Taiwan Semiconductor / LED / PV MarketSeptember, 2013

© 2013 SEMI Taiwan. All Copyright Reserved.

The Power of [Taiwan]

3

IC In

dust

ry

The output value of the global IC design is expected to have a annual growth of 6.1%, came to $ 81.36 billion in 2013 while Taiwan IC design output value is expected to grow 17% to US$ 16.32 billion in 2013, remain the 2nd place in global IC design market.

(Source: ITRI/IEK, August 2013)

Global and Taiwan IC Design Output Value & Market Share

Taiwan Ranked No. 2 in Global IC Design Industry

(Source: MIC, 2013)

WW IC DesignTW IC Design TW IC Design Market Share

TW IC Growth Rate

90

2009 2010 2011 2012 2013(e)

25%

20%

10%

0%

15%

5%

-5%

80

70

60

50

40

30

20

10

0

(US$

Billi

on)

Taiwan Semiconductor Packaging & Testing Service Revenue Taiwan Semiconductor Foundry Service Revenue

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4

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Taiwan is No. 1 in IC Packaging & Testing Service

Taiwan is No.1 in Semiconductor Foundry Service

Taiwan’s IC packaging and testing revenue is expected to reach 9.77 billion and 4.35 billion respectively in 2013.

Taiwan’s Foundry service revenue achieved US$21.36 billion in 2012 and is expected to reach US$25.5 billion in 2013.

2009

6.66

2.93

9.08

4.04

9.14

4.09

9.19

4.10

9.77

4.35

(Source: ITRI/IEK, August 2013)

0.00

2.00

4.00

6.00

8.00

10.00

2010 2011 2012 2013(f)

6.66

9.08 9.14 9.19 9.77

2.93

4.04 4.09 4.10 4.35

IC Packaging

IC Testing

(US$

Billi

on)

(US$Billion)

25

20

15

30

10

5

0

2009 2010 2011 2012 2013(f)

12.37

18.4519.42

21.90

25.50

(Year)

(Source: ITRI/IEK, August 2013)

6 7

Taiwan Continues to Show Strong Investment Activities

SEMI Equipment Forecast by Region

Taiwan is expected to invest over US$10 billion in 2013 and 2014 respectively, which make Taiwan the single largest semiconductor equipment market in the world.

$45$50

2009(A)

ROW

China

S. Korea

Europe

Taiwan

Japan

N. America

2010(A) 2011(A) 2012(A) 2013(F) 2014(F)

1.44

0.94

2.60

0.97

4.35

2.23

3.84

3.68

8.63

2.33

11.25

4.44

3.41

3.65

8.66

4.22

8.52

5.81

2.10

2.50

8.67

2.55

9.53

3.42

2.17

2.81

6.69

2.35

10.43

3.80

1.94

5.11

8.74

4.21

10.62

4.61

3.39 5.75 9.26 8.15 8.04 8.75

$40$35$30$25$20$15$10

$5$0

★

ROWChinaS. KoreaEuropeTaiwanJapanN. America

(Source: SEMI, July 2013)

(US$

Billi

on)

Taiwan Owns the Largest Number of 300mm Fabs in the World

Taiwan is expected to have twenty-six 300mm volume production fabs by the end of 2014. Overall 300mm capacity will reach 950 thousand wafers per month in 2014.

300mm Installed Capacity

(Thousands)

0

200

S. KoreaTaiwan

JapanAmerricas

ChinaSE Asia

Eur & M. East

400

600

800

1000

1200

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

(Source: SEMI World Fab Datebase, August 2013)

★

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Materials Markets by Region

Taiwan: A 10 Billion Dollar Materials Market

2012 = $47.1 Billion

Region 2012 2013F %

$B $B Change

Europe 2.98 3.07 3%

China 5.07 5.59 10%

North America 4.78 4.96 4%

South Korea 7.41 7.64 3%

ROW 8.01 7.97 0%

Japan 8.58 8.21 -4%

Taiwan 10.27 10.52 2%

Total Regions 47.10 47.96 2%

★

★

ROW 17%Europe 6%

North America10%

Korea 16%Taiwan 22%

China 11%

Japan 18%

(Source: SEMI, May 2013)

9

Embedded SubstrateWith computing and smart devices fueling growth in the market, faster, smaller and more functions are being incorporated in microelectronics at an accelerated rate. Embedded Substrate will be the next important technology for packaging development. Taiwan’s substrate suppliers such as ASE, Nanya, Unimicron and Tripod tech are all a part of this exciting field.

