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© TOPPAN Holdings Inc. Electronics Business Strategy Briefing TOPPAN Holdings Inc. December 10, 2025
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INDEX © TOPPAN Holdings Inc. 1. Overview of Electronics Business 2. Overview and Strategy of Semiconductor Packaging Business 3. Trends in Focus Areas of Semiconductor Packaging Business 4. Technology Roadmap for Semiconductor Packaging Business 5. Specific Activities in Semiconductor Packaging Business 2
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INDEX © TOPPAN Holdings Inc. 1. Overview of Electronics Business 2. Overview and Strategy of Semiconductor Packaging Business 3. Trends in Focus Areas of Semiconductor Packaging Business 4. Technology Roadmap for Semiconductor Packaging Business 5. Specific Activities in Semiconductor Packaging Business 3
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© TOPPAN Holdings Inc. Business Overview 4 • Semiconductor packaging • Etched products • LSI design services Semiconductors Displays • Anti-reflective films • Light control films • TFT-LCDs • Color filters JPY 194.8 bn Approx. 27% JPY 88.5 bn Approx. 2％ FY2024 results Net sales: JPY 283.3 billion Non-GAAP operating profit: 53.4 billion (Operating margin: 18.9%) Information & Communication Living & Industry FY2024 results 16% of total sales TOPPAN Holdings Consolidated net sales Sales Electronics Non-GAAP operating margin Sales Non-GAAP operating margin
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© TOPPAN Holdings Inc. Electronics: FY2025 Forecast 5 Category Full Year Sales Composition H2 ForecastFull Year Operating Profit Margin (YoY change) GAAP Non-GAAP Semi- conductors Approx. 77% (-48.9 billion yen) ✓ Photomasks: No sales or operating profit will be posted following the transition of Tekscend Photomask to the equity method ✓ Continuing the trend for Q2, the proportion of FC-BGAs for server CPUs and network switches is expected to increase. We expect profit levels to rise significantly in Q4 due to tapping into strong demand with the full- scale operation of the new line. Qualifications for high- end AI server switches and AI ASICs are progressing in line with expectations in preparation for mass production in the next fiscal year. Approx. 24% (-16.8 billion yen) Approx. 24% (-16.8 billion yen) Displays Approx. 23% (-44.4 billion yen) ✓ Anti-reflective films: H2 is expected to see a recovery trend due to taking in demand for high-value-added products ✓ Display solutions: Profit is expected to increase due to the effects of structural reformsApprox. 3% (-0.2 billion yen) Approx 3% (-0.3 billion yen) Special factors ー ✓ Foreign exchange: Profit decrease of approx. 2.8 billion yen over the full year ✓ Impact of bonus provision period standardization (-0.6 billion yen) FC-BGAs are expected to further recover in H2 due to an increase in the proportion of products for AI and the contribution of the new line at the Niigata Plant 48.2 49.6 53.0 35.5 50.0 49.8 53.4 35.8 50.3 0.0 10.0 20.0 30.0 40.0 50.0 60.0 0 50 100 150 200 250 300 FY22 FY23 FY24 FY25 FY25 Electronics - Net sales by sub-segment & Operating profit(RHS) - Displays Semiconductors Operating Profit Non-GAAP OP (¥bn) (¥bn)Net sales 255.3 266.5 283.3 190.0 259.0 (Revised) (Original)
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© TOPPAN Holdings Inc. Electronics: Medium-term Strategic Approach 6 The Electronics business will accelerate expansion by concentrating management resources on the high-value- added business of semiconductor packaging and driving portfolio transformation ・Anti-reflective films: Launch new ultra- wide line in 2026 ・Quantum dots: Launch nanomaterial business centered on materials ・Light control films: Expand business of new products for automotive applications ・ Focus on high-end FC-BGA market centered on AI applications ・ Launch advanced semiconductor packaging business Display BusinessSemiconductor Business ・Drive structural reform of low-profit businesses ・LSI design: Generate synergies with the semiconductor packaging business ・Etching: Expand into new fields such as application to heat exchangers Execute business-specific strategies and portfolio transformation Focus area: Semiconductor packaging business
