Investor Presentation

March Quarter 2012

In addition to historical statements, this presentation and oral statements made in connection with it may contain statements relating to future events and our future results. These statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but are not limited to, statements that relate to our future revenue and statements under the sub-headings “Vision” and “Mission” on slide 4 of this presentation. While these forward-looking statements represent our judgments and current expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to: the risk that customer orders already received may be postponed or canceled, generally without charges; the risk that anticipated customer orders may not materialize; the risk that our suppliers may not be able to meet our demands on a timely basis; the risks that our forecasts on Copper, LED and/or Node Shrink do not materialize, the volatility in the demand for semiconductors and our products and services; volatile global economic conditions, which could result in, among other things, sharply lower demand for products containing semiconductors and for the Company’s products, and disruption of capital and credit markets; the risk of failure to successfully manage our operations; acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, which may be associated with a substantial non-U.S. customer and supplier base and substantial non-U.S. manufacturing operations; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2011 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission.

Kulicke & Soffa Industries, Inc is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Safe Harbor Statement

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About Kulicke & Soffa (K&S)

• Founded in 1951, publicly traded since 1961• Moved Headquarters to Singapore in 2010, where

50th Annual General Meeting was recently held• Listed on NASDAQ Global Select: KLIC• Leadership positions in most served markets• Strong global presence, with 80% of sales in Asia• 2,900 total employees as of Oct 1, 2011• Rich history of technology leadership & innovation• K&S serves critical role in Industry’s transition from

Gold to Copper wire

Kulicke & Soffa is the Global Technology & Market Leader in Semiconductor Wire Bonding Assembly Equipment

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4

Vision, Mission & Core Values

VisionTo be the leading provider of comprehensive and innovative technology solutions

for the micro-electronics packaging industry

Mission• Grow our leadership position in wire bonding and expendable tools, and lead the industry in

transitioning to copper wire bonding• Broaden our product portfolio by leveraging our core competencies to accelerate our revenue growth• Consistently deliver superior financial performance to maximize shareholder value• Be at the forefront of technology by leveraging strategic partnerships with customers, suppliers and

research institutes• Foster a positive working environment that encourages learning, collaboration, creativity, knowledge

sharing and people development

 

• Delight Our Customers• People Matter• Learn, Grow, Excel

 Core Values

• Innovate for Success• Make a Difference

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Global Presence

USA, Fort Washington (PA) Equipment R&D

USA, Irvine (CA)Wedge Bonder R&D

Switzerland, BergDie Bonder R&D Israel, Yokneam

Bonding Tools R&DManual Wire Bonder

Manufacturing China, SuzhouBonding Tools Manufacturing

Blades R&D and ManufacturingSoftware Development

Singapore (HQ)Wire, Die & Wedge Bonder

Engineering and Manufacturing

Malaysia, KLSub-Assembly of Wire and Die Bonder System

K&S Manufacturing/Engineering Plant

K&S Internal Sales/Service Office

Market Driven Products

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Die BonderiStack

7600HD7200Plus7200HD

Wedge Bonder

IConn ConnX ConnX-LED ConnX-VLEDBall Bonder

Auto OLP

SoftwareMicroelectronicsEquipment

Manual Wire

Bonder

AT Premier

Hub Blades

Capillaries

3700Plus 3600Plus

IConn ProCu

ORTHODYNE Wedge Bonders

Leadership Positions

Products Market Share Ranking

Automatic Ball Bonders #1

Heavy Wire Wedge Bonders #1

Manual Wire Bonders #1

Wafer Level Stud Bump Bonders #1

Capillaries #1

IC Dicing Blades #2

Source : Gartner, VLSI & K&S internal data 7

Highest Performance Ball Bonders

Standard IConn Features• Optimization tools enhance ease of use• Ultra fine pitch (35µm) wire bonding capability• Best in class accuracy, up to +/- 2.0µm

Optional Kits Allow for Greater Customization & Manufacturing Efficiency

• Copper bonding kits allow bonding of

both gold and copper• Large Bondable Area options increase productivity • Premium software processes provide greater packaging

flexibilityo Power Series Advanced Loopo Power Series Low Loop

Strengthening Leadership through Continued and Well-Received Innovative Features

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Most Advanced Copper Solution

