1. MICROELECTRONIC CHIPS PRODUCTION PLANT PROJECT
Company:
Saigon Industry Corporation
March 2013

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

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

4. Investor Introduction (cont.)
CHART OF OPERATING RESULT
(to government’s budget)
Unit: billion VND

5. 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 216mil. USD/year (after the 10th 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

6. 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 1st -10th year: 6,000 wafer/month or 72,000 wafer/year, 108 mil. USD/year
After the 10th 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

7. Analyzing and selecting technology
Start on the 0.18µm technology to learn and setup the baseline of the semiconductor technology & manufacturing technique
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 2.5X higher compared to 0.18µm

8. Common electronic chips Transferring technology
Products
Products
Chips used in industry and home appliances/
Chips for smart cards: credit card, SIM, GSM module, GPS module, National ID, employee’s ID, Healthcare Insurance card, driving licence, membership card…
Chips for RFID system
Processing based on customers’ designs
Common electronic chips
RFID chips
Training, Research
Design
Transferring technology
Beside the RFID there are a lot of products that we can manufacture like: GSM card; 8, 16 and 32bits 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

9. 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, eGovernment)
RFID Demand Forecast 2020

10. 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 70
50,400
1,512 3 90
64,800
1,944 4
100
2,160 5 6 7 8 9
2.160 10
TOTAL
655,200
19,656
* 30,000 chips/wafer