ASE TEST LIMITED November 2002

Investment Highlights „

Beneficiary of outsourcing trend

„

World’s largest independent IC test house offering end-toend total testing solution

„

Diversified global customer base in 3C sectors with global operation

„

Growth through internal expansion/strategic acquisitions

„

Strong financial track record

World's Dominant IC Testing House 1

Outsourcing by IDMs IDMs Increasing the Use of Semiconductor Manufacturing Service Providers „

IDMs are increasingly adopting a fab-lite business model to focus on core competencies--design and marketing

„

Industry downturns weakened IDMs’ financial capacity for investment in advanced capacity

„

Technology/quality gap is narrowing or reversing between IDMs and subcontractors due to latter’s continuous investments

„

Particularly, most IDMs do not have sufficient business scale to build and support their own 300-mm fabs and will have to outsource wafer fabrication

„

Same pattern for advanced assembly and test 2

Who Can Justify Owning A 12” Fab? Rank

Company

1

Intel

2

2001 Revenue

Rank

Company

2001 Revenue

24,927

11

IBM

3,892

Toshiba

6,783

12

Mitsubishi

3,876

3

STM

6,360

13

Fujitsu

3,786

4

Samsung

6,303

14

AMD

3,701

5

TI

6,060

15

Agere

2,975

6

NEC

5,389

16

Matsushita

2,804

7

Motorola

4,828

17

Sony

2,570

8

Hitachi

4,724

18

Sharp

2,519

9

Infineon

4,512

19

Hynix

2,426

10

Philips

4,402

20

Micron

2,410

Source: Gartner, 2002

3

Semiconductor Back-End Market US$ Million 60,000

2005: Total $50bn 40%

50,000 40,000

2000: Total $34bn 2001: Total $25bn

30,000

32%

$20bn

29%

Outsourcing Market

OEM / IDM Packaging and Test Market

20,000 10,000 0 1999 Source: Gartner, 2002

2000

2001

2002

2003

2004

2005 4

Worldwide Semiconductor Volume Million Units 120,000

2002 Q2 volume = 89% of 2000 Q3 volume

100,000 19% 80,000

10%

60,000 40,000 20,000 0 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02

Source: SIA

5

Technology Roadmap Wafer Geometry

0.35um

0.25um

0.18um

0.13um

0.09um

70um

60um

50um

45um

40um

2 Row Staggered 80/45um

80/40um

70/35um

60/30um

50/25um

3 Row Staggered

90/45um

80/40um

70/35um 60/30um

100/200

200/400

200/800 400/1600

Single-InLine

Wirebond Pad Pitch

Tester

Tester Speed (Clock/ Data Rate) Tester Channels

50/100

(Mhz/Mbps) 256

384

448

512

768 6

ASE Test Strategy „

Maintain unquestioned market leadership

„

Strategic expansions through internal growth and acquisitions

„

Leverage front-end testing expertise

„

Work closely with equipment vendors

„

Offer complete test solutions

To provide leading edge turnkey testing solutions/accelerate the outsourcing of test for semiconductor manufacturing 7

IC Manufacturing Value Chain Design Cycle Production Cycle Front-End Testing Wafer Fab

Probing

“Front End” Program Development

Sort Die

Packaging

Testing

Final Test Burn In Lead Scan

Drop Ship/ Distribution

ASE Test provides services in all stages of the testing cycle 8

Ranking

Awarded No. 1 in the Fabless Segment! Assembly

Probe

Burn-In

1

Other

ISE Labs

ASE

Other

2

ASE

Other

Other

ASE

3

TSMC

ASE

Amkor

Amkor

4

Amkor

Viko

SPIL

STATS

5

STATS

Amkor

ASAT

SPIL

6

ISE Labs

Carsem

STATS

ISE Labs

7

ASAT

In-house

OSE

Fujitsu

8

Fujitsu

Hana

Carsem

King Yuan

9

In-house

ASAT

Hana

OSE

King Yuan

STATS

Atlantic

ChipPac

10

Source: Fabless Semiconductor Association – Wafer and Packaging Demand Survey 2001

Test

9

Global Business Platform ASE Chung Li ASE Korea All close to foundry, IDM, and assembly

ISE Labs Engineering and production testing services for Silicon Valley customers

Test Assembly

ISE Hong Kong ISE Singapore Near distribution centers for drop shipment ASE Malaysia Provides both testing and assembly services

