May 25, 2011 · 6 Balance Sheets & Key Index Item 10.Q3 10.Q4 11.Q1 Current Assets $ 5,969 $ 5,691 $ 5,808 Cash $ 1,732 $ 1,635 $ 1,552 Notes & Account receivables $ 2,808 $ 2,788

May 25, 2011

1

Agenda

FINANCIAL RESULTS

SALES & MARKETING

NEW BUSINESS

BUSINESS HIGHLIGHTS

Q&A

2

FINANCIAL RESULTS

33

Unit: $NT in Million

Revenue Trend

1,614

1,792

2,153

1,803

1,394

1,824

2,217 2,292

2,113

2,338

2,510

2,689

2,322

-13.64%

1.79% 2.98%

27.14%

-13.63%

1.80%2.97%

27.15%

39.40%

28.19%

13.19%

17.30%

9.92%

-20%

-10%

0%

10%

20%

30%

40%

50%

0

500

1,000

1,500

2,000

2,500

3,000

08.Q1 08.Q2 08.Q3 08.Q4 09.Q1 09.Q2 09.Q3 09.Q4 10.Q1 10.Q2 10.Q3 10.Q4 11.Q1

Quarterly Revenue YoY Quarterly Revenue Growth

44


Gross Profit Trend

420

471

589

537

273

422

576 633

532

629

696 679

576

26.00% 26.26%27.36%

29.76%

19.61%

23.15%

26.00%

27.59%

25.16%

26.91%27.75%

25.20% 24.63%

0%

5%

10%

15%

20%

25%

30%

35%

0

100

200

300

400

500

600

700

800

08.Q1 08.Q2 08.Q3 08.Q4 09.Q1 09.Q2 09.Q3 09.Q4 10.Q1 10.Q2 10.Q3 10.Q4 11.Q1

Quarterly Gross Profit Quarterly Gross Margin

55


Net Profit Trend

206 212

276

257

69

170

260

283

213

331

361

285

237

12.79%

11.82%

12.84%

14.26%

4.97%

9.31%

11.74%12.34%

10.08%

14.15%14.37%

10.61%

10.13%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

50

100

150

200

250

300

350

400

450

08.Q1 08.Q2 08.Q3 08.Q4 09.Q1 09.Q2 09.Q3 09.Q4 10.Q1 10.Q2 10.Q3 10.Q4 11.Q1

Quarterly Net Profit Quarterly Net Margin

66

Balance Sheets & Key Index

Item 10.Q3 10.Q4 11.Q1

Current Assets $ 5,969 $ 5,691 $ 5,808

Cash $ 1,732 $ 1,635 $ 1,552

Notes & Account receivables $ 2,808 $ 2,788 $ 2,982

Inventories $ 1,313 $ 1,128 $ 1,188

Fixed assets $ 4,681 $ 5,062 $ 5,147

Total assets $ 10,987 $ 11,069 $ 11,309

Current liabilities $ 3,354 $ 2,809 $ 2,628

Notes & Account payables $ 1,633 $ 1,310 $ 1,312

Long-term liabilities $ 1,212 $ 1,718 $ 1,748

Total liabilities $ 4,579 $ 4,540 $ 4,399

Shareholders' equity$ 6,408 $ 6,529 $ 6,910

Debt ratio 41.68% 41.01% 38.90%

Current Ratio 177.97% 202.60% 221.03%

Quick Ratio 135.36% 157.45% 172.52%

Net Value Per Share $ 21.56 $ 21.97 $ 23.32

Unit: NT$ in Million

7

Capital Expenditures

7

Unit: NT$ in Million

Building 265

Production Lines:

TCXO/AOM*6、X'TAL*2

Sapphire Equipment

RD Equipment

Others 36

Sum 1,226

Building 22

Equipment 92Production Lines:

Tuning Fork*3

Others 4

Sum 118

1,344

Factories 250 Q3/Q4

Equipment 150 10 Production Lines (New & Old)

Sum 400

NGB

factory

Total

Equipment

CKG

factory

Notes

Ping-

Cheng

factory

Amount

925

Items

8

Dividend Policy

• Compensation payable to directors and supervisors

– 2%(2010)

