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STRICTLY PRIVATE AND CONFIDENTIAL
GlobalWafers Co., Ltd.
August 2018
This presentation has been prepared by GlobalWafers Co., Ltd. (the “Company”). This presentation and the materials provided herewith
do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an
inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or
commitment whatsoever. Any decision to purchase securities in a proposed offering should be made solely on the basis of the information
contained in the offering circular published in relation to such proposed offering, if any.
The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or
implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the
opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing
at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation.
None of the Company nor any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever
arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.
Disclaimer
1
Company Overview
2
Company Overview
Leading supplier of silicon wafer with a global manufacturing footprint
Business Highlights Group Structure
1. Capital IQ, Company information.
2. Include pending and granted patents.
3. CommonWealth Magazine’s Top 2000 Survey in 2017 / Business Today Magazine’s Top 1000 in Great China Survey in 2018
A spin-off from SAS in 2011
World’s #3 silicon wafer supplier and
the largest non-Japanese player1
Hsinchu Science and Industrial Park, Taiwan
Markets Full-scale product offering with capacity from 3”
to 12”
Established Global manufacturing footprint from Asia,
Europe to the US
# 6,000+ (as of 31 July, 2018)
Has been included in the MSCI’s Global Standard
Indexes since 31 May, 2017
Holds over 1,200+ patents2 in 6 regions and World
Intellectual Property Organization
.#7 fastest growing and Top 50 most profitable
manufacturer in Taiwan in 2017 and
.#313 largest (market cap wise) company in
China + HK + Taiwan in 2018
in CommonWealth Magazine’s & Business Today Magazine’s
Survey
Establishment
Size
Headquarter
Products
Operating Sites
Employees
MSCI Index
R&D
GlobalWafers Co., Ltd.
(Taiwan)
100% 100% 100% 100% 100%
Sino Silicon
Technology
China
GlobiTech
USA
GWJ
Japan
Topsil
Denmark,
Poland
SunEdison
Semiconductor
(“SEMI”)
USA, Japan,
Korea, Italy,
Malaysia,
Singapore,
Taiwan
3
Ranking
Industry Overview
Semiconductor Revenue Worldwide
Semiconductor Revenue is Expected to Grow
Continuously by 2021
Source : WSTS;工研院產科國際所 Aug 2018
Worldwide semiconductor revenue is forecast to grow in 2018 to $463 billion, up 12.4% over 2017,
and will continue to rise by 2021.
5
(US$bn)
228 248 256 249
226
298 300 292 306 336 335 339
412
463 484 503
527
6.8% 8.9%
3.2%
-2.8%
-9.0%
31.8%
0.4% -2.7%
4.8%
9.9%
-0.2% 1.1%
21.6%
12.4%
4.4% 3.9% 5.0%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
-
100
200
300
400
500
600
700
800
900
1,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (e) 2019 (f) 2020 (f) 2021 (f)
Revenue Growth %
3 Eras of Demand
Source : VLSI Research, ISS US, Jan 2018
The digital era is enabling “a radical reshaping of the relationship between technology capabilities and
business opportunities.”
6
All front end facility, including new, old and in house
Fab Equipment Spending (Front End)
Source : SEMI, Jun 2018
Not seen 4 years of consecutive growth since the mid 90’s
6-year: mid 60’s, 9-year: 1976-1984, 4-year: mid 90’s
7
Samsung China
Fab Equipment Spending (Front End)
8
In 2017: Samsung Semiconductor increased capex from $11.4B in 2016 to $24B
Source: World Fab Forecast reports, June 2018, SEMI
Fab Equipment Spending (Front End)
Starting 2017 the landscape changed with Samsung Semiconductor increasing from $11.4B to $24B.
