May 5, 2016 GCS Confidential

環宇GCSHandse

t

WLANWiMAX

VCO

Infr

a-

stru

cture

MM

Wave

OC768 LED

HFET

InGaP HBT

InPHBT

GaN

PHEMT

IPD芯

環宇

系天下

2

GCS Holdings, Inc.

GCS Holdings @Cayman

Islands

GCS, LLC

IPO9/15/2014

Stock ID: 4991

GCS

Device

Technologies

Taiwan (100%) USA (100%)

Global

Advanced

Semiconductors

Xiamen (49%)

D-Tech

Optoelectronics

JV withSanan IC(SAIC)[6” WaferPure-play

Wafer Foundry]D-Tech Taiwan

KGD:PD/LD

Backend Ops

WorldwideSales &

Marketing

KGD:PD/LD

FrontendWafer Fab

2/3/4/6”Foundry

Wafer Fab

KGD:APD Frontend

Wafer Fab

KGD:APD Backend

Chip Fab

3

GCS – SAIC JV (GAS)

GCS Holdings (Cayman Islands)

Xiamen

Sanan IC

(SAIC)

51%49%

North

AmericaROW

BusinessTerritory

6” wafer foundry

@Xiamen

@Xiamen

Global

Advanced

Semiconductors

4

GCS Businesses

Brand Name OptoChip Products

Wafer Foundry

RF

PowerElectronics

Optoelectronics

PD/MPD

APD

VCSEL

LDKGD: Known-Good-Die

KGD

5

Revenue Mix % vs Gross Margin - QoQ

APD

included

6

KGD Revenue Mix - QoQ

APD

included

7

GCSBrand NameOptical Chips

Products

8

GCS Brand Name Chip Products:Applications & Markets

PD, MPD, APD, VCSEL, LD

AOCHDMIMobile

Wearable

LTE4G

4.5G5G

40G100G200G400G

Data Centers

Consumer &

IoT

LTEBASE

STATION

FTTx2.5G10G25G

PON

9

Production

Development

KGD Products Roadmap

850nmPD

1310/1550nm

PD

2.5G=<8

G2.5GFP

10GFP

25G

2.5GDFB

10GDFB

MPD

25G

EC MPD

2018

10G

400G

1G

MPDArray

400G

1G

1310/1550nm

MPD

1310/1550nm

APD850nmVCSEL

10G

1310nmLD

BI

BI: backside illuminated

Non-hermetic

Receiver Transmitter

10

TO-CAN/COB

TOSA/ROSA/BOSA

Transceiver

環宇芯

OFC Ecosystem

11

40G100G200G400G

GCS Inside Mega Data Center

12

Ethernet Transceivers Shipment by Data Rate(Historical Data and Forecast)

Source: LightCounting’s 2016 report

- 25Gx4 VCSEL- 100G GaAs PD- 100/200/400G InGaAs PD

13

Small base station

Small base stationLarge capacitybase station

OE Conversion Module光電轉換模塊

OE Conversion Module光電轉換模塊

環宇芯inside/HP PA

6G/10G/25Gbps

環宇芯inside/HF PA

6G/10G/25Gbps

環宇芯inside/HF PA

6G/10G/25Gbps

GCS Inside Large and Small Base Station

宏基站

小基站

小基站

Internet

14

Shipments of optical transceivers used in wirelessinfrastructure (Historical Data and Forecast)

Source: LightCounting’s 2016 report

25G starts taking off

25G/28G PDs

15

OLT

ONU

GCS Inside Your Building, Your Home

環宇芯inside

環宇芯inside2.5Gbps/10Gbps/25Gbps APD

16

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Un

its

BPON GPON EPON NG PON Point-to-point

FTTx Transceiver Unit Shipments by Type(Historical Data and Forecast)

