Advanced Packaging Current Trends & Challenges

1 2020 From Technologies to MarketsAdvanced Packaging Current Trends & Challenges9 Advanced Packaging PLATFORMS Classification at System Integration LevelWafer levelSubstrate/Strip level (Panel based)Panel levelLevel 1 -DieInterconnectionSubstrate/ leadframeLevel 2 - Packaging ModuleLevel 3 -No SMT neededSiP/PoP, in PCB/FlexED in laminateOrganic/glass substrate organic substrateFlip-chipWire-bondRDLFIWLPFOWLP 3 glass bridgeBump/pillarTSV/ TGVC eramic/ leadframe and othersAdvanced organic substrateMold embeddingOrganic interposerFCWBCSPBGA StandardBGA AdvancedLGABGALGACSPO rganic substrateCeramic/ leadframe and othersFCWBAP platform10 2018 | | Status of the Advanced Packaging Industry 2018 Advanced Packaging MARKET SHARE EVOLUTION 2014-2025 Advanced Packaging revenue will almost equal to traditional Packaging revenue by 2019, the AP market share was Due to strong momentum in AP market driven by mega Trends .

2 The share of AP in the total semiconductor market is increasing continuously and will reach almost 50% of the market by 2014, AP market share was 38% and there is strong possibility that in 2026, AP market share will exceed that of traditional Packaging revenue as % of total packagingAPOther$53B$85B11 2018 | | Status of the Advanced Packaging Industry 2018 Fan-out, $3,046 M, 7%Flip-chip, $32,291 M, 77%Fan-in , $2,491 M, 6%ED, $149 M, stacking*, $4,186 M, 10%2025( $ )Fan-out, $1,256 M, 5%Flip-chip, $23,938 M, 83%Fan-in , $2,068 M, 7%ED, $55 M, stacking*, $1,466 M, 5%2019( $ ) Advanced Packaging REVENUE FORECAST 2019-2025 NOTE: Values represent Packaging services (assembly and test) and do not include FEOL Si die processing TSV* includes portion of package revenue not included in Flip-chip or fan-in The Advanced Packaging market was worth ~$ in 2019.

3 It is expected to grow at ~ 7% CAGR2019-2025to reach ~$ in 2025. Highest revenue CAGR expected from / 3D stacking IC, ED (in laminate substrate) and Fan-Out, 21%, 18% and 16%, respectively, as high volume products further penetrate the market: FO in mobile, networking, automotive; TSV in AI/ML, HPC, datacenters, CIS, MEMS/sensors; ED in automotive and Packaging REVENUE SPLIT by Packaging platformFlip-chipCAGR2018-2025~ ~ 16%Fan-in WLPCAGR2018-2025~ StackingCAGR2018-2025~ DieCAGR2018-2025~ 18%CAGR ~7%12 technology ROADMAP: FROM NANO-SCALE TO s Law Stacked Die Bump Pitch ( m)Die to SubstrateFC Bump Pitch ( m)Substrate to BoardBGA Ball Pitch ( m)22nm14nm10nm7nm28nm14nm10nm7nm5nm3nm20 nm16nm10nm7nm5nm3nm20nm14nm (licensed)

4 StoppedAdvanced NodesAdvanced Packaging *16/14nm10nm7nm5nm3nm200 to 150 m150 to 80 m60 to 40 m<40 m400/350 m 300 m Advanced Packaging is essential to bridge the scale-gap between die and PCBI ndustry is looking into the growing importance of functional roadmapAverage Trends based on technology and industry expectation*Minimum dimension2nm95 to 48 m44 to 20 m20 to 10 m2nm5nm13 2018 | | Status of the Advanced Packaging Industry 2018 TSMC14%Samsung Electronics10%ASE9%SPIL8%Intel8%Chip Bond7%JCET/JCAP6%Amkor/Nanium6%Powertech 4%NEPES4%ChipMOS4%SK Hynix3%LBSemicon2%Global Foundries2%Others4%Winstek1%Huatian1%SJS emi1%Unisem1%China Advanced Packaging WAFER SPLIT (300MM EQ WSPY) Advanced Packaging 2019 WAFER SPLIT BY MANUFACTURERTEN players, which includes 2 IDMs (Intel, Samsung), a foundry (TSMC), the top 5 global OSATs (ASE, SPIL, Amkor, PTI, JCET) together with Nepes and Chipbond, process approximately 75% of Advanced Packaging : This pie chart represents superpositions of all Advanced Packaging platforms (Fan-in/Fan-out WLP, Flip-chip including and embedded die.)

