CIRTEK ELECTRONICS CORPORATION Company Presentation Outline Company overview and organization Services and CEC BOM Product Portfolio and Special Capabilities Company strengths Plans and programs Package Technology Roadmap Final Test, Finishing and FAREL 2 Cirtek Electronics Corporation 4/13/2015 Outline Company overview and organization Services and CEC BOM Product Portfolio and Special Capabilities Company strengths Plans and programs Package Technology Roadmap Final Test, Finishing and FAREL 3 Cirtek Electronics Corporation 4/13/2015 4 Cirtek Electronics Corporation 4/13/2015 Company overview Company Structure Cirtek Holdings Philippines Corporation Cirtek Electronics Corporation (“CEC”) Primary purpose is to engage as an independent subcontractor for semiconductor assembly, test and packaging services Cirtek Electronics International Corporation (“CEIC”) A BVI company which provides marketing, logistical and administrative support, including collection to CEC. 5 Cirtek Electronics Corporation 4/13/2015 Company overview History Established in 1984 as independent Subcontract Assembly & Test Provider Accredited by International Quality institutions CIRTEK has grown to provide world class turnkey solutions that include services from package design development, wafer probe, wafer back grinding, assembly packaging and final testing of semiconductor devices up to drop shipments to Customer's end users. Competitive pricing and easily adaptable to customers needs CIRTEK TODAY 25 years experience outsourced assembly & testing solution provider High quality products, while providing production flexibility Competitive pricing and adaptable to customers’ needs. Profitable despite several economic downturns, debt free company Growing client base composed of companies located around the world 6 Cirtek Electronics Corporation 4/13/2015 Company overview Cirtek assembles and tests semiconductor devices at its manufacturing complex located on a 20,000 square meter property in Biñan, Laguna. Its manufacturing facility is composed of two buildings, with a total floor area of 14,100 square meters. 1800SQM of clean room environment @ Class 10K. We offer general line and captive line assembly models A Philippine Economic Zone Authority (PEZA) registered company as an ecozone export enterprise at the Laguna Technopark for the manufacture of standard integrated circuits, discrete, hybrid and potential new packages. 7 Cirtek Electronics Corporation 4/13/2015 Company overview Business Strategies 1 Partnership with Customer to grow business together To develop partnership with its existing and potential customers to provide world class quality solutions through management expertise focused on specific applications to meet customers specification, high reliability and multi chips products. Captive Line Development To offer dedicated or captive line models for assembly and test services in order to efficiently produce the customer’s mature and stable products through shared investment Technology Development To continuously focus on Innovations and re-Engineering in its production and assembly techniques and capabilities, and to co-develop new technologies with customers Mergers and Acquisitions To actively seek strategic investments opportunities such as, alliances, joint ventures, and/or acquisitions that will be consistent