industry leading provider of outsourced semiconductor ... · overview (1) as of september 30, 2017...
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December, 2017
Industry Leading Provider of Outsourced
Semiconductor Assembly, Test & Bumping Services
2
Safe Harbor Notice
This presentation contains certain forward-looking statements. These
forward-looking statements may be identified by words such as ‘believes,’
‘expects,’ ‘anticipates,’ ‘projects,’ ‘intends,’ ‘should,’ ‘seeks,’ ‘estimates,’
‘future’ or similar expressions or by discussion of, among other things,
strategy, goals, plans or intentions. These statements include financial
projections and estimates and their underlying assumptions, statements
regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future
performance. Actual results may differ materially in the future from those
reflected in forward-looking statements contained in this document, due to
various factors. Actual results may differ materially in the future from those
reflected in forward-looking statements contained in this document, due to
various factors. Further information regarding these risks, uncertainties and
other factors are included in the Company’s most recent Annual Report on
Form 20-F filed with the U.S. Securities and Exchange commission (the
“SEC”) and in the Company’s other filings with the SEC.
3
Group Snapshot
Founded: 1997
Headquarters: Hsinchu, Taiwan
Ticker Symbol: TWSE : 8150.TW
NASDAQ : IMOS (ADS)
Employees(1): Taiwan: 5,761
China: 1,015
Manufacturing footprint in China & Taiwan
Shanghai, China
ChipMOS Shanghai (JV with Unigroup)
Hsinchu, Taiwan
ChipMOS Taiwan
Tainan, Taiwan
ChipMOS Taiwan
Overview
(1) As of September 30, 2017
(2) ChipMOS Taiwan is authorized by Unigroup to manage ChipMOS Shanghai
Key milestones
2001 2000 2011 2014 2010 2015 2016
• Acquired DDIC
and memory test
assets of SPIL
• SPIL became a
strategic
shareholder of
ChipMOS
Taiwan
• Started TCP
package for
LCD driver IC
and 12" wafer
assembly and
testing
business
• ChipMOS
Bermuda listed
common shares
on the Nasdaq
exchange
market
• Set up 12”
Gold
bumping, Cu
RDL, MCP, Cu
pillar, MCB
bumping and
WLCSP line
• Listed ChipMOS Taiwan on TWSE
• Announced the merger between ChipMOS Taiwan and ThaiLin
• Invested in JMC and Ryowa
• ChipMOS
Taiwan
merged
ThaiLin
• Announced
strategic
partnership
with Tsinghua
Unigroup
• ChipMOS
Taiwan
merged
ChipMOS
Bermuda and
issued ADS
(Nasdaq
Ticker: IMOS)
2017
• ChipMOS
Taiwan
formed
Shanghai
JV with
Tsinghua
Unigroup (2)
Corporate Holding Structure
4
ChipMOS Taiwan
5
Turnkey, High-yield, OSAT Partner of Choice
Offer turn-key solutions for core technology product segments
Dedicated OSAT capacity and strategically focused on collaboration-driven
growth
Leverage current partnerships to expand customer base
Services Provided
Pro
du
ct O
ffe
rin
g
DDIC
Bumping /RDL Wafer Test Assembly/Package Product Test
DDIC u u u u
Flash u u u u
DRAM u u u
Logic/
Mixed Signal u u u u
u
Package Test
15.8%
Wafer Sort
11.1%
Assembly
30.6%
LCD Driver
25.7%
Bumping (incl.
RDL/MEMS/PM)16.8%
6
2017 Revenue Breakdown
Consolidated Revenue
19,361.9 22,005.1
18,837.1 18,387.6
13,532.6
0
4,000
8,000
12,000
16,000
20,000
24,000
2013 2014 2015 2016 Q1-Q3'17
(NT$ M)
(1) Since 2015, ChipMOS Shanghai’s revenue was not included
in the consolidated revenue.
