SQA ASM Summary Report

Enabling the Digital World
Winner
Pages Contents
CA-01 ... CA-02 Organisational Profile
C1-03 ... C1-13 Leadership
C2-14 ... C2-21 Customer
C3-22 ... C3-28 Strategy
C4-29 ... C4-38 People
C5-39 ... C5-50 Processes
C6-51 ... C6-55 Knowledge
C7-56 ... C7-64 Results
Abbreviations / Acronym
We
strikehave been
achieving
a balance recognized
-termbetween
gains high
-termand standard
for
short
needs in c
long Services
by the
Directors
Commiss (HKIoD);
ion and the
the Hong Financial
Kong Exchanges
ATS grew from manufacturing gold wire In 1998, our product AB339 gold wire bonder ATS achieved the Manufacturing Since 2004, ASMPT had been voted as 2010 was a year of celebration, with ATS celebrated our Silver Jubilee with The second building (TPB2) was Dr Koh Poh Koon, Senior Minister of State, Minister of We had been recognized as one of the Top 100
bonders to include automold machines, etched won the esteemed Semiconductor International Headquarters Status from the Minister for one of the Best Suppliers for five consecutive ATS celebrating our 20th anniversary. the opening of Skyloft, our new Club built alongside with the Innovation Trade & Industry, Ministry of National Development, Global Technology leaders by Thomson Reuters in
leadframes and flexible-in-line system. It also Editors’ choice Best Product Award for its leading Trade and Industry (Singapore) in November years, an award given by VLSI Research. From 2011 onwards, new members House, for our employees’ wellness Centre (TPB1) to showcase our officiated the opening of second building (TPB2) and its inaugural program and was the only company
Innovation Center located at TPB1. The consolidation established in Hong Kong and presently
accommodated part of ASMPT’s Research and edge technology in the then 50 micron pad pitch 2001. Our newly launched Eagle60AP took SMT (formerly known as SIPLACE & and corporate functions. product and technology. Under
under one roof created synergy and closer ties between headquartered in Singapore. New member
Development (R&D) facility. This total factory bonding capability. In September that year, ATS wirebonding technology to a higher DEK) and ALSI joined our ranks. We New member, AAPM, joined our one roof, it creates better synergy the Backend and SMT operations. Amicra joined our ranks, allowing us to expand
solutions provider approach has served our received “The Technology Achievement Award level with a breakthrough in fine pitch contributed to make sustainable and ranks where we strengthened our and closer ties between the SMT An updated set of corporate vision, mission and values our product portfolio in Advanced Packaging and
valued customers ever since. 1999” for our outstanding R&D achievements that bonding and looping control that offered significant inroads on all fronts to Advanced Packaging Application in and Backend operations. was defined, in recognition of growing complexity and becoming a leader in the Silicon Photonics Market.
contributed significantly to Singapore’s economy leading technology to meet new packaging ensure competitiveness and our overall Molded Interconnect Substrates. diversity of our organization to propel and guide the iSPACE, our new employee corner located at our
from A*STAR (formerly known as National challenges. No. 1 global leader position with both organization for the next stage of growth. production floor, was officially opened by our
Science and Technology Board). growth engines, Backend and SMT We had been recognized for achieving high standards CEO, Mr. Lee Wai Kwong.
equipment. in corporate governance and clear decision-making by
the Hong Kong Institute of Directors (HKloD); the Financial
Services and the Treasury Bureau; Securities and Futures
Commission and the Hong Kong Exchanges and Clearing
Limited.
nder the leadership of Mr. Lee Wai Kwong, Group CEO, ASMPT transforms
from a manufacturing based factory to a high technology business
solution provider. Mr. Lee has been awarded the Director of the Year
Award 2018 by the Hong Kong Institute of Directors (HKIoD), demonstrating the
award theme “Leadership in Times of Change”.
Mr Henry Lai, Chairman of the Council of HKIod, said, “Leaders of changes need
to have extraordinary vision, openness and courage when exploring new paths
in new circumstances. These qualities are found in all the winning directors this
year. They dare to venture into new realms and lead their companies in facing
rapid changes in the business environment.”
Mr Lee has been awarded the Director of the Year Award 2018
CA-01
ASMPT Global Presence
Beuningen
Weymouth
Munich, Regensburg
Boston
Porto
Chengdu
Huizhou
Taoyuan
Shenzhen Hong Kong
Sales Offices
Johor Bahru
Business Centre / R&D / Singapore
Manufacturing Site
>2,000 >1,400 10 12
Patents on key leading R&D centres Manufacturing
Global R&D staff
edge technologies worldwide facilities
ASMPT Advanced
Technologies
Know Us!
CA-02
I
nnovation has always been at the heart of ASMPT. Enabling Technologies, our research and development (R&D)
arm, has allowed the Group to broaden our product portfolio to serve diverse markets and offer customers a
total solution approach that encompasses the entire chain of assembly process of semiconductor device and
surface mount technology. We have been consistently investing up to 10% of our annual equipment turnover
in Enabling Technologies to strengthen our competence and continue to be the leader in the technology front. This
investment commitment has resulted in 10 Enabling Technologies centres worldwide, with fields of expertise in but not
limited to material science, motion control systems, vision technologies, optics, precision engineering, real-time software
and vibration control. In 2018, ASMPT was awarded as one of Top 100 Global Technology Leaders by Thomson Reuters.
In 2018, ASMPT R&D spending was US$205 million, adopting the longstanding policy of investing up to 10% of our annual
Backend Equipment revenue in R&D irrespective of our short-term sales fluctuation. In line with ASMPT, ATS’ spending
on Enabling Technologies is about US$33 million annually, which is approximately 10% of ATS Revenue. The strength
of ATS Enabling Technologies are in the area of linear motor, control systems and computer visions which enables
our equipment to achieve state-of-the-art performance at affordable cost and acts as the competitive edge to support
the growth of ASMPT. Enabling Technologies partners with sister companies to leverage the technologies of assembly,
packaging and surface mount to enhance ASMPT’s competitiveness and drive digital lifestyle forward.
Great People Around the World Inspired to Deliver InnovaNve SoluNons!

SINGAPORE HONGKONG
SINGAPORE HONGKONG
SINGAPORE
Design & InnovaGon Centre for Backend Equipment & Materials. Die Bonder &HONGKONG
CIS Equipment Design Centre
Design & InnovaGon
Products: SINGAPORE
AB383 andCentre
Eagle for Backend
Aero Equipment
Wire Bonders, & Materials.
IDEALmold 3G, Die Bonder &HONGKONG
Design
ORCAS,
Design
&
Products: InnovaGon
AB383 and
AUTOPIA,
&
SINGAPORE
Centre
Eagle
SilverSAM
InnovaGon Centre
for
Aero Backend
& AutomaGc
for Backend
Equipment
Wire Bonders,
OpGcal
Equipment
& Materials.
IDEALmold 3G,
InspecGon
& (AOI)
Materials. Die Bonder &HONGKONG
Products:
ORCAS,
Design &
AB383 and
AUTOPIA,
InnovaGon SINGAPORE
Eagle
SilverSAM
Centre
Aero Wire Bonders,
& AutomaGc
for Backend OpGcalIDEALmold
Equipment
3G,
InspecGon
& (AOI)
Materials.
Die Bonder &HONGKONG
Products:
Design
AB383
ORCAS,&AUTOPIA,
and
InnovaGon
SINGAPORE
Eagle
ORCAS, AUTOPIA, SilverSAM
Products: AB383 and Eagle
Centre
SilverSAM
Aero
Aero
for
Wire Bonders,
Wire Bonders,
Backend
& AutomaGc
IDEALmold
IDEALmold
Equipment
OpGcal
3G,
& AutomaGc OpGcal InspecGon (AOI)
3G,
& Materials.
InspecGon (AOI)
Die Bonder &HONGKONG
Die Bonder & CIS Equipment Design Centre
Design
ORCAS,&AUTOPIA,
Products: InnovaGon
AB383 and Centre
SilverSAM for
Eagle Aero Backend
& AutomaGc Equipment
OpGcal
Wire Bonders, & Materials.
InspecGon
IDEALmold (AOI)
3G, Die Bonder & CIS Equipment Design Centre
Products: AB383 and
ORCAS, AUTOPIA, Eagle Aero
SilverSAM Wire Bonders,
& AutomaGc OpGcalIDEALmold 3G,
InspecGon (AOI)
ORCAS, AUTOPIA, SilverSAM & AutomaGc OpGcal InspecGon (AOI)
MUNICH BEUNINGEN CHENGDU TAOYUAN

MUNICH BEUNINGEN CHENGDU TAOYUAN
MUNICH
SMT placement Equipment BEUNINGEN
MulG-beam laser dicing CHENGDU
Mechanical module & OpGcal TAOYUAN
R&D focus on technology
Design MUNICH
SMT placement
Centre Equipment and BEUNINGEN
MulG-beam
groovinglaser dicing CHENGDU
Mechanical
Measuring module & OpGcal
Equipment Design R&D
of TAOYUAN
focus
leading on technology
products & soluGons
Design MUNICH
SMT placement
Centre Equipment and BEUNINGEN
MulG-beam
groovinglaser dicing CHENGDU
Mechanical
Equipment Design R&D
of TAOYUAN
focus
products & soluGons
SMT placement
Design Centre Equipment
MUNICH MulG-beam laser dicing
BEUNINGEN
and grooving CHENGDU
Mechanical
Equipment Design R&D TAOYUAN
focus
of leading on technology
products & soluGons
SMT placement
Design
Design
Centre Equipment
MUNICH
Centre Equipment
MulG-beam
and groovinglaser dicing
BEUNINGEN
and grooving
CHENGDU Design
Mechanical
Measuring module &
Equipment
Measuring Equipment
OpGcal
Design
R&D
of TAOYUAN
focus
leading
of leading
on technology
products & soluGons
SMT placement MulG-beam laser dicing Mechanical module & OpGcal R&D focusproducts & soluGons
on technology
SMT placement
Design Centre Equipment MulG-beam
and groovinglaser dicing MechanicalEquipment
Design R&D
of focusproducts
& soluGons
Design Centre and grooving Measuring Equipment Design of leading products & soluGons
WEYMOUTH PORTO REGENSBURG BILLERICA