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© TOPPAN Holdings Inc. Electronics: Medium- to Long-term Outlook 7 FY2025 FY2030 Sales JPY 190 bn Non-GAAP operating margin 24% Firmly maintain high profitability by supplying cutting-edge key devices leveraging technical superiority centered on semiconductor-related technologies Sales JPY 146 bn Semiconductor- related portion Sales Approx. JPY 350 bn Sales CAGR 22% Sales CAGR 26% Sales Approx. JPY 270 bn Semiconductor- related portion Percentage of semiconductor -related sales: Approx. 80% Non-GAAP operating margin 30% FY2025 Sales JPY 129 bn Non-GAAP operating margin 26% Sales JPY 85 bn Semiconductor- related portion Guidance Excl. Tekscend Photomask Growth Drivers ✓ Semiconductor packaging business ・ Enhanced profitability accompanying expansion of AI-related applications for FC-BGAs ・ Launch and scaling of advanced semiconductor packaging Sales Growth Potential Profitability CAGR 26% Non-GAAP Operating Margin 30% Semiconductors
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INDEX © TOPPAN Holdings Inc. 1. Overview of Electronics Business 2. Overview and Strategy of Semiconductor Packaging Business 3. Trends in Focus Areas of Semiconductor Packaging Business 4. Technology Roadmap for Semiconductor Packaging Business 5. Specific Activities in Semiconductor Packaging Business 8
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© TOPPAN Holdings Inc. About FC-BGAs 9 Business Opportunities ● Network devices, server CPUs ● Generative AI ● Consumer, automotive devices Product Cross-section IC chip FC-BGA ✓ FC-BGA (Flip Chip-Ball Grid Array) substrates are high-density semiconductor packaging substrates that enable high-speed, multifunctional LSI chips By developing substrates with ultra-high-density interconnect structures through our evolution of microfabrication and build-up wiring board technologies, we provide products that support semiconductor process miniaturization
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© TOPPAN Holdings Inc. TOPPAN’s FC-BGA Business Domains 10 Consumer, etc. 25% 83% We are advancing a business centered on high-end switches and servers Source: TOPPAN estimates based on data from Fuji Chimera Research Institute High-end switches, servers, AI applications Consumer, etc. Breakdown of FC-BGA market and TOPPAN’s business by application 2024 FC-BGA Market (value basis) TOPPAN’s FC-BGA Business in 2024 (value basis)
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© TOPPAN Holdings Inc. 11 TOPPAN’s Position in the High-end Switch Domain A Co. B Co. C Co. D Co. F Co. G Co. H Co. E Co. TOPPAN has secured the no. 3 market share in the high-end switch domain Share: No. 3 FC-BGAs for high-end switches Source: TOPPAN estimates based on data from Fuji Chimera Research Institute FC-BGA Substrates for High-end Switches: Fiscal 2024 Sales by Manufacturer
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© TOPPAN Holdings Inc. 12 Semiconductor Packaging Business Strategy With technical superiority as the source of our competitive edge, we are targeting high-end areas where we can leverage our advantage Focus areas targeted by TOPPAN AI accelerators PC CPUs Gaming Automotive, etc. GPUs AI ASICs High-end switches Server CPUs Focus areas Focus areas: (1) High-end switches (2) AI ASICs (3) Server CPUs High-end switches Servers General- purpose For AI AI accelerators Server CPUs GPUs AI ASICs X86 (Intel) ARM 〇 ◎ - ◎ - ◎ 〇: Supported ◎: Focus area -：Not supported
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© TOPPAN Holdings Inc. 13 East-West通信 Request Response Switch Switch Switch Switch Switch AI switch AI server General- purpose server General- purpose server AI server AI server AI server AI server ・・・ ・・・ ・・・ General-purpose switches Switch for AI Server CPUs AI ASICs Network centered on AI servers Network centered on general-purpose servers Semiconductor Packaging Business Strategy Specific composition of focus areas Focus areas are ARM server CPUs, AI ASICs, and switches for AI, which are expected to be used in AI data centers High-end switches Servers General- purpose For AI AI accelerators Server CPUs GPUs AI ASICs X86 (Intel) ARM 〇 ◎ - ◎ - ◎
