Nanya Technology DRAM Environment & Company Update

Transcription

1 Nanya Technology DRAM Environment & Company Update Presentation to Investors and Analysts 21 June 2016 Joseph Wu, AVP & Deputy Spokesman June 21, Nanya Technology Corp.

2 Safe Harbor The information herein and the presentation made during the conference contain forward-looking statements and are provided for information purposes only. Neither Nanya Technology Corp. nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements or undertakes duty to update the statements. You are urged to review carefully the information provided herein and shall not be distributed, reproduced or disclosed in whole or in part without prior written permission of NANYA Technology Corp. June 21, Nanya Technology Corp. 2 2

3 Agenda 01. Company Update 02. DRAM Industry Environment 03. Nanya s Strategies 04. Key Takeaways June 21, Nanya Technology Corp. 3 3

4 NTC Overview Technology & Capacity IDM Company DRAM Design, Production & Sales Founded in 1995, IPO in 2000 Headquarters: Taoyuan, Taiwan Employees: 2,500 Formosa Plastic Group (FPG) has 75.8% equity ownership 30nm (>95%) & 42nm (<5%) 20nm scheduled for pilot run in 1Q x/1ynm have license rights from Micron Capacity : 60,000 WSPM* (12 ) Partnerships with Micron Technology license NTC owns 24% of Inotera s share Support Inotera share swap transaction process June 21, Nanya Technology Corp. 4 4

5 2015 & 1Q 2016 P&L Results Unit: NT$B Q1 15 Q2 15 Q3 15 Q Q1 16 Revenue 12B 11.2B 10.3B 10.4B 43.9B 10.4B Gross Profit Gross Margin (%) 5.7B 47% 4.7B 42% 3.9B 37% 3.1B 30% 17.3B 39.4% 3.4B 32.7% Operating Income Operating Margin (%) 4.8B 40% 3.9B 35% 3.0B 29% 1.9B 18% 13.5B 30.7% 2.6B 25.3% Non-operating Income 1.5B 0.8B 1.8B 0.03B 4.2B -0.79B Net Income Net Margin (%) 6.3B 52% 4.3B 38.1% 4.7B 46% 1.9B 18% 17.1B 39.1% 1.8B 18% Capital 24B 27B EPS Company highlights in Q1 16 ASP slightly drop 2.2%, commodity shipment ratio down below 10%. Debt ratio : debt ratio 42% after equity funding. EBITDA Margin: 39.4% of Q1 16. June 21, Nanya Technology Corp. 5 5

6 Revenue, Net Income (Million NT$) Financial Highlights 20,000 Revenue (Million NT$) Net Income (Million NT$) Gross Margin(%, LCM excluded) 70% 40% 44% 48%49% 47% 42%37% 32.7% 30% - -31% -30% -4% 13% 18% Gross Margin (%) -85% -20, % -110% June 21, Nanya Technology Corp. 6 6

7 80% Demand Diversifying Share of WW DRAM Consumption PC Era Mobile Era WW DRAM Consumption Billion units of 4Gb Equiv % ) 30 PC 40% 35% 20 20% 0% Mobile Server Others 26% 16% 13% 10% *Others include Auto & Industrial Grade Consumer Source: Gartner, NTC June 21, Nanya Technology Corp

8 DRAM Type:DDR4 & LPDDR4 Era % of unit shipment Mobile DRAM % 100% 80% LPDDR3 LPDDR2 7.9% 19.2% 18.3% 16.8% LPDDR4 ) 50% 40% 60% 14.1% 30% 40% DDR3 42.3% 33.5% DDR4 20% 20% 0% DDR2 19.1% Source: Gartner, IHS, & NTC MKT 8 June 21, Nanya Technology Corp % 4.7% LP DDR4 LP DDR3 LP DDR2 DDR4 DDR3 DDR2 Others * Mobile DRAM *Others include GDDR5, Wide I/O(I&II), SDRAM, DDR, & Mobile SDR/DDR 10% 0%

9 DRAM Density Segmented % of unit shipment (2Gb eq.) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4.3% 40.2% 78.2% 51.4% 15.3% 7.2% 0.5% 12/16Gb 4.7% 7.7% 22.5% 8Gb 4Gb 60.4% 72.7% 75.0% 81.4% 78.6% 70.3% 2Gb 35.0% 22.7% 20.3% 1Gb 11.5% 11.1% 5.8% 3.6% 2.7% 2.1% 7.2% 4.6% 3.4% 2.6% /16Gb 8Gb 4Gb 2Gb 1Gb 512Mb Others *Others include densities 256Mb Source: Gartner, IHS, & NTC MKT June 21, Nanya Technology Corp. 9 * 9