WEYMOUTH PORTO REGENSBURG BILLERICA
WEYMOUTH
SMT PrinGng Equipment PORTO
Manufacturing ExecuGon System UltraREGENSBURG
high precision Die Aiach BILLERICA
DeposiGon System for advanced
SMT
DesignWEYMOUTH
PrinGng
CentreEquipment PORTO
Manufacturing
for Industry 4.0ExecuGon System UltraREGENSBURG
high precision
Equipment Die Aiach
(submicron BILLERICA
DeposiGon
Packaging. System for advanced
(Electrochemical
DesignWEYMOUTH
SMT PrinGng
CentreEquipment for PORTO
Manufacturing
Industry 4.0ExecuGon System UltraREGENSBURG
high precision
Equipment
placement Die Aiach
(submicron
Accuracy) BILLERICA
DeposiGon
Packaging.
DeposiGon System for advanced
(Electrochemical
(ECD)
SMT PrinGng
CentreEquipment PORTO
Manufacturing4.0ExecuGon System Ultra high precision
REGENSBURG Die Aiach DeposiGon System&for
Physical
advanced
DesignWEYMOUTH for Industry Equipment
placement (submicron
Accuracy) BILLERICA
Packaging.
DeposiGon
Vapor
(Electrochemical
(ECD)
DeposiGon & Physical
(PVD)
SMT PrinGng
Design
CentreEquipment
DesignWEYMOUTH
CentreEquipment
SMT PrinGng for
PORTO
Manufacturing
for Industry
Industry
Manufacturing
4.0ExecuGon System
4.0ExecuGon System
Ultra high
Equipment
Ultra
precision
(submicron Aiach
REGENSBURG
Equipment
placement Accuracy)Die
(submicron
high precision Die Aiach
DeposiGon
Packaging.
DeposiGon
Vapor
Packaging.
DeposiGon
System for
(ECD) (PVD)
DeposiGon
advanced
(Electrochemical
BILLERICA & Physical
(Electrochemical
System for advanced
placement Accuracy) (ECD) & Physical
Vapor DeposiGon (PVD)
SMT PrinGng
Design CentreEquipment Manufacturing
for Industry 4.0ExecuGon System Ultra high precision
placement
Equipment Accuracy)Die Aiach
(submicron DeposiGon
Packaging.
Vapor System &for
(ECD) (PVD) advanced
Physical
(Electrochemical
DeposiGon
Design Centre for Industry 4.0 Equipment Accuracy)
placement (submicron Packaging.
DeposiGon (Electrochemical
Vapor DeposiGon
(ECD) (PVD)
& Physical
placement Accuracy) DeposiGon
Vapor (ECD) (PVD)
DeposiGon & Physical
Vapor DeposiGon (PVD)
ASMPT Enabling Technologies R&D Centres
CA-01
ASMPT Awards and Accolades
2018 • Thomson Reuters Top 100 Global Technology Leaders
• Director of the Year Award 2018 in the Listed Companies Executive Directors category by The Hong Kong
Institute of Directors
• ATS achieved SQC Certification by Enterprise Singapore
• Rank first in VLSI Research the Best Supplier for Assembly Equipment
2017 • 10 Best Large Semiconductor Equipment Suppliers in the VLSI Customer Satisfaction Survey
• Grand Award in Technological Achievement by Hong Kong Awards for Industries
• Directors of the Year Award in Corporate Governance by the Hong Kong Institute of Directors
• Hong Kong Outstanding Enterprise by Economics Digest
• Best Investor Relations Company by Corporate Governance Asia
• Asia’s Best CEO (Investor Relations) by Corporate Governance Asia
• Ranked 1st in Assembly, 10 Best Chip Making Suppliers and the best Assembly and Test Suppliers from VLSI
Customers Satisfaction Survey 2017
2016 • Top 10 of Best Managed HK Companies in 2016 by Finance Asia

• Top 10 of Best at Investor Relations in 2016 by Finance Asia
• Top 5 of the 10 Best Chip Making Equipment Suppliers in 2016 by VLSI Customer Satisfaction Survey
• Top 3 of Assembly Equipment in 2016 by VLSI Customer Satisfaction Survey
• Top 4 of Test Equipment in 2016 by VLSI Customer Satisfaction Survey
• Corporate Governance Asia – Best Investor Relations Company
2015 • Technology Achievement Grand Award from Hong Kong Awards for Industries
1999 • The Technology Achievement Award 1999 from the National Science and Technology Board (currently known
as A*STAR) for outstanding R&D achievements with significant contribution to Singapore’s economy
1998 • Semiconductor International Editors’ Choice Best Product Award for our product AB339 Gold Wire Bonder for
its leading edge technology in the then 50 micron pad pitch bonding capability
Awards and Accolades
CA-02
VISION: ENABLING THE DIGITAL WORLD
Enabling the Digital World
ISSION P O W E
ASSION WNERSHIP IN XCELLENCE R
ESPECT
P assion to be the #1 Go-to-Partner

Together - We have the POWER and agility to drive changes.
O wnership of actions and behaviours
We deliver the highest value and innovative solutions to our customers
through products and solutions with advanced technologies and excellent W in with our customers
quality. We aspire to make ASMPT a great work place, a great business E xcellence in all that we do
partner and a great company built to last.
R espect for one and all
VALUES
S
1.1
enior Leadership
Describe how the organisation:
1.1a Develops the organisation’s mission, vision and values, and
communicates them to key stakeholders
“Enabling the Digital World” is ASMPT’s vision for a world improvements will make the Group stronger and better
where its solutions help connect people and processes equipped for the challenges ahead. The improvement
through digital technologies to share information and programmes initiated by the Business Excellence
knowledge, to exchange ideas and opinions, creating a Programme led to good results in 2018:-
world of new opportunities.
• The Singapore operations (Backend Equipment and
Founded in 1975, ASMPT is the world leader in leading Materials) was awarded the Singapore Quality Class by
edge solutions, equipment, surface mount technology and Enterprise Singapore.
materials for the semiconductor assembly and packaging
industries. Its surface mount technology solutions are • Its SMT business won the Factory of the Year/Global
deployed in a wide range of end-user markets including Excellence in Operations Award in the Excellent
electronics, mobile communications, automotive, Production Network category, given by Produktion
industrial and LED. Magazine and global management consultancy firm, AT
Kearney.
Today, the Group has grown into a global technology and
market leader with a presence in over 30 countries and a As the industry leader, ASMPT places strong emphasis on
workforce of more than 16,000 who share a set of core customers, collaborating with them to create world-class
values which are expressed through “POWER”: Passion products and services that deliver real business value and
to be the #1 “Go to Partner”; Ownership of actions and excellence.
behaviours; Win with its customers, Excellence in all it
does and Respect for one and all. All of these are crucial for substantial performance
improvement to tie in with the ASMPT Group’s
In 2018, the Group achieved record revenue growth, development in Smart Manufacturing, Artificial
building on the momentum and achievements of the Intelligence, Data Analysis and Industry 4.0 as well as the
past two years. Group revenue grew 11.6% year-on-year, economic challenges in coming years.
tripling its revenue over the past ten years, to a new record
high of US$2.49 billion. All its three business segments Besides revenue growth, ASMPT has gone through many
achieved new revenue records in both 2017 and 2018. significant organizational and structural changes. We
moved from pure organic growth to profitable growth with
A key reason for the Company’s continued success has strategic acquisitions. We diversified our product portfolio,
been its steadfast focus on driving innovations, annually customer mix and geographical footprint. We updated
investing up to 10% of its annual equipment turnover in our supply chain with balanced internal and external
R&D to develop enabling technologies, to broaden its manufacturing. We focused on customer satisfaction
product portfolio to serve diverse markets and to offer and continued to offer total solutions. With the diversity
customers a total solution approach. of ASMPT, a common platform to move forward together
towards our future visions and goals is required. It is
ASMPT’s operations around the world are focused on timely for our organization to introduce a new set of
constantly improving operating efficiency and resource Vision, Mission and Values (VMV). The new VMV provides
stewardship so as to build a sustainable future that will a common platform and lingo for the organization to share
create long-lasting value for its business, stakeholders, best practices across our global operations, set ground
community and the environment. rules for inter-cultural and interdisciplinary corporations,
and standardize processes. Nevertheless, it is not totally
Back in 2016, the company launched the Group Business new. The new VMV came from the development of our
Excellence Programme to drive the standardization in existing values and strategies and has been verified
processes and sharing best practices across its global through inputs from various parts of organization.
operations and business segments. The drive for business
excellence and efforts on systematic and structural
Leadership C1-03
The Vision is “Enabling the Digital World”. It beautifully metaphor of the mission is a map, more precisely, a
captures the impact of our products and provides a treasure map. The Values are summarized in the acronym
purpose-driven direction to the entire organization. POWER, which stands for “Passion to be the #1 Go-to-
It is also timely as our organization moves from a Partner, Ownership of actions and behaviours, Win with
manufacturing based factory to a high technology our customers, Excellence in all that we do and Respect
business solution provider. The metaphor of the vision is for one and all”. Values are explicit or implicit beliefs and
a North Star which shines in the night sky and points us in principles that underlie the organization’s culture and
the right direction. guide our decisions and behaviour. This set of values is
like a compass, always handy and reliable, supporting our
The Mission statement is “Together, We have the POWER daily journey.
and agility to drive change. We deliver the highest value
and innovative solutions to our customers through ASMPT leaders conduct a review of the Vision, Mission,
products and solutions with advanced technologies and Values to ensure that they continue to be both
and excellent quality. We aspire to make ASMPT a effective and relevant in an ever-evolving operating
great work place, a great business partner and a great environment. These reviews also incorporate feedback
company built to last”. These few sentences describe from key stakeholders.
Figure 1.1a.1:
pathways for employeesDisplays
to move thethe key milestone
organization towards developments since
ATS was formed
these common goals in in
our1990
respective positions. The
Past Present
Adop:ng ASMPT’s Mission & Vision Review of VMV
Development ! Validated and found to be relevant ! ATS has undergone significant
Process organisa:on and structural changes
! Greater emphasis was placed on
customer sa:sfac:on
! Development via Annual Execu:ve
Mee:ng 2015 as well as Senior
Management and VMV Core Team
discussions with reference from
previous values and strategies
! Formula:on of new vision
Engagement & ! Mission and Values were communicated ! Change was graced by our Managing
Communica7on to employees via training sessions and Director, Mr. WK Lee in Annual Dinner.
Efforts performance management exercise ! 3 levels of communica:on to engage
internal and external stakeholders
1) Cascading
2) Engaging
3) Ins:lling
Figure 1.1a.1: Displays the key milestone developments since ATS was formed in 1990
Leadership C1-04
1.1b Engages key stakeholders to drive the organisation’s performance
ATS leaders believe in communicating and engaging with both internal and external stakeholders in driving the
organisation’s performance: actively engage the organisation’s diverse stakeholders via multiple platforms throughout
Figure 1.1b.1: Engagement with stakeholders
the year (Figure 1.1b.1).
Phase Key Pla<orms Implementa7on Frequency
! Include internalisa7on learning ac7vi7es, discussions and
VMV Equipping Workshops presenta7ons Annually
VMV Communica7on Sessions ! Communica7on and feedback sessions Quarterly