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© TOPPAN Holdings Inc. 14 9,687 10,304 12,218 14,199 16,067 17,343 18,256 0 3,000 6,000 9,000 12,000 15,000 18,000 2023 2024 2025 2026 2027 2028 2029 (Source: TOPPAN estimates based on data from Fuji Chimera Research Institute) High-profit/high-end focus areas are expected to expand against a background of growth in AI Automotive, consumer, etc. Level of difficulty Projected panel unit price Automotive PC GPUs Networks (NIC, etc.) Server CPUs x86 PC CPUs Networks Middle/low-end Gaming AI accelerators Server CPUs ARM High-end switches General- purpose/AI ASICs GPUs (Source: TOPPAN estimates based on data from Fuji Chimera Research Institute) High-end switches AI accelerators Server CPUs Semiconductor Packaging Business Strategy Market forecast for focus areas (Billion JPY) FC-BGA Substrate Market TOPPAN’s focus areas 1,800 1,500 1,200 900 600 300 968.7 1,030.4 1,221.8 1,419.9 1,606.7 1,734.3 1,825.6
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© TOPPAN Holdings Inc. 15 We are shifting to the semiconductor packaging solutions business Advanced FC-BGA Interposer Resin / Glass core Creating products and solutions encompassing all facets of semiconductor packaging Photonics-electronics convergence support Semiconductor Packaging Business Strategy Proposing solutions geared towards social issues Expanding business scale* Identifying new needs and advancing development by bringing together our technologies and collaborating with customers, partner companies, and universities ■ Existing Niigata FC-BGA line: Online ■ New Niigata FC-BGA-line: Full-scale startup in January 2026 ■ AST Phase 1 line: Mass production launch scheduled for fiscal 2027 ■ Advanced semiconductor packaging at Ishikawa: Startup scheduled for July 2026 Mass production scheduled for fiscal 2028 or later ■ New Ishikawa FC-BGA line: Mass production scheduled for fiscal 2030 or later ■ AST Phase 2 line: Timing TBD ■ Collaboration with research institutions/universities ■ Identification of technology needs: US-JOINT, alliance with Taiwanese companies ■ North American fabless customers ■Our technologies: FC-BGA micro interconnect/layering technology, glass transfer, LSI design, process clean-up, CMP slurry (TOPPAN Infomedia) ■Development bases: Semiconductor Packaging Development Center (Sugito), Ishikawa Plant *Plan is current projection
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INDEX © TOPPAN Holdings Inc. 1. Overview of Electronics Business 2. Overview and Strategy of Semiconductor Packaging Business 3. Trends in Focus Areas of Semiconductor Packaging Business 4. Technology Roadmap for Semiconductor Packaging Business 5. Specific Activities in Semiconductor Packaging Business 16
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© TOPPAN Holdings Inc. AI Semiconductor Market Expansion and Focus Areas 17 AI is driving semiconductor market growth, and cloud demand centered on servers is also increasing AI Applications Driving the Market 564 526 618 673 717 776 844 920 1,005 0 200 400 600 800 1,000 1,200 2022 2023 2024 2025 2026 2027 2028 2029 2030 (Billion USD) (Source: IBS) Proportion of Global Semiconductor Demand Accounted for by AI Semiconductors Servers Cloud AI smartphones HumanoidsDriving automation Edge CAGR 28% The AI semiconductor market is projected to grow by 7x (CAGR 28%) over the 8 years up to 2030 and account for 70% of the total market in 2030
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© TOPPAN Holdings Inc. Accelerated Increase in Data Traffic Against Backdrop of AI 18 The emergence of AI is also driving accelerated growth of data traffic ✓ The emergence of AI has kickstarted an era in which all kinds of things generate data (data-centric), and data traffic is projected to increase 100x in the 20 years from 2020 to 2040 Change in Data Traffic Towards 2024 Data traffic projected to increase 100x in the 20 years to 2040 1990 20402030202020102000 35 ０ 5 10 20 15 25 30 (Zettabyte) Computer- centric Mobile- centric Data- centric (Source: OMDIA) CAGR 26%
