MFLEX ranked #35 on Fortune’s List of 100

Fastest Growing Companies

MFLEX Overview

January, 2011

MFLEX Confidential

Table of Contents

• Company Overview

• MFLEX Value Proposition & Value Added Differentiation

• FPC Technology

• FPCA Technology

• Module Integration

• Conclusion

• Appendix

Slide – 3

Slide – 7

Slide – 13

Slide – 27

Slide – 40

Slide – 50

Slide – 55

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Company Overview

Company Overview

• Who is MFLEX ?– Flex Manufacturer with State of the Art Manufacturing Facility in Suzhou, China capable of

35um L/S • CY 2009 Third largest FPC fabricator worldwide (Source: Japan Marketing Survey, Japan)

– Global Leader in Flex Assembly• Additional New Clean Room Assembly Facility in Chengdu, China, online Q1 2011

– Global Leader in Module Assembly & Chassis Integration • Dedicated Secure Assembly Facilities to protect Customer Intellectual Property (IP)

• Where does MFLEX Operate ?– Manufacturing Operations 150,000 m2 of manufacturing space in Suzhou & Chengdu, China– R&D in USA, UK, & China for Process and Product Development– Center of Excellence in USA to Incubate Ideas for New Offerings– Multiple offices in USA, Europe and Asia for Local Sales and Applications Engineering Support– Approximately 17,000 employees globally

• How is MFLEX Performance ?– Revenue $791 Million (FY-2010), Cash & Cash Equivalents of $100 Million*

– 2003 – 2010 CAGR of 30% – Ranked # 35 on FORTUNE’s 2010 list of Fastest Growing Companies

NASDAQ symbol: MFLXNASDAQ symbol: MFLX

* November 4, 2010

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Continued Investment in Capability & Capacity

• MFLEX has a history of investing nearly 10% in capital equipment each year• Investing over $80 million in 2010, continue plant capability investments in 2011• Equipment and facility expansion for capacity increase

– Bare Flex capacity & capability addition (MFC3) and upgrades to MFC2 in Suzhou, China– Dedicated assembly facilities to protect customer IP

• Technology, quality, and efficiency– Rigid Flex, fine pitch and automation including Roll to Roll– Automation Initiatives for FPC and FPCA– Strategic Initiative on Lean Manufacturing, Six Sigma Quality Systems– Ongoing training programs for line leaders, supervisors and managers

• Advanced Technology Group– Anaheim New Materials and Processes– China Process Development– Cambridge HID Development

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MFLEX Evolution - Moving Up the Value Chain

BARE FLEXCommodity Flex

Early Design Involvement Through Global Application & Design Engineering

FLEX ASSEMBLIESIntegration of Flex & Components

MODULE INTEGRATIONFunctional Modules, Chassis Integration

TECHNOLOGY MANUFACTURINGEnabling Technologies to helpcustomers differentiate

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MFLEX Value Proposition & Value Add Differentiation to Meet Market Trends

• Early Supplier Involvement (ESI) during Concept Phase– Advanced Technology with minimal design constraints– Early Supplier Involvement (ESI) at product concept stage to create a 3-D

packaging solution to make products thinner, smaller, smarter & lighter

• New Product Introduction (NPI)– Quick ramp to volume capabilities

• Production– Cost effective & sustainable High Volume Production

Concept Pre-ProductionDesign Prototype Production

NPIESI

MFLEX Value Proposition – Concept to Production

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MFLEX Value Added Differentiation

Expand use of core technology Upward Integration by adding functionality

Applications Engineering Support to solve 3-Dimensional Electronic

Packaging Needs

Applications Engineering Support to solve 3-Dimensional Electronic

Packaging Needs

FPCFPC

FPCAFPCA

MFLEX Core Technology

ProductProduct

Chassis Assembly & Higher Level Integration

Chassis Assembly & Higher Level Integration

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MFLEX Approach to Meet Market Trends

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MFLEX Strengths

Enable Unique Industrial Designs

with better Ergonomics

Rapid Response Production

Capacity

Smaller & Smarter Electronics

Packaging Solutions

Higher Complexity

Products

IP Protection Benefit

For optimal IP protection MFLEX uses dedicated satellite assembly sites for Module Integration

•Secure facilities dedicated to a specific Customer or Program•Customer/Program Specific Dedicated Operators & Project Teams•IP is secured since only specific/related customer is allowed as an external visitor to the facility•If demand needs adjustment, impact on other projects can be made visible•Highly efficient and appreciated by current customer base

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Electronics Assembly & Interconnect Levels

Level 0 Level 1 Level 2 Level 3 Level 4

FPCDirect Chip

Attachment to FPC

FPCAModule Assembly

& Chassis Integration

End Product

Flexible printed circuit

fabrication

Wire Bond or Flip Chip

attachment to flexible printed

circuit

A fully assembled

FPC containing

IC’s, resistors, capacitors,

diodes,

FPCA mounted on chassis with various types of

hardware

Functional System

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FPC Technology (Level 0)

FPC Capabilities Overview

• 3 FPC Fab Facilities in Suzhou including a state of the art new 56,680m² facility operational September 2010 with roll-to-roll capabilities

• Current FPC monthly production capacity: 120,000m²• FPC monthly production capacity by April 2011: 150,000m²• FPC monthly production capacity by July 2011: 175,000m²

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New Advanced FPC Fab Capability and Capacity

1. Panel Process– Phase 1 (Sept-2010) – 15,000 m2

– Phase 2 (Apr-2011) – 15,000 m2

– 50µm line/space– FPC and Rigid-flex

2. Roll-to-Roll Process– Phase 1 (Oct-2010) – 10,000 m2

– 35µm line/space– Single-sided and Double-sided FPC– Phase 2 (Feb-2011) : 25 um line/space

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Copper Plating

MFLEX Confidential 16Trademarks and Logos are the property of their respective owners

Roll-to-Roll Process

Laser Drilling Copper Plating

Dry Film Lamination Exposure

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Trademarks and Logos are the property of their respective owners

AOI

Lamination

Roll-to-Roll Process (cont.)

