 $3,041 -2.7% 100.0% 100.0%

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TXC Confidential and Proprietary

14

TXC 產業別銷售比重

實際 與 預估

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IoT OTHERS
Crystal, TCXO
11% 8%
AUTOMOTIVE
4%
AUTOMOTIVE
OTHERS 5%
9% IoT
10%
2020
MOBILE
MOBILE
NETWORKING COMMUNICATION
COMMUNICATION
31% 2019 (F) 30%
27%
NETWORKING
31% Crystal, TSX , TCXO
Stratum 3 TCXO
HF VCXO
OCXO, Crystal
MOBILE
MOBILE
COMPUTING
COMPUTING
16%
18%
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TXC Confidential and Proprietary

15

成長潛力

• 新產品開發

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從 4G 到 5G

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QORVO, 2017

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(1M units / km [2] ) (Latency <1ms)
(~10Gbps)
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5G Use Cases – Drivers

• eMBB (增强移動寬帶)

• Enhanced Mobile Broadband

• mMTC (大規模裝置互聯)

• Massive Machine Type. Communications

• uRLLC (超可靠低延遲)

• Ultra-Reliable and Low Latency Communications

Ericsson, 2017 TPE 5G Summit

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5G 全架構

Comprehensive Ecosystem

Network Infrastructure

Internet Data Center

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AIoT Device
Mobile Phone AAU 5GC
(Core Network)
CU
25/50/100G 100/200/400G 200/400G Cloud
Multiple Automotive
Usage NR
Equipment
Small Cell DU
Optical Module Server/Storage/Security
CPE
Mobile Computing
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TXC Confidential and Proprietary

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TXC 5G 主要應用佈局

Device Interconnection

Infrastructure

Intelligence Platform

Mobile Phone

(5G NR, GPS, Wi-Fi 6/6E, BT, NFC, etc.)

Mobile Computing

• (NB, Tablet, Mobile Device, Server, etc.)

CPE

• (5G NR, Wi-Fi 6, NB-IoT, LoRA, etc.)

Macro Base Station

(AAU, DU/CU, Transport & Core) Small Cell

(Micro, Pico, Femto, etc.)

Optical Module

(100/200/400G PAM4 & Coherent Solution)

Smart Device

(Home, City, Industry, Logistic, Medical, etc.)

Edge Computing

(Server, CPU/GPU, MCU, etc.) Automotive

(V2X & ADAS)

Support Roles in Timing Solution

• 5G NR • LTE • GPS • LoRA

• NB-IoT • Wi-Fi • BT • NFC

• Clock Synchronizer (SyncE & IEEE1588) • DSP

• Clock Generator • Jitter Attenuator • Ethernet

Crystal & Oscillator Specification Development Trend

• Miniature • Low Hysteresis

• High Frequency Accuracy & Stability

• High Temperature Operating

• Miniature • Ultra High Frequency Accuracy & Stability

• Reliability • Ultra Low Phase Noise

• Anti-Air Flow • Ultra Low Jitter

• G-Sensitivity • High Temperature Operating

Crystal & Oscillator Type Demand

• XTAL/HF XTAL

• TSX

• XTAL/HF XTAL

• XO/Differential XO/VCXO

• XO • TCXO/S3TCXO • TCXO/S3TCXO • OCXO

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5G 帶動智能手機換機需求

5G infrastructure deployment accelerates the 5G smart phone market. 50% of Total Market TAM China & USA expects to be over

2019-2023 Estimate 5G Smart Phone Total Volume: ~1.9billion CAGR: ~180%

In 2023Y 5G Smart Phone estimates accounts for 51.4% Which will surpass 4G Smart Phone shipments.

Million (sets)

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Global Smart Phone Forecast By Portion

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━ 3G ━ 4G ━ 5G
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Source: Canalys forecasts, smartphone, Analysis, July 2019

TXC Confidential and Proprietary

20

4G 到 5G 智慧型手機頻率元件使用規格

Miniature Size & Higher Frequency Product will be key growth driver to Smart Phone Market in the future, due to stricter space limitation for product design.

