VPEC — Investor Presentation 2019

Nov 12, 2019

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Company Profile World-class leading edge with MOCVD

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Safe Harbor Notice

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Core Technology

MOCVD( 有機金屬氣相沉積法 )

• Metal Organic Chemical Vapor Deposition

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Semiconductor(by Material)

Element Si Ge , IV-IV SiC, SiGe

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||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|,|
|Semiconductor|IV-IV|
|SiC,|SiGe|
|III-V|
|GaAs,|InP, GaN, GaP, GaSb...|
|Com|ound|
|p|
|II-VI|
|ZnSe,|ZnS, CdS, etc.|
|Period|Column II|III|IV|V|VI|
|Be|鈹|B|硼|C|碳|N|氮|O|氧|
|2|
|Beryllium|Boron|Carbon|Nitrogen|Oxygen|二元化合物|Binary : GaAs, InP, GaP,GaN, etc.|
|Mg|鎂|Al|鋁|Si|矽|P|磷|S|硫|
|3|Magnesium|Aluminum|Silicon|Phosphorus|Sulfur|三元化合物|Ternary : InGaAs, InGaP, AlGaAs, etc.|
|4|Zn|鋅|Ga|鎵|Ge|鍺|As|砷|Se|硒|四元化合物|Quaternary : AlGaInP, InGaAsP, etc.|
|Zinc|Gallium|Germanium|Arsenic|Selenium|
|Cd|鎘|In|銦|Sn|錫|Sb|銻|Te|碲|五元化合物|Pentanary : AlGaInAsN, etc.|
|5|
|Cadmium|Indium|Tin|Antimony|Tellurium|
|Hg|汞|Tl|鉈|Pb|鉛|
|6|
|Mercury|Thallium|Lead|
|4|

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Semiconductor

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Chemical Reaction During Epitaxy

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化學反應式：

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主要原物料:

MO Source + Hydride + Carrier Gas ： H2

A s H 3[: rs ne] A i PH3 : Phosphine SiH 4 : Silane Si H 2 6 : Disiline H2Se : Hydrogen Selenide CBr 4 : Carbon Tetrabromide

TEAl : Tri-ethyl-Aluminum ( C2H5 )3Al TMGa : Tri-Methyl-Gallium ( CH3 )3 Ga SiH TMIn : Tri-Methyl-Indium ( CH3 )3In Si H 2 DETe : Di-ethyl-Tellurium ( C2H5 )2Te DEZn : Di-ethyl-Zinc ( C2H5 )2Zn CBr CP2Mg : Bis (cyclo-penta-dienyl ) Magnesium 環戊二烯鎂

CH Al CH Al 3 3 TMAl Tri - Methyl - Aluminum ( CH3 )3 三 甲基 鋁 CH 3

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Advantages of Compoundsemiconductor

1. High Electron Mobility高電子移動速率(5.7x higher than CM0S)

2. High Frequency Response高頻率響應

3. Wide Band Width 寬幅之頻寬 4 . High Linearity高線性度

4. High Power高功率

5. Alternative Choice of Material材料選擇多元性 7. 抗輻射 適用於無線通訊、光纖通訊、光顯示(LED)& 太陽能產 業

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GaAs in Wireless Communication Su l Chain pp y

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IDM :Skyworks, Qorvo, Avago, Anadigics

Sumitomo, Freiberg, AXT 4~6 ”GaAs Substrate

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GaAs Epi- Wafer 磊晶片

Microelectronics IC Process

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Wireless Communication Substrate

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MOCVD Reactor

Foundry: WIN, AWSC, GCS IC Package & Testing

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Market Size Forecast

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Source:Yole
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Market Size Forecast

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GlobalGaAs mark et
Source:Yole 9
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VPEC’s roducts p

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Microelectronics Photonics
•
HBT
•
LD
•
PHEMT
•
VCSEL
•
BiHEMT
•
PD
•
GaN on SiC
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VPEC’s Product Mix

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VPEC’s Product Mix

RF

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Source:Avago

RF Outlook

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5G Brings New RF Challenges for Handsets

RF complexity

�Bandwidth

� Linearity

� Power management

GaAs Provides The Key Ingredient For 5G Phones

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Source:Compound Semiconductor Volume 23 Issue 815

5G Smart Phone RFFM

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Source:Yole
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Samsun Galax g y

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RF Players in Galaxy S10 (Global VS. U.S.)