10 Nanya Technology Roadmap Revenue (B, NTD) 100 Piloting of 20nm Starts Completed capital restructuring (Reduced 90%) Technology licensed from established nm pilot run successfully nm shrink ramp successfully Signed 20nm agreement with Micron Capital restructured (66.43% capital reduction) 2002 JD with JD with 1995 Technology licensed from Nanya Tech. established 450nm ~ 140nm 110nm ~ 70nm 68nm Revenue 50nm 42nm 30nm 30nmS 20nm June 21, Nanya Technology Corp. 10

11 Process Node, nm Cell Size Scale Competitiveness in Specialty DRAM Arena Multiple patterning Capacitor challenge Longer R&D lead time Higher MFG cost Mim. Half Pitch, nm Cell Size %+ size scaling since 68nm in 2008 Double patterning since 30nm in 2011 The 4 th DRAM vendor at 20nm node Nanya Stack DRAM Technology Node June 21, Nanya Technology Corp

12 20nm Milestones 2018 Q2 8Gb LPDDR4 MP 2017 Q Q4 8Gb DDR4 MP Piloting of 20nm Starts New HQ 2016 Q4 New HQ completed New 12 Fab (FAB-3A-N) complete 2015 Jul. Ground breaking of new HQ and additional 12 Fab for 20nm Fab3A Fab3A-N June 21, Nanya Technology Corp

13 Product Portfolio DDR4 ~ DDR LPDDR3 ~ LPDDR DDR4 ~ DDR2 Foundry Packaged & SiP KGD, PoP & MCP LPDDR3 ~ LPDDR Non-JEDEC DRAM Packaged & KGD SiP = System in Package KGD = Known Good Die PoP = Package on Package MCP = Multiple-Chip Package June 21, Nanya Technology Corp

14 Diversify, Longevity & Profitability Mobile 12.3% Auto & IT 6.4% Commodity 22.4% Mobile 13.4% Auto & IT 7.4% Commodity 8.6% Product 2015 Product 2016 Q1 Consumer 58.9% Consumer 70.6% KGD* (Wafer) 26% Business 2015 Chip (Package) 74% KGD* (Wafer) 32% Business 2016 Q1 Chip (Package) 68% *Revenue base *KGD = Known Good Die June 21, Nanya Technology Corp

15 KGD Wafer Biz Development since 2012 mobile consumer emcp(embedded Multi-Chip Package) Flash Controller Low Power DRAM Flash YoY 45%+ AP DRAM YoY 35%+ SiP(System in Package) YoY 284% (F) *KGD: Known Good Die June 21, Nanya Technology Corp

16 Custom DRAM Biz Development Custom DRAM as Cache CPU, GPU, Controller Power Fast Random Access Extremely LP Consumption Data Working Memory Speed Wide Bandwidth Cost FOWLP* AP L4 DRAM System Performance Power Efficiency PoP FOWLP AP LP DRAM LP DRAM L4 DRAM *FOWLP: Fan-Out Wafer Level Package IDM, turnkey, ecosystem and advanced package implementation June 21, Nanya Technology Corp

17 Non-volatile Volatile Memory Hierarchy & Paradigm Shift Latency Price ($/Gb) edram as Off-Chip Last Level Cache 1 ns >10 3 SRAM edram CPU edram 50 ns 1 DRAM SCM, NVDIMM, Persist Memory 10 6 ns 0.05 Flash 10 7 ns <0.01 HDD Haswell, Broadwell, Skylake June 21, Nanya Technology Corp. Storage Capacity We are offering Custom DRAM service for system demand now! 17

18 Key Takeaways Support Inotera share swap transaction process. Start 20nm technology pilot run in Q Continuously optimize product portfolio, deeply root in valueadded market segments. Slower industry capex expansion and holiday seasonality demand will result in healthy market situation in 2H16. As a key supplier in specialty DRAM market, concentrating on premium applications. June 21, Nanya Technology Corp

19 Thanks & Questions June 21, Nanya Technology Corp