Top Union Electronics Corp. Contract Electronics Manufacturing

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1 Top Union Electronics Corp Contract Electronics Manufacturing

2 TOP UNION PRESENTATION TOPICS Company overview, history, and current state Services provided Quality assurance and systems Engineering services and competencies Testing solutions (customer specific) DFx--Design for added value MES--Manufacturing Execution System

3 COMPANY OVERVIEW Established in 1990 Based in Taiwan Expertise and service provider Subcontractor/Turnkey/Value-Added Design Global business > 60% Three plants: Taiwan, Shanghai, & Suzhou Capital: NT $930 million US $28 million Employees: 1,000 total in 3 plants Financial reports publicly available (IPO in Taiwan Y2004/6266)

4 COMPANY HISTORY 1986 SMT technology development center set up in ITRI 1989 Top Union Electronics Corporation created 1990 Company funded & established nd plant est. in Niupu, Taiwan rd plant est. in Shanghai, China 2000 Shanghai plant expanded to a new building th plant est. in Tahu, Hsinchu, Taiwan

5 COMPANY HISTORY (cont.) 2001 Moved KuangFu plant to Te-An building th plant set up in Suzhou, China 2004 IPO in April (6266) 2005 Merged 3 Taiwan Hsinchu plants into one 2011 SAP in initial stage 2012 SAP on line 2014 Manufacturing Executive System on line

6 QUALITY SYSTEM EVOLUTION 1995 ISO 9001 Quality-control system certified 2005 ISO Manufacturing process environmentally certified ESD S20.20 Electrostatic discharge control certified 2009 TS16949 Automotive electronics certified 2012 QC RoHS2/WEEE/REACH compliance certified BCMS (Business Continuity Management System) implemented 2017 ISO certification application in progress Customer certification as required (3C, UL, Sony-GP, etc.)

7 INVESTMENT & REVENUE GROWTH $100.0 $80.0 $60.0 $57.0 $62.0 $82.5 $46.3 $51.4 $54.5 $56.2 $57.4 $58.9 $62.3 $66.9 $71.7 $40.0 $20.0 $17.5 $20.1 $20.8 $20.8 $21.2 $22.7 $23.5 $23.9 $24.6 $25.9 $28.8 $28.8 $ Capital US$ Million 2017 Revenue US$ Million

8 FACILITY LOCATIONS Hsinchu Shanghai Suzhou

9 PLANT DETAILS Established Jan Occupies 19,400 m employees Address: No. 480, Nioupu E. Rd, Hsinchu City, 300, Taiwan China Shanghai Established June 1998 Occupies 13,000 m employees Address: 4FL. No. 168 Meisheng Rd, Waigaoqiao Free Trade Zone Established April 2002 Occupies 7,400 m employees Address: Standard Factory Building #5, Fuyang Industrial Zone

10 ORGANIZATIONAL STRUCTURE President Vincent Vice President James Admin. Sherry Finance Sherry MIS Tan PMC Martin Engr. King P T&D Junver Marketing Jessie QA Ivy PM Hsinchu Grace PM Shanghai CHS PM Suzhou Meiju

11 TOP UNION PRESENTATION TOPICS Company overview, history, and current state Services provided Quality assurance and systems Engineering services and competencies Testing solutions (customer specific) DFx--Design for added value MES--Manufacturing Execution System

12 What We Provide Flexible Service Engineering & Excellent Services Multi-Process DFx Double-Sided Paste in Hole Flex Board Stack Board , ubga, CSP, PoP Film on Board Selective Wave Double-Sided Wave Press Fit Digital Product RF Product Test Design (Hardware & Software) Failure Analysis (FA) ORT Package Design Fixture Design Shop Floor Control Material Control Process Design SMT DIP Testing Box Build Drop Shipment IQC CE Printing / SPI Dispensing Pick & Place Reflow Visual Inspection AOI Manual Insertion Manual Soldering Wave Soldering De-panelizing (V-Cutting/Routing) Coating Auto-Soldering ICT Pre-test Burn in/run in Functional Test Fine-Tune IPQC OQC Delivery Variety of Process Offerings & Process Simplification