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© TOPPAN Holdings Inc. Changes in Network Architecture 19 ✓ AI processing involves constant synchronization while processing across multiple GPUs, meaning the volume of communication within and between servers via switches is greater than on networks centered on conventional general- purpose servers ✓ This is driving a transition to network architectures that enable scaling-up, to enhance the performance of individual AI servers, and scaling-out, to facilitate distributed processing with multiple servers connected in parallel Network switch count and performance requirements increase to process vast data volumes Scale-up Scale-out Method for enhancing processing performance by raising server performance and expanding hardware functions, such as CPUs and memory Method for enhancing processing performance by increasing the server count and stabilizing operation via distributed processing Request Response Switch Switch Switch Switch Switch AI switch AI server General- purpose server General- purpose server AI server AI server AI server AI server ・・・ ・・・ ・・・ Network centered on AI servers Network centered on general-purpose servers Spine Leaf AI serverGeneral- purpose server General- purpose server General- purpose server General- purpose server
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© TOPPAN Holdings Inc. 20 Switches for AI servers will drive market expansion Network Switch Demand Trend Data center switch market size forecast 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2024 2025 2026 2027 2028 2029 2030 Data Center Switch Shipment Volume AIサーバ向け 汎用向けFor general- purpose 0 50,000 100,000 150,000 200,000 250,000 0 50 100 150 200 250 300 350 2024 2025 2026 2027 2028 2029 2030 Data Center Switch Unit Selling Price/ Shipment Value 出荷金額 平均単価Average unit price 25,000 20,000 15,000 10,000 5,000 ✓ AI-related applications are driving market expansion due to increased demand stemming from server parallelization and unit price increases prompted by performance enhancements (1,000 units) Shipment value (Billion JPY) Average unit price (10k JPY) (Source: Fuji Chimera Research Institute’s 2025 market survey on data centers, AI, and key devices) 2030 shipment volume for AI is projected to be 3.2x the 2024 level (Source: Fuji Chimera Research Institute’s 2025 market survey on data centers, AI, and key devices) (Year) (Year) Forecast Projection Forecast Projection For AI servers Shipment value
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© TOPPAN Holdings Inc. 21 AI-related needs will shift from learning to inference ✓ Computation required for AI is classified into two types: Training and Inference ✓ The accumulation of pre-trained foundation models will drive progress in the shift to inference-based applications 0 1,000 2,000 3,000 4,000 2024 2025 2026 2027 2028 2029 2030 AI Server Count Projection AI(推論用) (1,000台) AI(学習用) (1,000台)AI (inference) (1,000 servers) AI (learning (1,000 servers) AI ASIC Demand Trend Change of phase in terms of what is required of AI processing Forecast Projection (Source: Fuji Chimera Research Institute’s 2025 market survey on data centers, AI, and key devices) (Year) Learning Inference Foundation model development Use of pre-trained foundation models Computing power important Large number of chips connected Memory speed important A few chips are sufficient
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© TOPPAN Holdings Inc. 22 Power consumption efficiency is required for inference processing ✓ ASICs are circuits designed for specific applications—they are expected to deliver processing that is faster and more energy efficient than GPUs for general-purpose applications ✓ From the perspective of speed and efficiency, there are increasing needs to select chips based on application—with GPUs being used for model learning and AI ASICs used for inference applications that use pre-trained foundation models CPU/GPU Input Software-controlled staged computation ALU Memory Custom Circuit (ASIC) Acceleration with reduced software control Power savings achieved by optimizing and shortening interconnects AI ASIC Demand Trend Semiconductor trend accompanying expansion of AI inference Arithmetic operations InputOutput Output
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© TOPPAN Holdings Inc. 23 With the growth of AI inference, demand will increase for AI ASICs with superior power consumption efficiency 0 2,000 4,000 6,000 8,000 10,000 2024 2025 2026 2027 2028 2029 2030 2031 (1,000 units) Projected In-house AI ASIC Production Volume AI ASIC Demand Trend Forecast Projection (Source: Fuji Chimera Research Institute’s 2025 market survey on data centers, AI, and key devices) (Year) CAGR 16% Market trend for in-house AI ASIC production volume