with the Company’s overall business strategies 2 3 4 8 Cirtek Electronics Corporation 4/13/2015 Organizational Structure PRESIDENT & CEO Jerry Liu QA DIRECTOR Luz Veril VP- Global Business Development Norman Chang EXECUTIVE VP/ GEN MANAGER Jorge Aguilar CFO Tony Buyawe HUMAN RESOURCE DIRECTOR Milet Cruzada QA / FAREL SECTION MANAGER Zeny Puedan QC/QA SEC.MANAGER Jacqueline Blancaflor ACCOUNTING MANAGER Susan Lumba MULTICHIPS BUS. MANAGER MeAnn Canoza SENIOR DIRECTOR SALES & MKTG-CS Antonio Callueng VP FOR ENG’G & PURCH, IND’L MGMT, Raul Santiano DEVELOPMENT ENG’G. Raymond Tecson FINAL TEST MANAGER Walter Alegarme FINAL TEST SUPERVISOR Manny Olandria CUST SERVICE TEAM SUSTAINING ENG’G Chona Morales PROBE TEST SUPERVISOR Roderich Ignacio MULTI DIE TEST SUPERVISOR Rey Reyes IC BUS. MANAGER Miles Besana DISCRETE BUS. MANAGER Medy Chua QFN /DFN BUS. MANAGER Wilson Padre NEW PRODUCT BUS. MANAGER Rosendo Cerezo HERMETICS BUS. MANAGER Laarni Arnesto 9 Cirtek Electronics Corporation 4/13/2015 Outline Company overview and organization Services and CEC BOM Product Portfolio and Special Capabilities Company strengths Plans and programs Package Technology Roadmap Final Test, Finishing and FAREL 10 Cirtek Electronics Corporation 4/13/2015 Cirtek Services Sort + Assy + Test + Drop shipment Wafer backgrinding (8” maximum diameter / 4 mils thick capability) Wafer mapping (8” maximum diameter / ASCII format) Wafer probing (6” & 8” wafer diameter) Die sales inspection (Commercial / Military / Medical level of inspection) Full assembly (Refer to package portfolio) Marking (ink / laser) Final test (Refer to test capabilities) Tape and reel (SOT, 150 / 300 mil SOIC, QFN / DFN) Tape and Ammo (TO-92 straight / spread leads) Drop shipment (To any point as required) Ship to Stock Serve as your HUB/Distribution center 11 Cirtek Electronics Corporation 4/13/2015 Build of Materials Cirtek Standard Materials Leadframe • Stamped LF Copper A194 PPF -NiPdAu DA Epoxy Gold Wire ( Mils) Molding Compound • 84-1LMI/SR4 0.80, 0.90, 1.0 mils • Sumitomo – G600, G770 • 8900- NC 1.2, 1.3, 1.5, 2.0 mils • Hitachi 9220HF10 • 8600 • Etched LF Copper Wire ( Mils) • 2600AT - HT 1.0 , 1.65, 2.0 • QMI 529HLV Aluminum Wire ( Mils) • Plating – Spot Ag • Configuration: • NittoG300LC • Sumitomo 6710/6600 • Cookson3200LS • CRM 1076NS 1.25, 5.0, 10 • Toshiba KE955WY-white • Eutectic DA Copper Clip Attach Plating – 100% Tin Matrix HDLF Single/Dual • Solder paste • Sn5Pb95 • Sn10Pb90 Cirtek Electronics Corporation Plating –SnPB (85/15) 4/13/2015 Outline Company overview and organization Services and CEC BOM Product Portfolio and Special Capabilities Company strengths Plans and programs Package Technology Roadmap Final Test, Finishing and FAREL 13 Cirtek Electronics Corporation 4/13/2015 Product Portfolio QFN/DFN Packages QFN Body Size • 2.00 x • 3.00 x • 3.00 x • 3.50 x • 4.00 x • 5.00 x • 7.00 x • 8.00 x 2.00 / 08L 3.00 / 08L 3.00 / 16L 3.50 / 20L 4.00 / 24L 5.00 / 28L 7.00 / 32L 8.00 / 52L DFN Body Size Small Body Size • • • • • • 0.50 x 0.25 x 0.30 / 02L 1.00 x 0.60 x 0.46 / 02L 1.10 x 1.60 x 0.46/ 02L 1.27 x 0.76 x 0.76/ 02L 2.20 X 1.78 x 0.76/ 02L 2.50 X 1.70 x 0.76/ 03L • Customer Specific • 6.00 X 6.00 x 0.90/ 02L • • • • • • • • 2.90 1.70 2.00 2.50 3.00 3.30 3.00 4.00 x x x x x x x x 1.80 / 04L 1.35 / 08L 2.00 / 08L 1.35 / 12L 1.35 / 12L 1.35 / 16L 