GlobalWafers Co., Ltd

STRICTLY PRIVATE AND CONFIDENTIAL

GlobalWafers Co., Ltd.

August 2018

This presentation has been prepared by GlobalWafers Co., Ltd. (the “Company”). This presentation and the materials provided herewith

do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an

inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or

commitment whatsoever. Any decision to purchase securities in a proposed offering should be made solely on the basis of the information

contained in the offering circular published in relation to such proposed offering, if any.

The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or

implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the

opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing

at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation.

None of the Company nor any of its affiliates, advisors or representatives will be liable (in negligence or otherwise) for any loss howsoever

arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

Disclaimer

1

Company Overview

2

Company Overview

Leading supplier of silicon wafer with a global manufacturing footprint

Business Highlights Group Structure

1. Capital IQ, Company information.

2. Include pending and granted patents.

3. CommonWealth Magazine’s Top 2000 Survey in 2017 / Business Today Magazine’s Top 1000 in Great China Survey in 2018

A spin-off from SAS in 2011

World’s #3 silicon wafer supplier and

the largest non-Japanese player1

Hsinchu Science and Industrial Park, Taiwan

Markets Full-scale product offering with capacity from 3”

to 12”

Established Global manufacturing footprint from Asia,

Europe to the US

# 6,000+ (as of 31 July, 2018)

Has been included in the MSCI’s Global Standard

Indexes since 31 May, 2017

Holds over 1,200+ patents2 in 6 regions and World

Intellectual Property Organization

.#7 fastest growing and Top 50 most profitable

manufacturer in Taiwan in 2017 and

.#313 largest (market cap wise) company in

China + HK + Taiwan in 2018

in CommonWealth Magazine’s & Business Today Magazine’s

Survey

Establishment

Size

Headquarter

Products

Operating Sites

Employees

MSCI Index

R&D

GlobalWafers Co., Ltd.

(Taiwan)

100% 100% 100% 100% 100%

Sino Silicon

Technology

China

GlobiTech

USA

GWJ

Japan

Topsil

Denmark,

Poland

SunEdison

Semiconductor

(“SEMI”)

USA, Japan,

Korea, Italy,

Malaysia,

Singapore,

Taiwan

3

Ranking

Industry Overview

Semiconductor Revenue Worldwide

Semiconductor Revenue is Expected to Grow

Continuously by 2021

Source : WSTS；工研院產科國際所 Aug 2018

Worldwide semiconductor revenue is forecast to grow in 2018 to $463 billion, up 12.4% over 2017,

and will continue to rise by 2021.

5

(US$bn)

228 248 256 249

226

298 300 292 306 336 335 339

412

463 484 503

527

6.8% 8.9%

3.2%

-2.8%

-9.0%

31.8%

0.4% -2.7%

4.8%

9.9%

-0.2% 1.1%

21.6%

12.4%

4.4% 3.9% 5.0%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

-

100

200

300

400

500

600

700

800

900

1,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (e) 2019 (f) 2020 (f) 2021 (f)

Revenue Growth %

3 Eras of Demand

Source : VLSI Research, ISS US, Jan 2018

The digital era is enabling “a radical reshaping of the relationship between technology capabilities and

business opportunities.”

6

All front end facility, including new, old and in house

Fab Equipment Spending (Front End)

Source : SEMI, Jun 2018

Not seen 4 years of consecutive growth since the mid 90’s

6-year: mid 60’s, 9-year: 1976-1984, 4-year: mid 90’s

7

Samsung China


8

In 2017: Samsung Semiconductor increased capex from $11.4B in 2016 to $24B

Source: World Fab Forecast reports, June 2018, SEMI


Starting 2017 the landscape changed with Samsung Semiconductor increasing from $11.4B to $24B.

