2

Content

Company OverviewCompany Overview

Sales & MarketingSales & MarketingProducts & TechnologyProducts & Technology

AppendixAppendixManufacturing Process GuidelineManufacturing Process Guideline

Financial OverviewFinancial Overview

3

Company Profile

• TXC Corporation, founded in 1983, is a leading professional frequency

control product manufacturer. We have devoted to the research, design,

manufacture, and sale of Dual-Inline-Package (DIP) and Surface Mount

Device (SMD) quartz crystal products. TXC now specializes in four

categories of products such as high quality Quartz Crystal, Crystal

Oscillator (CXO), Surface Acoustic Wave (SAW) Filter, and Timing Module

(TM).

• Our goal is to add value to our customers by providing a complete solution

of frequency devices and modules, design-in service to fully satisfy

various needs of the esteemed customers. We believe based upon the

competence of cost effectiveness, quality, lead-time, and customer service

TXC will go beyond customers' expectation.

• www.txccorp.com

4

1983

Established TCXO Production Lines

Established SMD Production Lines

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20061984 …

Implemented Oracle ERP

Founded- Capital US$ 95,000 IPO’ed Increased Capital to US$ 34.8M

Listed in Main Board of Taiwan Security Exchange (Code- 3042)

Ranked 6th Largest Crystal/Oscillator Manufacturer in the World

Ranked 8th Largest Crystal/Oscillator Manufacturer in the World

Completed new Ningbo Factory in China

Established SAW Production Lines

Total capacity can up to 112 M /m

2007

Total capacity can up to 204 M /m

2008

Milestones

2009

Ranked 5th

Production

Business

TS16949- Taiwan and China Factories

ISO 9001:2000 6 Sigma

IECQ QC080000

ISO 14001:1996

ISO 14001:2004

Green Product Policy & QS 9000

2010

Quality

Paid-in Capital: US$90 M

NQA Rewarded

5

Headquarter - Taiwan Taipei

Factories(2)- Taiwan Ping-ChengChina NingboChina Chong-Qing (Future)

Sales FAEs(10) - Taiwan TaipeiField Application Engineer China Shanghai, Suzhou, Shenzhen, Wuhan

USA LAJapan Yokohama, OsakaEuropeSingapore

Distributors(12)- Europe-UK, Germany………

Representative (8)- Korea, India, Mexico…….

Worldwide Locations

6

7

For Communication

For Information

For Entertainment

For Telematics

DPFGame Console

Desktop PCPDA

NB

PDA +GPS

NB

PDA Mobile Phone+ +

+

Mobile Phone +DSC +MP3 +WiFi

• XTAL• OSC• T/F

• XTAL• OSC• Advanced OSC• VCXO• T/F

• XTAL• OSC• TCXO• T/F

• XTAL• OSC• TCXO• T/F

• XTAL• OSC• T/F

MIMOUWBADSL/

Cable Modem

WIMAX

DSC

WLAN

PMP

TPMSHUD Keyless Entry

Infotainment System

Netbook

Smartphone

HDWiFi Keyboard/Mouse

MP3

DVDProjector

LCD TV

High PerformanceSwitch & Routers

High PerformanceComputing & Storage

HSDPA

Application

8

1.6x1.2(8Q)

1.6x1.22.5x2.03.2x2.5(7V)6x3.57x58x4.5(6X) 5x3.2(7A)

Dip Type

Glass Type

Seam Type

Crystal by Package Size

2.0x1.6(8Y)2.5x2.0(8Z)3.2x2.5(7M)6x3.5(6V)7x5(6P)8x4.5 5x3.2(7B)

5x3.2(4 pads, 7Y)

2.0x1.6

9

7x5(6U)14x9(7H) 5x3.2

VCXO

CXO

2.0x1.6(8N)2.5x2.0(8W)3.2x2.5(7X)6x3.57x5(7W)14x9(7J) 5x3.2(7C) 1.6x1.2

Oscillator by Package Size

2.0x1.6(7Z)2.5x2.0(7L)3.2x2.5(7Q)6x3.57x514x9 5x3.2

TCXO

1.6x1.2

(Sample Ready)

10

Automotive Products

Wireless Communication

Mobile

Bluetooth

WLAN

PC / Consumer

Multimedia

Desktop/Laptop

Peripherals

Digital Imaging

Others

Compact Low Power

High Frequency

Low Jitter

High Reliability

Quartz Sensor

Pressure

Gyroscopes

Gases

Non-Safety

TPMS

Matured products:

Technology Integration

Safety

PND

GPS

CrystalCXOTuning Fork

High

Stability

Products and Technology Strategies

TCXO

Advanced Oscillators and Modules (AOM):

Networking I

WAN (FC/GbE/FCoE)

TelecomDatacom

Networking II

MAN

Long Haul

High Frequency

High Stability

HF OscillatorHF VCOTCXO

Stratum 3 TCXOFX/CDROCXO

ZERO Defect AutomotiveProducts

1 2

3

3

4

5

5

1111

KHz Xtal35.8%

MHz Xtal52.8%

XO4.7%

TCXO6.2%

VCXO0.4% OCXO

0.0%

2010 Vol. by Products

KHz Xtal18%

MHz Xtal35%XO

14%

TCXO21.70%

VCXO5.76%

OCXO5%

2010 Rev. by Products

2010 WorldWide Volume v.s. Revenue Comparison by Products

88.6%53%

12

Business Model

1313

Worldwide Ranking & Market ShareWorldwide Revenue of the Top Crystal and Oscillator Suppliers (Unit: Millions of USD)