XG-PON starts to take off

Source: LightCounting’s 2016 report

10G APD25G APD

2.5G APD2.5G STIA PD

Sole supplierTo HuaweiSTIA BOSA

17

RF Wafer Foundry

18

RF Foundry:Applications & Markets

RF Wafer Foundry

RFIC、HEMT、pHEMT、HBT,InP HBT, GaN/Si、GaN/SiC

1GHz to 94GHz

Base Station4/4.5/5G

Smart Phones(6” partner)

Wifi802.11AC802.11AX

Wireless(Mobile & Infrastructure

19

IF Filter

LO Chain (VCO, Multiplier)

Filter

• SAWBAW

• IPD

• SAW • MMIC

• HEMT• HBT • Si

• PHEMT• GaAs/InP HBT• GaN HEMT• CMOS

• HBT

Typical RF Transceiver Block DiagramsGCS has all the Preferred Device Technologies

T/R Switch

LNA IF Filter IF Amp

LO Chain (VCO, Multiplier)

Filter

Antenna

Mixer

PA

Mixer

• HEMT• GaAs• InP PIN• Si PIN• SOI

• HEMT

• SAW • MMIC

• SAWBAW • IPD

• HEMT• High fco SBD

• HEMT• High fco SBD

• HEMT• HBT • Si

• HBTReceiver

Transmitter

ADC

DAC

• Si• GaAs/InP

HBT

• Si• GaAs/InP

HBT

IF AmpVariable Attenua

tor

• HEMT

20

What 5G Needs?

• Super High Linearity PAs

• High Frequency PAs

• High Frequency Filters

21

Major RF Markets for Compound Semiconductors

Market Drivers

– 4G Cellphone and 802.11ac WLAN

– 5G Wireless Network

• 2018: 4.5G , f <6GHz

• 2020: 28GHz phased-array single-chip PA/LNA/Phase Shifter

– Aerospace and Defense Microelectronics

– Wide-bandgap semiconductor power electronics

– 100Gbps / 400Gbps Ethernet, Mega Datacenter, Automotive, IoT

22

RF Technology Roadmap- Market Driven Strategy

Wireless

– 2017: 0.4um & 0.25um GaN/Si HEMT, 0.5um GaN/SiC HEMT

– Next 3 years: 0.25um/0.15um GaN HEMT (5G BTS, VSAT), BAW filter (4G, 4.5G cellphone), P3 GaAs HBT (4.5G cellphone), mmW PA InP HBT (5G cellphone), mmW mixer (5G BTS), RF PIN mmW switch (5G BTS)

Aerospace and Defense

– 2017: 0.25um GaN HEMT, THz mixer diode, 0.25um E/D-HFET, RF PIN

– Next 3 years: 0.1um PHEMT, 0.15um GaN HEMT, GaN/Diamond.

Power Electronics

– 2017: SiC Diode and JFET

– Next 3 years: SiC MOSFET, GaN/Si MISHEMT

Optical Communication Network

– 2017: InP HBT for 100G laser driver

– Next 3 years: Gen-3 InP HBT for 100G/400G TIA and Laser driver, 25G EPIC

23

RF Technology Selection

Microwave Components 0.25-0.5um PHEMT/GaN HEMT for switch, LNA, mixer, saturated PA

GaAs HBT for VCO, doubler/prescaler, mixer, linear and saturated PA

High fco Schottky diode (THz diode) for low-loss mixer

Millimeter-Wave Components 0.1-0.15um PHEMT/GaN HEMT for LNA, mixer, saturated PA

InP HBT for VCO, doubler/prescaler, mixer, linear PA

High fco Schottky diode for low-loss mixer

Fiber-optical IC Components (40G and above) 0.1-0.15um PHEMT or InP DHBT for laser driver

InP SHBT or DHBT for TIA, limiting amp, Mux, Demux

High-speed Instruments 0.1-0.15um PHEMT for analog components (amps, mixers, etc.)