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4G 5G
New Evolution Phone
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21

Wi-Fi 6 將驅使AIoT 生態邁向新紀元

With adoption of Wi-Fi 6, it provides significant capacity, performance, and latency improvements to the entire Wi-Fi ecosystem. CPE devices will booth the home connected devices (Higher Frequency with Higher ASP)

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Source : Strategy Analytics’ Intelligent Home Group

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各項應用場景互聯裝置加速小型化產品需求成長

Rich Devices Ecosystem will require plenty of Miniature size XTAL to fit in various kinds of application scenarios

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4G Mobile Devices/Wearable/IoT 5G/6G AIoT Devices Ecosystem
5,008
3,885
Global Miniature Size XTAL Forecast (Million pcs)
2,777
▄ 1612 ▄ 1210 ▄ 1008 ▄ 0806 (2020~30, CAGR: 41%)
▄ 0604, Smaller Size 1,574 1,985
1,021 1,185
683
2016 2018 2020 2022 2024 2026 2028 2030
Source: 1. CS&A, Combined WW SEMI-Timing Industry Report & Analysis, June 2019
Source: 2. Smart Phone Supplier Shipment & Forecast, 2016~2020
TXC Confidential and Proprietary 23
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TXC 5G應用全系列產品方案

Solution

Size Ke Parameters 5G Main A lication y pp AAU 5G New Core Stability, ±10 ppb CU NR Infrastructure DU Stability, ±0.28 ppm Small Cell (AAU, DU/CU, Core, Optical) Phase Noise@100kHz, -166dBc/Hz Optical Module

OCXO 9775/1409 Stability, ±10 ppb S3TCXO 5032/7050 Stability, ±0.28 ppm 1612 – 2520 Phase Noise@100kHz, -166dBc/Hz TCXO VCXO 2520 – 7050 Phase Jitter@12k - 20MHz, 0.05 ps Diff XO 2520 – 7050 Phase Jitter@12k - 20MHz, 0.05 ps PLL XO 2520 – 7050 Frequency, 10MHz - 2.1GHz XO 1612 – 2520 Phase Jiter@12k - 20MHz, 0.3 ps TSX 1210 – 2520 Frequency, 19.2 – 76.8MHz 1008 – 5032 Frequency, 8 – 320MHz Crystal

Intelligence Platform

(Smart Device, Edge Computing, Automotive)

Mobile/Multi Access Edge Computing

Device Interconnection NR (Mobile Phone, Mobile, Computing, CPE) CPE

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TXC 車用電子產品全面發展

Quality Assurance

Zero Risk Approach

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(Lowest DPPM Target per Management System) IATF 16949 Certified & VDA 6.3 Management

(HQ PCF, Taiwan & NGB, China)

Reliability (AEC-Q100, AEC-Q200 & Other Specifies Compliant) Product Robustness

(Design by Application, ASIL & Board Matching)

Application Focus

Infotainment & Telematics

(IVI System & Car Connectivity Related, Included V2X & UWB) Security Electronic

(Interior/Door & Remote Control Units)

Advanced Driver Assistance (ADAS)

(Camera, Radar & System Integrated)

Safety Electronic (Included EV Related)

[(BMS, OBC, Inverter, TPMS, ABS, ECU , Airbag & Power Steering) ]

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車用電子主要成長動能與對應產品佈局

Vehicle to A nything

Advanced Driver Assisted System

Electric Vehicle

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Vehicle-to-Pedestrian Vehicle-to-Network
(V2P) (V2N)
802.11p
LTE-V2X
Vehicle-to-Vehicle Vehicle-to-Infrastructure
(V2V) (V2V)
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Charging
Station
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Reliabilit y AEC-Q100 & AEC-Q200 + Custom Special Requirement

Specification	Specification	Specification
• TCXO	• Crystal & Oscillator	• Crystal & Oscillator
• G2, -40 to 105 °C	• G2/G1, -40 to 105/125 °C	• G1/G0, -40 to125/150 °C
**• Frequency Stability ±0.5ppm **	• Frequency Stability ±30/50ppm (G2/G1)	• Frequency Stability ±50/150ppm (G1/G0)
• Low Phase Noise	•Low EMI Solution(Oscillator)	• Low Frequency (4~12MHz) Support

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TXC競爭優勢

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No. 1 Largest Suppler in MHz Crystal for 7 Consecutive Years and Leading Edge Technology in Crystal Miniaturization.

Out of Top 5 Ranking Suppliers TXC is the only Profitable and Financially Healthy with Organic Growth without acquisitions.

TXC Manufactures MHz Crystal in all three manufacturing facilities to offset potential impacts caused by natural disasters. The expansion of miniaturization capacity by more than 20% in 2020.

Quick response and fulfillment to customer requirements

No. 1

Largest Supplier in MHz Crystals

TXC is Currently the No. 1 Largest Suppliers in the World for MHz Crystal alone.

No. 1

Largest Supplier Outside Japan

TXC is Currently No. 1 Largest Supplier in Frequency Control Products outside of Japan and introduced healthy competition into the Frequency market.

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No.4, Kung Yeh 6[th] Rd., Ping Cheng Industrial District Ping Cheng District 32459, Tao Yuan City, Taiwan TEL: +886-3-4698121 FAX: +886-3-4696954 www.txccorp.com

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TXC Confidential and Proprietary