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© TOPPAN Holdings Inc. 24 ✓ There are x86 CPUs, used by companies such as Intel, AMD, and IBM, and ARM CPUs, used by companies such as NVIDIA and cloud vendors like GAFAM ✓ x86 CPUs previously had an overwhelming share of the market, but in recent years the share of ARM CPUs produced in-house by cloud vendors has been increasing, particular for AI servers with high power consumption 0% 10% 20% 30% 0 10,000 20,000 30,000 40,000 50,000 2024 2025 2026 2027 2028 2029 2030 2031 Projected Server CPU Shipment Volume by Type ARM系 x86系 ARM系比率ARM x86 Percentage of ARM (1,000 units) Server CPU Demand Trend Forecast Projection (Source: Fuji Chimera Research Institute’s 2025 market survey on data centers, AI, and key devices) (Year)
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INDEX © TOPPAN Holdings Inc. 1. Overview of Electronics Business 2. Overview and Strategy of Semiconductor Packaging Business 3. Trends in Focus Areas of Semiconductor Packaging Business 4. Technology Roadmap for Semiconductor Packaging Business 5. Specific Activities in Semiconductor Packaging Business 25
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© TOPPAN Holdings Inc. 26 From 2030 onwards2028202620242022CY Glass core FC-BGA IOWN2.0 Board-level optical interconnection Advanced semiconductor packaging IOWN3.0 Chip-to-chip optical interconnection IOWN4.0 On-chip optical interconnection IOWN concept Foundation Building Phase Result Delivery Phase Sustainable Growth Phase Niigata Plant Start of mass production Start of mass production Singapore Niigata Plant, new line Niigata Plant, existing line FC-BGA substrate Management Phase Mass production begins on extended line Establishment of Development Center Start of full-fledged mass production Ishikawa Plant 2020 Niigata Plant, new line Singapore, plant construction and CapEx Ishikawa Plant, CapEx FC-BGA (large-body, high-count layer) 2025 2027 20292023 Development Center FC-BGAs continue to evolve along with chiplets, driving structural diversification "IOWN®" is a trademark or registered trademark of NTT, Inc. FC-BGA Larger chips TOPPAN’s Technology Roadmap FC-BGA (chip-to-chip optical interconnection)Support for IOWN2.0 FC-BGA (board-level optical interconnection) Organic RDL interposer + FC-BGA Glass interposer + FC-BGA The IOWN concept promoted by NTT, Inc. aims to utilize optical technologies to achieve a low-power, high-quality, high-capacity and low- latency network. Chiplet (Silicon interposer + FC-BGA) With our new technologies, we contribute to meeting increasingly sophisticated demand for semiconductor packaging in response to social issues
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© TOPPAN Holdings Inc. 27 Next-generation AI Network Transmission Performance Projection Server CPUs Use Cases Requiring High Speed and Low Latency AI-centric next-generation use cases, such as driving automation and telehealth, require high-speed, low-latency transmission—the transmission speed of data centers and the like is forecast to reach 800 Tbps in 2030, 32x the 2020 level East-West通信 Request Response Switch Switch Switch Switch Switch AI switch AI server AI server AI server AI server AI server ・・・ ・・・ ・・・ General-purpose high-end switches Switch for AI AI ASICs Network centered on AI servers Driving automation Telehealth 25.6 51.2 102.4 204.8 409.6 819.2 0 100 200 300 400 500 600 700 800 900 2020 2022 2024 2026 2028 2030 Projected Transmission Speed Required of AI Switches (TOPPAN estimate) (year) (Tbps)
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© TOPPAN Holdings Inc. Pursuit of Miniaturization 28 Unit: Micron Features Application 2018 2019 2020 2021 2022 2025 2028 2031 2034 FC-BGA 9/12 9/12 9/12 8/8 8/8 5/5 5/5 5/5 5/5 Fan-out, Organic interposer 2/2 2/2 2/2 1.5/1.5 1.5/1.5 1/1 1/1 0.5/0.5 0.5/0.5 Source: Heterogeneous Integration Roadmap (2021 Edition), Chapter 8 Section 8 Table 1. Substrate interconnect scale roadmap Min. line width/space (um) Interconnect miniaturization is expected to enhance value in terms of Performance, Power, and Area, with interconnect dimensions below L/S=1µm/1µm required in 2030 Miniaturization of interconnects is vital to achieve chiplet structures that integrate heterogeneous chips ✓ To address the narrowing pitch of I/Os, Moore’s Law is complemented by maximizing interconnect density and ensuring high bandwidth ✓ Power efficiency is increased by minimizing parasitic capacitance and reducing die-to-die RC characteristics (resistance, capacitance) ✓ Reducing the system’s physical size allows for miniaturization and a smaller form factor.