FPC Technology Roadmap-Mass Production

65 65 35 35 25 25

Line/Space: 65µm Line/Space: 25µmLine/Space: 35µm

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Surface Copper ≤18µm Surface Copper ≤12µm Surface Copper ≤9µm

Fine-line Capability Roadmap

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Panel/Sheet (SS/DS and Multi-Layer FPC)

Copper Thickness Description ProcessSep.'10 Dec.'10 May.'11 Oct.'11

MP LP MP LP MP LP MP LP

9 um - Foil Only EL with BP, IL. NA 50 NA 50 50 40 40 35

12 um - Foil Only EL with BP, IL. 64 50 50 50 50 40 40 40

18 um - Foil Only EL with BP, IL. 64 64 64 50 64 50 64 50

18 um - Plated Foil EL with PP (9-3)+12 75 75 75 64 64 60 64 60

25 um - Plated Foil EL with PP (12-2)+15 75 75 75 64 75 64 75 64

Roll To Roll (SS/DS FPC)

Copper Thickness Description Process Oct.'10 Dec.'10 Feb.'11 Aug.'11

MP LP MP LP MP LP MP LP

9 um - Foil Only EL with BP, EL. NA 35 35 35 35 25 25 25

12 um - Foil Only EL with BP, EL. NA 35 35 35 35 25 25 25

18 um - Foil Only EL with BP, EL. NA 35 35 35 35 35 35 35

18 um - Plated Foil EL with PP (9-3)+12 NA 40 40 35 40 35 40 35

25 um - Plated Foil EL with PP (12-2)+15 NA 75 75 64 64 60 60 60

EL= External Layer BP= Button Plated MP= Mass Production All values shown are in microns (µm)

IL= Internal Layer PP= Panel Plated LP= Limited Production

Development – Additional processes

• LDI– Available for dry film processing – November 2010

• Registration tolerance better than +/- 25um• Feature to holes, layer-to-layer

– Available for solder mask processing – March 2011• Registration tolerance better than +/- 25um• Openings for 01005 components• 0.4mm pitch for BGA/LGA

• Electroless copper alternative to Shadow graphite chemistry– For Rigid-flex and complex ML FPC that require via fill– Development Pilot line available – December 2010– Basis for FPC and Rigid-flex via-fill and stacked-via development; future fine line

semi-additive processes

• Copper filled PTH & microvia– ± 7% panel Copper uniformity, high ductility Copper

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Development – Surface Finish

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• Flexible (soft) ENIG process (mass production line)– Ready for production, pending customer approvals– Line fully configured for conversion to ENEPIG Mass Production

• ENEPIG Development pilot line – 200 panels/day capacity– Ready by November 2010– For process chemistries evaluation and prototype support

Development – Rigid-Flex

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• Design and Process Concept– Target markets: mobile phone, automotive, medical – Typical 4-8 layers– Static bend and dynamic applications– Assembly design and process considerations– Ready to market March 2011– Technical considerations

• Materials – for stability, dynamic applications• Design• Process • Product reliability

Development – FPC Materials

Q4 2010• Flexible solder mask

– Pending customer approval

• Black coverlay (multiple suppliers)• Flexible photoimageable coverlay Q1 2011• Thin copper < 9um for fine pitch display applications• LCP for impedance control requirement

– High temperature press installed by November 2010

Q3 2011• Sputtered copper material on PI for < 25 micron L/S by semi-additive

methods

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Development - Automation

• Panel size Coverlay layup and pre-laminate• Shielding cut, punch and apply• Stiffener pick and place• Automatic punch for singulation• Roll to roll systems and Material handlers• Multilayer Registration Systems -(2+n+2) to 12 layers• Automated Plating Line Racking Systems for reduced handling

damage

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FPCA Technology (Level 1 and 2)

(Level 1) (Level 2)

FPCA Capabilities Overview

• 200 SMT lines and 24 Chassis Integration Assembly lines

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SMT Lines Chassis Integration Lines

FPCA SMT Capabilities Overview

• SMT Lines include:– Solder Paste Inspection– AOI– 3D X-Ray– Conformal Coating and Underfill Encapsulation

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Conformal CoatingAOI

Solder Paste Inspection

Trademarks and Logos are the property of their respective owners

FPCA Chassis Integration Capabilities Overview

• Chassis Integration Assembly Lines include:– Heat Staking– Selective Laser Soldering– Laser Welding– Bending FPCA for 3D Packaging

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Selective Laser Soldering

Trademarks and Logos are the property of their respective owners

Bending

FPCA Chassis Integration Capabilities Overview (cont.)

• Chassis Integration Assembly Lines include:– Spot Welding– ACF Bonding and Wire Bonding

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Trademarks and Logos are the property of their respective owners

Spot Welding

ACF Bonding

FPCA Capabilities Overview

• New Clean Room SMT & Chassis Integration Assembly Facility in Chengdu currently under construction, operational by CY Q1 2011

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Trademarks and Logos are the property of their respective owners