TNG CNG TY CNG NGHIP SI GN TRCH

TỔNG CÔNG TY CÔNG NGHIỆP SÀI GÒN TRÁCH NHIỆM HỮU HẠN MỘT THÀNH VIÊN MICROELECTRONIC CHIPS PRODUCTION PLANT PROJECT Company: Saigon Industry Corporation March 2013 Năng động, sáng tạo, cải tiến liên tục để hội nhập và cùng đối tác phát triển bền vững 1

Investor Introduction q Saigon Industry Corporation (CNS), belongs to People’s Committee of Ho Chi Minh City, was established according to Decision No. 3254/QĐUBND dated 24 July 2010 of People’s Committee of Ho Chi Minh City. q Scope of activities: q Food Industry q Chemical industry: q Mechanical product – machine manufacturing q Electronics – Information technology industry q Commercial and Services Industry. q Real estate industry q Markets: domestic and export q General Managing Director: Mr. Nguyen Van Tho www. cns. com. vn 2 SAIGON INDUSTRY CORPORATION

Investor Introduction (cont. ) q Employees: 5, 264 people, parent company has 13 departments, 04 factories, 01 center, 8 subsidiaries và 07 joint ventures. q Charter Capital in 2006 (when established) was 640. 4 bil. VND. In 2010 when the company transformed into One Member Limited type, Charter Capital was 1, 585 bil. VND. 2013 (planned) will be 2, 218 bil. VND. q Holder’s equity in 2006 (when established) was 956 bil. VND. At the end of 2011, it was 2, 866 bil. VND. 2013 (planned) will be 2, 218 bil. VND. q Total revenue in 2012 was 8, 200 bil. VND, average revenue growth rate in the period 2007 – 2012 was above 17 %/year. q In 2012, CNS contributed to government’s budget 3, 397 bil. VND, average growth rate in the period 2007 – 2012 was about 17%/year. q Total export value in 2012 was 94 mil. USD. www. cns. com. vn 3 SAIGON INDUSTRY CORPORATION

Investor Introduction (cont. ) CHART OF OPERATING RESULT 9000, 000 8000, 000 7000, 000 6000, 000 5000, 000 4000, 000 3000, 000 2000, 000 1000, 000 Revenue Contribution (to government’s budget) www. cns. com. vn 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 20 02 Unit: billion VND 4 SAIGON INDUSTRY CORPORATION

• ü ü ü ü • ü ü Objectives General Objectives: Increase value of electronic products made in Vietnam Attract high-quality human resource Train high-quality human resource Promote the development of other industries Reduce trade deficit of electronic products and technology solution Increase competitive ability of economy Environment friendly Create national major products which affect the economy Social-Economic objective: providing for domestic and foreign market: 6, 000 wafer/month or 72, 000 wafer/year, revenue is about 108 mil. USD/yeas (year 1 -10) 12, 000 wafer/month or 144, 000 wafer/year, revenue is about 216 mil. USD/year (after the 10 th year) Science and Technology objective: Master technology of design and manufacture electronic microchip Attract high-quality research force, and training domestic post-graduated research force National Security objective Design and manufacture important microelectronic chips for national security Design and manufacture microelectronic chips to server the Government and Party www. cns. com. vn 5 SAIGON INDUSTRY CORPORATION

Objectives Create practical environment to help Vietnam speeds up labour force development Meet current and future demand of domestic market Server for information security of Government and Party Used in National Security ESTABLISH MICROELECTRONIC CHIP PLANT From 1 st -10 th year: 6, 000 wafer/month or 72, 000 wafer/year, 108 mil. USD/year After the 10 th year: 12, 000 wafer/month or 144, 000 wafer/year, 216 mil. USD/year Manufacture chips for industry and home appliances Manufacture microelectronic chips for smart cards Microelectronic chips for RFID Processing based on customers’ designs www. cns. com. vn 6 SAIGON INDUSTRY CORPORATION

Analyzing and selecting technology The current largest market segments are 0. 18µm and 0. 25µm Attracting outside investments would be enhanced by offering the more advanced technical capability For 0. 13µm technology, the capital equipment cost would be roughly 2. 5 X higher compared to 0. 18µm www. cns. com. vn Start on the 0. 18µm technology to learn and setup the baseline of the semiconductor technology & manufacturing technique 7 SAIGON INDUSTRY CORPORATION

Products Common electronic chips RFID chips Training, Research Design n Chips used in industry and home appliances/ n Chips for smart cards: credit card, SIM, GSM module, GPS module, National ID, employee’s ID, Healthcare Insurance card, driving licence, membership card… n Chips for RFID system n Processing based on customers’ designs Transferring technology Beside the RFID there a lot of products that we can manufacture like: GSM card; 8, 16 and 32 bits Microcontroller (low power); Transceivers; Supply voltage supervisory IC; Real time clock; Stepper motor driver; LCD pixel drivers; Oscillator; Supervisory IC: power on reset, voltage detector, watchdog; ASICs application specific ICs specially for Vietnamese Small and Medium Enterprises www. cns. com. vn 8 SAIGON INDUSTRY CORPORATION

RFID chip products RFID 1/ Transit card, National ID 2/ Healthcare card 3/ Military ID card 4/ Passport 5/ Body embedded tag 6/ Weapon tag 7/ Smart card for banks and encrypted card 8/ Ticket card (train, bus) 9/ Animal tag (poultry, pig, cow, . . . ) 10/ Garment tag, retailer tag 11/ Pupil management system 12/ Movie or theater ticket 13/ Supermarket tag 14/ Wholesale goods monitoring system 15/ Sim card 16/ Library card 17/ Other smart cards (security card of Party, Government, e. Government) www. cns. com. vn RFID Demand Forecast 2020 9 SAIGON INDUSTRY CORPORATION

Designed capacity and shipment volume YEAR DESIGNED CAPACITY (wafer/year)/ SHIPMENT PERCENTAGE SHIPMENT VOLUME (%) WAFER (Volume Per Year) CHIP * (million chips/year) 1 72, 000 50 36, 000 1, 080 2 72, 000 70 50, 400 1, 512 3 72, 000 90 64, 800 1, 944 4 72, 000 100 72, 000 2, 160 5 72, 000 100 72, 000 2, 160 6 72, 000 100 72, 000 2, 160 7 72, 000 100 72, 000 2, 160 8 72, 000 100 72, 000 2, 160 9 72, 000 100 72, 000 2. 160 10 72, 000 100 72, 000 2, 160 TOTAL 655, 200 19, 656 * 30, 000 chips/wafer www. cns. com. vn 10 SAIGON INDUSTRY CORPORATION

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