CASCADING
New Hire Orienta7on Program ! Include internalisa7on learning ac7vi7es, Ongoing
! Revamped the corporate website and career portals
Media ! Video produced, starring our Managing Director, Mr. WK Lee Ongoing
Corporate Events Twice

(such as Annual Dinner and Family Day) ! Memorabilia were imprinted with VMV Annually
Industrial Events
(such as Career Fairs and Experien7al ! Redesigned company brochures, pop-up structure and pull-up
banner Periodically
ENGAGING Outreach)
Community Events
(such as Race Against Cancer) ! Donning wearables imprinted with VMV Periodically
Media (Corporate Website) ! Ease of VMV informa:on Ongoing
! Share and update employees on VMV promo7onal ac7vi7es

with Connec7on @ ASM (newsleYer).
Publica7ons and Promo7onal Materials ! Visible VMV structures and collaterals are publicized around Ongoing
the en7re company building. (such as RESPECT posters and
Vision wall)
INSTILLING
! Implement 4DX excellent methodology “Act on the Lead
4 Disciplines of Execu7on (4DX) Measures” to execute iden7fied wildly important goal (WIG) to Ongoing
achieve organiza7on goals
Twice
Performance Appraisal ! Translate VMV into competencies for performance appraisal. Annually
Figure 1.1b.1: Engagement with stakeholders
1.1c Acts as role models and grooms future leaders

Grooming of future leaders is part of ATS efforts to ensure from Top Management in the Steering Committee, these
succession and successful transfer of knowledge. ATS leaders were tasked to study and analyse the results from
senior leadership places strong emphasis on identifying the assigned dimensions, identify strengths and areas for
future leaders and mentoring them through experience improvement, recommend affirmative or corrective actions
sharing, coaching and mentoring, developing of and formulate engagement and communication strategy
competencies and leadership exposure. to employees on follow-up actions, among many others.
We exercise leadership role modelling by scheduling our
For example, our future leaders across various departments future leaders to conduct presentations to the Steering
are nominated to the Working Committee to analyse the Committee at designated milestones and senior leaders to
survey results, following our first ever ATS Workplace guide them through various plan execution after approval
Culture Survey participation in 2016. With guidance of their recommendations (Figure 1.1c.1).
Senior Leadership Involvement
1
Iden7fy Future Leaders
2
Groom and Shape Future Leaders
Areas Involvement
4 Experience sharing ! Dialogue sessions

Awards and Recogni7on ! Training sessions
Posi7ve reinforcement for desired behaviours Coaching and mentoring ! Take up advisory role
! New appointments
! Career progression path Developing competencies ! Sending future leaders for
(refer to Cat 4.1c) management development courses
Leadership exposure ! Involvement in internal and

external events and ac7vi7es
! Represen7ng ATS as spokesperson
in publica7ons
3
Review Channels
Evalua7on of leadership effec7veness
! Town hall mee7ngs
! Performance appraisal
! Great Place to Work (GPTW) Survey
Figure 1.1c.1: Illustration on how future leaders are identified in ATS
Leadership C1-05
O
1.2
rganisational Culture
1.2a Develops a culture that supports the organisation’s mission, vision
and values to drive growth
Through the years, ATS has developed a culture which exhibits the power and agility to drive change to deliver the
highest value and innovative solutions to our customers through products and solutions with advanced technologies and
excellent quality (Figure 1.2a.1).
SOLICIT FEEDBACKS FROM VARIOUS CHANNELS

Structured Unstructured
GAPS IDENTIFIED
SUPPORT TEAM-ANALYSE GAPS

Department
CommiTee
(such as Human Resources, Management Informa/on
(such as Great Place to Work Team 1 & 2, EMPOWER)
System)
DEVELOP AND IMPLEMENT MEASURES
P O W E R
§ Lunch Time Talk § Flexi-ben Scheme § Patent Award § Execu/ve § Teambuilding
Ini/a/ve Ceremony Educa/on Ac/vi/es
§ Get Together Fund
§ POWER Buddy Ini/a/ve § Customer in China § Skillsets upgrading § Showcase role
Program models and
§ Crea/on of iSpace § Release technical § Driving produc/on sharing of
§ Quality Mindset papers within the excellence through promo/onal
Program global R&D 4 Discipline of materials and
community Execu/on (4DX) tes/monials
§ Work Improvement (i.e. IEEE, IMAPS) and Process
Sugges/on Scheme Centric System
(PCS).
Figure 1.2a.1: Developing ATS culture to drive growth
1.2b Translates values into desired employee behaviours to enable

innovation, learning and achieve the organisation’s goals
Our POWER values of passion, ownership, win, excellence and respect guide fellow employees in their work and are
inculcated in them via various platforms, programmes and practices. These values also translate into a set of desired
behaviours and foster a culture of achieving goals, learning, innovation and service. The core of what VMV particularly
POWER described was already in practiced in various parts of ATS (see Figure 1.1b.1).
Leadership C1-06
1.2c Embraces organisational change for sustainability
Current business needs or gaps are identified and addressed in the 4 domains, strategic, structural, technological and
people so that the company can adapt quickly to changes (Figure 1.2c.1).
In terms of the digital economy, ASMPT is always on the lookout for new technologies to develop in-house or acquire. Our
investment for the future philosophy has seen ASMPT grown from strength to strength throughout the years with internal
R&D as well as strategic acquisitions.
Opportuni)es Improvements Opportuni)es Improvements
Ensuring manpower flexibility

Addressing current organisa)on needs Workforce through manpower design and
Organisa)on through the forma)on and Structure redesigning.
Diversity development of new VMV to all (ie. New roles and capabili)es)
employees.
CommiXng to the highest ethical
Be=er alignment of goals and Corporate standards through an established
Wildly
informa)on sharing from Governance governance system.
Important Goals
workshops and check-in (ie. Code of Business Conduct)
(WIGs)
sessions. (ie. HR4HR, QA)
STRATEGIC STRUCTURAL
PEOPLE TECHNOLOGICAL
Opportuni)es Improvements Opportuni)es Improvements
Engage employees with the Streamline work processes through

Employee
development of HAPPY Framework – development of systems to provide
Engagement Procedures
Happy Work, Happy You. be=er support.
(ie. Fire Drill App, eHRDocs)
Groom employees to meet current and

Competency future needs through formulated L&D Enhance produc)vity though
plans and opportuni)es. Opera)onal pursuing robots and smart
Excellence manufacturing.
(ie. Auto Guided Vehicle, AGV)
Improve customer sa)sfac)on through
Customer
designing a Customer Experience
Sa)sfac)on
Framework. (ie. Customer touchpoints)
Figure 1.2c.1: The 4 domains guiding change and sustainability
Leadership C1-07
C
1.3
orporate Governance and Social Responsibility

