China’s Pan-semiconductor Industry Landscape

Allen Lu, President, SEMI China

July 15, 2012

About SEMI

Americas

27%

Taiwan

12%

China

12%

Europe

14%

India

1%

Japan

23%

Korea

9%

Singapore

2%

CHINA 270

Companies

EUROPE 259 Companies

INDIA 15 Companies

JAPAN 435

Companies

KOREA 167

Companies AMERICAS 521

Companies

SINGAPORE 33 Companies

TAIWAN 216 Companies

Over 1,900 global

member companies SEMI member HQ location

SEMI会员的规模分布

Under $5 M

67%$1B - $2B

1%

$500M - $1B

1%

$100M - $500M

3%

Over $2.5B

>1%

$25M - $100M

6%

$5M - $25M

22%

SEMI: Global Pan-semiconductor Industry Association

SEMI’s Industry Platform

IC Emerging Markets PV

SEMICON /FPD /SOLARCON China

-- Largest Micro-electronics Industry Gathering in Asia

• 1,116 Exhibitors

• 2,813 Booths

• 69,000 m2 of Exhibiting Space

• 50,000+ Visitors

• 3,500+ Conference attendees

SEMI China’s PV Programs

• Technology and Manufacturing

– PV Standards

– Technology Roadmap

– Supply-chain development

• Advocacy

– Central government policy

– Regional government resources

• Business Development

– PV Application projects

– Global match making

– Government consulting

• Build Alliance

– CPIA, CNECC

SEMI China PV Business Development Programs

- Linking government PV projects with the PV companies

7

Gov. Engage

Grid Engage

Site

Surve

y

YuLin

May.2012

Huhhot

Sept.201

2

Xinjiang

Aug.2012

Guangdong

Nov.2012

………..

Together, we build a Semiconductor

Industry Community in China!

Source: SIA/WSTS/SEMI, Feb. 2012

Global Semiconductor Market Trend

5 6 8 10 13 14 14 1826 22 27 33

45 49 51 55 60

77

102

144132137

126

150

204

139141

166

213228

248256249

226

298300

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

0

50

100

150

200

250

300

350

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

Global Semiconductor Market ($B)

Semiconductor Revenue ($B) Annual GrowthSource: SIA/WSTS/SEMI, Feb. 2012

China Semiconductor Industry Landscape

Source –CVIA, Ministry of Information Industry of China, SEMI, May 2011

China’s Top Imports

in 2010 China’s Customs data

Europe

10%

Japan

13%

Korea

20%

North

America

20%

Taiwan

20%

China

9%

ROW

8%

2011 Equipment Market

share: SEMI

Output

(Million units)

Growth

Rate

% of World Output

Export

(Million units)

Cell Phone

998 35% 62% 758

Color TV 114.9 16% 47% 66.3

FPD TV 90.9 25% 48% 52.3

Notebook PC

193.8 19% 93% 185.9

Digital Camera

109 14% 75% 91.3

China’s Electronic Product Output in 2010

China Semiconductor Industry Landscape

Source –CVIA, Ministry of Information Industry of China, SEMI, May 2011

China’s Top Imports

in 2010 China’s Customs data

Europe

10%

Japan

13%

Korea

20%

North

America

20%

Taiwan

20%

China

9%

ROW

8%

2011 Equipment Market

share: SEMI

Output

(Million units)

Growth

Rate

% of World Output

Export

(Million units)

Cell Phone

998 35% 62% 758

Color TV 114.9 16% 47% 66.3

FPD TV 90.9 25% 48% 52.3

Notebook PC

193.8 19% 93% 185.9

Digital Camera

109 14% 75% 91.3

China’s Electronic Product Output in 2010 Strong government desire and resource to grow

Semiconductor Industry

China IC Industry by Segment

45 82 124 186 226 235 270 364

455

63 181

233 309

398 393 341

447 438

244

283

345

512

628 619 498

629 617

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(E)

China IC Industry by Segment (in 100M RMB)

IC design IC Manufacture Packaging & Testing

Source: CISA, SEMI, 2011

China IC Industry by Segment

45 82 124 186 226 235 270 364

455

63 181

233 309

398 393 341

447 438

244

283

345

512

628 619 498

629 617

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(E)

