SEMICONDUCTOR SALES ON A POSITIVE TREND SilTerra, our semiconductor manufacturing business, looks set to benefit from the industry’s continued strength and growth potential over the coming years. This trend is driven by increased demand for use in communications technology (including 5G applications), computing, transportation, clean energy and more. Pure play foundry sales are forecast to display a 13.5 per cent compound annual growth rate (“CAGR”) between 2021 and 2026. This forecast indicates 1.2 points greater than the 12.3 per cent (2016-2021) pure-play foundry market CAGR.10 1 World Economic Forum (2022), 5 challenges facing global supply chain, https://www.weforum.org/agenda/2022/09/5-challenges-global-supply-chains-trade/ 2 OECD (2022), The supply of critical raw materials endangered by Russia’s war on Ukrain, https://www.oecd.org/ukraine-hub/policy-responses/the-supply-of-critical-rawmaterials-endangered-by-russia-s-war-on-ukraine-e01ac7be/ 3 The World Bank (2022), Global Economic Prospects – June 2022 4 Bank Negara Malaysia (2022), Economic and Financial Developments in Malaysia in the Second Quarter of 2022, https://www.bnm.gov.my/-/qb22q2_en_pr#:~:text=The%20 Malaysian%20economy%20registered%20a,May%202022%20was%20particularly%20robust. 5 Trading Economics (2022), Malaysia GDP Growth Rate (chart), https://tradingeconomics.com/malaysia/gdp-growth-annual 6 The Edge (2022), Malaysia’s 2022 GDP growth may surpass official estimate, says Tengku Zafrul, https://www.theedgemarkets.com/article/malaysias-2022-gdp-growthmay-surpass-official-estimate-says-tengku-zafrul#:~:text=KUALA%20LUMPUR%20(Sept%2012)%3A,performance%20in%20the%20third%20quarter. 7 Trading Economics (2022), Malaysia Inflation Rate (chart), https://tradingeconomics.com/malaysia/inflation-cpi 8 BBC (2022), Russia Sanctions: how can the world cope without its oil & gas?, https://www.bbc.com/news/58888451 9 Bloomberg (2022), Windfall Tax on UK Oil & Gas Producers to Top 28 Billion Pounds, https://www.bloomberg.com/news/articles/2022-09-23/windfall-tax-on-uk-oiland-gas-producers-to-top-28-billion#:~:text=Former%20Chancellor%20Rishi%20Sunak%20introduced,taxes%20on%20the%20energy%20sector. 10 The McClean Report 2022, August 3Q Update 12 https://www.thesundaily.my/business/malaysia-s-gdp-expected-to-grow-4-5-in-2023-2022-gdp-revised-upwards-mof-XK9936514 13 With winter coming, oil could hit US$100 a barrel, by Intan Farhana Zainul, The Edge Malaysia Weekly, dated 10 October, 2022. Semiconductor Industry Size and Growth Year 16 17 18 19 20 21 22F 23F 24F 25F 26F Source: IC Insights Pure-Play Foundry Sales Growth 2016-2021 CAGR – 12.3% 2021-2026F CAGR – 13.5% 50.4 54.8 57.0 70.3 90.0 123.7 135.6 150.1 36.3 32.1 28.9 25.8 21.5 17.5 15.3 15.8 15.4 7.2 169.6 40.7 57.8 -10% 0% 10% 30% 40% 20% $0 $20 $40 $60 $80 $100 $120 $200 $180 $160 $140 118.1 Growth Rate Billion of Dollars IDM Foundry Sales Pure-Play Foundry Sales Total Foundry Sales Growth 11% 9% 5% -1% 23% 28% 31% 5% 10% 11% 13% 51 DNeX INTEGRATED REPORT 2022
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