global communication semiconductors (gcs) and the compound
TRANSCRIPT
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GCS Proprietary1
May 12, 2019
Simon Yu 余有崇
Senior Vice President
General Manager
Worldwide Sales & Marketing
Component Business Group
US: (650) 892 8676
Taiwan:(886) (0 )918 818 824
China: (86) 136 9989 4206
環宇
芯系天下
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GCS Holdings, Inc.
GCS, LLCGCS
Device
Technologies
Global
Advanced
Semi
D-Tech
Optoelectronics
JV withSanan IC
6” WaferPure-playWafer Foundry
D-Tech Taiwan
Backend Ops
Sales & Marketing
Customer
Services
KGD:PD/LD
FrontendWafer Fab
2/3/4/6”Foundry
Wafer Fab
APD FrontendWafer Fab
PD/APD BackendChip Fab
Unikorn
Semi-
conductor
5G GaN RF PABAW Filter3D Sensing VCSEL
6” WaferPure-playWafer Foundry
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GCS Businesses
Brand Name Optical Chip Products
Wafer Foundry
RF
PowerElectronics
Optoelectronics
PD/MPD
APD
VCSEL
LDKGD: Known-Good-Die
KGD
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Revenue Mix % vs Gross Margin - QoQ
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GCS Brand Name Chip Products:Applications & Markets
PD, MPD, APD, VCSEL, LD
AOCHDMIMobile
Wearable
LTE4G
4.5G5G
40G100G200G400G800G
Data Centers
Consumer &
IoT
LTEBASE
STATION
FTTx2.5G10G25G
PON
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Value-added Customer DelightWafer Foundry Services
RF
PowerElectronics
Opto-Electronics
4”/6”
FAB
4”/6”
FAB
2”/3”/4”
FAB
We provide Best Outfit for customers’ product!
Wafer Foundry Business
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RF Foundry:Applications & Markets
RF Wafer Foundry
RFIC、HEMT、pHEMT、HBT,InP HBT, GaN/Si、GaN/SiC,
BAW Filters
Base StationMobile Phones
4/4.5/5G
Wifi802.11AC802.11AX
Wireless(Mobile & Infrastructure
6” Wafer Production
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Power Electronics Foundry:Applications & Markets
Power Electronics Wafer Foundry
GaN/Si, SiC
6” Wafer Production
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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/Micro LED
VCSELImager
VCSEL/APDLD
VCSEL/DFBEML/PIC
6” Wafer Production
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MARKET OVERVIEWCAPTURE MARKET OPPORTUNITIES
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Smart Devices Smarter and Greener Vehicles
5G Networks
3D Sensing, Lasers, Detectors, Power Amplifiers,
Power Amplifiers, Power Converters Filters
Filters WiFi optical components,
Switches Antenna Switches
Future Growth Opportunities
Self-driving
Car is not “IF”
but “WHEN”
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Global Optical Transceiver Market
Slower than expected growth in 2017-2018
CAGR of 14% from 2003-2016
2019 – still slow, but 2H is better than 1H
What is the CAGR going forward to 2024?
What it takes to drive growth:- Deployment of 400G (8x50, 2x200 or 4x100)
Ethernet modules (need reliable supply chain)- Transceiver price decline slows down
(5% to 38% in 2011-2018)- Roll out of 5G networks, especially in China
(wireless back-haul and front-haul)- No more trade-war (Trump please)- Too many players, especially in China with small
volume – driving price decline- Limit # of new generation products
(too many form-factors: 100G, 200G, 400G…)
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5G is coming sooner than expected?
Huawei – 40 5G network construction as of April 2019(6 in Asia Pacific, 10 in Middle East, 23 in Europe)
Verizon activated 5G fixed wireless mobile broadband network (Chicago and Minneapolis) – April 3, 2019
Commercial launch of 5G mobile services by SK Telecom, KT and LG Uplus – April 7, 2019
Samsung began sales pf 5G-enabled Galaxy S10
5G – two worlds:- China: follow the same foot step as 4G LTE (abrupt
market dislocation)- ROW (investment is driven by market force): slow-
motion evolution - only deployed for distinctly different use cases
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Customer and Technology Activities
Data Center momentum continuing – 100G in volume and 200G/400G starts production
Major customers evaluating GCS 25G VCSEL (for 100G/200G/400G)
In discussion with major customers on GaN 6” production for base stations
SMART BAW process in final development with strategic customers and move to 6” fab
3D sensing VCSELs qualified move to 6” fab
PIC customers in 6” production
Several automotive Advanced Driver Assistance Systems (ADAS) customers in development phase
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The compound semi conductor (CS) industry revenue is
still dominated by IDM’s.
The foundry is not yet a viable industry as WIN is the only
game in town.
– The foundry service option is limited
– The fabless cannot grow to become giants like Qualcomm
in the silicon world.
– The IDM’s has to bear the burden of their internal fabs.
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Status of the CS Industry
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Evolving Business Model
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Offering all customers another viable foundry solution like the silicon foundry industry
– Driving high efficiency and lower cost
– Driving leading & competitive technologies
Growing foundry market size together by increasing IDMs’ outsourcing
– Creating CS fabless giants like Qualcomm, Broadcom, nVidia in
silicon
– Releasing IDM’s capital burden and inefficiency
Why GCS?
Driving CS Foundry Growth
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Outsource Commodity
RF Foundry (6” wafer)
fab
Increase Focus on Opto
Foundry Business Higher Revenue per Wafer
Developing Next Generation
Technologies and Products
Take Advantage of GCS’s Core Strength: Technologies & Innovations
GaAs, InP, GaN, SiC, BAW Filter
Niche RF
Foundry (4” wafer)
fab
GCS owned 5G
RF Foundry (6” wafer)
Fab
Move to 6”
volume production
3D VCSEL, PIC, ADAS…..
Move to 6”
volume production
Brand-name Optical KGD Chip Sales Leverage lower cost 4” and 6” Fab
Growth Strategies
Low
Volume
High
ASP
High
Volume
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Removing the capacity constraints to capture the growth
opportunities
– Continue US HQ as the technology development and incubation center
– Capture low-volume high ASP manufacturing and emerging markets
– Build capacities in Taiwan and China for high-volume manufacturing
– Offer GCS customers the flexibility to meet their end-customers’ supply
chain logistics requirements.
Grow the CS foundry business with partners TOGETHER
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New World Dynamics – Growth with Partners
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Initial technologies to transfer: GaN and VCSEL
Iron out details of technologies & products transfer
Target to complete qualification of technologies by the
end of 2019
Start production no later than 3Q2020
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Status of UnikornSemiconductor
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GCS Proprietary21
Simon Yu 余有崇Senior Vice President
General Manager
Corporate Spokesperson
Worldwide Sales & Marketing
Component Business Group
US: (650) 892 8676
Taiwan:(886) (0 )918 818 824
China: (86) 136 9989 4206
環宇
芯系天下