China IC Industry by Segment (in 100M RMB)

IC design IC Manufacture Packaging & Testing

Source: CISA, SEMI, 2011

Global Annual PV Market Scenarios

Data Source:

2007-2011: SEMI and various market data

2012-2016: GTM Research (May 2012), iSuppli (February 2012), and EPIA Policy-Driven Scenario (May 2012)

Low Growth Scenario CAGR: 16%

High Growth Scenario CAGR: 24%

Global Annual New Installations

2007-2011 CAGR: 73%

14

15

2011年3月，日本福岛核危机引发各国能源政策讨论；德国宣布至2022年关闭所有核电厂。

4月，厄瓜多尔 推出光伏FIT；

7月，中国公布光伏FIT；奥地利通过新版光伏补贴法案，捷克取消26%税负；

8月，日本通过可再生能源特别法案；

10月，澳大利亚通过“清洁能源法案”；

11月，比利时宣布将 关闭7 座核电站；

12月，马来西亚启动光伏FIT；

2012年2月，中国光伏十二五规划出台。

2011年，捷克增收26%光伏税费；

西班牙限制补贴小时数；

德国通过FIT削减方案；

法国限定500MW 年装机；

比利时区域性补贴下调；

澳大利亚区域性削减FIT；

意大利对FIT进行月度下调；

英国削减FIT；

2012年，意大利停止下半年大型项目审批；

西班牙暂停可再生能源补贴；

德国宣布逐月削减 FIT；

2012年3月，美国 公布对中国光伏企业反补贴初裁，税率为2.9％至4.73％；

5月，美国公布反倾销初裁结果，税率达31.14％至249.96％。

Global PV Policy Changes (2011- )

China PV Installation

• Benefited by series of China PV application policies, PV installation capacity in China has showed remarkable growth since 2010.

• PV FiT policy effected much than any other policies and programs in China.

16

Source: SEMI, EPIA

811 12 14

1924

3136

41

55

69 76

0

10

20

30

40

50

60

70

80

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

China LED Fabs Quantity 中国LED外延&芯片厂数量

Source: SEMI China

LED wafer and Chip Fabs Qty. in China

(2000-2011l)

• By end of 2011,there are 76 LED Fabs in China totally.

• The new LED fab construction in China will slow down after 2011, even some LED Fabs will disappear.

• Beijing: BOE-B1 G5; BOE-B4 G8

• Suzhou: Samsung G7.5

• Kunshan:

• IVO G5, AUO (Kunshan) G7.5

• Nanjing:

CEC-Panda G6;CEC-Sharp G8

• Chengdu:

BOE-B2 G4.5;Chengdu Tianma G4.5,

Foxconn G8.5

• Shanghai:

CAOE (pre-SVA-NEC) G5,

Shanghai Tianma G4.5

• Guangzhou: LGD G8.5

• Shanwei: Truly G2.5

• Heyuan: Yazhi G2.5 & G3.5

• Shenzhen:

Century G5, CSOT (TCL) G8.5

• Wuhan: Wuhan Tianma G4.5

• Hefei: BOE-B3 G6; BOE-B5 G8

LCD Fab Plants in China

Source: SEMI China,2010;

TFT-LCD Fab capacity is moving into China mainland, the TFT-LCD industry is speeding up!

About SEMI

Ross Young Consultant

Global LCD Industry Profitability

Recent Headlines

• Top 5 chip maker spend 65% Capex

• Huge loss by Japan’s Sony, Renesas, …

• Lenovo joined bid on Elpida

• Applied Materials acquired Varian

• Lam Research acquired Novellus

• PV, LED capacity over demand

• German PV companies file bankruptcy

• US PV companies file bankruptcy

• Foxconn acquired Sharp LCD

Recent Headlines

• Top 5 chip maker spend 65% Capex

• Huge loss by Japan’s Sony, Renesas, …

• Lenovo joined bid on Elpida

• Applied Materials acquired Varian

• Lam Research acquired Novellus

• PV, LED capacity over demand

• German PV companies file bankruptcy

• US PV companies file bankruptcy

• Foxconn acquired Sharp LCD

Industry Consolidation，

Collaboration,

Re-distribution？