By Manufacturing Segments By Products
2017 Revenue Breakdown (Q1~Q3)
Niche DRAM
15.5%
Commodity DRAM
11.6%
Flash
18.5%
SRAM
0.9%
Logic/Mixed Signal
10.6%
DDIC
26.5%
Bumping (incl. RDL)
16.4%
7
COF Growth
Conversion of COG to COF in smartphone panels with full screen,18:9
format or OLED display resulting in increased volumes
ChipMOS leads industry as the largest supplier of the 12’’ fine pitch
COF in volume production
Meeting demand for continued 4K/UHD uptake
OLED Proliferation
OLED DDIC expected to see growth from small panel demand
>4 years production experience in OLED driver 12” bumping
Extending services, including turn-key, to new customers
Expect more opportunities in 2018
TDDI Transition
A new technology driving COG market segment transition
The first company with volume ramp to support partners’ market
introduction
Higher TDDI penetration expected as customers win more design-ins
DDIC
Leveraging Market Leadership Position
8
ChipMOS Positioned to Expand Market Leadership
Partnering with key customer to capture new, high-end smartphone
demand
In volume production since 3Q 2017
Expanding to multiple products using core technologies
Market penetration to proliferate across end customer offerings
Major OSAT for Taiwan niche DRAM makers
Supporting various automotive, display, graphic, and embedded products
NOR demand from display, automotive and entertainment center
segments remains strong, utilizing full wafer test capacities
Expanding NAND product type offerings
Added Cu based plating capacity to service non-driver customers
Integrating wafer bumping and assembly core technologies, to support
multiple growth opportunities in RDL, WLCSP, flip chip, power IC, MEMS
etc.
Optical
Sensor
Memory
Mixed-
Signal
9
End Application Demonstration – Smart Phone
DDIC:
COG COF (Full screen, 18:9, narrow bezel)
TDDI (COG COF)
OLED driver (COF)
Power IC (Load switch)
MEMS:
E-compass, Gyro, Accelerometer
Niche DRAM
Low power DRAM, mobile DRAM
NOR (OLED panel, TDDI)
Biometric sensor
10
New Smartphone Features Driving DDIC Revenue Growth
Source: WitsView Jul. & Aug., 2017
2015 - 2020 AMOLED & TDDI Penetration in Global Smartphone
Full-screen/18:9 switches COG to fine pitch COF and AMOLED require COF capacity
Integration of new smartphone features, including TDDI and fine pitch COF, driving need
for added test capacity
UHD/4K TV Growth DDIC COF Capacity Demand
11
2015 - 2020 UHD TV growth
ChipMOS Adding Capacity
to Capture
Continued Growth
Source: Futuresource consulting, Apr.’2016 & HIS market Jan.’2017
UHD(4K) TV & OLED propel significant
memory/storage market growth in set top boxes, TV,
home entertainment systems
Market penetration of UHD TV accelerating, & drives
DDIC COF demand increasing
12
New Applications Driving Increased NOR Demand
Source: HIS, Gartner, Synaptics, & summarized by Haitong Securities, 2017
New end-product & application drive NOR flash demand, and particularly wafer test
capacity
Margin benefit from fully utilized, fully depreciated wafer testers for NOR flash
13
Industry Leader in Outsourced Semiconductor Assembly & Test
4 Start to Realize Significant Financial and Operational Benefits from Prior
Corporate Structure Streamlining
Joint-Venture to Monetize Shanghai Operation, Drive China Growth and Deliver
Increased Profitability 3
Focused on Growth in Key Markets, including DDIC, Memory & Mixed Signal Markets 2
1 Leveraging Leadership Position and Track Record as Top OSAT
5 Robust Technology Roadmap Supports Multiple Growth Vectors
6 Proven Senior Management Team Executing on Right Business Strategy
China JV: Catalyst for Significant Profitability Growth
14
Strategic investors led by Tsinghua Unigroup have invested RMB 498.43 million for
a 54.98% stake in ChipMOS Shanghai-JV closed on March 24, 2017
Completed the 1st stage capital injection of ChipMOS Shanghai on June 30, and the
2nd stage capital injection is scheduled to complete by end of Q1 2018.
