SEMI held a Market Forum today at SEMICON Taiwan 2015. Here's the update outlook for equipment and materials.

1. SEMI Equipment and Materials Market Update
Dan Tracy, Sr. Director
SEMI Industry Research & Statistics
September 3, 2015

2. Outline
• 2015 Year-to-Date Trends
• Equipment and Materials Forecasts
• Summary

3. Year-to-Date Trends

4. Interesting Year to Date…
• Growing uncertainty in the global economic condition
– Weak 1Q for US economy; Europe (Greek crisis); Japan 2Q
GDP contraction; China stock market…global stock markets
• Semiconductor revenue forecasts lowered
– Generally, from mid-single digit to low-single digit
– PC market down, tablet market growth slowing, currency
effects…
• Some companies reduced capex for 2015
• Declining DRAM pricing
Yet…

5. Unit Trends-
Strong Year-over-Year growth for 1H
Source: SEMI and WSTS

6. Silicon Area Shipment Index
100
120
140
160
180
200
220
240
260
280
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
IndexValue
Worldwide Wafer Area ShipmentIndex
(Three-monthMoving Average)
Source: SEMI Silicon Manufacturers Group August 2015
Silicon shipments
are up 7% year to
date through July

7. SEMI North America Book-to-Bill-
Steady booking and billings trends thru July
Source: SEMI August 2015

8. Global Semiconductor Equipment Spending
Source: SEMI/SEAJ
2015 Worldwide Semiconductor Equipment Billings
(U.S. Dollars in Millions)
Region
2015 Year-to-
Date (July)
2014 Year-to-
Date (July)
Y/Y % Change
Europe $1,318 $1,337 -1%
Japan $3,118 $2,286 36%
North America $3,474 $4,915 -29%
Korea $5,414 $4,065 33%
Taiwan $5,340 $5,841 -9%
China $2,613 $3,039 -14%
ROW $1,138 $1,120 2%
Total $22,415 $22,603 -1%
Year-date-bookings are flat

9. Impact of Exchange Rates on the Market
Source: SEMI and SEAJ
2013 2014
Y/Y %
Change
SEAJ Billings (¥ B) 972 1,332 37%
SEAJ Billings (US $M) 9,993 12,012 26%
Conversion Rates: 2013=~98¥/US$, 2014=~106¥/US$
From SEAJ Book-to-Bill Report:
2013 2014
Wafer Shipments (MSI) 9,067 10,098
% Year-over-Year Change 11%
Wafer Revenues ($ M) 7,538 7,626
% Year-over-Year Change 1%
Source: SEMI Silicon Manufacturers Group
2013 2014
Leadframe Shipments (M) 339,133 370,617
% Year-over-Year Change 9%
Leadframe ($ M) 3,342 3,461
% Year-over-Year Change 4%
Source: SEMI/NEDIA

10. Impact Exchange Rates on the Market
Source: SEMI and SEAJ
~$900M higher ∆ through
June assuming avg. 2014
exchange rate
2014=~106¥/US$
2015=~120¥/US$

11. Equipment and Materials Forecasts

12. 66%
14%
-7%
5%
-9%
28%
40%
66%
10%5%
-21%
17%
87%
-41%
-30%
12%
67%
-11%
23%
6%
-31%
-46%
150%
9%
-15%
-14%
18%
3%
5%
-100%
-50%
0%
50%
100%
150%
200%
$0
$10
$20
$30
$40
$50
$60
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015F
2016F
AnnualGrowth
(%)
CapitalEquipment
($USBillion)
Capital Equipment Annual Growth
Capital Equipment Cycles
Source: SEMI/SEAJ. SEMI 2015 Mid-Year Forecast, August update

13. Regional Semiconductor
Equipment Markets
China
12% Europe
6%
Japan
11%
Korea
18%
North
America
22%
ROW
6%
Taiwan
25%
2014 = $37.50billion
Region 2014
$US B
2015F
$US B
%
Change
China $4.37 $4.56 4%
Europe 2.38 2.50 5%
Japan 4.18 5.29 27%
Korea 6.84 8.13 19%
North America 8.16 6.26 -23%
SEA/ROW 2.15 2.14 -1%
Taiwan 9.41 9.56 2%
Total $37.50 $38.44 3%
Source: SEMI/SEAJ August 2015 update
Totals may not add due to rounding

14. Fab Equipment Spending-
Driven by Memory and Foundry

15. Foundries-
Ramping 200mm capacity in 2015 and 2016
2010 2011 2012 2013 2014E 2015F 2016F
y only- 200mm 2.12 2.19 2.27 2.29 2.28 2.37 2.43
1.95
2.00
2.05
2.10
2.15
2.20
2.25
2.30
2.35
2.40
2.45
2.50
2010 2011 2012 2013 2014E 2015F 2016F
InstalledCapacity(Millionswpm)
Installed 200mm Foundry Capacity
Source: SEMI World Fab Forecast