InP HBT for digital/mixed signal components (ADC, DAC, freq. source)

Mixed-signal ICs InP HBT for high data rate, high resolution A-D and D-A Converters

GCS has All the RF Technologies

24

GCS Processes for 5G

Below 6 GHz

0.25um – 0.4um GaN HEMT for BTS PA

P3 InGaP HBT for handset PA

If phased array is needed, HBT-PIN switch for single-chip PA-Phase Shifter

BAW for >2GHz RF filters

mmW (28 – 40 GHz)

0.15um GaN HEMT for BTS wide band PA

InP HBT for handset PA

InP HBT-PIN switch for single-chip PA-Phase Shifter

0.25um InP HEMT-PIN for single-chip LNA-Phase Shifter

InP BiHEMT for single-chip PA/LNA/Switch/Phase Shifter

25

InP Technologies

26

• InP HBT allows single power supply for PA and LNA

• Superior PA efficiency at mmWave frequencies

• Integrate InP HEMT LNA/Switch for small size

• InP HBT and HEMT for high Ft without E-beam writer

• Performance always wins at RF Front-end

Why InP Technologies?

27

Components

Market

Size

(2020)

Semiconductor

Technologies

1 Power Amplifier $4.2B GaAs HBT, E/D HEMT, InP HBT-PIN

2 RF Filter $5B BAW

3 Cellphone Base Station Power Amplifier $1.5B GaAs HBT, GaN HEMT, RF PIN

4 Aerospace & Defense T/R Module $0.8B GaAs HEMT, GaN HEMT, HBT, RF PIN

5 Power Electronics HV Diode and Switch $5B SiC, GaN/Si HEMT

6 Optical Communication PD, Laser, TIA, Driver Amp $1.2B GaAs HEMT, InP HBT, Optoelectroncs

7 Automotive, Consumer Auto Radar, T/R Module $0.5B GaAs HEMT, GaN HEMT, VCSEL

Cellphone/Tablet

(4G, 4.5G, 5G)

Platform

Major RF Market Opportunities

28

Source: Duet Microelectronics

5G FEM Forecast

BIG MARKET!

29

Global Filter Market

Source: Qualcomm

30

3G/4G Filter Technology Mapping(from TriQuint 10/30/2013 Analyst Day Presentation)

1 GHz 2 GHz 5 GHz

RF Content in LTE Phone

31

Comparison of SAW and BAW

32

Advantages of BAW- Higher Frequency, Lower loss, Higher power handling- Better temperature stability, Steeper filter sidewall- Smaller size, MEMS or GaAs fab compatible/scalable

Two Types of BAW Structure

33

Solidly Mounted ResonatorBAW-SMR: TriQuint et al.

Film Bulk Acoustic ResonatorFBAR: Avago et al.

GCS uses a modified FBAR approach for- Lower loss- Easier process- Patentable process

Substrate

34

RF Filters Market

Source: Mobile Expert 2016

35

RF BAW Filters Market(Wafers)

Source: Simon saysSimon Yu, Jan 2018

36

Power ElectronicsWafer Foundry

37

Power Electronics Foundry:Applications & Markets

Power Electronics Wafer Foundry

GaN/Si, SiC

38

OptoelectronicsWafer Foundry

39

Optoelectronics Foundry:Applications & Markets

Optoelectronics Wafer Foundry

APD, VCSEL, FP/DFB LD, EML, 2D Image Sensors

Photonic Integrated Circuits……

Optical

Fiber

Networks

Industrial Medical Consumer

VCSEL(3D Sensing)

LD

VCSELImager

VCSEL/APDLD

VCSEL/DFBEML/PIC

40

Future Growth Roadmap

RF Wafer Foundry

4G5G PA

5G Filter

3D VCSEL

6” FAB

Up to 30,000wafers/month

5G

41

GCS IS READY FOR 5G AND 400G

5G:• Super High Linearity HBT Processes

• High Frequency PHEMT Processes

• High Frequency Filters Process

400G: 100G/200G in production• Super Fast Photodiodes• VCSEL coming soon

6”FAB

(soon)

42

Other Technologies ForHigh Volume Products

• High PCE VCSEL for 3D Sensing (on 6” wafer)(proven for production)