13 SERVICES AND TURNKEY SOLUTIONS Value added DFx/NPI/Quick-turn pilot-run service High diversity/mix/high- & Low-volume service Worry-free service Total solution Mature and stable production, including complete materials management PCBA and Box Build Advanced technology Strong manufacturing-process design & development

14 Obvious Area SERVICE VISION--THE COMPLETE SOLUTION Testing & Box Build CE & IQC Abstruse Area FQC Others..

15 CUSTOMER FOCUSED--WORRY FREE MC + Procure Made in TU System of System RMA service DFM/DFT/DFA

16 PCBA CAPACITY Plant Hsinchu Shanghai Suzhou Total Floor Space ( m2 ) 19,400 11,000 7,600 38,000 Employees ,000 SMT Lines 5 Lines 24H 6 Lines 24H 6 Lines 24H 17 Fuji Lines DIP (THT) Lines 4 Lines 1 Shift 8 Lines 2 Shifts 5 Lines 2 Shifts 17 Lines Case Ass y Lines 7 Lines 1 Shift 5 Lines 1 Shift 4 Lines 1 Shift 16 Lines

17 STRATEGIC COLLABORATION Supplier Worry- Free Service

18 SUPPLY CHAIN STRATEGY Suppliers may build up safety stock based on our rolling forecast for key parts Shorter delivery lead time is accomplished Strategic purchasing for LTB, EOL items, critical items Partnership with suppliers long-term relationships Receive it right Receive it soon Receive it special

19 Materials Storage Separated storage areas for different customers. Monthly inventory cycle count. MES control system for material management: MSD : continuously temperature & humidity control. ESD : control area for sensitive electronic parts. FIFO: first in first out control Expiration Day:Limited day control. Warning Day:Provide warning message about out off limit.

20 TOP UNION PRESENTATION TOPICS Company overview, history, and current state Services provided Quality assurance and systems Engineering services and competencies Testing solutions (customer specific) DFx--Design for added value MES--Manufacturing Execution System

21 Quality System Continuous ISO QC BCMS Environment ISO9001 Quality ISO14001 TS16949

22 QUALITY ORGANIZATION Quality Assurance IQC: IPQC/FQC: QE: QS: 1. Incoming inspection of materials 2. MRB process maintenance for materials 3. HSF monitoring for materials 4. Vendor quality management 1. Process auditing 2. FAI check and confirmation 3. QC inspection of work in process 4. Follow up for abnormal process 5. Final QC inspection of product 6. Outgoing inspection 1. Follow up for quality issues from customer 2. Abnormal feedback about customer's materials 3. Follow up for customer claim 1. Quality system maintenance 2. Leading internal auditing 3. Handling external auditing/customer auditing 4. Equipment calibration management

23 CONTINUOUS QUALITY & SERVICE IMPROVEMENT PURPOSE Design & Quality Improvement Long-Term View Lead-Time Reduction Reduced Costs

24 TOP UNION PRESENTATION TOPICS Company overview, history, and current state Services provided Quality assurance and systems Engineering services and competencies Testing solutions (customer specific) DFx--Design for added value MES--Manufacturing Execution System

25 ENGINEERING SERVICES: BUILDING A STRONGER FUTURE Engineering service and production capabilities Testing solutions DFx--Design for added value Smart DFx analysis and service Customer collaboration: Early Supplier Involvement (ESI) DFx cost reduction opportunities Manufacturing Execution System (MES)

26 CONTINUOUS QUALITY IMPROVEMENT Target first-pass yield rate > 99.7% DFx: DFM, DFT, DFR, DFA Enhance incoming inspection method Continuously improving process control Special testing for product and process quality Online, real-time process repair and quality improvement 24-hr. online service and engineering support

27 PROCESS CAPABILITIES TECHNOLOGY CLASSES Item Machine Spec. Miniaturized Standard Large form factor Smallest passive part (inch) (TU) 0201(SD) Finest QFP pitch (mm) Finest connector pitch (mm) Finest CSP/BGA pitch (mm) Recommended spacing (mm) Recommended spacing BGA for others (mm) Typical stencil thickness (mm) Typical PCB size (mm) 30x30 100x x x508