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© TOPPAN Holdings Inc. 29 Semiconductor Packaging Structure Trend Single chip semiconductor 80 mm >200 mm Package substrates are becoming larger to enable the large-scale integration of heterogeneous chips. Chiplet SoC HBM (high bandwidth memory) Optical element Single SoC Semiconductor chiplet for AI applications Large interposer Large-body FC-BGA ✓ With conventional AI/switch semiconductors, performance enhancements have been achieved through single-chip miniaturizing and scaling up, but the industry is now facing challenges related to fabrication complexity and cost increases ✓ As a breakthrough to meet demand for further performance enhancement, chiplet technology—which involves dividing and reconfiguring semiconductor chips into individual “chiplets”—will become the mainstream technology going forward I/O chips Co-packaging of large-scale integration and components such as optical elements— impossible with single chips—is supported by the scaling of packaging components such as interposers and FC-BGAs Conventional Future (2030)
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© TOPPAN Holdings Inc. 従来 将来 シリコンインターポーザー 次世代インターポーザー HBMとSoCの高密度接続 SoC+HBM+IO+SerDesチップ+光素子等 ⇒伝送帯域確保のためにインターポーザ を活用 ⇒大規模な異種チップ混載実現のために インターポーザを活用 シリコン材料のためウエハプロセス採用 ⇒将来の大型対応は事実上不可 大型角パネルような高取り数の基材が求め られる。⇒有機材料は角型生産の思想に合致 微細化 ウエハプロセス採用のため微細化に優れる。 L/S＝0.5µm シリコンインターポーザーに肉薄する 微細化性能を持つ必要がある 活用 ケース 大型化 30 Interposer Trend For the massive scaling of chiplet packages, the industry is looking to next-generation interposer technologies that support larger sizes as an alternative to silicon interposers Use cases Scaling-up Miniaturization HBM and SoC high-density connection ⇒ Use interposer to ensure transmission bandwidth SoC + HBM + IO+ SerDes chip + optical element, etc. ⇒ Use interposer to achieve large-scale integration of heterogeneous chips Wafer processing adopted due to use of silicon materials ⇒ Support for future scaling is effectively impossible Base material with high die count such as large square panel required ⇒ Organic materials are compatible with the concept of manufacturing in square form Suited to miniaturization due to wafer processing L/S = 0.5 μm Needs to have miniaturization performance close to that of silicon interposers Conventional Future Silicon interposer Next-generation interposer
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© TOPPAN Holdings Inc. 31 Photonics-Electronics Convergence Trend Impact on semiconductor packaging ✓ When a transmission speed of 800 Tbps is attempted using only electrical signal transmission methods (above left figure), significant transmission loss occurs over the current transmission distance ✓ Therefore, it is necessary to develop system configurations that reduce the electrical transmission distance by using low-loss optical transmission, such as fiber ribbon or waveguides Electrical: Long transmission distance (≧300 ｍｍ), high transmission loss Combined use of optical and electrical transmission Optical: Minimizing transmission losses Electrical: Reducing transmission distance (≦10 mm) Switch Server CPU, etc. Electrical transmissionElectrical transmission Optical waveguide AI ASIC OE/EO Fiber ribbon Coupler SoC Switch ASIC SoCElectrical transmission (51.2 Tbps) (800 Tbps) Future (2030)Current Market requirements Ultra-high-speed, low-latency transmission
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INDEX © TOPPAN Holdings Inc. 1. Overview of Electronics Business 2. Overview and Strategy of Semiconductor Packaging Business 3. Trends in Focus Areas of Semiconductor Packaging Business 4. Technology Roadmap for Semiconductor Packaging Business 5. Specific Activities in Semiconductor Packaging Business 32
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© TOPPAN Holdings Inc. Specific Activities in Advanced Semiconductor Packaging Business 33 Chiplet Market requirements for advanced semiconductor packaging materials Interposer FC-BGA TOPPAN’s Activities The following pages elaborate on our development of submicron organic RDL interposers and glass core materials as well as support for optical transmission—key technologies for achieving our strategies Large body High flatness High-speed, large-capacity transmission Low-power consumption High flatness High rigidity Low CTE (coefficient of thermal expansion) Low transmission loss ✓ Development of new core materials (glass cores) Miniaturization Embedded components ✓ Support for optical transmissionHigh-speed transmission ✓ Pursuing our FC-BGA roadmap ✓ Development of glass interposers ✓ Design and manufacturing technology development for organic interposers of submicron RDLs for large panel formats using the damascene process