16. Worldwide Wafer Fab Materials Forecast
Totals may not add due to roundingSource: SEMI August 2015
Actual Forecast
2013
US$ M
2014
US$ M
2015
US$ M
2016
US$ M
Silicon Wafers1 $7,932 $7,990 $7,954 $8,278
Photomasks2 3,136 3,220 3,342 3,442
Photoresist 1,220 1,374 1,354 1,413
Photoresist Ancillaries3 1,428 1,711 1,777 1,850
Wet Chemicals4 995 1,059 1,121 1,104
Gases 3,319 3,481 3,577 3,721
Sputter Targets4 598 629 653 696
CMP Slurry & Pads5 1,436 1,569 1,618 1,722
Other/New Materials 2,588 2,945 3,178 3,415
Total $22,652 $23,977 $24,574 $25,641
% Growth 6% 2% 4%

17. Wafer Fab Materials Forecast Notes
1. Silicon wafers include merchant sales value only; includes SOI wafers; no
reclaim wafers
2. Includes captive market
3. Includes resist removal chemicals, developers, anti-reflective coatings,
contrast enhancers, edge bead removers, adhesion promoters, etc.
4. Source is Linx Consulting LLC, Sputter Targets includes precious metals
5. Estimates for IC applications only
6. Includes low k dielectrics, copper plating solutions, dielectric precursors,
organometallic precursors, etc.
7. All forecasts in current dollars
8. Source for all data is SEMI, unless otherwise indicated

18. Photomask Market
15/05: Photomask CAGR 1%, Semiconductor CAGR of 4% for the same period
Source: SEMI March 2015
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2005 2007 2010 2015F 2016F
US$Million
Taiwan ROW North America Korea Japan Europe China
0%
20%
40%
60%
80%
100%
2005 2015F
PercentofMarket
Merchant Captive
Source: SEMI March 2015

19. Regional Fab Materials Markets
Region 2015F
$US B
2016F
$US B
%
Change
China $1.77 $1.89 6%
Europe 2.49 2.57 3%
Japan 4.39 4.50 2%
Korea 4.65 4.95 6%
North America 4.46 4.59 3%
Taiwan 5.47 5.73 5%
SEA/ROW 1.34 1.42 7%
Total $24.57 $25.64 4%
Source: SEMI August 2015
Totals may not add due to rounding

20. Worldwide Packaging Materials Forecast
Totals may not add due to roundingSource: SEMI August 2015
Actual Forecast
2013
US$ M
2014
US$ M
2015
US$ M
2016
US$ M
Leadframes $3,342 $3,461 $3,350 $3,346
Organic Substrates1 7,408 7,612 8,196 8,586
Ceramic Packages 2,006 2,075 2,157 2,174
Encapsulation Resins 2,451 2,712 2,922 3,187
Bonding Wire2 4,151 3,385 3,176 3,099
Die Attach Materials3 666 704 734 752
Others 374 409 451 500
Total $20,398 $20,358 $20,986 $21,644
% Growth -0.2% 3% 3%
Packaging Materials will be 46% of the 2015 Total Semiconductor Materials Market
Major update coming in November

21. Semiconductor Packaging
Materials Forecast Notes
1. Source is TechSearch International. Includes PBGA, PPGA,
LGA, and CSP laminate substrates and flex BGA and CSP
substrates
2. Assume gold value of $1,480/trz for 2013; $1,260/trz for
2014; $1,190/trz for 2015 - 2016
3. Includes die attach film (tape) materials
4. Other includes solder balls and wafer level package
dielectrics
5. Source for all data is SEMI, unless otherwise indicated
6. All forecasts in current dollars

22. Packaging Material Market Trends
• CSP laminate substrates, CSP leadframes, and WLP are driven by explosive
growth in mobile computing and communications
• Flip chip and copper pillar continue to expand the market for underfill
materials.
• Need more development for WLP dielectrics used in multi-layer structures
• Mold compounds- warpage control/package reliability (MSL1); withstand
high flexing for wearable applications
• QFN- cost optimization through design (including strip size) and reduced
plating area (also improves MSL); higher lead counts (routable); improved
power dissipation
• Transition from gold wire to copper and silver
Source: SEMI and TechSearch International- Global Semiconductor Packaging Materials Outlook

23. Regional Packaging Materials Markets
China
21%
Europe
3%
Japan
13%
Korea
13%
North
America
3%
SEA/ROW
26%
Taiwan
21%
2015F = $21.0 billion
Region 2015F
$US B
2016F
$US B
%
Change
China $4.34 $4.54 5%
Europe 0.72 0.75 3%
Japan 2.69 2.82 4%
Korea 2.66 2.72 2%
North America 0.66 0.66 0%
Taiwan 4.43 4.56 3%
SEA/ROW 5.50 5.60 2%
Total $20.99 $21.64 3%
Source: SEMI August 2015
Totals may not add due to rounding

24. Summary

25. Summary
• Uncertainty with the near-term outlook
• Year-to-Date Trends
 Silicon shipments are up through July
 Equipment bookings and billings are comparable to 2014 levels
 Exchange rates—weaker Yen & Euro—will dampen 2015 revenue
growth
• Memory (Flash) and Foundry will lead fab investment this year
and next
• Semiconductor Equipment & Materials Outlook
 Materials market is expected to increase 3% in 2015 and 4% in 2016
 Equipment market is expected to increase 3% in 2015 and 5% in 2016

26. 謝謝!
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