• Employee Bonus

– 15%(2010)

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2005 2006 2007 2008 2009 2010

2.73

4.13

4.88

3.56

2.75

4.06

0.99

1.94 1.98 2 2

2.5

0.59

0.97 0.99

0.50.2

0.2

Earning Per Share Cash Dividend Per Share Stock Dividend Per Share

2005 2006 2007 2008 2009 2010

Earning Per Share 2.73 4.13 4.88 3.56 2.75 4.06

Cash Dividend Per Share 0.99 1.94 1.98 2.00 2.00 2.50

Stock Dividend Per Share 0.59 0.97 0.99 0.50 0.20 0.20

9

WORLDWIDE FCP

MARKET UPDATE

10

19%

16%

8%

25%

8.46%

-4.94%

-14.39%

20.37%

7.20%

-20%

-10%

0%

10%

20%

30%

TXC Performance WW FCP Market

Worldwide FCP Market

11

Worldwide Revenue of the Top Crystal and Oscillator Suppliers (Unit: Millions of Dollars)

* Data Courtesy of CS & A

2008 2009 2010 2008 2009 2010 (07-08) (08-09) (09-10) 2008 2009 2010

Change Change Change Market Market Market

% % % Share Share Share

1 1 1 Epson Toyocom 675 641.2 793.1 2.90% -5.01% 23.69% 19.90% 22.1% 22.7%

2 2 2 NDK 571 459.1 547.4 -12.02% -19.60% 19.23% 16.90% 15.8% 15.7%

3 4 3 KDS 327 271.3 390.7 11.60% -17.03% 44.01% 9.70% 9.4% 11.2%

5 5 4 TXC 222 240.5 301.4 15.63% 8.33% 25.32% 6.60% 8.3% 8.6%

4 3 5 Kyocera Kinseki 304 292.4 296.7 -20.00% -3.82% 1.47% 9.00% 10.1% 8.5%

6 6 6 Vectron 200 147.9 205 -2.91% -26.05% 38.61% 5.90% 5.1% 5.9%

7 7 7 Hosonic 119 97.3 108.6 - -18.24% 11.61% 3.50% 3.4% 3.1%

8 8 8 Rakon 96 81.5 105.9 -11.93% -15.10% 29.94% 2.80% 2.8% 3.0%

- - 9 Taitien - - 75.1 - - - - - 2.2%

9 9 10 TEW 75 60.1 66.1 -14.77% -19.87% 9.98% 2.20% 2.1% 1.9%

10 11 11 Micro Crystal 56 47.5 57 -9.68% -15.18% 20.00% 1.70% 1.6% 1.6%

11 10 12 Pericom 53 47.6 56.2 -7.02% -10.19% 18.07% 1.60% 1.6% 1.6%

12 12 13 River 51 40.8 46.9 -15.00% -20.00% 14.95% 1.50% 1.4% 1.3%

13 13 14 Conner-Winfield 44 35.1 38.7 -4.35% -20.23% 10.26% 1.30% 1.2% 1.1%

14 14 15 Fox 40 34.4 37.8 -21.57% -14.00% 9.88% 1.20% 1.2% 1.1%

Total

Revenue3,388.00 2,900.30 3,491.00 -4.94% -14.39% 20.37%

Revenue RevenueRevenueRank RankCompany Name

Rank

Worldwide Ranking & Market Share

12

2011(F)Worldwide by Quantity

2011(F)Worldwide by Revenue

Worldwide FCP Splits

13

Epson Toyocom

25%

KDS15%

NDK14%

Other14%

TXC13%

KED6%

Hosonic4%

Micro Crystal

3%

River2%

TEW2% Taitien

2%

Epson Toyocom

33%

KDS12%Other

11%

TXC9%

NDK6%

KED6%

Hosonic6%

Taitien6%

Pericom5%

Vectron4%

Fox2%

NDK28%

KED20%

Epson Toyocom

18%

Rakon10%

TEW4%

Vectron4%

KDS3%

Conner-Winfield

3%

TXC2%

CTS1%

Other7%

Worldwide FCP Market Share by Products

Vectron37%

NDK13%

Epson Toyocom

8%KDS5%

Rakon4%

Bliley4%

CTS4%

MtronPTI3%

Conner-Winfield

3%

KED2%

Other17%

14

MARKET

HIGHLIGHTS

Automotive,1%

Consumer Electronics,

6%

Global/EMS,16%

Mobile, 25%

Networking,25%

Others, 10%

PC, 15%

Sapphire, 2%

15

2010 2011(F)

