2

ContentContent

Company OverviewCompany Overview

Sales & MarketingSales & MarketingProducts & TechnologyProducts & Technology

AppendixAppendix

Manufacturing Process GuidelineManufacturing Process GuidelineManufacturing Process Guideline

Financial OverviewFinancial Overview

3

Company OverviewCompany Overview

4

Company Profile

• TXC Corporation, founded in 1983, is a leading professional frequency

control product manufacturer. We have devoted to the research, design,

manufacture, and sale of Dual-Inline-Package (DIP) and Surface Mount

Device (SMD) quartz crystal products. TXC now specializes in four

categories of products such as high quality Quartz Crystal, Crystal

Oscillator (CXO), Surface Acoustic Wave (SAW) Filter, and Timing Module

(TM).

• Our goal is to add value to our customers by providing a complete solution

of frequency devices and modules, design-in service to fully satisfy

various needs of the esteemed customers. We believe based upon the

competence of cost effectiveness, quality, lead-time, and customer service

TXC will go beyond customers' expectation.

• www.txccorp.com

5

1983

Established TCXO Production Lines

Established SMD Production Lines

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20061984 …

Implemented Oracle ERP

Founded- Capital US$ 95,000 IPO’ed Increased Capital to US$ 34.8M

Listed in Main Board of Taiwan Security Exchange (Code- 3042)

Ranked 6th Largest Crystal/Oscillator Manufacturer in the World

Ranked 8th Largest Crystal/Oscillator Manufacturer in the World

Completed new Ningbo Factory in China

Established SAW Production Lines

Total capacity can up to 112 M /m

2007

Total capacity can up to 191 M /m

2008

MilestonesMilestones

2009

Ranked 5th

Production

Business

TS16949- Taiwan and China Factories

ISO 9001:2000 6 Sigma

IECQ QC080000

ISO 14001:1996

ISO 14001:2004

Green Product Policy & QS 9000

2010

Quality

Paid-in Capital: US$90 M

NQA Rewarded

6

Headquarter - Taiwan Taipei

Factories(2)- Taiwan Ping-ChengChina Ningbo

Sales FAEs(10) - Taiwan TaipeiChina Shanghai, Suzhou, Shenzhen, WuhanUSA LAJapan Yokohama, OsakaEuropeSingapore

Distributors(12)- Europe-UK, Germany………

Reps(8)- Korea, India, Mexico…….

Worldwide LocationsWorldwide Locations

7

CapacityCapacity

8

Products and TechnologyProducts and Technology

9

For CommunicationFor Communication

For InformationFor Information

For EntertainmentFor Entertainment

For For TelematicsTelematics

DPFGame Console

Desktop PCPDA

NB

PDA +GPS

NB

PDA Mobile Phone+ +

+

Mobile Phone +DSC +MP3 +WiFi

• XTAL• OSC• T/F

• XTAL• OSC• Advanced OSC• VCXO• T/F

• XTAL• OSC• TCXO• T/F

• XTAL• OSC• TCXO• T/F

• XTAL• OSC• T/F

MIMOUWBADSL/

Cable Modem

WIMAX

DSC

WLAN

PMP

TPMSHUD Keyless Entry

Infotainment System

Netbook

Smartphone

HDWiFi Keyboard/Mouse

MP3

DVDProjector

LCD TV

High PerformanceSwitch & Routers

High PerformanceComputing & Storage

HSDPA

ApplicationApplication

10

Product ApplicationProduct Application

.

11

1.6x1.2(8Q)

1.6x1.22.5x2.03.2x2.5(7V)6x3.57x58x4.5(6X) 5x3.2(7A)

Dip Type

Glass Type

Seam Type

Crystal by Package Size

2.0x1.6(8Y)2.5x2.0(8Z)3.2x2.5(7M)6x3.5(6V)7x5(6P)8x4.5 5x3.2(7B)

5x3.2(4 pads, 7Y)

2.0x1.6

12

7x5(6U)14x9(7H) 5x3.2

VCXO

CXO

2.0x1.6(8N)2.5x2.0(8W)3.2x2.5(7X)6x3.57x5(7W)14x9(7J) 5x3.2(7C) 1.6x1.2

Oscillator by Package SizeOscillator by Package Size

2.0x1.6(7Z)2.5x2.0(7L)3.2x2.5(7Q)6x3.57x514x9 5x3.2

TCXO

1.6x1.2

(Sample Ready)

13

Automotive Products

Automotive Products

Wireless Communication

Wireless Communication

Mobile

Bluetooth

WLAN

PC / ConsumerPC / Consumer

Multimedia

Desktop/Laptop

Peripherals

Digital Imaging

Others

Compact Low Power

High Frequency

Low Jitter

High Reliability

Quartz SensorQuartz Sensor

Pressure

Gyroscopes

Gases

Non-Safety

TPMS

Matured products:Matured products:

Technology Integration

Safety

PNDPND

GPS

CrystalCXOTuning Fork

High

Stability

Products and Technology StrategiesProducts and Technology Strategies

TCXO

Advanced Oscillators and Advanced Oscillators and Modules (AOM):Modules (AOM):

Networking INetworking I

WAN (FC/GbE/FCoE)

TelecomDatacom

Networking IINetworking II

MAN

Long Haul

High Frequency

High Stability

HF OscillatorHF VCOTCXO

Stratum 3 TCXOFX/CDROCXO

ZERO Defect AutomotiveProducts

14

Product Plan Product Plan

2011 20122010

SMD Crystal 1210

SMD HF CXO (PECL/LVDS) 5032

SMD VCXO (CMOS) 2520

SMD HF VCXO (PECL/LVDS) 5032

SMD Tuning Fork 2012

High Frequency 500MHz SO (PECL/LVDS)491.52 MHz VCXO (PECL/LVDS) 622.08 MHz VCSO (PECL/LVDS)