Green Manufacturing In the 21st century, green products and green production technologies will eventually become a company competitive advantage, with the trend increasing demand for green manufacturing. TSMC, UMC, MXIC, AUO, CMO and other device makers are trying to realize the concept of “design for green manufacturing”.

Secondary Equipment MarketThe secondary equipment market in Taiwan is taking off! Due to the needs of finding out better cost-effective solutions, some fabs and DRAM makers in Taiwan have started to increase the portion of refurbished equipment installed.

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Taiwan LED Industry Products Value

LED

MEM

S TOP 20 MEMS Foundry Ranking

Taiwan is One of the Most Important MEMS Manufacturing Base

• In the MEMS foundry ranking of 2012, Taiwan Semiconductor Manufacturing Co. Ltd is the fastest climbing company of Taiwan.

• Asia Pacific Microsystems, Touch Microsystems and UMC are also listed as major MEMS makers.

250

200

150

100

50

0

203

6542 39 34

25 20 19 19 18 16 14 12 11 8 8 8 6 5 4

STSO

NYTS

MCTE

LEDY

NE D

ALSA

SILEX

MIC

ROSY

STEM

S

ASIA

PACI

FIC M

ICRO

SYST

EMS

Xfab IMT

TRON

ICSM

ICRO

SYST

EMS

UTC

SSS

MICRA

LYNE TI

SEMEF

ABTO

WER JA

ZZ

ADVA

NCED

MIC

RO SE

NSOR

S

TOUC

H MIC

ROSY

STEM

S

UMC

Glob

al Fo

undr

iesHo

neyw

ellMIC

REL

(Source: Yole Développement, 2013)

140,000

2011 2012 2013(e) 2014(f) 2015(f) 2016(f) 2017(f)

82,625 86,313 90,749 100,400 107,800 113,500 121,000

(Source: ITRI/IEK, January 2013)

(NT$

Mill

ion)

Market Scale

120,000

100,000

80,000

60,000

40,000

20,000

00

Taiwan Rank No.2 in LED Chip & PKG Market

Chip & PKG Revenue Ranking in 2012

China 15%

Korea 19%

Europe 11%

Taiwan 21%

Japan 25%

USA 15%

★

(Source: LEDinside, 2013)

13

LED

12

LED

Taiwan LED Makers Own the Largest LED Epitaxy Capacity

While worldwide LED epitaxy capacity is expected to reach 2.4 M in 2013 (4” equivalent per month), Taiwan LED makers account for the largest share of capacity (around 28%) with their facilities in Taiwan and China.

LED Epitaxy Capacity Share by Region

SE Asia 0.1%

China 25.8%

Korea 16.1%

Europe & Mideast 2.8%Taiwan 22.2%

Japan 21.6%

Americas 11.5%

★

(Source: SEMI Opto/LED Fab Forecast , July 2013)

15

Plastic Electronics

Precision Machinery

OLAE (organic and inorganic large area electronics) promises a large market potential of over $50 billion by 2020. The technology is an answer to many challenges in our society with regard to renewable energy, environment protection, information, entertainment, communication, e-mobility, health and more.

• The sales revenue of local manufactured semiconductor equipment and parts reached US1.2 billion in 2011.

• Most of the spare parts for 300mm wafer process can be provided by local suppliers.

• Taiwan government is aiming to raise the semiconductor spare parts localization rate to 50% by 2015. (through OEM or strategic alliance with global leading equipment makers.)