ASE Taiwan Focuses on advanced logic/mixed signal testing. Offer turnkey services with ASE Inc. assembly at the same location

10

Leverage Front-End Expertise „

Only front-end/back-end combination; 80% market share in Silicon Valley

„

Proximity to design centers allows ASE Test to become customer’s test center

„

Influence customers on test platform choice; jointly save time and cost for customers

„

Early involvement means better understanding of customers’ products to improve test yield

„

Design cycle is “door opener” to secure volume production

11

Close Ties to Equipment Vendors

„

Technology Center in Silicon Valley attracts customers and equipment vendors Agilent

NP Test (Schlumberger)

Credence

Teradyne

LTX

12

Corporate Structure

ASE INC.

50.5% ASE TEST LIMITED NASDAQ listed: ASTSF

70% 30%

100%

ASE CHUNG LI (Taiwan)

ISE LABS, INC. (Silicon Valley)

100% ASE ELECTRONICS (M) SDH, BHD. (Malaysia)

70% 99.98%

30%

ASE TEST INC. (Taiwan)

ASE KOREA (S. Korea)

*Black text indicates subsidiaries that are fully consolidated by ASE Test Limited.

13

2001 Result: Revenues (US$MM) 500

a 5-Ye

400

r

(1)

440.3

= 21% R G CA

298.4 276.3

300 176.5

200 101.8 100

0

184.7

112.8

61.3

1994

1995

1996 Test

1997

1998

1999

2000

2001

Packaging

Note:(1) Reported 2000 revenues exclude Manteca packaging sales

14

2001 Result: Operating Income (US$MM) 150 114.9

130 110 90

63.1

70

46.8

50 30

17.6

51.4

22.1

10 -10 -30

1995

1996

1997

1998

1999

2000

2001 (24.1)

15

2001 Result: Operating Margin 30%

24.9%

20%

26.3%

26.0% 22.8%

17.9% 14.7%

10%

0% 1995 -10%

1996

1997

1998

1999

2000

2001 -8.1%

16

2001 Result: Net Income (US$MM)

101.2

120 100 (1)

80

45.9

60 40

15.1

55.4

49.6

22.7

20 0 (20)

1995

1996

1997

1998

1999

2000

2001

(40) (60)

(45.8)

Notes: (1)1999 net income included one-time capital gain of USD 6.6 million

17

2001 Result: Gross Cash Earnings (US$MM) 250

233

200 133

150 100 50 0

73 34

1995

120

86

44

1996

1997

1998

1999

2000

2001

Gross Cash Earnings = Operating Income + Depreciation + Amortization

18

2001: Revenue Segmentation Assembly ($75 MM) TQFP/ LQFP SO 18% and others 5%

QFP 25%

BGA 26%

Test ($223 MM)

Logic 75% Memory 2% Engineering 11%

PDIP 14% PLCC 12%

Hardware 1%

Wafer & Others 11%

QFP includes QFP, MQFP, and PQFP. SO includes SOP, SOJ, SSOP, and TSOP.

19

Comparison: 2001 Test Revenues World’s Largest Test House

($MM) 400

286 MM 300

Includes 100% of ASE Chung Li and ASE Korea

200

223 MM

88 MM

100

67 MM

46 MM 5 MM

0

ASE TEST

AMKR

STATS

CHIPPAC

ASAT 20

3Q02 Result: Revenues (US$MM) 140

31% Growth

3% Growth

120 100 80 60 40

61

80

78

80

3Q02

2Q02

3Q02

20 0

3Q01

21

3Q02 Result: Revenues (US$MM)

140

121 125

120 100

95

103

100

80

67

67

61

69

78

80 29%

60 40

71%

20 0

Q1

Q2 Q3

Q4

Q1

2000 Test Reported 2000 revenues exclude Manteca packaging sales.

Q2 Q3 2001

Q4

Q1 Q2

Q3

2002

Packaging 22

3Q02 Result: Quarterly Margins 45% 40 30%

26

42

41

28

39 29

27 22

14

15%

9

6 -2

0% -15% -30%

1

-24

Gross Margin

4

-11 -12

-13

Q1 Q2 Q3 Q4 2000

8

-19

Q1 Q2 Q3 Q4 2001

-18

Q1 Q2 Q3 2002

Operating Margin 23

3Q02 Result: Operating Income (US$MM)

40 30 20 10 0 -10 -20

-15

3Q01

-10

-8

-10

3Q02

2Q02

3Q02 24

3Q02 Result: Net Income (US$MM)

20 10 0 -10

-11

-10

-11

3Q02

2Q02

3Q02

-20 -21 -30

3Q01

Figures are in US GAAP.