1.3a Establishes a governance system to ensure accountability and
transparency
The Board of Directors are responsible for bringing about The Three Lines of Defence Model enhances the
good corporate governance as well as to develop and understanding of risk management and control with
review the Group’s policies and practices on corporate clear roles and responsibilities, that identify, analyze,
governance including the Group’s risk management. define, address and mitigate risks for an effective
internal control. This Model clarifies the difference and
Supporting and reporting to the Board of Directors are relationship between the assurance and other monitoring
the Executive Committee which comprises nine members activities, with oversight and direction from the Executive
Figure 1.3a.1: ASMPT Three Lines of Defense Model
(Figure 1.3a.1). Committee and the board of directors.
BOARD OF DIRECTORS
The first line of defence empowers the business and
process owners to manage the risks that facilitate
EXECUTIVE COMMITTEE
Strategic Risk
Review
achievement of ASMPT objectives. The second line
CommiCee reinforces the Executive Committee by bringing expertise,
process excellence and management monitoring
1st Line of 2nd Line of 3rd Line of
alongside the first line to ensure that risks and controls
Defence Defence External Regulatory /
Opera:ng Line Oversight
Defence
Audit ISO / RBA are effectively managed. The third line assures the
Internal Audit
Management Func:ons
Executives Committee and the Board of transparency and
Figure 1.3a.1: ASMPT Three Lines of Defence Model
accountability through independent and objective audits.
With endorsements from the Institute of Auditors and the

ASMPT adopted the Three Lines of Defence Model, Institute of Directors, The Three Lines of Defence enables
endorsed by The Institute of Internal Auditors and Institute ASMPT to strive towards our objectives that involve
1.3a. Establishes a governance system to ensure accountability
1.3a.
of Directors, for a strong overall governance and control
Establishes a governance system to ensure accountability
and transparency
embracing opportunities, pursuing growth, taking risks
and transparency environment. and managing these risks to advance the Group.
Internal audit profession’s
most widely recognised One of the Corporate Services, provided by ATS as the
advocate, educator, and headquarters of ASMPT, is Internal Audit which forms the
provider of standards,
guidance and certifications third line of defence. The head of Internal Audit is based in
ATS, supported by the internal auditors from ATS and the
The Institute of Directors Hong Kong related company (Figure 1.3a.2).
is a business organization
for company directors,
senior business leaders and
Figure 1.3a.2: Internal Audit framework
entrepreneurs
01. MANAGEMENT ACTION PLAN

! Group Internal Audit Team formed since 2008
! Act as independent assurance on the effec:veness of
governance, risk management & controls
05. MANAGEMENT REPORTING

! Quarterly Repor:ng to Management 02. RISK ASSESSMENT
! Group risks assessment # Refer
and Audit CommiCee
to Cat 3
! Remedia:on of control findings by
! Audit risks assessment
Opera:ng Line Management
03.AUDIT PLAN
! 3 types of Internal Audit reviews,
04. PROJECT EXECUTION " Control Assessment & Monitoring
! Field audits Systems (CAMS)
! Review of documents " Financial & Opera:onal Audit
! Communica:ons eg interviews (FOA)
" Informa:on Technology General
Control (ITGC); New in 2017
Figure 1.3a.2: Internal Audit framework
Leadership C1-08
1.1a Develops the organisation's mission, vision and values, and
Internal Audit team comprises experienced and qualified communicates them to key stakeholder
accountants with strong technical knowledge who ASMPT
are able to communicate effectively to the Executive has a strong
Committee and the Board. To protect their objectivity and commitment to ethics
independence, the Internal Audit team does not perform and integrity and we
management functions in order to carry out internal audit believe that doing the right
responsibilities with integrity in an unbiased manner. thing each and every day
is critical to our ongoing
Internal audit reviews largely comprises of: success.
• Control Assessment & Monitoring Systems (CAMS)

CAMS is adopted from and aligns closely to the
Sarbanes Oxley Audit Requirements of a Sarbanes
Oxley compliance audit of internal controls.
• Financial & Operational Audit (FOA)

FOA evaluates the financial reports and the financial Mr. Lee Wai Kwong
reporting processes and provides evaluations of CEO of ASMPT
operational efficiencies.
Committee. Internal Audit plays a valuable role in providing
• Information Technology General Control (ITGC) assurance and confidence to the Board and adds value to
the business.
ITGC examines information technology controls
including the information technology infrastructure, ASMPT is committed to the principles of good governance
policies and operations. that assure shareholders’ interests are represented in a
thoughtful and independent manner. We believe that good
Internal Audit provides management with an unbiased governance supports long-term value creation.
assessment of these areas for an effective risk
management, control and governance process. There Compliance function is one of the Corporate Services that
is a direct line of reporting to the Board, and does so ATS provides to global ASMPT. The head of compliance
every quarter, in addition to reporting to the Executive is based in ATS and reports to the Chief Financial Officer
(Figure 1.3a.3).
Figure 1.3a.3: Compliance framework
Compliance Statement: A trusted company commiCed to the highest ethical standards.

Phase Descrip7on
Iden7fy, assess, and review exis7ng policies, procedures and controls
! Code of Business Conduct
Iden7fy, Assess, Review ! Supplier Code of Conduct
! Whistleblower Program
Establish and enhance to align required controls and the guiding compliance
Alignment and principles (Responsible Business Alliance, US Foreign Corrupt Prac7ces Act, UK Bribery Act,
Enhancement OECD Conven7on on Comba7ng Bribery of Foreign Public Officials in Interna7onal Business
Transac7ons, Personal Data Protec7on Act)
Communica7on and dissemina7on of guiding compliance principles

Deployment and ! Ensure transparency with the Tone From The Top, and the availability of the
Implementa7on Code of Business Conduct in our corporate website, and compliance
messages in the offices
Ongoing communica7ons to ins7ll values to become business-as-usual

Monitoring and ! Code of Conduct Communica7on Sessions were conducted by the
Communica7on Compliance Director
! Quarterly Whistleblower report submiYed to Audit CommiYee
Figure 1.3a.3: Compliance framework
Leadership C1-09
The Code of Business Conduct, Supplier Code of Conduct
and the Whistleblower Programme are published on the
corporate website as well as intranet. The sustained,
continual communications and dissemination of these
compliance guidance with Tone from the Top enhances
accountability and transparency as well as encourages a
culture of decision-making based on ethics and integrity.
ASMPT aligns its compliance guidance to local and other

applicable international laws in all countries where we do
business, including these leading enforcement codes and
guidance:
◆ Foreign Corrupt Practices Act USA
Figure 1.3a.4: Awarded Directors of the Year Awards 2017
◆ Bribery Act UK
◆ OECD Convention on Combating Bribery of Foreign Awarded “Directors of the Year Awards 2017” by The
Public Officials in International Business Transactions Hong Kong Institute of Directors and co-organised by The
◆ Modern Slavery Act 2015 UK Financial Services and The Treasury Bureau; Securities
◆ Responsible Business Alliance, which is the world’s and Futures Commission and the Hong Kong Exchanges
largest industry coalition dedicated to electronics and Clearing Limited, for achievements in demonstrating
exemplary high standards in corporate governance.
supply chain responsibility
Receiving the Award for ASMPT is Mr. Eric Tang, Member,
ASMPT has put in place a Whistleblower Programme
Board of Director (Left) and Ms Orasa Livasiri, Chairman,
as part of its Group Compliance Programme. The
Board of Directors (Centre).
Whistleblower Programme is in line with international
guidelines and practices, not least of which the Sarbanes-
In 2018, The Hong Kong Institute of Directors (HKIoD)
Oxley Act of 2002, Responsible Business Alliance and
awarded Mr Lee Wai Kwong, CEO of ASMPT, with Director
Personal Data Protection Act. This allows not just
of the Year 2018. This award recognises directors for
employees but also third party business partners to report
outstanding director practices and corporate governance,
on suspected or actual fraudulent activities or financial
to publicise the significance of good corporate governance
irregularities, as clearly set out in the corporate website.
and to promote awareness of good corporate governance
and director professionalism.
The Whistleblower Programme and reporting channel is
through the Compliance Officer who, being in the third
Mr Henry Lai, Chairman of the Council of HKIoD, said,
line of defence is independent and has a direct reporting
“Having a good governance system can allow a company to
line to the board. This ensures the ethics function takes
develop healthily and sustainably. However, to cope with
a balanced approach to foster a “speak-up” culture. The
the ever-changing operating environment, conventional
Board has oversight and management of ASMPT ethics
ways of doing things have to change also. Leaders of
and compliance programme and receives quarterly update
changes need to have extraordinary vision, openness and
of Whistleblower reporting from the Compliance Officer.
courage when exploring new paths in new circumstances.
These qualities are found in all the winning directors and
ASMPT was awarded the “Directors of the Year Awards
boards this year. They dare to venture into new realms
2017” by The Hong Kong Institute of Directors (HKIoD)
and lead their companies in facing rapid changes in the
and co-organized by The Financial Services and the
business environment. We hope their success stories
Treasury Bureau; Securities and Futures Commission and
can serve as examples and provide the benchmark for
the Hong Kong Exchanges and Clearing Limited (Figure
enhancing corporate governance to different industries in
1.3a.4).
Hong Kong.”
The HKIoD lauded ASMPT for our adoption of Board
Diversity Policy to ensure the Group is being professionally
managed. The HKIoD’s panel of judges also highlighted
ASMPT success in achieving high standard in corporate
governance and our ability to strike a balance between
short-term gains and long-term needs.
Leadership C1-10
1.3b Implements policies and involves stakeholders to contribute to the
community and the environment
mplements policies and involves stakeholders to contribute
ASMPT sustainability framework is based on our four and regulatory requirements as well as to matters
community and the environment
pillars: relating to sustainability risks, sustainability management
performances as well as recommendations and follow-up
measures.
SUPPORTING OUR COMMUNITIES
Supporting the Environment Social Governance