14

Plas

tic E

lect

roni

cs &

Pre

cisi

on M

achi

nery

LED

LED Component Industry Market Share by Region

Taiwan Ranked No.3 in LED Component Market

★

20117%10%23%27%11%21%

EuropeN.AmericaKoreaJapanChinaTaiwan

20128%10%25%27%10%20%

2013(e)8%10%25%28%10%19%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

(Source: ITRI/IEK, January 2013)

1716

Taiwan/China is No. 1 in Global c-Si Wafer Production

(Source: Solarbuzz, 2013)

Europe 2%

Taiwan/China 82%

ROW 8%

USA 1%

Japan 7%

★

C-Si Wafer Production for 2013 MW by Region

Over 80% of c-Si wafer production is forecast to occur in Taiwan/China during 2013.

Sola

r PV

Sola

r PV

China and Taiwan-based production accounts for more than 85% of global c-Si cell production and will continue to do so from Q2’13 to Q1’14 .

Q2’13 to Q1’14 Cumulative Production by Region

Taiwan is No.2 in Global PV Cell Production

China 64%

(Source: Solarbuzz, 2013)

Taiwan 21%

Japan 6%Korea 3%

SE Asia 4%

Germany 1%ROE 0%USA 1%

ROW 0%

★

Contact SEMI Taiwan

Booth Sign-up, Advertising & Sponsorship Opportunities SEMICON Taiwan Ms. Ana Li Tel: +886.3.560.1777 ext.101 Email: ali@semi.org

LED Taiwan Ms. Jo-ann Su Tel: +886.3.560.1777 ext.202 Email: jsu@semi.org

PV Taiwan Ms. Gina Wu Tel: +886.3.560.1777 ext.102 Email: gwu@semi.org

SEMICON Taiwan Exhibitor Service Ms. Linda Wang Tel: +886.3.560.1777 ext.306 Email: staiwan1@semi.org

SEMI Membership & Industry Research Report Ms. Ula Huang Tel: +886.3.560.1777 ext.103 Email: uhuang@semi.org

18 19

Standards Publication Ms. Cher Wu Tel: +886.3.560.1777 ext.802 Email: cwu@semi.org

Media Relations Ms. Annie LiuTel: +886.3560.1777 ext.207Email: aliu@semi.org

SEMI Taiwan Office Address: 11F-2, Taiyuan 1st St., Zhubei City, Hsinchu County 30265, Taiwan R.O.C. Tel: +886.3.560.1777 Fax: +886.3.560.1555 Email: semitaiwan@semi.org

SEMI Industry Research & Statistics

The SEMI Industry Research and Statistics group provides timely market and trend information for market research, competitive analysis, and sales forecasting. We focus on the global semiconductor capital equipment, selected materials markets and fab forecasting data. We collect actual data from suppliers around the world following strict professional standards of confidentiality. The data is featured in our market data products/subscriptions, and is highlighted by market analysts, and is the benchmark data referenced by financial communities around the world. Visit www.semi.org for more industry reports from SEMI.

Research Category

Equipment 1. Equipment Market Data Subscription (EMDS) 2. SEMI Book-to-Bill Report 3. Historical Book-to-Bill Report 4. Historical Worldwide Semiconductor Equipment Market Statistics Report 5. Secondary Equipment Market Report

Materials 1. Material Market Data Subscription (MMDS) 2. Photomask Characterization Summary 3. Silicon Reclaim Wafer Market Characterization

Fab Databases 1. World Fab Forecast 2. Fab Futures 3. World Fab Watch

Packaging 1. Global Semiconductor Packaging Materials Outlook 2012/2013

Photovoltaics / Solar Energy 1. Worldwide PV Equipment Market Statistics Report 2. Fab Database 3. Chemicals & Materials for Solar Cells and Modules

Enabling Products (systems, components, parts, etc...) 1. Opto/LED Fab Forecast 2. Opto/LED Fab Watch 3. Mass Flow Controller Market Statistics (Report)

Contact SEMI for More Information:Mr. Clark, +886.3.560.1777, ctseng@semi.orgMs. Ana Li, +886.3.560.1777 ext.101, ali@semi.org