faraday technology corporation...confidential 14 statement of comprehensive income unit: nt$ million...
TRANSCRIPT
Confidential
June 2020
Faraday Technology Corporation
2Confidential
Faraday at A Glance Financial status• Capital: US$80M • Revenue: US$172M (Y2019)
Top management• Chairman: Stan Hung• President: Steve Wang• COO: Flash Lin
Established since Y1993• Taiwan IPO since Y1999 (TWSE:
3035)• Commitment in ASIC & IP business
3Confidential
SRIO
IP & ASIC Service
IP IP
IP
ICD
evelo
pm
en
t
DDR CPU
Wafer ICA
SICD
esign
IP D
esign
SerDes
Front-end Design(Application)
Back-end Design(Process)
4Confidential
IP & ASIC Business
IPBusiness
IP
IP
Customer Logic
IP IP
NRE
IP
Mass production –Mask, foundry,packaging, testing
IP license & royalty –IP customers handle their own chip integration, production & logistics
ASICBusiness
• Business leverage– In-house IP capability shortens integration & minimizes risk
– ASIC experience leverages internally developed IP
5Confidential
Global Deployment
Sales & serviceDesign centersSales Rep.
Global sales offices with 20+ Sales Rep.
4Employeesworldwide
850+Design centers
8
China• Chongqing• Suzhou• Shanghai
India• Bengaluru
Vietnam• Ho Chi Minh
Japan• Tokyo
USA• Oregon• Silicon Valley
Taiwan• Hsinchu (HQ)• Taipei• Tainan
6Confidential
450Patents
3000+
IPs silicon-proven2200+
ASIC projects taped-out
Faraday R&D Commitment
75%Workforcewith diverse tech talent
30%Yearly revenue
for R&D investment
7Confidential
Full Range of Process Technologies
Under developmentAvailable
Library & IO Memory Analog High-speed interface
Processor cores
0.11μm/0.13μm
0.22μm/0.25μm
90nm
55nm/65nm
40nm
0.3μm/0.35μm
0.45μm/0.5μm
0.162μm/0.18μm
22nm/28nm
FinFET
8Confidential
Faraday Excellence
Founded Asian Fabless ASIC vendor1st
ISO 26262 Certified ASIC Service Company1st
FPGA-to-ASIC Expert
No.
1 Asian IP Vendor
No.
1
Fundamental IP VendorTop
3
ASIC
IP
+
+
+
9Confidential
Extensive ASIC Business Model
Design
services
Architecture specification
RTL coding & Integration
Synthesis
Pre-layout verification
Tape out sign-off
Physical verification
Post-layout verification
Physical implementation
Package & test
Fabrication
Mask tooling
Pro
du
ction
service
s
Start from
netlist
Start from
RTL
Start from
spec-in
Spec
RTL
Netlist
Chip
GDS
Start from
GD
S
10Confidential
Strategic Partnership with UMC and SEC
Mainstream Technology
• Best cost/performance foundry solution
• In-house IPs with customization and lower design risk
• Sweet spot nodes for diverse applications
Leading-edge Technology
• Forefront technology offerings• Leverage 3rd Party IPs with in-
house IPs• Innovative applications
Microcontroller
SoC
Advanced
40nm/28nm/22nm
14nm & beyond
55nm & below
AI Cloud HPC
FA Projector MFP
IoT Smart grid
11Confidential
Diversified Application Coverage
• Femtocell• Switch•Networking
security• Pre5G/5G•Home gateway
Consumer/Multimedia/PC peripheral
AIoT IndustrialCommunication
•DSC• IP Cam•Drone• Consumer MCU• Speech controller• Calculator•USB dongle/Hub • eMMC/NAND
flash/UFS
•AI• Pico projector• Enterprise SSD• 3D Sensing • Security IC•HPC• Smart home• SSD•Wearable• Ethernet MCU• Pressure sensor• Sweeping robot
•Agriculture•Automotive•Aviation•Medical•MFP• Robot• FPGA• Factory
automation• Solar power
12Confidential
IP-like ASIC Model
• “Long-standing” + “Recurring” + “Incremental” Income
• Niche Mainstream + Commodity Bonus
• Surfing the Niche-market Tide (Long tail)– Long life cycle
– Less seasonality
– Higher margin
– Higher customer stickiness
– Higher MP success rate
IP
ASIC
License Royalty
NRE MP
MP Revenue
Life Cycle
Project 1
Project 3
Project 4
Project 5
Project 2
Project 6
…
13
Financial Summary
14Confidential
Statement of Comprehensive Income Unit: NT$ Million 1Q20 4Q19 QoQ %
Net Operating Revenues 1,265 1,402 -9.8%
Gross Profit 618 697 -11.2%
Operating Expenses (576) (640) -10.0%
Operating Income 42 57 -25.2%
Net Non-operating Income and Expense 5 (2) -299.7%
Income Tax Expense (11) (11) 3.4%
Net Income 36 44 -17.7%
Minority Interests 3 5 -40.1%
Net Income Attributable to the Parent 39 49 -20.0%
EPS (NTD) 0.16 0.20
Gross Margin 48.9% 49.7%
Operating Margin 3.4% 4.1%
Net Income Margin 2.9% 3.1%
15Confidential
Condensed Balance Sheet
Unit: NT$ Million 2020/03/31 2019/12/31
Cash and Cash Equivalents 2,769 2,776
Notes and Accounts Receivable 888 858
Inventories 636 635
Total Assets 7,349 7,702
Notes and Accounts Payable 1,104 1,081
Current Liabilities 1,841 2,079
Total Liabilities 2,169 2,439
Stockholders’ Equity 5,180 5,263
16Confidential
Sales Breakdown by Billing Method
NRE22.5%
MP60.5%
IP17.0%
1Q 2020 4Q 2019
NRE30.2%
MP54.2%
IP15.6%
17Confidential
Sales Breakdown by Application
Industrial21.7%
AIoT44.2%
Communication18.9%
MM/Con/PC12.0%
Others3.2%
1Q 2020 4Q 2019
* MM / Con / PC includes multimedia, consumer electronics and PC peripheral.
Industrial31.6%
AIoT32.2%
Communication19.7%
MM/Con/PC12.1%
Others4.4%
18Confidential
Sales Breakdown by Technology
≦ 28nm
15.8%
40nm15.3%
55nm - 90nm20.0%
0.11um - 0.18um45.7%
≧ 0.25um
3.2%
1Q 2020 4Q 2019
≦ 28nm
23.0%
40nm15.7%
55nm - 90nm21.3%
0.11um - 0.18um37.8%
≧ 0.25um
2.2%
