Status of the Advanced Packaging Industry 2020 July 2020 ...

1 2020 From Technologies to Markets 2020 Status of the Advanced Packaging Industry 2020 Market and Technology Report 2020 Sample22 GLOSSARIESAIA rtificial IntelligenceASICA pplication Specific Integrated CircuitARAugmented RealityBEBack-EndBGABall Grid ArrayCISCMOS ImageSensorCSPChip ScaledPackageCPUC entral Processing UnitDSPD igital Signal ProcessorDMSD esign Manufacturing ServicesDTVD igital TVEDE mbedded Die (in laminate substrate)EMSE lectronicsManufacturing ServicesFEFront-EndFIFan-In FCFlip ChipFOFan-OutFPGAF ield ProgrammableGate ArrayGPUG raphics ProcessingUnitHBMHigh Bandwidth MemoryHDHighDensity (Fan-Out) OR High Definition (TV)HPCHigh Performance ComputingHVMHighVolume ManufacturingI/OInput/OutputIDMI ntegrated Device ManufacturerICIntegrated CircuitIIoTIndustrial Internet of ThingsIoTInternet ofThingsL/SLine/SpaceLEDL ight Emitting DiodeM&AMerger & AcquisitionmSAPmodifiedSemi-Additive ProcessODMO riginal Design ManufacturerOEMO riginal Equipment ManufacturerOSATO utsourced Semiconductor Assembly and TestPCPersonal ComputerPCBP rinted Circuit BoardPCBAP rinted Circuit Board AssemblyPLPP anel Level PackagingPMICP ower ManagementICPWBP rinted Wiring BoardQFNQuad Flat No-Leads QFPQuad Flat PackageRDLR edistribution layerRFRadio FrequencySAPSemi-Additive ProcessSiMSystemin ModuleSiPSystemin PackageSMTS urface Mount TechnologySTBSet-Top BoxTSVT hrough Si ViaTXVRT ransceiverVRVirtual RealityWBWirebondWEWearablesWiFiWireless FidelityWLPW afer Level Package 2020 | | Status of the Advanced Packaging Industry 2020 Status of the Advanced Packaging Industry 2020 | Sample | 2020 | 3 TABLE OF

2 CONTENTSoIntroduction3oMethodologyoRepor t SynergiesoObjectives, Scope, GlossaryoWhat we get right & what we get wrong ?oAdvanced Packaging platformsoNoteworthy news on Advanced Packaging 16o3 Page Summary 18 oExecutive Summary22 oWhat happened in 2018 and what to expect in next 2 years?oKey slides from the reportoSemiconductor Business Trends & Outlook 78 oSemiconductor Industry trends and market driversoEffect of US-China trade dispute on semiconductor business & supply chainoAdvanced Packaging Technology Trend 100oWhat is driving AP business ?oImpact of FEOL on packagingoPackaging & Technology roadmapsoFocus on TSMC, Intel & Samsung Electronics AP oAdvancedPackagingMarketTrend139oForecas ts per adv. Packaging platformsoUnit countoWafer countoRevenueoForecast of adv. Packaging platforms by applicationsoDifferentAdvancedPackagingP latformSummary159oAnalysisperplatformand futuredevelopment:Flip-chip,Fan-out,Fan- in,3 DStacking,Embedded-die&AdvancedSubstrate soPlayersandSupplyChain175oPlayer landscape and positioningoBusiness model shiftsoOverview of production per manufactureroAdvanced Packaging wafer breakdown by manufacturers by different technology: flip-chip, fan-out, fan-in, 3 ICoAdvanced Packaging wafer breakdown by business model: OSATs, IDMs & FoundriesoPlayer financials199oTOP 25 OSAT financial analysisoRankings by different parameters.

3 Revenues, Gross profit, net-income, R&D development of key OSATsoMergers/Acquisitions and recent development 239 oList of M&As in semiconductor since 2013oAnalysis of M&As trend in OSATs sector and various scenarios for 2019-2024oM&As scenarios for OSATsStatus of the Advanced Packaging Industry 2020 | Sample | 2020 | oConclusions254oAppendix257 oYoleD veloppementpresentation26544 METHODOLOGIES & DEFINITIONSM arketVolume (in Munits)ASP (in $)Revenue (in $M)Yole s market forecast model is based on the matching of several sources:Information AggregationPreexistinginformationStatus of the Advanced Packaging Industry 2020 | Sample | 2020 | 55 Vaibhav TRIVEDIABOUT THE AUTHORSS antosh KUMARS antoshKumariscurrentlyworkingasDirector& PrincipalAnalystintheSemiconductor&Softw aredivisionatYoleD SHOOF avier Shoo is a Technology and Market Analyst in the Semiconductor & Software division at Yole D veloppement(Yole), part of Yole Group of Companies.