In 2018: China and Japan increase investments. Japan increase by Flash Alliance, TMC, Sony, Micron)
by Region by Product type
Source: World Fab Forecast reports, June 2018, SEMI
Change % 2 years 2017 to 2019
. China:160%
. Japan: 43%
. SE Asia: 34%
. Americas: 14%
. Europe & Mideast: 9%
. Taiwan: 7%
. Korea : -14%
Change % 2 years 2017 to 2019
. Logic/Image sensors :340%
. MPU: 45%
. Memory/DRAM : 35%
. Memory: 3DNAND+3DXPoint: 15%
. Discrete/Power: 25%
. Foundry(all) : 25%
9
by Region
Installed Capacity 2017 to 2019 (Excluding LED, EPI, R&D)
Source : SEMI, Jun 2018
Some regions like Japan experience loss due to conversion 2D NAND to 3D NAND
10
Change % 2 years 2017 to 2019
. 3D NAND+3DXPoint 90%
. Logic/Image sensors 56%
. Memory/DRAM 22%
. Discrete/Power 13%
. MEMS 12%
. Foundry(all) 10%
. MPU 0%
. 2D NAND -61%
by Product type 2017
Change % 2 years 2017 to 2019
. China:29%
. Korea: 21%
. SE Asia: 11%
. Europe & Mideast: 7%
. Taiwan: 6%
. Americas: 2%
. Japan: -3%
300mm Wafer Dominates and Continues to Lead the Trend
Global silicon wafer diameter trends1 Global semiconductor capacity by wafer size2
1. Source: SEMI SMG 1995 to 2016; Forecast SEMI October 2017.
2. Source: Gartner as of 4Q17.
(In millions of square inches)
Includes polished and epi wafers. Excludes reclaim, non polished, and SOI
300mm 58.7%
200mm 27.6%
150mm 9.0%
100mm 3%
<100mm 1.9%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017E
2018F
2019F
150mm 200mm 300mm
11
Installed Capacity 300mm vs. ≤ 200mm
(excluding LED, EPI R&D)
Source: SEMI Jun, 208 12
In 2018:
The share of capacity for 200mm and less (≤200mm) to global is about 46%.
* Capacities =<200mm: More than Moore
48%
52%
46%
54%
62%
38%
200mm Fab Counts & Capacity
200mm capacity increase ~10% from 2017 to 2022 (excluding EPI, LED, R&D)
Source: SEMI, Jun 2018
Adding : 600k+ wpm from 2017 to 2022
Expansion & upgrade from 150mm to 200mm, 29 lines, 172kwpm
New 27 lines, 482k wpm, close, conversion etc. 6 lines, -36kwpm
13
Change % 2 years
2017 to 2019
. China 44%
. SE Asia 19%
. Taiwan 10%
. Americas 8%
. Japan 6%
. Europe & ME 2%
. Korea -6%
Worldwide Annual Wafer Capacity Trends
(200mm-equivalents)
Source: IC Insights, Feb 2018 14
New IC manufacturing lines boosts total industry wafer capacity by 8%
(2018 & 2019 - 8% vs. 2012~2017 - 4.8% (average))
6.8%
7.3%
8.7%
2.8%
10.0%
4.6%
5.5%
5.4%
6.8%
6.0%
0% 2% 4% 6% 8% 10% 12%
Wafer Demand – Application in Downstream Verticals
2016 - 2021 IC CAGR’ by applications
Source: Gartner Dec 2017
Note: 1. Columns do not add to totals shown due to rounding. 2. ASSP = application-specific standard product; ASIC = application-specific integrated circuit; GP = general purpose;
NOS = non-optical sensor.
Memory, Opto & NOS application will lead the way in next 4 years, while ASIC, ASSP, Analog will maintain steady growth
ASSP, Memory, Micro share nearly 70 percent of semiconductor market
Total Semiconductor indicates 5.8% 2016 - 2021 CAGR excl. Memory and revenue of US$478bn in 2021
CAGR 2016–2021
5.8% CAGR excl. Memory
2021 Revenue Share
ASIC 30,952 6.5%
ASSP 127,680 26.7%
Analog 26,763 5.6%
Discrete 23,812 5.0%
GP Logic 14,638 3.1%
Memory 128,915 27.0%
Micro 71,590 15.0%
Opto 39,727 8.3%
NOS 13,622 2.9%
Total Semi 477,7001 100.0%1
(US$mm)
15
Forecast Revisions by Semiconductor Device Type
2019 vs. 2018 revenue change
Source: Gartner July 2018
Viewing from 2019 revenue against 2018,
DRAM device decreased while Microprocessors, ASSP, Discrete increased
16
Semiconductors Used in Electronics Post Solid Growth
in 1Q 2018
Revenue during Q1 2018 grew 17% compared to the same quarter a year ago
Major factor is data processing owing to SSDs replacing traditional hard drive and data center server
implementation
Global Semiconductor Revenue from Electronics Equipment & Devices Global Semiconductor Revenue by Sector
Source: IHS Markit Q1 2018.