• Over 20 years of research in copper wire and copper bonding properties

• K&S shipped the first copper wire bonding kit in 2006

• Introduced IConnPS ProCu in Nov 2010, the industry’s first copper dedicated wire bonder

• K&S also offers capillary products designed specifically to enhance copper wire production

• In-house R&D, sales and support expertise further enable turn-key copper production at Customer’s sites

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We Lead in Wedge Bonding• Industry’s highest Production - Units Per Hour• Large wire, small wire and PowerRibbon® options• Single and multi-head machine configurations • User-friendly software

Continued Drive to Manage Costs• Transitioned effectively all manufacturing to Asia• Centralized supply chain management• Improved competitive advantage

Automatic Single and Dual Head Wedge Bonders forPower Semiconductors and Power Modules

Scalable State-of-the-Art Capabilities, Excellent Quality, andLow Cost-of-Ownership

Highest Performance Wedge Bonders

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ORTHODYNE Wedge Bonders

Confidential 11

No.1 in Wire BondersTop 5 Companies (ALL) Revenue from Shipments of Wire Bonders - Worldwide (Millions of $US)

2008 2009 2010 2008 2009 2010 2010Rank Rank Rank Revenue Revenue Revenue Share (%)

1 1 1 Kulicke & Soffa 139 230 690 49%2 2 2 ASM International 133 171 415 30%3 3 3 Shinkawa 83 37 150 11%4 5 4 Kaijo 32 20 65 5%

NM 4 5 BE Semiconductor 0 20 39 3%Others 149 33 47 3%Total Market 536 511 1,405 100%

Source : VLSI, Dec 2011

Leader in Wire Bonders

Source : Gartner, Apr 2011

Automatic Wire Bonders Market Share Market Share

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11Kulicke & Soffa Ind. Inc. 60% 59% 50% 58% 65% 64%ASM International N.V. 24% 22% 28% 26% 23% 14%Shinkawa Ltd. 10% 13% 14% 11% 7% 10%BE Semiconductor Industries 2% 2% 2% 1% 0% 8%Other 4% 4% 6% 5% 3% 4%

Company

Wedge Bonder Market Overview

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Market Demand Drivers

Applications Market Size ‘10

CAGR 2010-15

Power SemiconductorDiscrete

Broad Electronics Demand:Consumer Electronics, Communications & Infrastructure, Lighting, Medical, etc

Power MOSFETs, Rectifiers, Thyristors & Misc Discretes

$12.3B 9.4%

Power ModulesAutomotive

Overall Automotive Demand

Modules per Auto continues to increase

Power Steering, Transmission, Engine System Control &Electric Motor Control

$612M 11.0%

Power ModulesNon-Automotive

Industrial Demand & Automation

Sustainable Technologies; Wind, Solar, Turbine

Motor ControlDC->AC Inverters

$2.9B 12.4%

Source : IMS Research Aug 2011 (End Market Size and CAGR Forecast)

• Industry leading throughputo P-T-P* processing delivers 30-50%

improvement

• Higher yield capabilityo New heated bond process reduces voids

twice as fast as the conventional process

• Enhanced stability in bond accuracy and distributiono Dynamic Calibration* - dispense and bond

heads are continuously calibrated using an unique integrated target built into the heads

• Other features include heated rotary bond head*, thin die capability (15µm)* and fast & simple wafer exchange

High Performance Die Bonder

iStackPS

Advanced Stacked Die& High Performance BGA applications

* Patents pending

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Select Customers

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Longer-Term Market Trends

K&S Currently Dominates• Historic focus on Fine Pitch Gold applications• Existing platform better suited to handle Copper’s

tighter process window• Continual R&D investment to maintain position

Over 60% of K&S Ball Bonder shipments, since October 2009, were Copper Capable

The K&S Copper Opportunity• Roughly 120,000 Ball Bonders in the field• Approximately 20% are Copper Capable• Potentially 70% of all Wire Bonded Integrated