28 CLEAN ROOMS CLASS 100K

29 PCBA LABORATORY FACILITIES Equipment list: X-ray inspection M/C, Dye-ink analysis, Cross-sectioning, High-powered microscope, Temperature & Humidity Chamber for ORT (Ongoing Reliability Testing), BGA inspection, Drop testing, Evaporator

30 TOP UNION PRESENTATION TOPICS Company overview, history, and current state Services provided Quality assurance and systems Engineering services and competencies Testing solutions (customer specific) DFx--Design for added value MES--Manufacturing Execution System

31 RF SCREEN ROOMS AND TEST RACKS RF shield rooms Shielding enclosure frequency range 30MHz to 10GHz, >100db Humidity and temperature control Used to test receivers and transmitters A total of 14 RF rooms

32 WIGI PRODUCTS IN TEST & RUN IN BOX Run In Boxes Used for DELL Wireless to HDMI to USB interface connections 5.8GHz 70± 5dB

33 WIRELESS PRODUCTS IN TEST & RUN IN Wireless clocks test station (RX boards) Uses decoded signals called by Labview program Wireless clocks test station (TX boards) Tests controlled by Labview program

34 KEY TRIGGERS FOR RAPID CAPACITY EXPANSION Strong new order(s) Increased current market demand Focus on a significant or close business field Cumulative increased customer demands

35 TOP UNION PRESENTATION TOPICS Company overview, history, and current state Services provided Quality assurance and systems Engineering services and competencies Testing solutions (customer specific) DFx--Design for added value MES--Manufacturing Execution System

36 DFx SERVICE DFM: Manufacturing, specifically assembly of the PCBA DFT: Testing, including inspection & debugging DFR: Repair, setting up the trouble-shooting guide combined with the error-code system DFA: Case Assembly, combining the customer-made parts with the Asia supply chain, using best-process design DFx: Design for x, includes all of the above

37 EARLY SUPPLIER INVOLVEMENT WITH OUR CUSTOMERS Charter: The customer s needs are foremost in CEM service. Specification & Planning: We plan how to meet QDC (Quality, Delivery, Cost) constraints, and communicate frequently with and respond quickly to our customers. Power up the Value-Added System Higher Quality EVT: We provide initial DFx (Design for x) feedback for customers regarding DFM (Manufacturing), DFT (Testing), DFR (Repair), etc. Speed of Delivery Reduced Cost

38 DFx PROCESS (GENERAL CUSTOMER) Customer EVT DVT PVT MP Top Union DFM review DFM Analysis Pilot Run Mass Production Customer releases initial info. to TU in EVT stage. TU does the DFx review & provides pre-dfx analysis report to customer. Design release: TU performs the detailed DFx review & provides analysis report to customer. Initial design changes: TU does prototype verification & confirms the design change. Design finalized: TU moves to the P/R stage & provides the mass production and technology transfer plan. Mass production: TU provides regular quality reports.

39 TOP UNION PRESENTATION TOPICS Company overview, history, and current state Services provided Quality assurance and systems Engineering services and competencies Testing solutions (customer specific) DFx--Design for added value MES--Manufacturing Execution System

40 SAP MANUFACTURING EXECUTION SYSTEM (MES) Traceability Real-time control MES Material database Prevention system

41 INFORMATION FLOW & ALERTS Data collection and mapping Process Flow control Analysis and control Alarm system Prediction and scheduling Machine control Reporting

42 MES FUNCTIONAL FLOW Shipping System Packing System QA System SN Repair System SN Customer Information System Production System Material Picking System Barcode Materials Receive Pick up Prepare Management report Tracking WIP MO YR L/T Status WIP Target Repair Analysis Error Reason Duty Top N YR Analysis Quality IQC Component YR FQA TOP N RMA/DOA Box Carton Pallet QA Trend QA Report MO SO PO L/T Shipping Status

43 THANK YOU