TXC Corporation Investor Conference

May 13, 2009

2

Agenda

• Financial Results

• Sales & Marketing

• Technology and Product

• Highlights

• Q & A

3

Financial Results

4

Revenue TrendRevenue Trend

Unit: NT$ in Million

1,394

1,803

2,153

1,7921,614

0

500

1,000

1,500

2,000

2,500

1Q'08 2Q'08 3Q'08 4Q'08 1Q'09

YoY-13.6%

QoQ-22.7%

5

Monthly Quantity TrendMonthly Quantity Trend

Unit: Pcs in Million

185197

212

189177 181

131

9889

112

165178

8%

27%

-10%

-25%-27%

47%

-

50

100

150

200

250

08'05 08'06 08'07 08'08 08'09 08'10 08'11 08'12 09'01 09'02 09'03 09'04

-40%

-20%

0%

20%

40%

60%

QTY MoM

6

Monthly Revenue TrendMonthly Revenue Trend

Unit: NT$ in Million

594 592659

712782 773

560

470

379

592626

423

6%11%

-19%-16%

-28%

40%

-

100

200

300

400

500

600

700

800

900

08'05 08'06 08'07 08'08 08'09 08'10 08'11 08'12 09'01 09'02 09'03 09'04

-40%

-20%

0%

20%

40%

60%

AMT MoM

7

Gross Profit TrendGross Profit Trend

Unit: NT$ in Million

273

420482

54559319.6%

30.2%27.6%26.9%26.0%

0

100

200

300

400

500

600

700

1Q'08 2Q'08 3Q'08 4Q'08 1Q'090.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

YoY-34.9%

QoQ-49.8%

8

Operating Expense TrendOperating Expense TrendUnit: NT$ in Million

233247

225208178

12.8%12.9%

11.5%

12.9%12.6%

0

50

100

150

200

250

300

1Q'08 2Q'08 3Q'08 4Q'08 1Q'0910.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

YoY-14.2%

QoQ-23.7%

9

206 212

276257

69

0

50

100

150

200

250

300

1Q'08 2Q'08 3Q'08 4Q'08 1Q'09

Net Income TrendNet Income TrendUnit: NT$ in Million

YoY-66.5%

QoQ-73.1%

10

Balance Sheets & Key IndexBalance Sheets & Key Index

Item 1Q'08 4Q'08 1Q'09Cash & Financial assets-current 1,008 992 1,370 Notes & Accounts receivable 1,981 2,262 1,733Inventory 968 902 824 Fixed assets 3,478 4,439 4,392 Total assets 7,757 8,801 8,529

Notes & account payables 1,320 1,107 993 Current liabilities 2,384 2,027 1,748 Long-term liabilities 199 1,141 1,011 Total liabilities 2,592 3,176 2,767 Stockholders' equity 5,165 5,625 5,761

Debt ratio 33.4 36.1 32.4 Current Ratio 173.5 210.7 230.9 Quick Ratio 125.3 160.6 177.5 Net value per share 21.4 20.7 21.2

Unit: NT$ in Million

11

Unit: NT$ in Million

Dividend DistributionDividend Distribution

* PSE includes Employee Profit sharing expensing and rewards for Board of Directors and Supervisors.** Yield according to the closing share price on the Shareholders meeting date.*** Available allocation includes beginning undistributed profit, net income and PSE for 2008.****$2.0 cash dividend and o.5 stock dividend per share in 2008.

84 98 137

1,399

1,218

894 716 672618

57.83%

78.57%

66.79%

2.88% 3.73% 6.68%

-

200

400

600

800

1,000

1,200

1,400

1,600

2006 2007 20080%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Available Allocation Dividend PSE Payout Ratio (%) Yield