• Advanced APD array for LiDAR

• Advanced Micro-LED process

• VCSEL with integrated micro-lens for ADAS and LiDAR

• GaAs high power laser for commercial cooking

Other Future Growth Engines

43

3D Sensing VCSEL Market Size

44

3D Sensing VCSEL Market Size (in smartphones)(6” Wafers)

Source: Simon saysSimon Yu, Jan 2018

45

DataCenter

Metro

5GAccess

LongHaul

100G » 200G » 400G

10G/40G » 100G » 200G/400G

10G/40G » 100G » 200G

3G » 4G » 5G

High volume 6” FABSuper High Linearity HBTHigh Frequency HBT andPHEMTHigh Frequency Filters

2.5G » 10G » 25G

Growth Cycle

Brand name optical chips

Brand name optical chips

46

5G is coming!萬物互聯無縫連接無所不能

47

More Traffic 5G

- 4K/8K 超高清- VR/AR- Smart Everything- IoT-自動駕車-無人機。。。。

48

Mobile Wireless Technology Evolution

50

What is 5G? 萬物互聯！

GCS Confidential

Unlimited access to information and the ability to sharedata anywhere, Anytime by anyone and anything

Source: Nokia

20 Gbps

4G:1 Gbps

4G:10 ms

4G:10 Mbps

4G:100K nodes/Km2

1 out of 100m packets lost

三大應用場景

八大指標

海量 極速

超 寬

Enabling a Mobilized Economy!

51

How Fast is 5G?

52

Courtesy: Yole

Spectrum for 5G

53

Courtesy: Yole

5G Applications

GCS High

Frequency:

0.1um PHEMT

InP HBTGCS High

Linearity HBT

GCS High

Frequency

BAW Filter

GCS 100/200/400G Chips

54

5G will do whatever and whenever

you want it to do!

~7 B mobile devices in use in 2030.

45 B+ OTHER devices!

Sources: 4G Americas, Qualcomm, WRC, districoffuture.eu,

ExtremeTech, Groupe Canam, SmartGrid.gov, WSJ,

marinscope.com, Naledi3D.com, Q2 Serves.uk.com

5G

Smart Cities

Autonomous

Vehicles

Object Tracking

Smart Grid

Remote Industrial

Control

Process

Automation

Wearables &

Sensors

Disaster,

Emergency

Management

Traffic Control

V2V / V2X

High Traffic Venues

Immersive Video

Mobile Holographic Display

Augmented Reality

Low-latency

Cloud Gaming

Medical Monitoring

TelesurgeryLow-rate, Latency-

Tolerant, High-Security

55

Courtesy: Yole

5G Ecosystem

We are here!

56

Courtesy: Yole

RF Component and Module Supply Chain

GCS

57

5G Example

On Sept 29, 2017, participants at the EU Digital Summit in Estonia remotely controlled an industrial excavator over an ultrafast live 5G network as part of the first public live 5G trial in Europe, madepossible by Ericsson, Intel and Telia. (Credit: Intel Corporation)

58

5G Example

59

LTE-V2X

60

5G Enables Huge Business Potential

61

5G: Everything is possibleunder the Sun

太陽底下沒有什麼不可能！

62

DataCenter

Metro

5GAccess

LongHaul

100G » 200G » 400G

10G/40G » 100G » 200G/400G

10G/40G » 100G » 200G

3G » 4G » 5G

High volume 6” FABSuper High Linearity HBTHigh Frequency HBT andPHEMTHigh Frequency Filters

2.5G » 10G » 25G

Growth Cycle

Brand name optical chips

Brand name optical chips

GCS Proprietary63

May 18, 2018

Simon Yu 余有崇

Senior Vice President

General Manager

Worldwide Sales & Marketing

Component Business Group

syu@gcsincorp.com

US: (650) 892 8676

Taiwan:(886) (0 )918 818 824

China: (86) 136 9989 4206

環宇

芯系天下