* Data Courtesy of CS & A

CS&A forecasts 7.5% YoY Growth in 2010, and 6.1% in 2011

14

Future Driving Force

15

Competitive Advantage of TXCTXC Competitors

of JapanCompetitors of

TaiwanCompetitors of

ChinaOverhead Cost Medium High Medium Low

Quotation advantage due to JPY appreciation

High Low High High

Market Focus Asia(Growing)

USA, Europe(Declining)

Asia(Growing)

China(Growing)

Flexibility High Low High HighRelationship with

ODMHigh Low High Low

Diversification HighPC, Automotive,

Networking, Mobile, Consumer, Global

HighAutomotive,

Networking, Mobile, Consumer, Global

LowSpecific to one field

LowPC

Ability Of Production Line

Transfer

High High Medium Medium

Economic Scale High(SMD)

Highest(SMD & TCXO)

Low High(DIP)

Manufacturing Technology

High2016,1612

Highest1612,1210

Medium2520,2016

Low3225,2520

Quality Control High Highest Medium Low

16

0

50

100

150

200

250

300

Operating Revenue 61 80 95 116 162 194 228 240

2002 2003 2004 2005 2006 2007 2008 2009

Operating Revenue

(Unit: Millions of USD)

31%19%

22%

40%

20%18%

5%

17

2009 2010(F)

ACAP0.4% NETWORKING

25.3%

GLOBAL/EMS17.5%MOBILE

20.5%

PC14.5%

CONSUMER10.7%

NETWORKING25.8%

GLOBAL/EMS19.6%MOBILE

21.3%

PC14.4%

CONSUMER10.4%

ACAP1.0%

Sales Revenue by Marketing Field

Others11.1%

Others7.4%

18

19

Revenue Trend

19

1,6141,792

2,153

1,803

1,394

1,824

2,2172,292

2,113

2,338

-12.11%

11.04%

20.17%

-16.27%

-22.69%

30.88%

21.55%3.39%

-7.84%

10.69%

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

-30%

-20%

-10%

0%

10%

20%

30%

40%Unit: $NT in Million

2020

Gross Profit Trend

420471

537

273

422

576

633 629589

532

26.00% 26.26%

27.36%

29.76%

19.61%

23.15%

26.00% 27.59%

25.16%

26.91%

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

0%

5%

10%

15%

20%

25%

30%

35%Unit: $NT in Million

21

Net Profit Trend

206 212

276257

69

170

213

331

283260

12.79%

11.82%

12.84%14.26%

4.97%

9.31%

11.74%12.34%

10.08%

14.15%

0

50

100

150

200

250

300

350

400

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

0%

2%

4%

6%

8%

10%

12%

14%

16%Unit: $NT in Million

2222

Balance Sheets & Key IndexItem 09.Q4 10.Q1 10.Q2

Current Assets $ 5,175 $ 5,854 $ 6,459

Cash & Cash equivalents $ 1,566 $ 1,839 $ 2,491

Notes & Account receivables $ 2,468 $ 2,447 $ 2,697

Inventories $ 837 $ 869 $ 1,012

Fixed assets $ 4,110 $ 4,103 $ 4,354

Total assets $ 9,465 $ 10,205 $ 11,118

Current liabilities $ 2,566 $ 2,447 $ 3,717

Notes & Account payables $ 1,264 $ 1,216 $ 1,560

Long-term liabilities $ 893 $ 1,456 $ 1,329

Total liabilities $ 3,544 $ 3,947 $ 5,058

Shareholders' equity $ 5,921 $ 6,258 $ 6,059

Debt ratio 37.44% 38.68% 45.49%

Current Ratio 201.69% 239.22% 173.77%

Quick Ratio 164.03% 189.02% 139.10%

Net Value Per Share $ 20.51 $ 21.51 $ 20.83

Unit: NT$ in Million

2323

CapEx Line Amount$ Date (F) Capacity/M Revenue/M (F)

Ping-Cheng factoryexpansion plant (2) 320

SMD Seam X’tal (TWN)2016 / 1612 4 240 1H.3Q 4.0M 48

SMD TC / VC XO (TWN)3225 / 2520 / 2016 4 320 2Q.4Q 3.0M 55

SMD TF (TWN)2012 2 100 3Q 2.0M 12

NGB factoryexpansion plant 110

SMD Glass X’tal (NGB)5032 / 3225 15 300 2Q 15.0M 45

SMD Seam X’tal (NGB)3225 / 2520 9 250 3Q.4Q 9.0M 35

Total 34 1,640 33.0M 195

2010 Overall Capacity +30%; Advanced Capacity +50%Unit: PCS / NT$ Million

Capital Expenditures

2424

TXC

Strategy in

09

AOM products shipment will ramp up along with raising Cloud Computing and Smart Grid applications

Revenue will ramp up quarter by quarter

China Market is still the major sales driving force

Business Highlights

Wireless modules will remain high growth along with worldwide WPAN development

Will continue penetrating worldwide market with Smart Phone and GPS Applications

Revenue will ramp up Quarter-over-QuarterGross margin rate will gradually grow up

25

AppendixManufacturing Process Guideline

AppendixManufacturing Process Guideline

26

Blank Process

Wire Sawing

Quartz Bar

A1 2 34 5 67 8 90 EN

BCD

22.1372

Wafer Frequency Lapping

12

3

45

67

8

27

SMD Process and structure

IC Die Bonding

Wire Bonding

Blank Cleaning

Base Plating

Frequency Adj.

Final Testing

Marking

Taping

Seam Sealing

Mechanical Testing

Blank Auto-Mounting

Cry

stal

Osc

illat

or

OscillatorCrystal

Metal Lid

Plated Blank

Ceramic Package

( Bottom )

Ceramic Package

( top )

Oscillation IC

28

Thank You!Thank You!