Circuits may convert• Will likely trigger multi-year replacement cycle

Source : Company Estimates 16

1) Copper Transition

99 99 99 99 99 100

2434

4657

7081

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

20

40

60

80

100

120

140

160

180

200

2011 2012 2013 2014 2015 2016

% C

oppe

r

Ball

Bond

ers i

n Pr

oduc

tion

-Tho

usan

ds

Gold Bonders Copper Bonders % Copper Bonders

• 28% Projected Copper Capability CAGR through 2016

• Potential Demand to average over 10k Incremental Copper bonders/year

• Gold bonder install base will still require maintenance & replacement

1) Copper Transition

Source : Company Estimates 17

% Copper Capable

Copper conversion incentive remains strong with Gold prices over $1,000 Oz

OSAT Revenue, 144%

Semi Revenue, 71%

WW GDP*, 36%

0%

20%

40%

60%

80%

100%

120%

140%

160%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2) OSAT GrowthOutsourced Semiconductor Assembly & Test

Historic Focus on OSAT Market• 70% of K&S Ball Bonder’s shipped to

OSATs, since 2004• OSATs forecasted to continue growing

at nearly 2X rate of semi space

Source : Gartner, Dec 2011 18

Over 160nm

55 to <160nm

Under 55nm

0

250

500

750

1000

1250

1500

1750

2000

2250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Waf

er S

tart

s Pe

r Wee

kTh

ousa

nds o

f 300

mm

Equ

ival

ents

3) Node Shrink

Source : VLSI, Feb 2012

• Node shrink drives high accuracy Gold and Copper Equipment demand

• Sub 55nm node forecasted to:• Grow at 16% CAGR, 2011-2016• Represent 69% of 2016 wafer starts

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

20

40

60

80

100

120

Ch

ip S

urf

ac

e in

B

illio

ns

mm

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4) LED Growth

LED growth expectations driven by energy conservation requirements, ongoing government incentives and fewer hazardous materials.

Government regulation to phase-out incandescent bulbs may serve as catalyst for adoption of LED in general lighting.

Application 2015 Chip Surface mm2

CAGR 2010-’15

General Lighting 34.3B 183%

Display & Others 29.1B 124%

20Source : Yole Development, Sept 2011

General Lighting

Display & Others

Financial Highlights

Key Financials

• Strong financial performance throughout industry cycle

• Provides innovative solutions through continuous R&D commitment

• Earned $160.4M of Income from Operations over previous 12 months

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154

221

259

149

207

294

180

120

Mar '10 Jun '10 Sep '10 Dec '10 Mar '11 Jun '11 Sep '11 Dec '11

Revenue ($M)

15.2%

22.6% 21.9%

14.8%

21.1%

27.7%

12.6%10.3%

Mar '10 Jun '10 Sep '10 Dec '10 Mar '11 Jun '11 Sep '11 Dec '11

Operating Margin

14.014.7 14.8

15.2

16.5 16.6 16.8

14.1

Mar '10 Jun '10 Sep '10 Dec '10 Mar '11 Jun '11 Sep '11 Dec '11

R&D ($M)

Fiscal Q1 2012 Performance

Quarterly GAAP Results Fiscal Q1 2012 Change vs. Fiscal Q1 2011

Change vs. Fiscal Q4 2011

Net Revenue $120.0 million (19.4%) (33.5%)

Gross Profit $55.3 million (23.3%) (33.2%)

Gross Margin 46.1% (230) bps 20 bps

Income from Operations $12.4 million (43.9%) (45.5%)

Operating Margin 10.3% (450) bps (230) bps

Net Income* 8.5 million (43.7%) (344.9%)

Net Margin 7.1% (300) bps 600 bps

EPS – Diluted $0.11 (47.6%) 266.7%

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Market leading products, operational excellence and corporate-wide savings initiatives drive through cycle performance

95

157170

186

145

181

385404

280

195

251 247

159

110 110 110

FY05 FY06 FY07 FY08 FY09 FY10 FY11 Q112

Total Cash & Debt Balance ($M)

Total Cash & Short Term Investments Total Debt

Net C

ash P

ositio

n

Strong Net Cash Position of $294m

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• #1 Market Share Position in Ball, Wedge and Wafer Level Bonders in addition to Capillary Tools

• Existing Products Serve Developed & Emerging Marketso Broad semiconductor and LED markets including

copper and MEMS applications o Industrial and automotive markets requiring power

control and manipulationo Consumers desire new devices like smartphones

and tablets, connected to faster networks

• Strong Foundation to Support Future Growtho Rich history of Technology Leadership

and Innovationo Through-Cycle Performance through flexible

manufacturing model and corporate-wide initiativeso Growing Cash Position provides Potential for

Organic and Non-organic Opportunities

Summary

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