In 2018: China and Japan increase investments. Japan increase by Flash Alliance, TMC, Sony, Micron)

by Region by Product type

Source: World Fab Forecast reports, June 2018, SEMI

Change % 2 years 2017 to 2019

. China:160%

. Japan: 43%

. SE Asia: 34%

. Americas: 14%

. Europe & Mideast: 9%

. Taiwan: 7%

. Korea : -14%


. Logic/Image sensors :340%

. MPU: 45%

. Memory/DRAM : 35%

. Memory: 3DNAND+3DXPoint: 15%

. Discrete/Power: 25%

. Foundry(all) : 25%

9

by Region

Installed Capacity 2017 to 2019 (Excluding LED, EPI, R&D)

Source : SEMI, Jun 2018

Some regions like Japan experience loss due to conversion 2D NAND to 3D NAND

10


. 3D NAND+3DXPoint 90%

. Logic/Image sensors 56%

. Memory/DRAM 22%

. Discrete/Power 13%

. MEMS 12%

. Foundry(all) 10%

. MPU 0%

. 2D NAND -61%

by Product type 2017


. China:29%

. Korea: 21%

. SE Asia: 11%

. Europe & Mideast: 7%

. Taiwan: 6%

. Americas: 2%

. Japan: -3%

300mm Wafer Dominates and Continues to Lead the Trend

Global silicon wafer diameter trends1 Global semiconductor capacity by wafer size2

1. Source: SEMI SMG 1995 to 2016; Forecast SEMI October 2017.

2. Source: Gartner as of 4Q17.

(In millions of square inches)

Includes polished and epi wafers. Excludes reclaim, non polished, and SOI

300mm 58.7%

200mm 27.6%

150mm 9.0%

100mm 3%

<100mm 1.9%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017E

2018F

2019F

150mm 200mm 300mm

11

Installed Capacity 300mm vs. ≤ 200mm

(excluding LED, EPI R&D)

Source: SEMI Jun, 208 12

In 2018:

The share of capacity for 200mm and less (≤200mm) to global is about 46%.

* Capacities =<200mm: More than Moore

48%

52%

46%

54%

62%

38%

200mm Fab Counts & Capacity

200mm capacity increase ~10% from 2017 to 2022 (excluding EPI, LED, R&D)

Source: SEMI, Jun 2018

Adding : 600k+ wpm from 2017 to 2022

Expansion & upgrade from 150mm to 200mm, 29 lines, 172kwpm

New 27 lines, 482k wpm, close, conversion etc. 6 lines, -36kwpm

13

Change % 2 years

2017 to 2019

. China 44%

. SE Asia 19%

. Taiwan 10%

. Americas 8%

. Japan 6%

. Europe & ME 2%

. Korea -6%

Worldwide Annual Wafer Capacity Trends

(200mm-equivalents)

Source: IC Insights, Feb 2018 14

New IC manufacturing lines boosts total industry wafer capacity by 8%

(2018 & 2019 - 8% vs. 2012~2017 - 4.8% (average))

6.8%

7.3%

8.7%

2.8%

10.0%

4.6%

5.5%

5.4%

6.8%

6.0%

0% 2% 4% 6% 8% 10% 12%

Wafer Demand – Application in Downstream Verticals

2016 - 2021 IC CAGR’ by applications

Source: Gartner Dec 2017

Note: 1. Columns do not add to totals shown due to rounding. 2. ASSP = application-specific standard product; ASIC = application-specific integrated circuit; GP = general purpose;

NOS = non-optical sensor.

Memory, Opto & NOS application will lead the way in next 4 years, while ASIC, ASSP, Analog will maintain steady growth

ASSP, Memory, Micro share nearly 70 percent of semiconductor market

Total Semiconductor indicates 5.8% 2016 - 2021 CAGR excl. Memory and revenue of US$478bn in 2021

CAGR 2016–2021

5.8% CAGR excl. Memory

2021 Revenue Share

ASIC 30,952 6.5%

ASSP 127,680 26.7%

Analog 26,763 5.6%

Discrete 23,812 5.0%

GP Logic 14,638 3.1%

Memory 128,915 27.0%

Micro 71,590 15.0%

Opto 39,727 8.3%

NOS 13,622 2.9%

Total Semi 477,7001 100.0%1

(US$mm)

15

Forecast Revisions by Semiconductor Device Type

2019 vs. 2018 revenue change

Source: Gartner July 2018

Viewing from 2019 revenue against 2018,

DRAM device decreased while Microprocessors, ASSP, Discrete increased

16

Semiconductors Used in Electronics Post Solid Growth

in 1Q 2018

Revenue during Q1 2018 grew 17% compared to the same quarter a year ago

Major factor is data processing owing to SSDs replacing traditional hard drive and data center server

implementation

Global Semiconductor Revenue from Electronics Equipment & Devices Global Semiconductor Revenue by Sector

Source: IHS Markit Q1 2018.