12

Taiwan Top 1000 Ranking Taiwan Top 1000 Ranking

199

341

391423

508559

352

304

224

164 117

351

228181

164

0

100

200

300

400

500

600

2004Y 2005Y 2006Y 2007Y 2008Y

Revenue Growth ratio Net income ratio

* Data source from CW magazine

13

Sales & Marketing

14

Global Giants

IC DesignHouses EMS/CMs

TXC

Our Target Customers• Global Giants

• EMS/CMs

• IC Design Houses

Our Target Customers• Global Giants

• EMS/CMs

• IC Design Houses

Business ModelBusiness Model

15

Sales by IndustrySales by Industry

MOBILE18%

Others10%

NETWORKING26%

PC16%

GLOBAL19%

AUTOMOTIVE0.3% CONSUMER

ELECTRONICS11%

GLOBAL18%

MOBILE20%

NETWORKING30%

PC14%

Others77%

AUTOMOTIVE1.0%

CONSUMERELECTRONICS

10%

2008 2009 forecast

2009 Q1

GLOBAL19%

MOBILE18%

NETWORKING29%

PC15%

CONSUMERELECTRONICS

11%

AUTOMOTIVE0.2%

Others8%

16

Sales by ApplicationSales by Application

Automotive0.3%

Wimax/WiFi11%Webcam

1%

Others10%

Networking8%

NB12%

MP37%

Mobile14%

LCD M/TV1%

DSC3% Game Console

4%HDD6%

PND/GPS1%

STB4%

Storage/Server

4%

Pen Driver5%

PC/MB3%

BT6%

2009 forecast2008Automotive

1%Wimax/WiFi

13%Webcam

1%

Others8%

Networking8%

NB12%

MP35%

Mobile15%

LCD M/LCDTV

0.5%

DSC3% Game

Console5%HDD5%

PND/GPS2%

STB4%

Storage/Server

6%

Pen Driver4%

PC/MB1%

BT7%

17

Automotive• SAN / Server / Storage • GPS

• TPMS

Sales by Sales by ContributionContribution

• New customers will ramp up in 2009 and focus on networking and mobile application.

• China market for Netbook, CDMA and TPMS will grow up.

18

Worldwide RankWorldwide RankWorldwide Revenue of the Top Crystal and Oscillator Suppliers (Millions of Dollars)

* Data Courtesy of CS & A

(06-07) (07-08) 2007 2008

Change%

Change%

MarketShare

MarketShare

1 1 1 Epson Toyocom 645 656 675 1.7% 2.9% 18.4% 19.9% 19.9%2 2 2 NDK 626 649 571 3.7% -12.0% 18.2% 16.9% 36.8%4 4 3 KDS 290 293 327 1.0% 11.6% 8.2% 9.7% 46.4%3 3 4 Kyocera Kinseki 372 380 304 2.2% -20.0% 10.7% 9.0% 55.4%6 6 5 TXC 161 192 222 19.3% 15.6% 5.4% 6.6% 62.0%

5 5 6 Vectron (Corning) 211 206 200 -2.4% -2.9% 5.8% 5.9% 67.9%- - 7 Hosonic - - 119 - - - 3.5% 71.4%9 7 8 Rakon (C-MAC) 59 109 96 84.7% -11.9% 3.1% 2.8% 74.2%7 8 9 TEW 88 88 75 0.0% -14.8% 2.5% 2.2% 76.4%8 9 10 Micro Crystal 60 62 56 3.3% -9.7% 1.7% 1.7% 78.1%11 11 11 Pericom ( eCERA) 49 57 53 16.3% -7.0% 1.6% 1.6% 79.6%10 10 12 River 59 60 51 1.7% -15.0% 1.7% 1.5% 81.1%13 13 13 Conner-Winfield 47 46 44 -2.1% -4.3% 1.3% 1.3% 82.4%12 12 14 Fox 48 51 40 6.3% -21.6% 1.4% 1.2% 83.6%- 15 15 CTS - 35 34 - -2.9% 1.0% 1.0% 84.6%

Total Revenue 3,286 3,564 3,388 8.5% -4.9% 100.0% 100.0%

2006Revenue

2007Revenue

Cumulative%

2008Revenue

2006Rank

2007Rank Company Name

2008Rank

19

Domestic Market

Global Market

China Market

• Get Taiwan EMS design-in

• increase market share

• Create Global EMS customers

• Get Tier 1 customer design-in

• Add Americas & EMEA sales channel

• Maintain Taiwan EMS relationship and

get worldwide OEM/ODM order

• Create local customers

• Add market share

Marketing StrategyMarketing Strategy• China Market

– Local mobile handset customers with big volume shipment

• GSM • CDMA will be the next

– Local Networking Giants with AOM products

– Automotive• Global / Domestic Market

– Maintain existing basis to explore more business opportunities

20

Technology & Product

21

201120102009

Technology StrategyTechnology Strategy

SMD Crystal 1612 1210

SMD HF CXO (PECL/LVDS) 5032

SMD VCXO (CMOS) 5032

SMD HF VCXO (PECL/LVDS) 5032

SMD CXO 2016

Automotive Crystal 2016

SMD Tuning Fork 2012

High frequency low noise• Saw-based HF Oscillators

• VCSO

SMD TCXO 2016

Miniaturization

Higher

Performance

Ultra stable• TCXO Stratum 3

• OCXO

22

TXC Foundation Market

IT NetworkingConsumer Electrical

Mobile

AOM

• WiMax

•SIP Module

• CMMB

Automotive• SAN / Server / Storage • GPS

• TPMS• Non-safety

• Telecom (BS) / Datacom

Product StrategyProduct Strategy

• Basic rule– Move to high-margin products

• High margin products?– AOM (Advanced Oscillators and Modules )– Automotive– Smaller size

High FrequencyLow Jitter

High ReliabilityZero Defect

Smaller SizeHigh Stability

Smaller size

Automotive

23

Highlights

24

TXC Strategy in

09AOM products got more orders by

customers

Revenue will ramp up Quarter-over-Quarter

China Market will be the major sales growth power

Business HighlightBusiness Highlight

Wi-Fi and NB products shipment ramp up along with the Netbook success

TCXO for GPS took a first firm stand on market

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

25

Q & AQ & A

Thanks!