We prac:se good corporate ci:zenship and contribute to the
social well-being of the communi:es where we operate. Committee are two ATS WHS Committees, which drives
sustainability efforts that align with Group strategy and
directions. Within ATS, there are two certified FSM for
MANAGING ENVIRONMENTAL IMPACT each of our two offices (Figure 1.3b.2).
We commit to environmental sustainability, ensuring that our We facilitate employee’s attitude and behavior beyond
opera:ons are carried out in a responsible manner. organizational commitment through corporate social
responsibility activities. Our employees are encouraged to
leave social imprints as they continue to give back to the
CREATING VALUES THROUGH INNOVATION society. Involvements of Non-Governmental’ Organisations
(NGO) are closely tied to our programmes as we integrate
We create values, focusing on R&D to deliver new cufng-edge CSR efforts into the organization. Per Figure 1.3b.3, we
technology and product innova:ons to enable the digital world.
At the same :me, we strive to embed sustainability in our offer token of appreciation prepared by the beneficiaries
innova:ons through the efficient use of resources, recycling from MINDS to our employees during festive celebration
measures and re-engineering of manufacturing processes. periodically, that is, during Christmas. During annual
dinner 2018, we donated a token sum of S$15,140 for
every nomination received during staff’s registration. The
NURTURING OUR EMPLOYEES initiative raised awareness for our support to our regular
We believe employees are our best assets and we are commiCed partners as well as staff engagement.
to building a future-ready workforce in an environment that
allows them to grow and excel. The Group encourages active contribution to the
communities in which we operate in. We endeavor to
create impact through means of collaboration, employee
volunteerism and charity giving. Our community
Moving forward, we shall continue to initiatives focus on community well-being, empowering
implement and sustain programmes youths through our structured internship initiatives and
and measures to improve the encouraging eco-friendly initiatives. In 2017, the Group
economic, environmental and social contributed 125 activities and 18,000 hours of volunteer
well-being of the communities in service in the communities we operate, including
which we operate. annual stalwart activities such as the Oxfam Trailwalker
programme where global employees participated to aid
the efforts and the Race Against Cancer (RAC) to help
raise funds for cancer treatment and rehabilitation, among
others. We support local Institute of Higher Learning
(IHLs) through internship programmes totaling 93,000
hours and scholarship opportunities, benefiting more than
40 deserving recipients.
Figure 1.3b.1: Ms Orasa Livasiri, Chairman, Board of Directors

ATS contributes regularly and effectively to the
development of the Skills Framework (SFw) for Training
and Adult Education (TAE), lending expertise, resources
ASMPT has published our Sustainability Report since and validation efforts to support and forward the national
2016, and as part of our continued commitment to agenda.
environmental sustainability, this report is published in
electronic form only, on our corporate website. In May 2012, ATS piloted ‘Green Office’ concept in its
building. It implemented double-glazed glass, double roof
The sustainability drive is spearheaded by a dedicated Rockwool heat insulation and low energy LED light as well
Environment Social Governance Committee to review and as upgraded the chiller plant to be more energy efficient.
monitor the Group’s environmental, social and governance Such measures resulted in a low ETTV (Envelope Thermal
policies and practices, ensuring compliance with legal Transfer Value) of less than 50W/m2.
Leadership C1-11
CONTRIBUTION TO COMMUNITY ENGAGEMENT WITH COMMUNITY
1. Industry Discussions & Valida7on 1. Memberships

! Representa7on for Precision Engineering WSQ ! Singapore Business Federa7on (SBF)
Technical Working CommiYee ! Singapore Na7onal Employers Federa7on (SNEF)
! Representa7on for Precision Engineering Sectoral ! Singapore Semiconductor Industry Associa7on (SSIA)
Manpower Strategy 2020 focus groups ! Human Resources Management Congress (HRMC)
! Representa7on for Precision Engineering Development
of Skills Framework focus groups 2. Scholarships and Internships
! Representa7on for Ins7tute for Human Resource ! Na7onal University of Singapore (NUS)
Professionals (IHRP) focus groups and field tests ! Nanyang Technological University (NTU)
! Na7onal Precision Engineering Scholarship (NPES) for
2. Council Member Nanyang Polytechnic (NYP) students since 2011
! Council Member: Patrick Lim for PECOI – Precision ! Collabora7on with Ins7tute of Technical Educa7on
Engineering Centre of Innova7on (collabora7on with (ITE) since 2013
SIMTech)
! Management Board: Ong Beng Thiam – Bartley
Community Care Service (charity with IPC status)
3. Corporate Social Responsibility

! Race Against Cancer (collabora7on with SingTel-
Singapore Cancer Society)
! Blood Dona7on (collabora7on with Singapore Red
Figure 1.3b.2: ATS leaders supporting various forms of CSR
Cross Society)
! Fes7ve Giveaways (collabora7on with non-profit
initiativesorganiza7ons such as MINDS)
ENVIRONMENT
1. Environmental Charter
! ATS is commiCed to environmental care, pollu:on preven:on and con:nuous improvements of the
environmental performance in all our ac:vi:es, products and services.
2. Reduce, Reuse, Recycle Projects

! Captured natural light to office by solar tube for roof office, 100% replace ar:ficial light at pantry area
on sunny days
! Installa:on of mo:on and light sensors in infrequently used areas
! Installed wastewater treatment facili:es to recycle processed water from our lead frame opera:ons
3. Awards & Cer:fica:on

Figure 1.3b.3 Our!! Cer:fied
CSR involvement
ISO 14001 andSystem
Environmental Management
BCA Green Mark for new building (TPB2)
activities
since 2000
! Energy Efficiency Na:onal Partnership (EENP) Awards 2016 – Outstanding Energy Manager of the Year
Reduce more than 1,000,000 kg carbon Energy cost savings to more than $283,000
footprint per year per year
Figure 1.3b.2: ATS leaders supporting various forms of CSR initiatives
Individual
CORPORATE SOCIAL RESPONSIBILITY
Team
Organisa:on Frequency Ac:vi:es

Singapore Cancer Society Yearly Race Against cancer
Singapore Red Cross Yearly Blood Dona:on Drive
Red Shield Industry Yearly Dona:on Drive
Oxfam Yearly 100km Oxfam Trail Walker (Hong Kong)
MINDS Periodic Merchant purchase for Management Giveaway
Singapore Visually Handicapped Periodic Massage
Land Transport Authority - Safe Riding Programme
Figure 1.3b.3: Our CSR involvement and activities
Leadership C1-12
Facilities management department continued the efforts to maintain energy efficiency and incorporated into Tech-
Park Building 2 (TPB2). Completed in 2016, TPB2 has achieved Gold certification in BCA Green Mark Scheme. Our
manufacturing processes are certified to the ISO 14001 Environmental Management System since year 2000.
de
ating in Boy’s Briga
Colleagues particip R an d Te am building
of joint CS
activities as part
Participants going through the table-top exercise
MINDS
Goodies purchased from during the Safe Riding Program
the pur pos e of Ma nag ement
for
ing fes tive cele bration
giveaway dur
Contributing to MINDS and Singapore

Cancer Society is one of the key
elements of Annual Dinner 2018
Contribution to the SFw for TAE under SkillsFuture,