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© TOPPAN Holdings Inc. 34 Submicron Organic RDL Interposer Design and Manufacturing Technology Development Toward achieving a chiplet structure supporting the coming era of 800 Tbps high-capacity data transmission, we are aiming for the world’s first social implementation of a large interposer with submicron RDLs using the damascene process on a panel 500 mm square or larger ◼ Development items ✓ Advanced development of the design of submicron organic RDL interposers using the damascene process as well as the process, materials, and inspection technologies ✓ Manufacturing validation on a pilot line for submicron organic RDL interposers using large-size panels (510 mm x 515 mm) ◼ Illustration of assembly This R&D project has been selected for the New Energy and Industrial Technology Development Organization (NEDO)’s “Research and Development Project of the Enhanced Infrastructures for Post-5G Information and Communication Systems / Development of Manufacturing Technologies for Advanced Semiconductors (subsidy)”. Organic RDL interposerOrganic RDL interposer FC-BGA substrate Chiplet die Approach for development
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© TOPPAN Holdings Inc. 35 Submicron Organic RDL Interposer Design and Manufacturing Technology Development 510 mm 515 mm Concerns about wiring collapse SAP (Semi Additive Process) method Damascene process ①: Advanced development of the design of submicron organic RDL interposers using the damascene process as well as the process, materials, and inspection technologies ①-1: Integration design technology development ①-2: Substrate material development ①-3: Organic RDL damascene process / material development ①-4: Verification of the damascene process supporting large panels and materials ①-5: Technical development of inspection and measurement equipment ②: Manufacturing validation on a pilot line for submicron organic RDL interposers using large- size panels (510 mm x 515 mm) The damascene process (L/S=2/2µm) has already been verified with a large-panel format. This will be expanded to submicron levels in the future. It is difficult to apply the semi-additive process to submicron RDLs due to the risk of breaking wiring patterns in the seed etching process. Development steps
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© TOPPAN Holdings Inc. Glass-core FC-BGA Development 36 Development status: Illustration of assembly Surface view Embedded component cavity TGV after electroplating (130μ pitch) X-ray view Glass core FC bump Insulating resin Core layer Build-up layer Build-up layer Cavity for embedded components TGV ✓ The glass transfer technology refined through our display business has been applied to FC-BGA substrates ✓ Established the process for stably forming cavities for embedded components ✓ We are on track towards inhibiting SeWaRe cracks by optimizing structure and processing SeWaRe crack: This phenomenon occurs mainly during a dicing process, where glass peels back due to stress caused by the difference in linear expansion coefficients between the glass and organic materials. Consider constructing a production line and push forward with customer evaluation Dicing tape Crack Tensile stress Tensile stress Dicing blade
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© TOPPAN Holdings Inc. Development of FC-BGA Substrates for Photonics-Electronics Convergence 37 We will leverage the massive low-transmission loss that is an inherent feature of light and pursue high-speed and low-loss electrical transmission technology ✓ Even with a packaging structure supporting photonics-electronics convergence, the loss impact of the remaining electrical transmission section is not small, so it is extremely important to pursue high-speed electrical transmission performance Development element 1: Waveguide implementation with marginal losses Development element 2: Minimizing electrical transmission losses in the last few millimeters AI ASICSwitch Electrical transmission Optical waveguide OE/EOFiber ribbon Coupler SoC Electrical transmission
