Powertech Technology : Hsinchu Science Park Plant III Groundbreaking Press Release ( 2018/09/25 )

Powertech Technology Inc. Hsinchu Science Park Plant III Groundbreaking

Press Release

Hsinchu, Taiwan (Sep. 25th, 2018) - Powertech Technology Inc. (PTI) (6239.TW), an industry-leading provider of integrated circuit (IC) backend services, today held the Hsinchu Science

Park Plant III Groundbreaking Event hosted by PTI Chairman, D. K. Tsai. The new plant III, located in Hsinchu Science Park, will be the home for PTI's advanced packaging technology and production base. The estimated overall investment amount for the new plant is NT$50 billion; 8 stories aboveground and 2 stories underground structure on 8,000 ping property. The new plant III will feature world's first Fan-Out- Panel-Level Packaging (FOPLP) process. The construction is estimated to be completed in the first half of year 2020 and followed by mass production in later

2020. This new plant III is going to create more than 3,000 job opportunities.

Over the past 60 years of development, semiconductor manufacturer has faced the physical limitation of wafer fabrication. New processes are developed to go beyond the Moore's Law. In recent years, PTI is committed in developing the technology for FOPLP and the process is one of the solutions for post-Moore's Law era. PTI believes the FOPLP process delivers a promising future. For which, the FOPLP process can (1) reduce package thickness, (2) increase wire counts, (3) improve electronic connectivity, (4) boost production efficiency, and (5) reduce design time with lower production cost. The FOPLP process can be applied to 5G, AI, Biotechnology, Automotives, Smart

City, and IoT related products. The new process also has many benefits in future product development.

With the FOPLP process designed by PTI, we are able to provide our customers with the most advanced System in Package (SiP) solution with two major advantages. First, the die within the

package can be connected by ultra-thin circuit. The 2μm/2μm circuit allows smaller gap between dies which boost electronic efficiency significantly. This SiP process is ideal for products with high bandwidth. Another great feature is the FOPLP process using panel size working surface. Current

Fan-Out-Wafer-Level Packaging (FOWLP) process uses a 12-inch wafer size as work station which limits the amount of die per process. On the other hand, FOPLP process uses bigger surface as work station which improves production efficiency per process. For example, FOPLP expand the work station up to 20-inch panel per process. This allows FOPLP to have higher production efficiency which results in more competitive pricing.

"The FOPLP technology will bring significant change to the global semiconductor industry,"

said D. K. Tsai, PTI's Chairman. PTI will continue to develop advanced packaging technologies as

the industry enters the post-Moore's Law era. As the technology continues to innovate, the advanced packaging can enhance the importance of backend services in semiconductor industry. FOPLP technology will allow PTI to offer more services to our customers. Moreover, a complete turn-key and integrated solution enables PTI to develop new opportunities for the sustainability of the company.

The new plant will adopt the construction as green building and emphasize on the topic of sustainable development such as, balance of nature, conservation, diversify vegetation, recycle and reusable energy, and energy efficiency. Not only it minimizes the impact to the environment, but also reaches the goal of symbiosis. The clean room builds in subfab structure. Subfab structure can maximize production capacity, minimize water loss and, reduce impact of reconstruction. Subfab structure can also reduce the pollution source in clean room and the risk of chemical leak in operation area. While the supplementary equipment build in bottom level which can effectively isolate the vibration impact on production machinery, thus, increase the precision of the production

process.

About Powertech Technology Inc.

Founded in 1997, Powertech Technology Inc. (PTI) is the world's leading provider for IC backend

services. The services cover IC chip probing, packaging, final testing and burn in to end products with drop shipments to worldwide end customers. With more than 18,000 employees in the world,

PTI has world-class manufacturing plants in Hsin-Chu, Chunan of Taiwan, Suzhou of China,

Singapore, and Japan. With strategic alliances and continuous improvements, PTI offers reliable quality by implementing mainstream technology to fulfill the customers' demands. With the strength,

PTI aggressively invested in advanced technology and providing the best quality and service for customers. PTI has committed to become a great partner with its customers, vendors, shareholders, and employees.

Contact:

Evan Tseng

CFO & [e-mail][phone]