a national agenda
Colleagues participating in Hong Kong

Oxfam 100km Trail Walker Annual affair promoting cancer awar
eness and raising funds for Employees engaged in massage
cancer treatment and rehabilitation
efforts service provided by Singapore
Association of the Visually
Handicapped
Leadership C1-13
2
n g
il di
u
ar kB
ec h-P
of T
i ng
pe n
O
G
rand
Customer Relationship Framework Customer Engagement
5
• Gather feedback and review with customers
• Manage Sales / Service / Customer Relationship
Management (CRM)
• Senior Management provide strategic direction
channels to • Conduct market research and analysis
CAPTURE • R & D / Innovation Center for product defect and
‘’Customer quality management, technology analysis and product
Requirement’’ requirement.
4means to
CREATE
• Customer Touch Point (such as sales / service
engineer and overseas sales / service centers)
• Marketing activities (such as exhibition / tradeshow,
seminar, in-house show)
• Collaboration on technology and product development
• Customer Engagement (such as Technology Day and
‘’Customer Supplier Day)
Experience’’
3
ways to COLLECT
‘’Customer
• Satisfaction survey / feedback
• Product appraisal survey / feedback
• Post marketing activities survey / feedback
Satisfaction
Feedback’’
C
2.1
ustomer Requirements
2.1a Segments markets and customers and understands their current
and future requirements
ASM Pacific Technology (ASMPT), being the market Materials Business
leader that offers best-in-class equipment and materials
Materials Business focuses on the design and
for all major steps in the electronics manufacturing
manufacturing of stamped and etched leadframes. In
process, serves global customers and engages them in
ASMPT, we offer one-stop design and manufacturing of
various collaboration and development projects. Our
etched leadframes with patented process technologies.
Backend Equipment Business offers a diverse range from
bonding to molding and trim & form to the integration
ASMPT is the market leader for Moisture Sensitivity Level
of these activities into complete in-line systems for
1 (MSL 1) enhancement solution and also the market
the microelectronics, semiconductor, photonics, and
leader in the high density leadframes with frame size of
optoelectronics industries. Our Materials Business
100mm x 300mm.
provides a variety of leadframes such as etched and
stamped as well as advanced packaging materials. Our
Our core technologies include high speed stamping,
SMT Solutions, which is not in scope for this assessment
precision etching, thin metal plating, metal forming,
and hence will not be explained in detail, develops and
design and process automation.
sells printers and placement solutions for the surface
mount technology, semiconductor and solar markets.
Markets are segmented by Quad Flat No-leads package
(QFN) and standard leadframes. ASMPT has invested
Backend Equipment Business
heavily on processes that are capable to produce Ultra
The markets are segmented by Integrated Circuit (IC)/ Large High Density and Patented MSL 1 Solutions for both
Discrete and Optoelectronics (Opto)/Light-Emitting Diode QFN and standard leadframes, which distinguishes ASMPT
(LED) due to different market needs. from our competitors.
ASMPT offers a full range of equipment for ASMPT has extensive technical knowledge and process
• IC/Discrete business which require fast speed, high capability to support new package development with our
accuracy and smart features; ASM Build up Interconnect Technology (ABiT) leadframe
• Opto/LED business which require fast speed and low package and LED Leadframe Red Ink package (Dye
Cost of Ownership (COO). Penetration Test Solution).
As the whole semiconductor industry is moving toward Our advanced technologies in this area, coupled with vast
Industry 4.0, the future requirements of Backend product portfolio with leading edge product technologies,
Equipment are in the direction of smart features enable our global sales and post-sales services personnel
and automation. Features such as auto loop height to provide value-added products and services to meet
measurement, real time monitoring and predictive customers’ demands and requirements.
maintenance are to ensure equipment is always running
in tip top condition. Automation such as auto magazine ASMPT Materials Business’ top 10 customers contributed
changing and auto capillary changing are to promote high almost 55% to the 2018 revenue, located in these three
machine utilization. countries: China (five), Thailand (three) and Malaysia (two).
Backend Equipment revenue contribution is made up of To meet the strong market demand and business growth,
IC/Discrete and Opto/LED with 64% and 36% respectively as well as a demand for shorter lead-time, we have
in year 2018 with the major contribution from the China increased the number of etching lines. For products with
market. stringent adhesion properties, zero delamination and
higher density requirements, we have various processes
to fulfil customer expectations, such as:
1. RSA is to promote Copper (Cu)/ Epoxy Mould

Compound (EMC) adhesion; high positional accuracy
and high degree of freedom in coverage design.
2. Moisture Sensitive Level (MSL) Solutions - Brown Oxide

Treatment (BOT) is ASMPT patented special chemical
Customer C2-14
Figure 2.1a.7 ONE BLOCK vs FOUR BLOCK design
process to form a well-controlled oxide layer on top of

the leadframe copper surface with unique morphology
and structure (Figure 2.1a.1) to promote chemical and
mechanical adhesion, contamination free on Ag surface
igure 2.1a.5 MSL 1 Solutions
and wire bondability- is
Brown OxidetoTreatment
guaranteed customers at(BOT)
proven level (MSL 1). This BOT process only applies to
silver (Ag) plated products.
Brown Oxide Treatment (BOT)
Figure 2.1a.1: MSL 1 Solutions - Brown Oxide Treatment (BOT)
3. Micro-etching roughness (ME2) is similar to BOT but

cater for different plating type which is applied before
plating process (Figure 2.1a.2). ASMPT patented ME2
process is applicable to both PPF and Cu/Ag leadframe.
e 2.1a.6 Micro-etching The ME2 also promotes mechanical inter locking and
roughness (ME2) 4 Block
enhances adhesion. The ME2 has a zero delamination
SM Pacific Technology © 2019 page 9
advantage which is able to satisfy customers’ stringent 4 Blocks QFN

requirements. Figure 2.1a.3: ONE BLOCK vs FOUR BLOCK design
ASM Pacific Technology © 2019
Micro-etching (ME-2)
In understanding customers’ requirements and building
business relationship with customers for both Backend
Equipment and Materials, we adopt a Customer
Tab 2-3 (Figure 2.1a.8) ATS Customer Relationship Framework
Relationship Framework (Figure 2.1a.4). The framework
consists of:
• 5 channels to capture customer requirements
• 4 means to create customer experience
• 3 ways to collect customer satisfaction and feedback
C U S TO M E R R E L AT I O N S H I P F R A M E W O R K
5
● Gather feedback and review with customers
● Manage Sales/ Service/ Customer Rela4onship Management (CRM)
● Senior Management provide strategic direc4on
● Conduct market research and analysis
Figure 2.1a.2: Micro-etching roughness (ME2) channels to
CAPTURE
● R & D / Innova4on Center for product defect and quality management, technology analysis and
product requirement.
4
‘’Customer
Requirement’’
● Customer Touch Point (such as sales/ service engineer and overseas sales/
4. QFN ONE block design, Figure 2.1a.3, is offering service centers)
● Marke4ng ac4vi4es (such as exhibi4on/vtradeshow, seminar, in-house show)
● Collabora4on on technology and product development
customer a higher density unit outline by increased means to
CREATE
● Customer Engagement (such as Technology Day and Supplier Day)
3
‘’Customer
material utilization level as compared to conventional Experience’’
4 blocks QFN layout. With this design, customers can ● Sa4sfac4on survey/ feedback
● Product appraisal survey/ feedback
● Post marke4ng ac4vi4es survey/ feedback
achieve higher productivity gains and cost savings. This ways to
COLLECT
‘’Customer
ONE BLOCK design can be applied to both RSA and PPF Sa4sfac4on
Feedback’’
c Technology © 2019
leadframes. ASM Pacific Technology © 2019 page 10 page 3
Figure 2.1a.4: ATS Customer Relationship Framework
Our Frontline Sales teams visit our customers regularly to

obtain direct feedback on our equipment and materials
performances and requirements and customers’
upcoming projects. Such interaction with customers,
as well as during trade shows, allows our Backend
Equipment frontline sales teams to understand the
Customer C2-15
latest potential equipment demands of the customers,
which are recorded to the CRM (Customer Relationship
Management) system. Materials Frontline Sales teams
conduct Customer Quarterly Business Review and Quality
Management Review with customers to track materials
quality performance and customer experience.
Figure 2.1a.5: An example of market research result
Our Senior Management frequently interacts with our

customers both formally in meetings and informally Our R&D personnel use Computer Aided Engineering
in social events to gain insights on the latest trends of (CAE) simulation and 3D printing to work with customers
applications in the digital world, upcoming business on development of new products. We are in the process of
opportunities and expansion plans of the customers. developing customer trainings via virtual reality.
In order to understand our market position, Backend Our Innovation Centre located in ATS facility (Figure 2.1a.6)
Equipment conducts regular analysis on our bookings exhibits our latest backend equipment and materials. It
and lost orders so that we can serve our customers provides customers with a better understanding of our
better by continuously improving our product range, product range and our total package solutions.
pricing and equipment features that Technology
ASM Pacific could exceed
© 2019
customers’ expectations. Similarly, Materials Business
analyses market share, sales bookings trends, business
opportunities and threats from competitors in order to
gain more market share.
Market researches and surveys conducted by independent

organizations such as SEMI, Business Wire and VLSI are
valuable inputs to validate our leading position in the
industry. For two consecutive years in 2017 and 2018,
ASMPT is one of the 10 best suppliers and we were
awarded the Triple Crown by VLSI (Figure 2.1a.5).
Figure 2.1a.6: Customers visiting ATS Innovation Centre

Figure 2.1b.1 Strategic Plans to address Customers’
Requirements
2.1b Incorporates market and customer requirements into strategic plans
After knowing the market
and customers’ requirements Customers
• On 9me delivery ( Backend
Equipment )
through the 5 channels, Senior • CIP/ Sustaining ( Materials )
Short Term Plan
Management will map out the
short, mid and long term strategic
plans accordingly (Figure 2.1b.1). Sale/Service/
Marke9ng
Senior
Management • Low COO , Quality Improvement,
Early Product Introduc9on
Customers’
Our overall strategy is to grow Requirement
( Backend Equipment )
• NPI/ Product Roadmap ( Materials )
Mid Term Plan
together with customers and to
meet their requirements. Our
local Sales arrange meetings with • Product Roadmap, Automo9ve Grade
customers on a weekly basis to R&D
Marke9ng Product, Industry 4.0
( Backend Equipment )
Research
update the customers on our Long Term Plan
• Strategic Ini9a9ves/ Product
Roadmap ( Materials )
technical developments. We
organize technical team visits for 5 Channels to gather Customers’ Requirement Strategy Plan to address
Customers’ Requirement
technology exchange, capability
update and sharing our knowledge Figure 2.1b.1: Strategic Plans to address Customers’ Requirements
with customers, which forms a
platform to gather customers’ feedback for Technology
ASM Pacific improvement
© 2019 are designed based on customers’ requirements such pageas15
plans to support our valued customers. low cost of ownership or new packages.
Market and customers’ requirements are being actively For short-term requirements to meet shorter lead-time,
referenced in our yearly Product Roadmap meetings the Factory Planner (FP) software was introduced into
in which long term plans of our product development is our Materials Business for manufacturing efficiency. The
derived for Backend Equipment and Materials. software enables us to provide accurate capacity planning
and fast commitment to customers with better visibility to
For market or customers’ mid-term needs, new products reschedule production priorities for customers.
Customer C2-16
C
2.2
ustomer Experience
2.2a Incorporates customer expectations in designing touch points,
products, processes and services
2.2c Provides ease of access for customers to seek assistance and
information to enhance the customer experience
Figure 2.2a.1. 4 means to create Customer Experience
Based on the ATS Customer Relationship Framework, to enhance customer satisfaction and promote customer
there are 4 means to create customer experience (Figure experience.
2.2a.1).
Our latest products are showcased during our marketing
activities, exhibitions and trade shows. We gather direct
feedback from customers and improvements and channel
them to our R&D team. Technical seminars on the hottest
Customers Marke9ng topics of the digital world are held in conjunction with
Touch Point Ac9vi9es the trade shows to introduce and showcase our latest
technologies.
We listen to our customers, which may result in co-