TXC Sales Revenue by Marketing Fields

Automotive,1%

Consumer Electronics,

8%

Global/EMS,15%

Mobile, 22%

Networking,23%

Others, 13%

PC, 18%

16

CXO, 2.75%KHz

X'tal, 3.42%

MHz X'tal, 66.98%

Others, 24.09%

TCXO, 2.60%VCXO, 0.16%

CXO, 11.42%

KHz X'tal, 7.16%

MHz X'tal, 59.34%

Others, 10.01%

TCXO, 9.10% VCXO, 2.97%

2011(F)Shipment by product category

2011(F)Revenue by product category

TXC 2011 Forecast by product category

17

• TXC continues to expand share rate in high-growth Tablet PC market

• Features of Tablet PC; WLAN, 3G/4G (LTE/ WiMAX), GPS built-in function

will bring high growth in high-end XO, TCXO, and smaller size X’tal products

Worldwide Tablet PC Total Available Market

Market Highlights

295%

49%49%

35%0%

50%

100%

150%

200%

250%

300%

350%

0

50,000

100,000

150,000

200,000

250,000

2010 2011(f) 2012(e) 2013(e) 2014(e)Tablet PC Shipment YoY

(Unit: Thousands set)

Source: Gartner

TXC25%

TXC 2011 Target Share rate

of Tablet PC

18

Source: IDC, March 2011 (Unit: Thousands set)

Worldwide Smartphone Total Available Market

Market Highlights

49%

29%

21%16%

13%

0%

10%

20%

30%

40%

50%

60%

0

200,000

400,000

600,000

800,000

1,000,000

2010 2011 2012 2013 2014 2015Smartphone Smartphone YoY

•TXC continues to expand share rate of Handset (Smartphone) market

•TXC remains 60% growth rate in Handset (Smartphone) market, which is

stronger than the market growth

•Features of Smartphone; 3G/4G (LTE / WiMAX), WLAN, GPS, DTV/Video, and

NFC, will bring high growth in TCXO, MHz X’tal and KHz X’tal products

TXC25%

TXC 2011 Target Share rate

of Smartphone

19

Market Highlights

• TXC continues to approach Tier 1 customers for design-in, expand high end

timing product businesses and build market reputation

• The growth of Telecom and Datacom application drives our sales growth on high-

ASP and high-profit XO, VCXO, S3-TCXO and OCXO.

20

NEW BUSINESS:

SAPPHIRE SUBSTRATE

TXC LED BU Vision and Mission

21

2011~2012 Product Roadmap

Sapphire Substrate

2011/Q2 : 2” Epi-ready Wafer


2012/Q2 : 2” PSS Wafer

2012/Q2 : 4” PSS Wafer


Sapphire Ingot

2011/Q2 : 2” Sapphire Ingot



22

23

High end timing products will ramp up along with raising

Cloud Computing and Infrastructure applications.

Revenue will grow gradually and stably.

China Market is still the major sales driving force.

Continue penetrating Handset (Smartphone) 3G/4G market.

Gross margin will be improved due to better product mix.

Business Highlights

New Business will bring new growth momentum.

Tablet PC will be an important growth driver in a few

years.

24

Q & A

Documents

May 25, 2011 · 6 Balance Sheets & Key Index Item 10.Q3 10.Q4 11.Q1 Current Assets $ 5,969 $ 5,691 $ 5,808 Cash $ 1,732 $ 1,635 $ 1,552 Notes & Account receivables $ 2,808 $ 2,788