Q1 2017

$95.2 bn

Q1 2018

$111.4 bn

Automotive, 9.9

Consumer Eelctronics, 10.5

Data Processing, 38.4

Industrial Electronics, 12.9

Wired Communications,

5.8

Wireless Communications,

33.9

(US$bn)

Data Processing 19.5%

Wired Communications 17.5%

Consumer Electronics 16.5%

Wireless Communications 16.3%

Industrial Electronics 14.6%

Automotive 13.9%

Q1 2018 YoY Growth Rate

17

(US$bn)

Computing 28%

Mobile phones 25%

Industrial 11%

Automotive 8%

Home appliances 8%

Switches/Modems 6%

Mobile infrastructure 4%

Others 10%

876

1,070

2017E 2020E

Robust Growth in Automotive and Industrial Applications

Demand drivers for wafers (all sizes) Wafer demand growth by end applications

Source: Broker research as of Jan 2018.

Mobile phones, computing, industrial and automotive account for over

50% of demand and are estimated to grow at 2.8% CAGR from 2017-2020

CAGR 6.9%

CAGR 4.4%

CAGR 0.3%

CAGR 3.1%

Automotive

Industrial

Computing

Mobile phones

Wafer volumes (mn sq inch)

1,225 1,395

2017E 2020E

3,255 3,565

2017E 2020E

2,945 2,976

2017E 2020E

18

Wafer Supply – Semiconductor Wafer Manufacturers

Top 5 silicon wafer manufacturers account for more than 90% market share worldwide

Top 5 Wafer Suppliers Strengths of GlobalWafers

Source: GWC estimates, company data, 2017 revenue result

Note: 1. Exchange rate used – USD:TWD\JPY\KRW\EURO=1:30.44\112.15\1,130.63\0.8872

GWC has 18% market share as no.3 wafer manufacturer

worldwide

Well planned and protection of market share to manage

production output with a rational growth rate versus market

demand

Product diversification can provide best wafer solution to

meet customers’ various application requirement

Cooperate with customers for advanced node development

to build win-win relationship with customers

Flexibly use manufacturing sites among group to produce

wafer with lowest cost and best quality and shorten delivery

schedule

Shin-Etsu 30%

SUMCO 27%

Siltronics 15%

SK Siltron 10%

18%

19

Product and Parametric Roadmap

CPU – 7nm DR

SoC – 10nm DR

Foundries – 7nm DR

System LSI – 7nm DR

Memory – D1X, D1Y, and D1Z

Others…

Heavily doped N-type 300mm for PowerIC application

UniformaTM (CCZ process) heavily doped ingots, such as As, Sb, and Red-Ph

Special EPI for CIS applications, N/P EPI or P/N or graded EPI

RFSOI for 4G and 5G network applications, PowerSOI for Automotive

Customized IG Structure ECAS®

SiC products

Broad Customer Base at Advanced Design

Rules/Products

Qualified volume delivery for customers with advanced design rule

Special applications

Note: ECAS® = Engineered customizable application specific. 21

More of Moore Requirements for Advanced Design Rule

Applications

Stable process capability is the foundation of all

Ingot Wafer

Uniformity

Oxygen

Crystal Defects

Bulk Micro Defects

Resistivity (Ultra Hi/Low)