creation of product with our customers, achieving a win-
win situation.
Customer
Collabora9on Materials
Engagement
To enhance customer experience in doing business
with ASMPT, we provide them with easy access to our
4 Means to create Customer Experience engineering or technical support, sales support for order,
pre-alert for material reservation, expediting delivery and
ASM Pacific Technology © 2019 Figure 2.2a.1: 4 means to create Customer Experience page 18
other customer queries.
Backend Equipment
Our touch points are the Frontline Sales personnel
For ease of access to customers’ touch points, ASMPT has and Sales Administration Officers (SAO) who provide
overseas offices near to our customers’ bases. Sales and quotation, order processing, delivery lead-time and
Field Service Engineers visit customers on a regular basis shipment plan support. Overseas Sales provide on-site
and support customers’ daily issues and improvement support when there is need such as quality complaint or
projects. Besides these regular visits, our Sales and new product drawing first review discussion. Quarterly
Service Engineers are contactable through their mobile business reviews are carried out with our customers to
phone to provide immediate technical support. review our overall performance in meeting customers’
requirements and expectations.
Customers can seek assistance during our regular visits
or contact us via phone calls, emails or through our Customer factory audits and visits are also areas where
website. While the Service team installs or maintains customers assess the factory processes to meet their
the equipment on-site, they also work with customers in requirements. Feedback during the audits are addressed
process study for improvement and development. All the and actions taken to correct the findings that were raised
work and activities of the Service team at customer plants by our customers.
are recorded in CRM Service module for analysis.
Customers can raise enquiries via email 24/7. This email
We have dedicated Corporate Account Managers (CAM) helpline is set up to target new/ future customers. Sales
to serve our corporate customers, such as Nexperia, and Marketing will follow up to assist customers and to
Texas Instrument, Infineon and ON Semi. CAM is to enhance the customer experience in doing business with
provide customized sales and service support and is the ASMPT.
main contact window to these corporate customers. CAM
has direct access to Top Management to seek additional Our Leadframe Pre-Production Engineering (PPE)
resources or support. The main responsibility of CAM is department handles new design enquiries and work
Customer C2-17
Figure 2.2a.4 KPI for preliminary drawing review support
together with customers to provide technical feedback on product realization from conceptual design to manufacturing.
Figure 2.2a.3Figure
Technical review
2.2a.2 showshandling oftechnical
the flow of new design inquiry
review flowfor new design inquiries.
handling
In Figure 2.2a.3, the KPI shows the improved shorter lead-time for preliminary drawing preparation, thereby delighting
customers with our fast response support.
Good
Customer sends
Conduct technical Technical discussion
leadframe drawing
review & provide when necessary
enquiries to Sales
proposal feedback (through email or
Representa9ve /
to customer teleconference)
Product Engineer
Customer to
First Ar9cle Customer verify
provide final
Inspec9on Ac9va9on and approval
drawing / design
Figure 2.2a.2: Technical review handling of new design inquiry flow Figure 2.2a.3: KPI for preliminary drawing review support
ASM Pacific Technology © 2019 page 21
2.2b Ensures customer feedback is addressed and analysed

ASM Pacific Technology © 2019 Figure 2.2b.1 Customer complaint
page 20 handling process flow chart
ASMPT has both commercial and product quality related A cross-functional team is formed to investigate and take
feedback from customers in the form of compliments or appropriate actions using 8-Discipline (8D) methodology.
complaints.
Figure 2.2b.1 depicts a general overview of the complaint
Customer feedback on product quality, price, handling processes.
delivery and service support are received via
different touch points and are reviewed. We Complaint can be in the Details pertaining to the
areas of quality, delivery, nature of the complaint
respond to customers via our Frontline Sales or Receive complaints from responsiveness or any will be capture in the
the customers through the
Service personnel. various touch points
dissa9sfac9on the database system and
customers have with ATS inves9ga9on will be
products or services carried out
Complaints received from customers are
important to ASMPT as they reflect customers’
satisfaction levels and perception on our A formalized report in the Inves9ga9ons are carried
The correc9ve ac9on
products and services. Each complaint case report will be submimed to
form of an 8D correc9ve by a mul9-disciplinary
ac9on report will be team where root cause
is handled with extreme care and urgency to the customer for
generated with details of and countermeasure are
acceptance and closure of
minimize risks of ASMPT products impacting the case
the root cause and established to address the
countermeasures complaint
customers’ production output or their business
needs. Figure 2.2b.1: Customer complaint handling process flow chart
2.2c Sets performance standards at customer touch points to ensure

consistent service delivery
Backend Equipment determined by build-in high precision piezo sensor. With
this innovative design, the calibration at customer’s site is
CRM Service module records every service visit to
no longer dependent on skilled operators.
customer’s plant and measures our response time to
customer’s request for service.
Materials
In order to have fast release of the wirebonder into We have established performance standards at the various
mass production run, we track the Backend Equipment touch points. These include product quality, response
installation time closely in order to identify the areas for time, delivery lead-time and on time delivery.
improvement. One significant improvement we made was
reducing the wire clamp calibration time from 50 minutes An example is the delivery lead- time improvement from
to 2 minutes. This was achieved through the innovative 10 weeks to 6 weeks by installing additional etching line
design on wire clamp whereby the calibration jig is no capacity to meet the customers’ requirements for shorter
longer needed and the wire clamp gap and force are lead-time.
Customer C2-18
C
2.3
ustomer Satisfaction
2.3a Determines and improves customer satisfaction for various
customer segments
Understanding customer satisfaction can help us survey is conducted to determine
stay ahead of competition in an effective way. Hence, customer satisfaction on the topics
for both Backend Equipment and Materials, we have delivered and the various aspects
Quarterly Business Review (QBR), Customer Relationship of the event management. The
Management (CRM), e-mail communications, phone calls survey covers customer expectation,
and weekly or monthly meetings with customers. presentation topics and contents, Figure 2.3a.2:
future seminars topic etc. in Figure Extract of customer
survey after seminar
We have 3 ways to collect customer satisfaction on 2.3a.2.
product performance and services (Figure 2.3a.1), either
via customer satisfaction survey or customer scorecards Backend Equipment
or from product appraisal survey and survey on our
Quality Assurance team works with Marketing to conduct
marketing activities.
survey once every half year on worldwide customer
Figure. 2.3a.1. 3 ways of collecting customer satisfaction satisfaction of our products and services. The survey
For post marketing activity, both Backend Equipment and
covers the following criteria:
Materials hold seminars with our customers. After-event
• Cost of Ownership (COO)
* Service & ✓ Price, cost of ownership
Customer technical skill
* Plug & Run • Equipment Performance

Sa9sfac9on
Product
ASM Pacific Technology © 2019 ✓ Uptime, throughput, build quality &
Appraisal
Survey/
Survey/
# Customer
Software Quality
Feedback Responsiveness
Feedback
# Technology • Customer Service
✓ Response time, professionalism of
Post Marke9ng
ac9vi9es Survey/ Product Quality service and trainer
Feedback
As a result of our listening to our customers
On 9me delivery
and surveys conducted, we observe faster
3 Ways to collect Price market acceptance of our new wirebonder
Customers’ Sa9sfac9on Feedback compared to previous wirebonder models
Figure 2.3a.3 Data table showing Customer faster acceptance
Sa9sfac9on Measure rate of
(Figure AeroAreas of improvement
2.3a.3).
Bonder compared to previous models * Backend Equipment # Materials
to win together with customers include
Figure 2.3a.1: 3 ways of collecting customer satisfaction smart innovative features such as X Power,
AeroEYE, ECP and etc. (Figure 2.3a.4).
Machine Sales Quantity

2500
2500
2000
2000
Fast Market
Machine Quantity
Acccetance
Acceptance
Machine Quantity
1500
1500
Older Series series