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© TOPPAN Holdings Inc. 38 Ecosystem for New Technology Development In addition to our own resources, we are establishing a framework capable of responding flexibly to market changes by building a robust ecosystem with domestic and international partners to accelerate and streamline R&D, as well as stepping up collaboration with North American customers to target true customer value creation North American fabless customers Provide development results US-JOINT Alliance with Taiwanese companies Our core technologies Joint research / collaboration / acquired resources LSI design TOPPAN Technical Design Center Micro- interconnect fabrication FC-BGA Slurry materials TOPPAN Infomedia Inspection/ reliability know-how FC-BGA CPO FC-BGA manufacturing track record FC-BGA mass production track record Mass production validation Material technology development Inspection / reliability technology development High-speed (optical/electrical) transmission technology development Design technology development Process technology development Equipment manufacturers Ishikawa Plant pilot line Material manufacturers Toyama Prefectural University Osaka Metropolitan University National Institute of Advanced Industrial Science and Technology Shinshu University Institute of Science Tokyo Material manufacturers Partner companies Glass transfer/ processing CF/TFT/ Research Institute/ Kochi
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© TOPPAN Holdings Inc. Operational Site Strategy 39 Ishikawa Plant will be central to efforts to expand production capacity and the range of product types supported Singapore AST Ishikawa Plant Development Center (Sugito) ＊ADVANCED SUBSTRATE TECHNOLOGIES Pte Ltd Niigata Plant
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© TOPPAN Holdings Inc. Progress of the New Singapore Plant 40 Construction of the new Singapore Plant is progressing well, with the opening ceremony due to take place around summer 2026, and the plant scheduled to come online around the end of 2026
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© TOPPAN Holdings Inc. In Closing 41 FY2025 FY2030 Sales JPY 190 bn Non-GAAP operating margin 24％ Sales JPY 146 bn Semiconductor- related portion Sales Approx. JPY 350 bn Sales Approx. JPY 270 bn Semiconductor- related portion Percentage of semiconductor -related sales: Approx. 80% Non-GAAP operating margin 30% FY2025 Sales JPY 129 bn Non-GAAP operating margin 26％ Sales JPY 85 bn Semiconductor- related portion Guidance Excl. Tekscend Photomask Our Electronics segment will drive sustainable growth centered on the semiconductor packaging business through accurate assessment of increased demand for AI and data centers Sales CAGR 22% Sales CAGR 26% Growth Drivers ✓ Semiconductor packaging business ・ Enhanced profitability accompanying expansion of AI-related applications for FC-BGAs ・ Launch and scaling of advanced semiconductor packaging Sales Growth Potential Profitability CAGR 26% Non-GAAP Operating Margin 30% Semiconductors
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Disclaimer Regarding Forward-Looking Statements Results forecasts and other forward-looking statements in these materials are made by the Company based on information available at the current time. Actual results may differ from forecasts due to future changes in the business environment.
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© TOPPAN Holdings Inc. Participation in SEMICON Japan 2025 44 FC-BGA substrate FC-BGA substrate (for CPO) Glass panel substrate Organic RDL interposer Power semiconductors/ turnkey services Coreless organic interposer ■Items on display ■ Booth concept 1) Overview ・ We will participate in SEMICON Japan, the premier event for the semiconductor industry, to enhance the presence of the Electronics segment’s semiconductor business and drive recruitment ・ Dates: December 17 (Wed) to 19 (Fri) 10:00—17:00 ・ Venue: Tokyo Big Sight (East Exhibition Halls, West Exhibition Halls, South Exhibition Halls) ・ Booth number: E6144 (East Hall 6) 2) Items on display *Glass-core substrate sample being prepared ・FC-BGA substrates: We will showcase one of the industry’s largest substrates (measuring 120 mm x 150 mm) and FC-BGA substrates for Co-Packaged Optics (CPO),which enable optical data transmission. ・Advanced semiconductor packaging: In addition to displaying for the first time glass-core FC-BGA substrates featuring interconnects fabricated with a glass panel substrate as the core material, we will present organic RDL interposers that use glass carriers as well as glass panel substrates that feature through-glass vias and cavities with different depths on the same glass.