5 Flip-chip values are entered as total capacity, fan-in, fan-out, 3D stacking and embedded die as total production. Flip-chip production values were not available by customer global utilization is at ~85-90% of M300 mm eq. 2018 | | Status of the Advanced Packaging Industry 201814 2018 | | Status of the Advanced Packaging Industry 2018 Status of Advanced Packaging Industry 2020 | Report | | 2020 FINANCIAL OVERVIEW FOR TOP 25 OSATSR evenue in 2019 2018 | | Status of the Advanced Packaging Industry 2018 Top OSATs with heavy investments were creating a disparity with the rest of the 8 OSATs now include 3 manufacturer HQ-ed in maintained its 8th in the tail are at a higher risk if there is no differentiated technology or IP for merger and acquisition as an exit OSATs were separated from the 8 OSATs continued with heavy

6 Investment in CapEx and R&D.**Note: SPIL included in ASE figures from 2019 onwards 8,4564,0533,2852,2091,1691,0858487106786 7558248440539939833933431428928626726424 7223157 ASE (rev w/SPIL & w/o USI)AmkorJCET GroupPowertech TechnologyTongfu MicroelectronicsTianshui Huatian MicroelectronicsKing Yuan ElectronicsUTACC hipbond TechnologyChipMOS TechnologiesOrient Semiconductor ElectronicsSFA semiconHana Micron (Rev w/o Hana Materials)Greatek ElecAOI ElectronicsCarsemSigurd MicroelectronicsFormosa Advanced TechnologiesNepes CorporationUnisem BerhadArdentecInari Amertron BerhadTong HsingWalton Advanced EngineeringLingsen Precision IndustriesTOP 25 OSAT ranking by 2019 revenue [$M]Players not within the Top 8 rankings need to catch , they risk being acquired or incurring losses in ranks between 3rd&4thIf counted separately, SPIL revenue in 2019 is $ , which will place it as 4thamong global OSATs.

7 # 2018 | | Status of the Advanced Packaging Industry 2018 SEMICONDUCTOR SUPPLY CHAIN -2020 System / ProductSub-Module /Sub-systemsDesign & AssemblyDesign of chip & packageWafer Level Packaging Middle -end SiliconManufacturing Front-end Package Assembly & Final Test Back-end Front-end relatedmaterials suppliersFE relatedequipment suppliersBE Packaging materials suppliersBE Packaging equipment suppliersFab-lessIC playersIDMs (Integrated Device Manufacturers)WLP houses (no need for traditional substrate)PCB suppliersSMT material suppliersSMT equipment suppliersPackage substratelaminate suppliersSubstrate material suppliers(FR4, BT resin, Cu clad, ) Wafer foundriesFab-light players (outsourcing + focused investment in manufacturing & critical IP)Wafer Bumping housesPCB houseswith Embedded die capabilityPassive components, connectors, (Original Equipment Makers)

8 Semiconductor production chainPCB and substrate component suppliersEquipment/materials suppliersPassive components, connectors wafer / package manufacturing foundriesOSATs with module/EMS capabilityODM / EMS / DMS # 2018 | | Status of the Advanced Packaging Industry 2018 MOBILITY ACROSS SEMICONDUCTOR SUPPLY CHAIN AT VARIOUS ,someofthemhavesuccessfullymanagedtoexpa ndinnewbusinessmodel& ,playersinsemiconductorsupplychainsaremo vingtodifferentbusinessmodels17 OSATS Packaging BUSINESS CANNIBALIZATION TRENDT otal IC Packaging business: $67B (2019)Traditional PackagingAdvanced PackagingFoundriesEMS/ODM playersSubstrate / PCB suppliers Packaging /assemblybusinesswastraditional lydomainofOSATs&IDMs.

9 ,substrate/PCBsuppliers,EMS/DMareenterin gtheassembly/packagingbusiness& ! 2020 | |