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Source: 18

Huawei

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• 1) HiSilicon’s 5G SoC has effectively 65-70% bigger die size than its 4G one; 2) Skyworks and Qorvo’s RF modules are totally displaced by HiSilicon, Murata, and Qualcomm;

• 3) Murata has the most RF content wins;

• 4) MediaTek is displacing Qorvo in Envelop Tracking IC; 5) HiSilicon makes t ~~he majority of PMIC, but there are two new Chinese suppliers; and 6)~~ DRAM in flagship 5G is the same as 4G. 19

Source: CLSA

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5G Smart Phone’s Penetration Rate

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Strategy Analytics estimates that less than 1% of phones sold ~~in 2019 will be 5G devices, but that share will grow to nearly~~ 10% in 2020. “

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5G Smart Phone Shipments

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5G Smart Phone Shipments

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Chinese Brands’ 5G Smartphone Roadmap

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IoT(802.11ac/802.11ax/802.11ad)

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802.11ax will greatly increase network capacity by supporting up to eight simultaneous data streams, each delivering up to 1.2 Gbps, to connect many more devices at greater speeds. 802.11ax portfolio includes 2.4GHz and 5GHz front-end modules (FEMs) and BAW filters. According to ABI Research estimates, Wi-Fi 6 chipset shipments are expected to grow from approximately 127 million units in 2019 to close to 2 billion units by 2024, representing a compounded annual growth rate of approximately 73 percent.

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IoT RF O ortunit pp y

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RF in Automobile

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RF in Automobile

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Source:Skyworks

Gartner Research estimates there will be 250 million connected vehicles on the roadways by 2020. The Qualcomm 9150 chipset, with the Qorvo QPF1002Q FEM, is currently part - of C V2X trials underway with Audi, PSA, Ford, Nissan and other ecosystem participants spanning projects in Europe, North America, China, Japan, and Korea.

Qorvo’s QPF1002Q providing higher linear output power and improved efficiency for lower temperature operation in automotive applications. This higher power operation results in enhanced range, improved accuracy and higher reliability essential to intelligent, onboard communication systems needed for the connected car and autonomous driving. Qorvo’s FEM includes an HBT PA, PHEMT LNA and PHEMT switch, which combine to enable ~~superior performance over competi~~ ng technologies.

Source:Qorvo

Basestation b Power Level y

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Infrastructure PA Technology Landsca e in 2019 p

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Infrastructure RF Market

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GaN on SiC

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High tempeture High frenqurency Excellenct Heat Dissipation

Source:Yole 31

InP Market Forecast

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Source:Yole
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InP A lication pp

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Source:Yole
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FP LD & DFB LD

• 1270 nm/1310 nm/1550 nm

• FP LD 2016/11 small volume shipment

• DFB LD 2018 Q2 small volume shipment

• Upgraded products in reliability test p rocess

• Product Advantage:

• Far field angle design Increase power & yield rate Reduce lens cost

• Improve product mix & margin

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EEL Market Size

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LD Market Forecast

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The market for laser diodes and direct-diode lasers will grow to $13.985bn by 2029, comprising $11.952bn for laser diodes and $2.033bn for directdiode lasers, according to the report ‘ Laser Diodes & Direct Diode Lasers 2019-2029 ’ by market research and technology consulting firm IDTechEx of Cambridge, UK.

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O tics Transceivers p

Source:LightCounting(LC) 37

VCSEL A lication pp

High Power 940nm 3D Sensing/ 808nm hair removal and other aesthetics applications/ LiDAR for Autonomous Driving/ Surveillance

High Speed 850nm Datacom

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How does a 3D laser sensor work?

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VCSEL

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ToF Ado tion 2017- 2020 p ( )

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ToF Ado tion in 2020 p

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LiDAR Market Size

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VCSEL

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Infrared(IR) Market Size

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Source:Yole

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PIN Diode

收光晶粒之上游材料,可用於PIN & APD 具元件驗證能力 技術能力已達25G I mage sensor ’ s app li ca ti on: Th e concept of “Machine Vision”

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Seeing in Low Light ConditionsNi ht Vision g

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Penetrate Atmosphere Obscurants

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Seein throu h Smoke and Fire g g

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Product Ins ection p

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Epi Wafer Market Consolidation

2010

2013

51 Source:Strategy Analytics

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2017 Source:Yole

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2016-2019 Q3 Financial Result

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2020 Outlook

• New Momentum

• 5G smartphone/IOT Application(802.11ac or 802.11ax(WiFi 6))

• ToF ado tion p

• Healthy Portfolio

• By products(improve product mix & margin)

• By customers

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