All together, ChipMOS Shanghai is expected to receive a total approximately RMB
1,074 million in funding
ChipMOS is not consolidating ChipMOS Shanghai post the JV closure. ChipMOS
Shanghai becomes a long-term investment of ChipMOS and recognized profit/loss
generated pro rata.
ChipMOS is strategically positioned to capture the growth opportunities of the
semiconductor market in China
Post-Transaction Shareholding Structure
ChipMOS BVI
45.02%
Unigroup Guowei
48.00%
Strategic Investors
+ Employees
6.98%
ChipMOS
Shanghai
15
Q3’17 Financial Highlights
Package Test15.6%
Wafer Sort11.0%
Assembly27.3%
LCD Driver27.2%
Bumping (incl. RDL/MEMS/PM)
18.9%
0
200
400
600
800
1,000
Q2'17 Q3'17
Bumping (incl. RDL/MEMS/PM) ( NT$ M)
Q3’17 Revenue Breakdown By Segment (unaudited)
16
By Manufacturing Segments
0
200
400
600
800
1,000
1,200
1,400
Q2'17 Q3'17
LCD Driver
QoQ 6.7% ( NT$ M)
0
200
400
600
800
1,000
1,200
1,400
1,600
Q2'17 Q3'17
Assembly ( NT$ M)
0
200
400
600
800
Q2'17 Q3'17
Wafer Sort ( NT$ M)
0
200
400
600
800
1,000
Q2'17 Q3'17
Package Test ( NT$ M)
QoQ 22.5% QoQ -17.5% QoQ -5.8% QoQ -7.1%
Q3’17 Revenue Breakdown By Product (unaudited)
17
By Products
0
200
400
600
800
1,000
Q2'17 Q3'17
Au Bumping (Incl. RDL) ( NT$ M)
0
500
1,000
1,500
Q2'17 Q3'17
DDIC
QoQ 7.1% ( NT$ M)
0
100
200
300
400
500
600
Q2'17 Q3'17
Logic/Mixed Signal
QoQ -6.3% ( NT$ M)
0
10
20
30
40
50
Q2'17 Q3'17
SRAM
QoQ -9.7% ( NT$ M)
0
200
400
600
800
1,000
Q2'17 Q3'17
Flash
QoQ 6.6% ( NT$ M)
0
200
400
600
800
Q2'17 Q3'17
Niche DRAM
QoQ -16.5% ( NT$ M)
0
100
200
300
400
500
600
700
Q2'17 Q3'17
Commodity DRAM
QoQ -40.7% ( NT$ M)
QoQ 22.6%
Niche DRAM
13.7%
Commodity
DRAM8.0%
Flash
20.1%
SRAM
0.9%Logic/Mixed
Signal10.7%
DDIC
28.1%
Au Bumping
(incl. RDL)18.5%
Test17.3%
Assembly12.0%
LCD Driver63.1%
Bumping7.6%
Q3’17 Capital Expenditures (unaudited)
18
CapEx
3,644.6
3,123.3
3,648.7
979.9 1,118.8
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2015 2016 Q1-Q3' 17 Q3'16 Q3'17
( NT$ M)
Q3’17 CapEx Breakdown
74% 76% 77% 76%
0%
20%
40%
60%
80%
100%
Q3'16 Q3'17 Q2'17 Q3'17
Q3’17 Capacity Utilization
19
Utilization Rate
82% 75%
0%
20%
40%
60%
80%
100%
Q2'17 Q3'17
Test
73% 63%
0%
20%
40%
60%
80%
100%
Q2'17 Q3'17
Assembly
87% 87%
0%
20%
40%
60%
80%
100%
Q2'17 Q3'17
LCD Driver
63%
77%
0%
20%
40%
60%
80%
100%
Q2'17 Q3'17
Bumping
Company Website
http://www.chipmos.com
20
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