3.00 / 10L 1.60 / 16L 14 Cirtek Holdings Philippines Corporation 4/13/2015 Product Portfolio SOIC Packages 150 Mils Body Packages 08L- Stand 300 Mils Body Packages TSOC 6L– 150 x 150 x 55 mils 18L 20L 16L Standard – Clip Attach 14L - Stand 24/28L 16L - Stand Exposed Pad Version 08L- 150 Mils 16L – 300 Mils 16L – QSOP 15 Cirtek Electronics Corporation 4/13/2015 Product Portfolio Plastic Dual In Line Package 300 Mils Body Package 08L 14L 600 Mils Body Package 18L Single In Package 8L, 9L 20L 24/28L 16L Cirtek Electronics Corporation 4/13/2015 Product Portfolio SOT Packages SOT 23 Packages 03L 05L 06L SOT Packages SOT223 TO 92 Packages TO 92 -Stand SOT 143 SOT89 TO 92 - Flat 17 Cirtek Electronics Corporation 4/13/2015 Product Portfolio Hermetic Packages Metal Can ( TO 3- TO 5) Small Metal Cans T-Hole Oscillator Hybrid Assembly SMT/COB Assy Build of Materials Materials Customer Specific Consignment Flexible Arrangement 18 Cirtek Electronics Corporation 4/13/2015 Other Special Assembly Capabilities Multichip on Standard Package Multi die on standard 150 mil 2 die up to 32 die, Custom LF design by Cirtek (SOIC) package Standard silicon die attach cylindrical crystal through resistance welding LF design by Cirtek 300 mil (SOIC) Pack. Cylindrical Crystal Control IC Die to Die Bonding Multi die embedded ceramic crystal Mounted die in PCB • NC and conductive epoxy • Transfer over mold process • 300 mil (SOIC) package Copper Clip attach on SOIC/QFN ESD and Power Devices Copper clip 19 Cirtek Electronics Corporation 4/13/2015 Hermetic Module Assembly Metal lid Non-hermetically sealed using conductive epoxy PCB Passive component attached with solder GaAs dice attached with conductive epoxy Gold wire 20 Cirtek Electronics Corporation 4/13/2015 Prescaler-Static divider Module Assembly 1 1 3 LEGEND: 1 1 2 CHIP CAPACITOR 1 1 2 CHIP RESISTOR 3 PRESCALER DIE 21 Cirtek Electronics Corporation 4/13/2015 Outline Company overview and organization Services and CEC BOM Product Portfolio and Special Capabilities Company strengths Plans and programs Package Technology Roadmap Final Test, Finishing and FAREL 22 Cirtek Electronics Corporation 4/13/2015 Company strengths 1 Certified to the latest quality standards 2 Solid management team and expertise 3 Ability to adapt to customers’ needs 4 Full turnkey solutions 5 Growing customer base of diverse clients 6 Strong brand name and proven track record 7 A PEZA-registered entity 23 Cirtek Electronics Corporation 4/13/2015 Company strengths 1 World Class Quality standards Cirtek’s manufacturing practices are designed to be compliant with industry requirements and to exceed customer’s expectation. Manufacturing applies latest quality system standards, which include ISO 9001, ISO 14001, QS-9000/TS-16949, BABT and DSCC, as well as certified facility by UL 24 Cirtek Electronics Corporation 4/13/2015 Quality Management System map Internal Quality Auditing – MOP Customer Service - COP Management Review QA /IQA Inspection Warehousing Billing 9 Sales and Marketing 1 Process Design and Dev’t 2 Production Planning Control 3 Process Control Inst / Doc’n 4 Assembly Mfg FA-REL 6 Final Test 7 Customers Satisfaction Customers Requirements Purchasing 10 Delivery 8 5 Calibration Maintenance Support Process Facilities Process Engineering MIS Training HR EMS Main Process MOP COP Product Realization NOTE: Support process that has no arrows meaning it will support the whole organization. 