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 174 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$96 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

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

77

Automotives

Communications & Telecom

Wireless & Wirelines

Security

Energy & Lighting

Industrial

Medical

Consumer Electronics

Audio, Video & Imaging

Computing & Peripherals

Crystal & OscillatorConnecting Technology Together

MiniaturizationStable

(Ex. Smart Phone)(Ex. WLAN)

Ultra stableHigh FrequencyAOM/TCXO (Ex. Base Station)(Ex. GPS)

MiniaturizationUltra stable

(Ex. Medical Device)

Ultra stableZero defect(Ex. Automotive products)

Miniaturization Price Competitive(Ex. LED TV)

StablePrice Competitive(Ex. Digital Camera)

Miniaturization Price Competitive

(Ex. NB, Tablet PC)

Miniaturization Ultra stable(Ex. Security Door

System)

StableTCXO (Ex. Smart Grid)

StableHigh Frequency (Ex. Industrial Monitoring System)

Application v.s. Frequency Control Unit applied

1Specific requirement for different industry

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

Business Model

11

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

1212

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%

0.02%

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

Competitive Advantage of TXCTXC Competitors

of JapanCompetitors of

TaiwanCompetitors of

ChinaOverhead Cost

Quotation advantage due to JPY appreciation

High Low High High

Market Focus

Flexibility

Relationship with ODM

High Low High Low

Diversification

Ability Of Production Line

Transfer

Economic Scale

Manufacturing Technology

Quality Control

LowMediumHighMedium

Asia(Growing)

High

HighPC, Automotive,

Networking, Mobile, Consumer, Global

High

High(SMD)High

2016,1612

High

USA, Europe(Declining)

Low

HighAutomotive,

Networking, Mobile, Consumer, Global

High

Highest(SMD & TCXO)

High1612,1210

Highest

Asia(Growing)

High

LowSpecific to one or two

field

Medium

Low

Medium2520,2016

Medium

China(Growing)

High

LowPC, Consumer

Medium

High(DIP)Low

3225,2520

Low

15

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) / 1USD = 31 NTD

31%19%

22%

40%

20%18%

5%

16

NETWORKING23.8%

GLOBAL/EMS15.9%MOBILE

20.2%

PC17.0%

CONSUMER9.4%

ACAP0.9%

Others12.7%

1H- Strong demand returned from 20092H- Relatively flat trend

TXC Sales Revenue by Marketing Fields

ACAP0.4%

NETWORKING25.3%

GLOBAL/EMS17.5%

MOBILE20.5%

PC14.5%

CONSUMER10.7%

Others11.1%

1717

18

Unit: $NT in Million1 USD = 31 NTD

Revenue Trend

19

Unit: $NT in Million

Gross Profit Trend1 USD = 31 NTD

20

Unit: $NT in Million

Net Profit Trend

1 USD = 31 NTD

2121

Unit: NT$ in MillionItem 10.Q1 10.Q2 10.Q3

Current Assets $ 5,854 $ 6,459 $ 5,969

Cash & Cash equivalents $ 1,839 $ 2,491 $ 1,691

Notes & Account receivables $ 2,447 $ 2,697 $ 2,808

Inventories $ 869 $ 1,012 $ 1,313

Fixed assets $ 4,103 $ 4,354 $ 4,681

Total assets $ 10,205 $ 11,118 $ 10,987

Current liabilities $ 2,447 $ 3,717 $ 3,354

Notes & Account payables $ 1,216 $ 1,560 $ 1,633

Long-term liabilities $ 1,456 $ 1,329 $ 1,212

Total liabilities $ 3,947 $ 5,058 $ 4,579

Shareholders' equity $ 6,258 $ 6,059 $ 6,407

Debt ratio 38.68% 45.49% 41.68%

Current Ratio 239.22% 173.77% 177.97%

Quick Ratio 189.02% 139.10% 134.14%

Net Value Per Share $ 21.51 $ 20.83 $ 21.56

Balance Sheets & Key Index1 USD = 31 NTD

2222

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

Ping-Cheng factoryexpansion plant (2) 640

SMD Seam X’tal (TWN)2016 / 1612 6 300 1H.3Q 6.0M 60

SMD TC / VC XO (TWN)3225 / 2520 / 2016 2 200 2Q.3Q 1.5M 26

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 1,900 33.5M 178

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

Capital Expenditures

1 USD = 31 NTD

2323

TXC

Strategy in

09

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

Revenue will grow gradually and stably.

China Market is still the major sales driving force

New Business will bring new growth momentumNew Business will bring new growth momentum

The company will continue penetrating worldwide market with Smart Phone and GPS Applications

Revenue will ramp up Quarter-over-QuarterGross margin will be improved due to better product mix

Business Highlights

24

AppendixManufacturing Process Guideline

AppendixManufacturing Process Guideline

25

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

26

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

27

Thank You!Thank You!