Impurity

Strength

New Metrology

Uniformity

Cleanliness

Flatness

Shape

Particles

Defect Engineering

Specialty

New Metrology

New Materials

22

Performance Update

Financial Highlight : Q2 2018

(NT$mn) Q2 2018 Q1 2018

14,368 13,910

5,765 4,902

40% 35 %

4,675 3,750

29% 28%

3,500 2,779

24% 20%

NT$8.00 NT$6.36

36% 31%

17% 15%

27,150 27,231

Revenue

EBITDA*1

EBITDA %

EBIT

ROE*2

ROA*2

Net Financial Assets*3

24

EPS

Net Profit

Net Profit %

Operating Profit %

1. EBITDA= Net income + Tax + interests + depreciation + amortization.

2. Annualized ROE & ROA

3. Net Financial Assets = cash and equivalents + Other financial assets (current + non-current)

3,647 3,903

4,266

6,611

10,581

11,205

11,978 12,448

13,910 14,368

23.0%

26.9%

24.4%

18.2%

20.0%

24.6% 26.3%

30.4%

36.2% 37.0%

Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218

Revenue

GM %

Revenue & Gross Margin

10th consecutive quarterly growth,

2-digit improving gross margin contributes to more profits

(NT$mn)

25

6.14 6.60

5.80

2.54

12.68

14.36

2013 2014 2015 2016 2017 1H18

EBITDA & EPS

EBITDA - 20181H alone catches up with 87% of 2017

EPS - 20181H surpasses 2017 full year

EBITDA EPS

(NT$mn) (NT$)

4,053 4,087 4,046

3,025

12,221

10,667

26.0% 25.7% 26.4%

16.4%

26.4%

37.7%

2013 2014 2015 2016 2017 1H18

26

14,401

8,412

18,794

26,828

Q417 Q218

Total Bank Debt Cash

Total Bank Debt and Cash

Leverage Ratios

Repaid all of the bank loans associated with the acquisition of SunEdison Semiconductor in 4Q17

GWC operates in a healthy financial condition with net cash on book

27

(NT$mn)

Dividend Payout since 2012 versus EPS

Dividend Payout

3.44

6.14 6.60

5.80

2.54

12.68

2.80

5.50 5.70 5.00

2.50

10.00

2012 2013 2014 2015 2016 2017

EPS

Dividend

Dividend

Payout

Ratio

81.4% 89.6% 86.4% 86.2% 98.4% 78.9%

28

(NT$)

1. Operating Performance

10th consecutive quarterly growth

Hitting All Time High – Revenue, Gross Margin, EBITDA, Net Income, EPS

2. Capacity - fully loaded and booked by 2020

3. Long-Term Agreements

current – extended to 2020

2021~2025 and beyond – under discussion, partially secured with customers

Highlight

29

Appendix

Income statement

(NT$mm) Q218 Q118 QoQ Q217 YoY

Revenue 14,368 13,910 458 11,205 3,163

Growth (%) 3.3% 28.2%

Gross Profit 5,313 5,029 284 2,757 2,556

Gross Profit Margin (%) 37.0% 36.2% 0.8% 24.6% 12.4%

EBITDA 5,765 4,902 863 2,684 3,082

EBITDA Margin (%) 40.1% 35.2% 4.9% 24.0% 16.2%

Operating Profit 4,125 3,923 202 1,705 2,420

Operating Profit Margin (%) 28.7% 28.2% 0.5% 15.2% 13.5%

Profit before Tax 4,675 3,750 925 1,653 3,022

Profit before Tax Margin (%) 32.5% 27.0% 5.6% 14.8% 17.8%

Net Profit 3,500 2,779 721 1,293 2,207

Net Profit Margin (%) 24.4% 20.0% 4.4% 11.5% 12.8%

EPS (NT$) 8.00 6.36 26% 3.09 159%

Income Statement

1. Accounting adjustments are made in 20181H accumulated numbers 31

Balance sheet

(NT$mm) Q218 Q417 Q217

Assets

Cash and cash equivalents 26,828 18,794 6,620

Account receivable 8,971 7,869 8,151

Inventories 7,065 7,347 7,391

Property, plant and equipment 29,590 28,202 29,175

Other assets 7,480 8,020 8,528

Total assets 79,934 70,232 59,865

Liabilities

Short-term loan 4,998 10,738 5,523

Account payable 4,676 4,269 4,383

Long term loan 3,413 3,663 7,916

Other liabilities 30,159 17,508 11,844

Total liabilities 43,246 36,178 29,666

Shareholder equity 36,689 34,054 30,199

Key finnancial ratio

Inventory turnover days 73 78 79

A/R turnover days 54 61 66

Current ratio 181% 158% 149%

Balance Sheet

32

Documents

GlobalWafers Co., Ltd