2018 Investor Conference

Ted Lee

27th December 2018

Confidential

Core Development

2

AzureWave

Wireless

Module

Camera

Module

Embedded

Camera Module

NB/Mobile

CCM/3D Sensing

Consumer

Module

IoT

Wireless Module

Lens/AA/Image

Recognition Algorithm

SOM

Wi-Fi 6 (802.11ax)

5G/LPWAN

BT5

Confidential

Data：DIGITIMES Research，2018/10

unit: K

World-Wide NB Shipments

-

10,000

20,000

30,000

40,000

50,000

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18(e)

Shipments 38,104 40,424 41,149 34,072 38,207 40,056 41,189

QoQ 6.1% 6.1% 1.8% -17.2% 12.1% 4.8% 2.8%

YoY 6.1% 3.2% -0.9% -5.2% 0.3% -0.9% 0.1%

3

Confidential

1% 3% 5% 2% 7%

10% 14%

2% 3%

2%

4%

4%

98% 95% 90%

83% 77%

0

0.2

0.4

0.6

0.8

1

2016 2017 2018 2019 2020

Y<=2.8mm Y=3mm Y=4mm Y>4mm

2016~2020 NB Camera Y Dimension Trend

Data from ISP suppliers/Dec.18 4

Confidential

3D Imaging/Sensing Application and Market Scale

Data from Yole Developpement/June 18

0.3

0.4

0.4 0.2

0.8

2017 $2.1B

Scientific/Defense/Space Consumer

Automotive Medical

Industry/Commercial

0.5

13.8

2.4

0.2 1.7

2023e $18.5B

Scientific/Defense/Space Consumer

Automotive Medical

Industry/Commercial

X9

CAGR 44%

5

Confidential

shipments and penetration rate of full-screen mobile phone

表的後置指紋方案。

6

Confidential

FOD(Fingerprint on Display) shipments and growth rate

盈利能力有望持续得到提升。

7

Confidential

FOD(Fingerprint on Display) shipments and growth rate

8

Confidential

Wi-Fi 6 - 802.11ax

9

Confidential

Generation of Wi-Fi

1999

802.11a 5GHz

54Mbps

802.11b 2.4GHz

11Mbps

2003

802.11g 2.4GHz

54Mbps

2009

802.11n 2.4/5GHz

150Mbps

2013

802.11ac 5GHz

433Mbps

2015

802.11ac

WAVE 2 5GHz

867Mbps

2018

802.11ax 2.4/5GHz

1.2Gbps

10

Confidential

Scenario of UL/DL MU-MIMO

802.11ax Router

802.11ax Devices

11

Confidential

OFDMA and MU-MIMO are complementary

OFDMA and MU-MIMO

OFDMA increases efficiency

OFDMA reduces latency

Ideal for low-bandwidth applications

MU-MIMO increases capacity

MU-MIMO results in higher speeds per user

Ideal for high-bandwidth applications

12

Confidential

802.11ax or Wi-Fi 6 chipsets are forecasted to

break the 1 billion annual shipments barrier by

2022 just three years after the first commercial

deployments expected for 2019

Technology adoption of Wi-Fi 6 will be driven

predominantly by the smartphone market

Market Information

Source: ABI Research, 20 Nov 2018

13

Confidential

5th Generation Mobile Network

14

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3GPP Standard Progression

15

3GPP Rel-8

in 2009

3GPP Rel-10

in 2011

Phase 1 (Rel-

15) in 2018 (5G

NR)

Phase 2 (Rel-

16) in in 2020

Max. BW: 20MHz

Max. TP: 320Mbps

Max. BW: 100MHz

Max. TP: 3Gbps

3GPP Rel-13

in 2016

Max. BW: 100MHz

Max. TP: 4Gbps

Max. BW: 2000MHz

Max. TP: 20Gbps

Confidential

Support different spectrum types

Key Features of 5G

16

Low Band (below 1GHz)

Longer range for mobile broadband and MIoT

Mid Band (1 GHz to 6 GHz)

Wider bandwidth for eMMB and MCC

High Band (above 24 GHz)

Multi-Gbps data rates

Confidential

Usage Scenarios of 5G

Massive IoT Low Latency

Enhanced Mobile Broadband

4K

Gbps 3D and 4K Video

Gigabytes in a second

AR

Industrial and

vehicular automation

Self-driving

Monitoring

Voice

Sensor network

Play in the cloud

17

Confidential

5G Availability

FWA (Fixed Wireless

Access)

2018

FWA

Smartphone

Tablets

2019

Industrial IoT

FWA

Smartphone

Tablets

2020

Massive IoT

Industrial IoT

FWA

Smartphone

Tablets

Beyond

3GPP Non-standalone

3GPP Standalone

Source: ERICSSON

18

Confidential

1Mbps 2Mbps

70m 300m

30 Byte 256 Byte

Bluetooth 5 Key Improvements

19

Confidential

20

Low Energy

Indoor Location

Beacon

Higher Security

Backward Compatible

Other Features

Confidential

AzureWave Industry 4.0

Customer Supplier

Custom

EDI Electronic

Data

Exchange

Custom

System

MES/SFCS

Dashboard

System

Manufacture/Quality

Management

Core Management

Intelligent

Testing

Smart

Repair

Big Data

Analysis

Agile Product

Management

Demantra Forecast

Management

Oracle ERP

APS

Advanced

Scheduling/Dispatching

ASCP

Advanced Supply

Chain Project

Supplier

Portal

System HR human

resource

management

Decision Support

Management Flow Management

eForm Approval Flow

Agile Project Management

• PO/Forecast

• Purchasing Forecasting

• Procurement Reply

• Delivery Date Reply

• Shipping Notice

• Payable Invoice

Online

Approval

• Import/Export filing

• Import/Export declaration

Automation Control

Development of

Automated Equipment

Image Recognition/

Defect Detection

21

Confidential

22

AilUnitSet

(Basic Setting)

AilFind

(Target Searching)

AilPetal

(Target Recognition)

AilLayer

(Potential Region)

AilBinning

(Classify) AilBarcode

AilOCV

AilMeasure

AIL(Azurewave Image Library)

Identification

Optical

Character

Verification

2D Gauge

Confidential

23

AIL(Azurewave Image Library)

Reflow Oven

Loader

Printer

SPI AOI

Mounter

Auto Router

Auto Labeler

Auto Test Handler

AilUnitSet

AilFind

AilLayer

AilBinning

AilBarcode

AilOCV

AilMeasure

Confidential

24

AilMeasure

USL LSL

Target

Auto Router AAH

Automation Line → Intellectualization Line

Confidential

Deep learning

Intelligent Monitoring Intelligent leader

Object Recognition Object Recognition

Activity Recognition Security Check

25

Confidential

Q&A

26

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