4 Based in Singapore, he is engaged in the development of reports as well as the production of custom consulting projects. With prior experience at Applied Materials and REC Solar, Favier has developed a deep understanding of the supply chain and core business values. Being knowledgeable in this field, Favier has conducted professional training for Industry players and obtained two patents. He also co-founded a startup company. Favier holds a bachelor s in Materials Engineering (Hons) and a minor in Entrepreneurship from Nanyang TechnologicalUniversity (NTU) Trivedi is a Sr. Technology and Market Analyst in the Semiconductor & Software division at Yole D veloppement, part of Yole Group of Companies. Based in the US, he is a member of Yole sadvanced Packaging team and contributes to analysis of ever-changing Advanced Packaging has 17+years of field experience in semiconductor processing and semiconductor supply chain, specifically on memory and thermal component sourcing and Advanced Packaging such as SiPand has held multiple technical and commercial lead roles at various semiconductor corporations prior to joining holds a Bachelor of Science in Chemical Engineering, and Master of Science of Material Science from University of Florida in addition to an MBA from Arizona of the Advanced Packaging Industry 2020 | Sample | 2020 | Biographies & contacts66 Altera, Amkor, Analog Devices, Ardentec, Atmel, AOI Electronics, Apple, ARM, ASE, Avago, Bitmain, Broadcom, Carsem, China WLCSP, Chipbond, ChipMOS, Cisco, Cypress Semiconductor, Deca Technologies, Greatek, IC Interconnect, Fairchild, Facebook, Flip Chip International, Formosa, Freescale, Fujitsu.

5 GlobalFoundries, Google, Hana Micron, Huawei, Inari Berhad, Intel, Intersil, J-Devices, JCET, King Yuan, Linear Technology, LB Semicon, LingsenPrecision, Maxim, MaxLinear, MediaTek, Microchip, Microsemi, Movidius, Nantong-Fujitsu, Nanium, Nepes, Nvidia, NXP, ON Semiconductor, OptoPAC, Orient Semiconductor, Powertech Technology, Renesas, Qualcomm, Rohm, Samsung, SilTech, Sigurd, SK Hynix, Softbank, SPIL, ST Microelectronics, STATS ChipPAC, STS Semiconductor, Teraprobe, Texas Instruments, TianshuiHuatian, Tong Hsing, Toshiba, TSMC, Unisem, UTAC, Walton Advanced Engineering, and many of the Advanced Packaging Industry 2020 | Sample | 2020 | COMPANIES CITED IN THIS REPORT> 100 companies cited in the report7 WHAT S NEW IN THE Status OF Advanced Packaging 2020?oUpdatedforecastofthesemiconductorm arketincludingmemory&non-memorycomponent soIncludedkeysystemleveldemandforecast:m obile&consumer,automotive,telecom&infras tructureoUpdateofAdvancedPackagingmarket data(2019-2025):oByrevenue,wafer,andunit forecastsoByadvancedpackagingplatforms:f lip-chip,fan-out,fan-in,3 Dstacked,embeddeddieoIncludedCOVID-19imp actonallforecastsoAnalysisofUS-Chinaeffe ctonsemiconductorbusiness&supplychainoUp date2019-2025revenue,wafer,andunitforeca sts,byvariousapplicationsegments:consume r&mobile,automotive&transportation,telec om&infrastructure,medical,industrial,def ense&aerospaceoUpdatedsupplychainanalysi swithfocusonimpactoffoundryentryintoadva ncedpackagingbusinessoWaferstartsshareby manufacturersfromdifferentbusinessmodel( IDM,OSAT,foundry)bydifferentadvancedpack agingplatformanditsevolutionoUpdatedfina ncialanalysisofthetop25 OSATs(2019-2013)bydifferentparameters.

6 Revenue,YoYgrowth,R&D,Capex,Grossprofit, GrossMargin, of the Advanced Packaging Industry 2020 | Sample | 2020 | 8 KEY FEATURES OF THIS REPORT Advancedpackagingmarketoverview Driversanddynamics Futureapplications Disruptionsandopportunities Technologytrendsandforecasts Revenue,waferandunitforecastsbyplatform Futuredevelopmentbyplatform Impactoffront-endscaling Scalingandfunctionalroadmaps Supplychainanalysis Overviewofproductionbyplayer(IDM,OSAT,fo undry) Shiftingbusinessmodels FinancialanalysisofTOP25 OSATsThe StatusoftheAdvancedPackagingIndustry : Status of the Advanced Packaging Industry 2020 | Sample | 2020 | 9In2019,theadvancedpackagingteamofSemico nductor,MemoryandComputingDivisionatYole D veloppementstarted AdvancedPackagingMonitor activity,toallowquarterlyupdateanddeeper focusonthesesegmentsThemainobjectivesoft hismonitorarethefollowing:oNear-termmark etdynamicsonquarterlybasisoLong-termmark etdynamicsfor2019-2025oCapEx&Capacityper majorplayersoMarketshareofmajorOSAT/Foun dryplayersoPackageASPpergivenmarket/plat formoDevice/applicationadoptionforadvanc edpackagingtechnologiesWHAT S NEW FROM THE Advanced Packaging TEAM?