Q1 2017
$95.2 bn
Q1 2018
$111.4 bn
Automotive, 9.9
Consumer Eelctronics, 10.5
Data Processing, 38.4
Industrial Electronics, 12.9
Wired Communications,
5.8
Wireless Communications,
33.9
(US$bn)
Data Processing 19.5%
Wired Communications 17.5%
Consumer Electronics 16.5%
Wireless Communications 16.3%
Industrial Electronics 14.6%
Automotive 13.9%
Q1 2018 YoY Growth Rate
17
(US$bn)
Computing 28%
Mobile phones 25%
Industrial 11%
Automotive 8%
Home appliances 8%
Switches/Modems 6%
Mobile infrastructure 4%
Others 10%
876
1,070
2017E 2020E
Robust Growth in Automotive and Industrial Applications
Demand drivers for wafers (all sizes) Wafer demand growth by end applications
Source: Broker research as of Jan 2018.
Mobile phones, computing, industrial and automotive account for over
50% of demand and are estimated to grow at 2.8% CAGR from 2017-2020
CAGR 6.9%
CAGR 4.4%
CAGR 0.3%
CAGR 3.1%
Automotive
Industrial
Computing
Mobile phones
Wafer volumes (mn sq inch)
1,225 1,395
2017E 2020E
3,255 3,565
2017E 2020E
2,945 2,976
2017E 2020E
18
Wafer Supply – Semiconductor Wafer Manufacturers
Top 5 silicon wafer manufacturers account for more than 90% market share worldwide
Top 5 Wafer Suppliers Strengths of GlobalWafers
Source: GWC estimates, company data, 2017 revenue result
Note: 1. Exchange rate used – USD:TWD\JPY\KRW\EURO=1:30.44\112.15\1,130.63\0.8872
GWC has 18% market share as no.3 wafer manufacturer
worldwide
Well planned and protection of market share to manage
production output with a rational growth rate versus market
demand
Product diversification can provide best wafer solution to
meet customers’ various application requirement
Cooperate with customers for advanced node development
to build win-win relationship with customers
Flexibly use manufacturing sites among group to produce
wafer with lowest cost and best quality and shorten delivery
schedule
Shin-Etsu 30%
SUMCO 27%
Siltronics 15%
SK Siltron 10%
18%
19
Product and Parametric Roadmap
CPU – 7nm DR
SoC – 10nm DR
Foundries – 7nm DR
System LSI – 7nm DR
Memory – D1X, D1Y, and D1Z
Others…
Heavily doped N-type 300mm for PowerIC application
UniformaTM (CCZ process) heavily doped ingots, such as As, Sb, and Red-Ph
Special EPI for CIS applications, N/P EPI or P/N or graded EPI
RFSOI for 4G and 5G network applications, PowerSOI for Automotive
Customized IG Structure ECAS®
SiC products
Broad Customer Base at Advanced Design
Rules/Products
Qualified volume delivery for customers with advanced design rule
Special applications
Note: ECAS® = Engineered customizable application specific. 21
More of Moore Requirements for Advanced Design Rule
Applications
Stable process capability is the foundation of all
Ingot Wafer
Uniformity
Oxygen
Crystal Defects
Bulk Micro Defects
Resistivity (Ultra Hi/Low)