25 Cirtek Electronics Corporation 4/13/2015 Continual Improvement Process Cirtek Quality Management System CUSTOMERS SATISFACTION CUSTOMERS REQUIREMENTS Information Input Output 26 Cirtek Electronics Corporation 4/13/2015 Outstanding Quality System QUALITY MILESTONE IN SYSTEM AUDITS PERFORMED BY CUSTOMERS AND INDEPENDENT AUDITORS ACCREDITTED AS QUALIFIED SUPPLIER BY OEM’s CUSTOMER/END USER SPONSOR YEAR QUALIFIED APPLICATION HUAWEI – CHINA SEMTECH INC 2009 POWER SUPPLY - CE PANASONIC MOBILE COMM–JAPAN ANALOG DEVICES INC 2009 REPEATER/BASE STATION CANON INC - JAPAN SEMTECH INC 2008 ELECTRONIC DEVICES GE HEALTH CARE SUNPOWER 2007 CT SCANNER MICRONAS AUTOMOTIVE MICRONAS 2007 HAL SENSOR PANASONIC ELECTRONIC-JAPAN SEMTECH INC 2006 FLAT SCREEN TV HUAWEI – CHINA DALLAS-MAXIM 2006 ENTERPRISE/OFFICES IBM-JAPAN DALLAS-MAXIM 2006 DATA NETWORKING INTERNATIONAL RECTIFIER IR DIVISION 2006 POWER SUPPLY / CHARGERS ST MICROLECTRONICS ST MICRO 2006 MOBILE APPLICATION CMD CMD 2006 MOBILE APPLICATION EMERSON (ASTEC) SILICON LINK 2005 POWER SUPPLY - CE MEDTRONICS MICROSEMI 2003 MEDICAL IMPLANTABLE GENNUM GENNUM-CANADA 2002 HEARING AID 27 Cirtek Electronics Corporation 4/13/2015 Company strengths 2 Solid Management Team and Expertise Management team is composed of highly experienced individuals from various semiconductor and OSAT companies. The Cirtek Team has over 150 years of combined management and engineering package design expertise specific to semiconductor industry. Lean organization and prudent decision making. Focused and goal oriented. 28 Cirtek Electronics Corporation 4/13/2015 Company strengths 3 Ability to adapt to customer’s needs Technical abilities which provide customers a full range of turnkey solutions Customer requirements Customer satisfaction as evidenced by the awards received from several customers World class quality standards Excellence in manufacturing Clean room (Class 10K) facility and practice 5S (Japanese) Discipline On-time Delivery Competitive pricing Flexibility / Responsiveness 29 Cirtek Electronics Corporation 4/13/2015 Company strengths 4 Full Turnkey Solution Provide vertically integrated manufacturing solutions to its customers. Package Design & Development Higher productivity / efficiency Assembly & Packaging + Lower cost Test, Pack & drop ship to end Customers + Faster time to market 30 Cirtek Electronics Corporation 4/13/2015 Company strengths 5 Growing customer base of diverse clients A growing portfolio of customers. CHPI currently has 42 customers around the world The Company’s customers are located in various countries, with the bulk of revenues contributed by customers located in Europe and the USA % Contribution to revenues per region USA Europe Asia 31 Cirtek Electronics Corporation 4/13/2015 Company strengths 6 25 Years Proven Track Record Continuous production growth and generating employment. Financially strong. Delivering profit and dividend every year. Cirtek Historical Profit & Loss 2008 - 2011 50,000 In 000US$ 40,000 SALES (CAGR - 9.2%) 30,000 GROSS PROFIT (CAGR - 20%) 20,000 EBITDA (CAGR - 7.2%) NET INCOME (CAGR - 35.1%) 10,000 2008 2009 2010 2011 32 Cirtek Electronics Corporation 4/13/2015 Company strengths 7 A PEZA-registered entity As a PEZA*-registered entity, the Company