7 Advanced Packaging MonitorsStart of Advanced Packaging Monitors with quarterly of the Advanced Packaging Industry 2020 | Sample | 2020 | 10 2018 | | Status of the Advanced Packaging Industry 2018 SYSTEM INTEGRATION LEVELSiPhone 6 LEVEL 3:End Device/EquipmentLEVEL 2:Device/Equipment BoardiPhone 6 PCBQ orvo RF SiP in the iPhone 6s PlusLEVEL 1:Semiconductor PackagingLEVEL 0:Semiconductor Die/WaferPower amplifier in Qorvo RF SiPSemiconductor waferLEVEL 1+2:Semiconductor Package + BoardSemiconductor packageBoard (PCB)Si diesPackage SubstrateStatus of the Advanced Packaging Industry 2020 | Sample | 2020 | 11 2018 | | Status of the Advanced Packaging Industry 2018 Packaging FAMILIES PLATFORMSNo substrateFan-OutWLCSPO rganic substratesWirebondBGACSPCOBBOCWB CSPLGAFlip-ChipBGAFC BGAFO on substratesWire BondQFN/QFPSOICTSOPLCCDIPFlip Chip FC QFN (MIS)Ceramic substratesWirebondHi RelFlip-ChipHTCCLTCCE mbedded DieStatus of the Advanced Packaging Industry 2020 | Sample | 2020 | 12 2018 | | Status of the Advanced Packaging Industry 2018 Advanced Packaging PLATFORMSNo substrateFan-OutWLCSPO rganic substratesWirebondBGACSPCOBBOCWB CSPLGAFlip-ChipBGAFC BGAFO on substratesWire BondQFN/QFPSOICTSOPLCCDIPFlip Chip FC QFN (MIS)

8 Ceramic substrates WirebondHi RelFlip-ChipHTCCLTCCE mbedded DieStatus of the Advanced Packaging Industry 2020 | Sample | 2020 | 13 2018 | | Status of the Advanced Packaging Industry 2018 Advanced Packaging PLATFORMS Classification at System Integration LevelsWafer 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-bondRDLFIWLPFOWLP3 DFOPLPS ilicon/ glass bridgeBump/pillarTSV/ TGVC eramic/ leadframe and othersAdvanced organic substrateMold embeddingOrganic interposerFCWBCSPBGA StandardBGA AdvancedLGABGALGACSP*Lv=levelOrganic substrateCeramic/ leadframe and othersFCWBC onventional wire-bond based SiPis not covered in this reportStatus of the Advanced Packaging Industry 2020 | Sample | 2020 | 1414 GLOBAL ECONOMY OUTLOOK-12-60612187119011931196119912021 GDP growthPer capita GDP growthThe world economy will likely go into recession in 2020 due to COVID-19 pandemic which has delivered an enormous global shock, leading to steep recessions in many countries.

9 COVID-19 is expected to result in a percent contraction in global GDP in 2020 despite unprecedented policy capita income will drop by , which will have adverse impact on the semiconductor market. However, the global economy is expected to strongly rebound in 2021, with global GDP growth of capital income is forecasted to increase by in 2021 Source: of the Advanced Packaging Industry 2020 | Sample | 2020 | 1515 SEMICONDUCTOR BUSINESS OUTLOOK After 2 successive high growth years, global semiconductor market growth decline 12% YoY to reach ~$412B in 2019. The decline is attributed to the cyclicality in product pricing, sluggish phone demand and global trade unrest. According to Semiconductor Industry Association (SIA), annual sales declined across all regions: Europe ( ), China ( ), Asia Pacific/All Other ( ), Japan ( ), and the Americas ( ). In 2020, the semiconductor business will witness another slow down due to COVID-19 pandemic adverse impact on economy.

10 And we expect it ll show negative growth rate ( -3% YoY). However, in 2021, market expected to strongly recover and grow at 15% YoYStatus of the Advanced Packaging Industry 2020 | Sample | 2020 | Semiconductor Industry growth declined 12% YoY to reach ~$412B in 2019. Market expected to slowdown in 2020 due to COVID-19 CRITICAL TO SEMICONDUCTOR BUSINESSM emory market which decreased -34% YoY in 2019 is expected to grow by 17% in 2020, despite the global downturn. ,thecombinedrevenuesforstand-aloneNANDan dDRAM(~$156B)isalmost thofthesemiconductormarket. Memorymarketwhichdecreased-34%YoYin2019i sexpectedtogrowby17%in2020, ,includingmobility,cloudcomputing,artifi cialintelligence(AI),andtheinternetofthi ngs(IoT). Status of the Advanced Packaging Industry 2020 | Sample | 2020 | 1717 Status of the Advanced Packaging Industry 2020 | Sample | 2020 | DIGITAL SOCIETY: NEW TRENDS & MARKET DRIVERSR obotSmartAugmentationPCMobileImagingCame raSmart speakerSmart camera WearablesCompanion robotOlfactometrySmellingMotion sensingHolographic interactionAugmented humanRobot homePCAudioMobileSpeakerSmart hearablesSmart assistantSmartwatchSmart TVSmartwatchSMARTPHONE+ Accelerator+ NeuromorphicApplication processorStandalone CPU, GPU,memoryand connectivitySMARTPHONESMARTPHONE>2030200 0201020201818 Status of the Advanced Packaging Industry 2020 | Sample | 2020 | TECHNOLOGY ROADMAP.