25

3Q02 Result: Capital Expenditure (US$MM)

(US$MM)

500

60

$417

450 400

50

350 300

$30

250

30

200

$129

150 100 50 0

$36

40

$128

$104 $100 20

$81 $48 1996

$21

10

1997

1998

1999

2000

2001

2002 (F) 0 1Q02

2Q02

3Q02

26

2001 & 3Q02: End Market Segmentation 2001 Communications 32%

Other 2% Industrial 7%

3Q02 PC 29%

Consumer / Automotive 30%

Communications 31%

Other 4% Industrial 6%

PC 33%

Consumer / Automotive 26%

27

Top Customers (3Q02)

„

Agilent

„

LSI Logic

„

Altera

„

Marvell

„

ATI Technology

„

Motorola

„

Atmel

„

Nvidia

„

DSP Group

„

Philips

„

ESS Technology

„

S.I.S.

„

Genesis Microchip

„

VIA Technologies

„

Legerity

28

Comparison: ASE Test & Industry Revenues 80%

66%

59%

57%

60%

50%

42%

37%

40% 19%

20%

11%

4%

5%

0% 1995 -20%

1996

1997

-9%

1998 -8%

1999

2000

2001

-32% -32%

-40%

ASE Test

Semiconductor Industry 29

Capital Structure

(US$MM)

1999

2000

2001

3Q02

Cash

$57

$157

$138

$124

Short-Term debt

$28

$40

$29

$97

$165 CB Other $100

$176 $89

$187 $63

$196 $30

$295

$643

$598

$583

Long-Term debt Shareholders’ equity

30

ASE Test Monthly Revenues (US$MM)

40 35 30 25 20

18.9 20.2

21.4

22.7 23.3

25.9 24.9

26.0 26.8 26.4

27.5

26.2 25.9

21.5 22.4 20.7

15 10 5 0

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

2001

2002 31

Investment Highlights „

Beneficiary of outsourcing trend

„

World’s largest independent IC test house offering end-to-end total testing solution

„

Diversified global customer base in 3C sectors with global operation

„

Growth through internal expansion/strategic acquisitions

„

Excellent financial track record

World's Dominant IC Testing House 32

ASE TEST LIMITED May 2002

Enormous Upside in Test Outsourcing Outsourced Market Comparisons (1999) Total Packaging Market Size: US$18.3Bn 39.4%

IC Package Assembly (1)

Total Fab Market Size: US$46.5 billion

Total Testing Market Size: US$10.0 billion 8.0%

11.0%

Foundry(2)

IC Testing (3)

Notes: (1) ETP (2) Company estimate (3) Company estimate

34

Purest Play in Test 1Q2002 Test Revenues as a % of Total Revenues

1Q2002 Test Revenues

100% 80%

40

49.5

60%

21.0 20

45%

40%

17.5

12.1

20%

1.0(1)

6%

15% 4%(1)

Note: (1) CSFB Equity Research Estimate

TE ST A M K R ST A TS C H IP PA C

A

SE

A

SA

T

0%

SE

TE ST A M K R ST A TS C H IP PA C

0

A

72%

T

13.0

SA

60

Includes 100% of ASE Chung Li and ASE Korea

A

($MM)

35

Comparison: Annualized Cash Return on PP&E 4Q01

1Q02

ASE Test

16%

18%

AMKOR

5%

6%

CHIPPAC

-36%

14%

SPIL

21%

24%

STATS

-36%

-4%

Source: company data and public earning releases (operating income + depreciation & amortization) / average PP&E

36

1Q02 Result: Revenue Segmentation Assembly ($20MM) TQFP/ LQFP SO 18% and others 2%

BGA 23%

Test ($49 MM) Logic 76% Memory 1% Engineering 12%

PDIP 21%

QFP 25% PLCC 11%

Wafer & Hardware 2% Others 9%

QFP includes QFP, MQFP, and PQFP. SO includes SOP, SOJ, SSOP, and TSOP.

37