enjoys certain incentives like tax holidays, duty free importation of materials and reduced power rate vis-a-vis non-registered entities which enables it to price its products competitively. Tax incentives Entitlement to 5% gross income tax (GIT) incentive. Secure new 4 year income tax holiday (ITH) for new projects + Ecozone power rate Reduction of 12.5% to 13.5% on power cost Ability to price products competitively Company savings * The Philippine Economic Zone Authority (PEZA) is an attached agency to the Department of Trade and Industry tasked to promote investments, extend assistance, register, grant incentives to and facilitate the business operations of investors in export-oriented manufacturing and service facilities located inside selected areas throughout the country 33 Cirtek Electronics Corporation 4/13/2015 Outline Company overview and organization Services and CEC BOM Product Portfolio and Special Capabilities Company strengths Plans and programs Package Technology Roadmap Final Test, Finishing and FAREL 34 Cirtek Electronics Corporation 4/13/2015 Plans and Programs 1 Expansion of Manufacturing facility and Capacity This will enable us to support 400 Million units of additional new business from existing and potential customers. 2 Innovation and ReEngineering Sustaining cost reduction program, higher quality product and stable process through automation and reengineering. To develop new packages through innovation to maximize yield and satisfy or exceed customer expectation. 3 Completion of current projects and programs with customers Concluding and enabling Cirtek to realize new potential business in the pipe line worth US$11.8 Million by 2012 and to expand product portfolio. New Potential business: Power MOSFET QFN Open cavity moisture / pressure sensor for automotive Opto Couplers Exposed Cavity Power Amplifier – HSOP Current protection devices 35 Cirtek Electronics Corporation 4/13/2015 Outline Company overview and organization Product offerings, Services and CEC BOM Product Portfolio and Special Capabilities Company strengths Plans and programs Package Technology Roadmap Final Test, Finishing and FAREL 36 Cirtek Electronics Corporation 4/13/2015 Package and Technology Roadmap Package Development Roadmap PCB / LGA / SIP FLAT TO92 SMT-COB FLIP CHIP ASSY STD TO92 0.5X0.25X0.30 DFN PACKAGE HYBRID ASSY CERAMIC ASSY SMT METAL CAN 1.2X0.76X0.76 DFN PACKAGE JEDEC STD QFN / DFN 1.0X0.5X0.48 DFN PACKAGE COL / CLEAR PACKAGE DFN SOD323 PDIP 2005 POWER QFN USING CU CLIP WLCSP LED ASSY SOT23 SOT23 SOT143 AIR CAVITY QFN / DFN SOT89 SOT223 TSOC TO272 MSOP SOIC NB SOIC WB SOIC W/ CRYSTAL 16 QSOP SOIC EPAD 2007 OPEN CAVITY SENSOR HSOP / DSO 2009 2011 2013 2014 37 Cirtek Electronics Corporation 4/13/2015 Package and Technology Roadmap Cost Reduction / Development Roadmap Technology Copper wirebond (90% lower than Au) BSOB bonding Stacked Die attach AuSn Eutectic die attach AuAg wirebond (20% lower than Au) Ribbon bonding Soft solder / Eutectic Die attach Low loop profile Die attach film Auto Clip attach ( 3% lower Au cost) Material Korean Cu wire supplier (21% lower cost) Brass / steel leadframe (10% lower than Cu) High Density Leadframe Matrix Leadframe Chinese leadframe supplier (20% lower cost) (12% productivity improvement) Ultra High Density Leadframe ( High Volume) MGP / automold conversion (14% lower cost) Mold compound selection GE300LC2 (21.8% lower cost) Ag plating thickness reduction (5% lower cost) 2005 2007 2009 2011 2012 2013 38 Cirtek Electronics Corporation 4/13/2015 Outline Company overview and organization Services and CEC BOM Product Portfolio and Special Capabilities Company strengths Plans and programs Package Technology Roadmap Final Test, Finishing and FAREL 39 Cirtek Electronics Corporation 4/13/2015 40 Cirtek Electronics Corporation 4/13/2015 Final Test Summary WAFER PROBE CAPABILITIES Wafer Prober EG1034 – 4” and 5” EG2001 – 6” EG2080 – 8” Ink/Inkless less Process ASCII format 41 Cirtek Electronics Corporation 4/13/2015 Final Test Summary TEST CAPABILITIES Mixed signal device Discrete device FAIRCHILD SENTRY, SIEMENS S725 OPTO relay device HP RACK & STACK, HP84000 Digital /Asic device KEITHLEY, GENESIS RF / IF device TESEC 881-TT, FROTHINGHAM CV3000B Linear device CREDENCE ASL-1000, EAGLE ETS 500D, LTX TESEC, HIPOT Protection device TESEC, KEITHLEY MULTI BIN/POST TEST MARKING SOT 89, 223 TO92 42 Cirtek Electronics Corporation 4/13/2015 Final Test Summary TEST / TAPE & REEL CAPABILITIES Integrated test and TNR handlers SRM S248 – SOT SRM XD16 – SOT SRM S12 – SOT VECTOR T20 – SOT QMT 1500 – SOT SRM 248XS – TDFN ASM FT2030 FLEXIPACK – SOIC SRM 244XS – SOIC ISMECA –NX16 – DFN ( 0402) Test handlers (SOIC/PDIP) MCT 3608/5100 MT 8305/8588/8704 AETRIUM 2020 DTS TNR handlers (SOIC) G6 Visdynamics Systemation TO 485 with 3D vision STI 8028 / ST 60 43 Cirtek Electronics Corporation 4/13/2015 44 Cirtek Electronics Corporation 4/13/2015 Failure Analysis Capability Internal / external inspection X-RAY ENVIRO SYSTEM chamber Temperature cycle TEXTRONICS curve tracer 85% / 85oC moisture soak NAPCO 8110-TD test chamber Open / short test DECAP AS2000 Autoclave SOFTEX 100 Decapsulation High / low power microscope ENVIRO SYSTEM chamber Polisher / grinder (cross sectioning) SBT–MODEL 900 45 Cirtek Electronics Corporation 4/13/2015 Reliability Test Capability Die shear Bond strength MIL STD 883-2003-7 / JESD22-B102D 8 hrs steam aging @ 100oC Temperature cycle MIL STD 883-2015 3 mins soaking time using IPA @ 30 strokes Solderability test MIL STD 883-2011 Mark permanency test MIL STD 883-2013 MIL STD 883E-1010.7 /JESD22-104B 10 cycles minimum @ 10 minutes / cycle Low temp @ -65oC (+0, -10oC) High temp @ 150oC (+15oC / -0oC) +150oC (+15,-0oC) Stability bake MIL STD 883-1008.2 6 hrs @ 175oC 46 Cirtek Electronics Corporation 4/13/2015 Reliability Test Capability High temp storage Auto clave JEDEC 22A 102-C 15 PSI for 96 hrs @ 121oC Fine leak JESD22-A103B 500 hrs min @ 150oC MIL STD 750D 1071.6 / Test Condition D 30 secs soaking time @ 125oC Moisture soak IPC / JEDEC J-STD-020C 168 hrs soaking time @ 85% RH / 85oC temp 47 Cirtek Electronics Corporation 4/13/2015 WHY CIRTEK as ASSSEMBLY & TEST SUBCONTRACT PARTNER? QUALITY FIRST MIND SET STABLE COMPANY → Philosophy - Long Term Relationship PROVEN TRACK RECORD GROWING COMPANY → Strategy – Partnership for Business Growth FLEXIBLE & RESPONSIVE → World Class Quality -External manufacturing of Customer ●Abundance of skilled workers ●Very low turn over rate ●Educated workforce ↗ Cost competitive ↗Continue to Innovate and reengineer to add value to production and cost 48 Cirtek Electronics Corporation 4/13/2015 49 Cirtek Electronics Corporation 4/13/2015