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To Embrace the Future——New Year Speech by Chairman of Wingtech Technology

2021-02-10

Dear Colleagues of Wingtech and Nexperia,


At this fine and beautiful day, together we celebrate Chinese New Year.Tomorrow we will usher in the year of the OX. I wish you a happy new year, good health and a happy family!


In 2020, we had forged ahead in adversity. At the begining of the year we met with the outbreak of COVID-19. As we'd just resumed production in China, the virus has started to spread overseas. The whole industry and the external environment are not peaceful. The price rise, shortage and trade war were with us the whole year, creating a lot of obstacles for us, but also allowing us to see and seize a lot of opportunities, laying a solid foundation for Wingtech to continue to maintain high-speed growth in the future.


Semiconductor Business Ushers in its Highlight Moment


I took over as the CEO of Nexperia in March 2020, and significantly promoted the performance of Nexperia from the historical low point in the first and second season 2020 to the new high point in the third and fourth quarters. We've also achieved unprecedented growth. Now Nexperia and Wingtech are just like a family. Many of their work, such as customers, products and supply chain, has begun to benefit from synergy.


In 2020, we have set up two new global R&D centers to strengthen product development. One in Penang, Malaysia, providing us with a strong entry point into the simulation market. Another one in Shanghai, providing strong support for all the divisions of Nexperia. This is a strategic place for us, because it is close to the new wafer factory in Shanghai, so that our customers and local partners can participate in our R&D more deeply. In addition, we have expanded our sales force in China, Europe and the United States to better serve our global customers.


In terms of wafer and assembly and test, we continue to invest in European Fabs and back-end facilities in Asia to expand production capacity and strengthen our IDM advantage. The new 200mm technology will be introduced at Nexperia's European Fabs in Hamburg (Germany) and Manchester (UK). The Hamburg Fab will also increase investment in new third-generation semiconductor technologies. We have strengthened our test and assembly capabilities in Guangdong, China, Seremban, Malaysia and Cabuyao, Philippines, including advanced automation and system level packaging (SiP) technology. This year, we completed a private placement of 5.8 billion yuan, increased capital expenditure, and provided a lot of funds for the automation production line and SiP project of Nexperia (China) Co., Ltd. We also have a long-term plan to build four new fabs. The first is Shanghai Lingang 12 inch wafer factory, which is under construction. It is planned to be put into production in 2022, and the annual output is expected to reach 400,000 pcs.


In addition, we have established the purchasing team of Nexperia China, which will help Nexperia develop new supply chain in China to reduce costs and improve efficiency. Our global customer development is progressing very smoothly. Many 5G, IoT and automotive customers have started to import products from Nexperia, and Nexperia has signed strategic cooperation agreements with many of our essential clients.


At present, the demand of semiconductor market is growing in an all-round way, and there may be a huge demand gap in the next few years. Our factory is running 24 hours a day, 7 days a week. At the same time, we continue to invest to expand production capacity. It is estimated that we can not fully meet the growing demand of customers, and the delivery time of each product line is constantly lengthening. I want the semiconductor business to achieve $10 billion in sales by 2030 and $3 billion in sales by 2023. At present, the management is full of confidence in the realization of this strategic goal.


Transformation of Communication Business from Service Company to Product Company


In 2020, our communication system integration business has experienced a turning point from quantitative change to qualitative change, realizing the transformation from ODM service company (professional solutions) to great product company.


We have launched a drastic structural reform, set up a product center, a supply center, a central research institute, an applied research institute, and an ark laboratory. We have also linked up with Nexperia, integrated the products, customers, and supply chain resources of communication and semiconductor businesses, increased investment, carried out large-scale technological innovation, and achieved mutual empowerment.


Now we have very good customers and products in the fields of mobile phone, tablet, laptop, IoT, automotive electronics, etc. A large number of new technologies and products are in the intensive research and development stage, and will be launched in 2021.


What we are particularly proud of is that with the innovation ability of Wingtech, we have taken a historic step. We have successfully pitched a North American carrier client and other new customers representing the highest standard of the industry, expanded production capacity in large scale domestically and abroad, and entered into areas that competitors can't set foot in. All these have laid a solid foundation for the sustainable growth of Wingtech in the next 10 years.


Break the Industry Boundary to Create Greater Value


The development of 5G, IoT and new energy vehicles has brought a lot of new demands and created great opportunities for us. Our various types of semiconductor chips and devices, 5G, IoT, automotive electronics will be on the market in a large scale in 2021.


We are investing heavily in our portfolio of high-voltage power devices, SiC, GaN, system packages and analog ICs to promote product development and continue to expand our portfolio. Our 650V gallium nitride (GaN) technology, which has been automotive qualified, will begin mass delivery to numerous automotive customers in 2021. SiC products have now delivered their first wafers and samples, and are already being tested by heavyweight customers, with 72 product releases planned for this year and next.


SiP will be one of our key directions in 2021. As a global leader in semiconductor chip design, wafer, assembly & test and system integration, we will apply SIP packing technology on a large scale in automotive, consumer and industrial products.


We're still discussing whether we're going to move into new areas, and we'll have more to reveal.


We believe that from 2021, Wingtech will enter the stage of high-speed large-scale innovation, and you will see that Wingtech will have many excellent products, and continue to enhance the competitiveness of our semiconductor business and communication system integration business.


We will continue to increase investment to ensure that the company will maintain a compound growth rate of more than 30% in the next few years. Wingtech's system integration business will be the world's first, and Nexperia will also be the global first in the fields of analog, logic and power devices. Our goal is to achieve global expansion and become the world's number one in each segment.


This year, we offered a large-scale equity incentive, accelerated the disposal of the former legacy real estate business, and recruited a large number of research and development staff in the Netherlands, the United Kingdom, Germany, China, Malaysia and other places. Although the resulting additional expenses affected our profit, but for the future growth of Wingtech reserves strength.


Wingtech is not the kind of company that is willing to be mediocre. When we transformed from IDH 13 years ago, we became the first ODM company in China. When we made huge sacrifices 6 years ago to restructure and go public, 3 years ago, we took a huge risk to develop new customers and opened up a new market of 200 million units for the whole industry, 2 years ago, when everyone thought it was impossible to buy Nexperia for 33.8 billion CNY, the largest and most successful semiconductor acquisition in China we made. In 2020, we've once again entered into the field where they can’t imagine. Every strategic adjustment of Wingtech is to create greater value for customers, industry and society.


Dear colleagues of Wingtech and Nexperia, only those who truly believe that they can change the world can really change the world. The biggest growth space in history, the best development opportunity has been in front of us. Let us work together to break the boundaries of ourselves and our company, to create greater value for our customers, partners and society, to reap success and realize our dreams.


Let us work together hand in hand, pursue our dreams and embark on a great new journey together!




Wing

Chairman of Wingtech Technology

Chairman of Nexperia

Chinese New Year Eve




For press information, please contact:


Kris Xu

Email: PR@Wingtech.com

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