Frequency Synthesizer

SMD TCXO

Ultra stable +/-0.14 ppm TCXO (Stratum 3)+/- 0.14 ppm OCXO +/- 3 ppb OCXO

Tuning Fork Oscillators Output Magnitude Adjustable

Miniaturization

Diversification

2016 (Mass Run) 1612

15

Sales & MarketingSales & Marketing

16

Business ModelBusiness Model

1717

Worldwide Ranking & Market ShareWorldwide Ranking & Market ShareWorldwide Revenue of the Top Crystal and Oscillator Suppliers (Unit: Millions of Dollars)

* Data Courtesy of CS & A

CS&A forecasts 7.5% YoY Growth in 2010, and 6.1% in 2011

1818

2010 WW Volume 2010 WW Volume v.sv.s. Revenue . Revenue Comparison by ProductsComparison by Products

88.6%53%

19

Market ShareMarket Share

20

Market ShareMarket Share

21

Market ShareMarket Share

22

Market ShareMarket Share

23

2009 2010(F)

ACAP0.4% NETWORKING

25.3%

GLOBAL/EMS17.5%MOBILE

20.5%

PC14.5%

CONSUMER10.7%

NETWORKING25.8%

GLOBAL/EMS19.6%MOBILE

21.3%

PC14.4%

CONSUMER10.4%

ACAP1.0%

Sales Revenue by Marketing FieldSales Revenue by Marketing Field

Others11.1%

Others7.4%

24

Financial OverviewFinancial Overview

25

0

50

100

150

200

250

300

Operating Revenue 61 80 95 116 162 194 228 240

2002 2003 2004 2005 2006 2007 2008 2009

Operating Revenue Operating Revenue

(Unit: Millions of Dollars)

31%19%

22%

40%

20%18%

5%

26

Revenue TrendRevenue Trend

26

2727

Gross Profit TrendGross Profit Trend

2828

Net Income TrendNet Income Trend

2929

Balance Sheets & Key IndexBalance Sheets & Key IndexUnit: NT$ in Million

Item 09.Q3 09.Q4 10.Q1

Current Assets $ 4,759 $ 5,175 $ 5,854

Notes & Account receivables $ 2,418 $ 2,468 $ 2,447

Inventories $ 803 $ 837 $ 869

Fixed assets $ 4,102 $ 4,110 $ 4,103

Total assets $ 9,045 $ 9,465 $ 10,205

Notes & Account payables $ 1,278 $ 1,264 $ 1,216

Current liabilities $ 2,257 $ 2,566 $ 2,447

Long-term liabilities $ 1,171 $ 893 $ 1,456

Total liabilities $ 3,444 $ 3,544 $ 3,947

Shareholders' equity $ 5,601 $ 5,921 $ 6,258

Debt ratio 38.08% 37.44% 38.68%

Current Ratio 210.86% 201.69% 239.22%

Quick Ratio 169.68% 164.03% 189.02%

Net Value Per Share $ 19.49 $ 20.51 $ 21.51

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Dividend PolicyDividend Policy

• Compensation payable to directors and supervisors– 1%-2%

• Employee Bonus– 10%-15%

3131

CapEx Line Amount$ Date (F) Capacity/M Revenue/M (F)

Ping-Cheng factoryexpansion plant (2) 320

SMD Seam X’tal (TWN)2016 / 1612 4 240 1H.3Q 4.0M 48

SMD TC / VC XO (TWN)3225 / 2520 / 2016 4 320 2Q.4Q 3.0M 55

SMD TF (TWN)2012 2 100 3Q 2.0M 12

NGB factoryexpansion plant 110

SMD Glass X’tal (NGB)5032 / 3225 15 300 2Q 15.0M 45

SMD Seam X’tal (NGB)3225 / 2520 9 250 3Q.4Q 9.0M 35

Total 34 1,640 33.0M 195

2010 Overall Capacity +30%; Advanced Capacity +50%2010 Overall Capacity +30%; Advanced Capacity +50%Unit: PCS / NT$ Million

Capital Expenditures Capital Expenditures

3232

TXC

Strategy in

09

AOM products shipment will ramp up along with raising Cloud Computing and Smart Grid applications

Revenue will ramp up quarter by quarter

China Market is still the major sales driving force

Business HighlightsBusiness Highlights

Wireless modules will remain high growth along with worldwide WPAN development

Will continue penetrating worldwide market with Smart Phone and GPS Applications

Revenue will ramp up Quarter-over-QuarterGross margin rate will gradually grow up

33

Appendix Manufacturing Process Guideline

Appendix Manufacturing Process Guideline

34

Blank ProcessBlank Process

Wire Sawing

Quartz Bar

A1 2 34 5 67 8 90 EN

BCD

22.1372

Wafer Frequency Lapping

35

SMD Process and structureSMD Process and structure

IC Die Bonding

Wire Bonding

Blank Cleaning

Base Plating

Frequency Adj.

Final Testing

Marking

Taping

Seam Sealing

Mechanical Testing

Blank Auto- Mounting

Cry

stal

Osc

illat

or

Oscillator

■40.000

TXC CM211 ■ 24.576

TXC CN001

Crystal

Metal Lid

Plated Blank

Ceramic Package

( Bottom )

Ceramic Package

( top )

Oscillation IC

36

Thank You!Thank You!Thank You!