4991.TWO Global Communication Semiconductors (GCS) 2025 Investor Presentation

Company Overview

Corporate Information

• Company Name: Global Communication Semiconductors (GCS)
• Strategic Initiative: GCS 2.0 (Transformation or rebirth strategy, "脫胎換骨")
• IPO Information:
  • Date: September 15, 2014
  • Stock ID: 4991.TWO
  • Exchange: Taipei Exchange (證券櫃檯買賣中心)
• Holdings Structure:
  • Parent Company: GCS Holdings (@ Cayman Islands)
  • Subsidiaries (100% Owned):
    • GCS Device Technologies (Taiwan)
    • GCS, LLC (USA)
  • Joint Ventures (JV):
    • Chem Semi (Changzhou)
    • Gala Semi (Shanghai)
• Slogan: 環宇芯 系天下 ("Global Core, Connecting the World")

Financial Highlights

• PD Chip Shipments: Over 1 billion PD Chips shipped worldwide (as of April 2025).
• 800G Market Goal: Achieve 70% market share in 800G optical modules.

Business Segments

Dual Engine Strategies (GCS 2.0)

1. ENGINE I: Dominate the 400G/800G/1.6T optical module market with high CP value PD chips.
2. ENGINE II: Expand with high-power CW DFB lasers for Pluggable & SiPhotonics-based optical modules.

Strategic Transformation Initiatives

• Focus on Big IDMs and high-value opto-foundry businesses.
• Maximize RF technology benefits through licensing and strategic end-of-life management.
• Leverage 4"/6" InP wafer technologies for volume production.

Competitive Advantages

• Wafer Size: Utilization of economical 4" and 6" wafers (compared to traditional 2").
• Processing Technologies:
  • i-line stepper and single wafer process for enhanced process control.
  • Superior to G-line contact aligner and batch process tools.
• Key Strengths: High-volume delivery, quality assurance, and optical device expertise.

Products & Technologies

Key Product Categories

• Photodetector (PD) Chips
• Laser Diodes (LD) Chips
• Optical Modules: 400G, 800G, 1.6T
• High-Power CW DFB Lasers
• Types:
  • Monitor Photodiode (MPD)
  • Avalanche Photodiode (APD)
  • Vertical-Cavity Surface-Emitting Laser (VCSEL)

CW DFB Laser Product Roadmap

High Volume Production Capacities (as of April 2025)

• Clean Room: 15,000+ sq. ft.
• Front-End (Wafer Processing):
  • Monthly Capacity: 4,500 wafers
  • PD Production: 180 million chips (theoretical), 30 million (conservative)
  • LD Production: 68 million chips (theoretical), 20 million (conservative)
• Back-End (Dicing & VI):
  • PD Chips: 20+ million/month
  • LD Chips: 10+ million/month

Applications & Technology Platforms

• Applications:
  • AI & Data Centers: 100G - 3.2T
  • Consumer/IoT: AOC, HDMI, Mobile Devices
  • LTE Base Stations: 4G to 6G
  • Passive Optical Network (PON): 2.5G - 25G
• Platforms:
  • InP wafer processes (3", 4", and 6")
  • i-line steppers and single wafer processes
  • SiPhotonics-based transceivers

Clients & Markets

Key Clients

• End Clients:
  • Google, Microsoft, NVIDIA, Amazon, Cisco
• Other Clients:
  • INNO LIGHT, AOI, COHERENT, LUMENTUM, eoptolink, Hisense, Accelink, HGTECH, O-Net Technologies, Source PHOTONICS, YSOD, Molex, San-u, LuxNet, CIG, eLASER Technologies, Amphenol.

Market Trends

• AI data center market: Growing at 28.3% CAGR.
• By 2025:
  • 33% of global data center capacity allocated to AI.
  • 60% of new data centers located in the U.S.
  • China invests $100 billion in AI-focused "New Infrastructure" programs.

Optical Module Trends (2025–2026)

• 800G Modules:
  • ~17 million units (2025), ~37 million units (2026).
• 1.6T Modules:
  • ~1.5 million units (2025), ~4 million units (2026).

ESG & Sustainability

• Transition to higher-efficiency wafer processes (4"/6").
• Innovations in cooling systems: Promoting direct-to-chip or immersion cooling for data centers.

Strategic Outlook

1. Sustain leadership in high-capacity optical connectivity markets.
2. Expand high-power laser production.
3. Strengthen partnerships with cloud service providers and big IDMs.

Contact Information

• Contact Person: Simon Yu (余有崇)
  • Title: Senior Vice President, GM, Corporate Spokesperson
  • Departments: Worldwide Sales & Marketing, Component Business Group
  • Email: syu@gcsincorp.com
  • Phone Numbers:
    • US: (650) 892 8676
    • Taiwan: (886) (0) 918 818 824
    • China: (86) 138 6114 7387

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