Impurity
Strength
New Metrology
Uniformity
Cleanliness
Flatness
Shape
Particles
Defect Engineering
Specialty
New Metrology
New Materials
22
Performance Update
Financial Highlight : Q2 2018
(NT$mn) Q2 2018 Q1 2018
14,368 13,910
5,765 4,902
40% 35 %
4,675 3,750
29% 28%
3,500 2,779
24% 20%
NT$8.00 NT$6.36
36% 31%
17% 15%
27,150 27,231
Revenue
EBITDA*1
EBITDA %
EBIT
ROE*2
ROA*2
Net Financial Assets*3
24
EPS
Net Profit
Net Profit %
Operating Profit %
1. EBITDA= Net income + Tax + interests + depreciation + amortization.
2. Annualized ROE & ROA
3. Net Financial Assets = cash and equivalents + Other financial assets (current + non-current)
3,647 3,903
4,266
6,611
10,581
11,205
11,978 12,448
13,910 14,368
23.0%
26.9%
24.4%
18.2%
20.0%
24.6% 26.3%
30.4%
36.2% 37.0%
Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218
Revenue
GM %
Revenue & Gross Margin
10th consecutive quarterly growth,
2-digit improving gross margin contributes to more profits
(NT$mn)
25
6.14 6.60
5.80
2.54
12.68
14.36
2013 2014 2015 2016 2017 1H18
EBITDA & EPS
EBITDA - 20181H alone catches up with 87% of 2017
EPS - 20181H surpasses 2017 full year
EBITDA EPS
(NT$mn) (NT$)
4,053 4,087 4,046
3,025
12,221
10,667
26.0% 25.7% 26.4%
16.4%
26.4%
37.7%
2013 2014 2015 2016 2017 1H18
26
14,401
8,412
18,794
26,828
Q417 Q218
Total Bank Debt Cash
Total Bank Debt and Cash
Leverage Ratios
Repaid all of the bank loans associated with the acquisition of SunEdison Semiconductor in 4Q17
GWC operates in a healthy financial condition with net cash on book
27
(NT$mn)
Dividend Payout since 2012 versus EPS
Dividend Payout
3.44
6.14 6.60
5.80
2.54
12.68
2.80
5.50 5.70 5.00
2.50
10.00
2012 2013 2014 2015 2016 2017
EPS
Dividend
Dividend
Payout
Ratio
81.4% 89.6% 86.4% 86.2% 98.4% 78.9%
28
(NT$)
1. Operating Performance
10th consecutive quarterly growth
Hitting All Time High – Revenue, Gross Margin, EBITDA, Net Income, EPS
2. Capacity - fully loaded and booked by 2020
3. Long-Term Agreements
current – extended to 2020
2021~2025 and beyond – under discussion, partially secured with customers
Highlight
29
Appendix
Income statement
(NT$mm) Q218 Q118 QoQ Q217 YoY
Revenue 14,368 13,910 458 11,205 3,163
Growth (%) 3.3% 28.2%
Gross Profit 5,313 5,029 284 2,757 2,556
Gross Profit Margin (%) 37.0% 36.2% 0.8% 24.6% 12.4%
EBITDA 5,765 4,902 863 2,684 3,082
EBITDA Margin (%) 40.1% 35.2% 4.9% 24.0% 16.2%
Operating Profit 4,125 3,923 202 1,705 2,420
Operating Profit Margin (%) 28.7% 28.2% 0.5% 15.2% 13.5%
Profit before Tax 4,675 3,750 925 1,653 3,022
Profit before Tax Margin (%) 32.5% 27.0% 5.6% 14.8% 17.8%
Net Profit 3,500 2,779 721 1,293 2,207
Net Profit Margin (%) 24.4% 20.0% 4.4% 11.5% 12.8%
EPS (NT$) 8.00 6.36 26% 3.09 159%
Income Statement
1. Accounting adjustments are made in 20181H accumulated numbers 31
Balance sheet
(NT$mm) Q218 Q417 Q217
Assets
Cash and cash equivalents 26,828 18,794 6,620
Account receivable 8,971 7,869 8,151
Inventories 7,065 7,347 7,391
Property, plant and equipment 29,590 28,202 29,175
Other assets 7,480 8,020 8,528
Total assets 79,934 70,232 59,865
Liabilities
Short-term loan 4,998 10,738 5,523
Account payable 4,676 4,269 4,383
Long term loan 3,413 3,663 7,916
Other liabilities 30,159 17,508 11,844
Total liabilities 43,246 36,178 29,666
Shareholder equity 36,689 34,054 30,199
Key finnancial ratio
Inventory turnover days 73 78 79
A/R turnover days 54 61 66
Current ratio 181% 158% 149%
Balance Sheet
32