Xtreme/Xpress
1000
1000
New
Aero Series
500
500
0
2011
YR 2011 2012
YR 2012 2013
YR 2013 2014
YR 2014 2015
YR 2015 2016
YR 2016 2017
YR 2017 2018
YR 2018
Axis Title
Year
Figure 2.3a.3: Data table showing faster acceptance rate of new bonders compared to previous models
Customer C2-19
New
New Innovation and
Selling Points
Figure 2.3a.4: Aero Bonder Innovative Solution
Customers share quarterly or yearly supplier scorecards Our participation in an independent third party survey
which indicate their overall satisfaction level on our conducted by VLSI provides insights on customer
delivered services in the areas of: perception of ASMPT as compared to our competitors. The
survey covers major aspects such as technical leadership,
• Quality Excellence supplier’s commitment to support customer needs,
• Cost Excellence process support, partnering, field engineering support,
• Operational Excellence and spare/replacement support. ASMPT is awarded Best
• Service Excellence Supplier in the area of field engineering support and after-
• Technology Excellence sales support in Year 2018.
We internalize the scores and make improvements to Materials

better serve customers and enhance customer experience
Customers measure our performance base on quality,
in doing business with us.
delivery, price and service. Some customers also include
technology and environment compliance as part of the
measurement.
2.3b Determines current and future drivers of customer satisfaction

For Backend Equipment, we gather inputs on current and For Materials, we focus on quick responsiveness of
future drivers of customer satisfaction from Frontline design as an important differentiator to retain existing
Sales and Service teams. Analysis on market share to customers and to capture new business. Customers are
track our new equipment also provides a good indicator expecting shorter lead-time. As such, our Frontline Sales
of whether we are going in the right direction to create team conduct competitors’ lead-time survey/understand
drivers to satisfy customers. The key drivers for Backend our competitors’ lead-time and together with Production,
Equipment are fast speed, low cost of ownership and good benchmark our lead-time accordingly. In terms of
quality. product
Figure 2.3b.1 Improvement of range, we target
Aero Bonder high density
to fulfilling leadframes to meet
customer
requirements. customers’ expectations for high performance products.
Aero wirebonder has improved the Mean Time Between We win and delight customers with our quick turnaround
Assist (MTBA) by up to 50 % and Unit Per Hour (UPH) by and range of products available.
up to 30 % as compared to previous
wirebonder model (Figure 2.3b.1). MTBA UPH Less space requirements
•CSP
Customers have gained more output High end •QFN 30-50% 20-30% # More output per space
device
with fewer operators and this has •BGA
improved their cost of ownership

(COO). Currently, we are moving Low end •SOT Less operator assistance
device >50% >30%
forwards in our smart and automation •SOP
# More machines per operator
features to achieve market driven
Industry 4.0.
Figure 2.3b.1: Improvement of Aero Bonder to fulfilling customer requirements
Customer C2-20
2.3c Incorporates customer insights and feedback into the strategic
improvement plans
Customers feedback received through the various ASMPT developed the first transducer in the world with
channels are incorporated into our quarterly business ultrasonic power excite on both X and Y directions. This
reviews, product roadmap, operation reviews and innovation not only brought significant breakthrough in
executive meetings. We listen to our customers, and the wirebonding technology, it addresses many of our
incorporate their insights and ideas to our strategic customers’ process issues (Figure 2.3c.1).
improvement plans and product development, to set
ourselves apart from our competitors and embrace our Besides technology evolution, ASMPT has focused smart
VMV of winning with our customers. features including AeroEye with machine auto heath check
and automated features such as automated capillary
Based on the customer feedback, Backend Equipment changing, auto wire spool changing and wire thread,
and Materials determine that regular introduction of our which reduce human intervention and promote higher
technology advancement to customers is an important yield assurance through artificial intelligent (AI) process
strategy. We organize product roadmap meetings, for future market needs.
technical seminars and customer visits to our dynamic
Innovation Centre located in ATS which showcase our Materials
latest product development and range of advanced and
ASMPT Ultra-Large High Density leadframes is a proven
inventive offerings.
winning product and a new business strategy to capture
more market share. This leadframe can support high and
Backend Equipment
increased unit packing, almost 100% leadframe utilization,
Besides speed, technology evolution is also required high productivity jump and it can fit packages of various
by customers to handle their challenging packages. As body size. ASMPT has started producing first article
a result, ASMPT wirebonder has an ultrasonic power sample for customer qualification.
technology, an innovative feature that responds to
customers’ requests.
Figure 2.3c.1 Technological Innovation –X power
Much High
Bemer
MTBA UPH
Bemer Al Bemer Pad
Splash Crack
Control Control
Bemer Patented Bonding Technology Wider

S9tch Process
Forma9on Window
Bemer More
Inter- Robust
Metallic Bonding
Coverage

Figure 2.3c.1: Technology Innovation - X power
Customer C2-21
Click to edit Master
Semiconductor title Drivers
Market style
AR/VR
Camera Power
Modules Mobility
Industrial / Mobile devices
Cyber Power Energy Car-to-Car
Security
Drones
Smart Home Autonomous Vehicle LED Display
Smart City
Smart Cleaner Smart Office
© ASM Pacific Technology. Proprietary and confidential information. Do not reproduce or disclose without ASM’s permission.
S
3.1
trategy Development
ASMPT recognizes the importance of effective strategy development as a contributor to our on-going business success.
ASMPT strategy is built based on the Group’s Vision, Mission and Values that guides the organization and aligns the
organization towards a unified goal. The Group Strategy is defined for 10 years horizon to reach the Vision and Mission.
Business Segment Strategies are to support the Group Strategy. Supply Chain Management, Enabling Technology Group,
Quality Management (QM), Information and Communication Technology (ICT), Human Resource, Finance and Merger and
Acquisition (M&A) strategies are designed to support both the Business Segments and Group Strategies. Values are the
fundamentals for ASMPT’s Business proceedings.
The Group Strategy (Figure 3.1.1) focuses on 5 main core areas:

•Company Success in achieving Group revenue exceeding US$4 billion and EBIT exceeding 20% by 2025
•Market and Customer to achieve the undisputed number 1 position in Assembly, Packaging and SMT; to be the
Preferred Go-To- Partner for Smart Factory Solutions and the leading player in new businesses
•People and Technological Enablers which promotes ASMPT as a Great Place to Work where people are inspired to
deliver outstanding results. Besides that, ASMPT also carries a culture that promotes innovation and attracts the right
talents to develop key technologies in Enabling the Digital World
•Value Add to produce World Class Quality Equipment; to maintain Operational Excellence by leveraging on agile supply
chain network and build ASMPT Smart Factories
Figure 3.1.1: ASMPT Strategy
•Differentiation to strive for outstanding customer value through High-Speed Innovation, produce a premium brand
recognition and best in class integrated solutions
Company Success
Group Revenue > USD 4 billion and EBIT > 20%
Value Add Differen>a>on Markets and Customers

! World Class Quality ! Undisputed #1 in Assembly,
! Outstanding customer value
! Opera>onal Excellence by Packaging and SMT
through High-Speed Innova>on ! Preferred Go To Partner for
leveraging agile supply chain
! Premium Brand recogni>on
network Smart Factory Solu>ons
! Best in Class Integrated Solu>ons
! ASMPT Smart Factories ! Leading player in new
businesses
People & Technological Enablers

! ASMPT a Great Place to Work where People are inspired to deliver outstanding results
! Culture that promotes innova>on and aPracts the right talent
! Key technologies enabling the Digital World
Passion - Ownership - Win - Excellence - Respect

Figure 3.1.1: ASMPT Strategy
ASMPT has strategic Business Segments (BU) that operates independently with the responsibility for a particular range
of products. Their focus is on profitability, market share, product differentiation, innovation and people development.
These strategic business units are responsible for their own profit or loss but are answerable to the Top Management.
The Group
ASM Pacific Strategy
Technology guides the Business Segments Strategy.
© 2019 page 6
Strategy C3-22
3.1a Determines organisational challenges and anticipates external
changes and risks
In the monthly EXCO meeting, the Business Segment CEOs will review and evaluate the external market factors, such as US
and China trade war, semiconductor market forecast, wafer fabrication houses forecast, country specific consumer market
demand and PMI/GDP growth. Segment CEOs also review in depth of the market drivers to ensure that the Business
Segment Strategy is still valid. If there are any change in the industry forecast, economical changes or customer behaviour,
the situation will be brought up to the table in the EXCO meeting for discussion and make immediate changes to the WIGs.
ASMPT’s Board of Directors is responsible for the risk management and for reviewing its effectiveness to ensure that the
Group establishes and maintains appropriate and effective risk management system.
With managing risk in mind, the Strategic Risk Review Committee (SRRC) was formed in 2016 to report directly to the
Executive Committee.
SRRC comprises of management from different Business Segments who are responsible for various key functions within
ASMPT so as to bring experience, knowledge and a balanced approach to pro-actively evaluate the internal and external
risks facing the Group. The SRRC members are re-elected every two to three years bringing in fresh and new perspectives
in evaluating risk management.
ASMPT adopts the Three Lines of Defense Model assigning clear roles and responsibilities that increase the effective
management of risk and control.
With the Strategic Risk Review Committee and the Three Lines of Defense Model, ASMPT has a strong overall governance
and control environment, enabling the Group to pursue its objectives that involves embracing opportunities, pursuing
growth, taking risks and managing these risks.
3.1b Develops long- and short-term strategies to achieve

organisational goals
Every year, the organization conducts an Annual Executive Meeting, which maps out the strategic plans with participation
from “Executive Committee” (EXCO) Members and Senior Management of respective business segments and global sites.
5 Years Plan – using SWOT analysis, Porter’s 5 Forces Model and PEST analysis
2 - 3 Years Plan – develop strategic directions and cascade down to site-level
Annual WIGs to support the strategic directions and measure departmental level KPIs assigned to sections and staff
3.1c Engages key stakeholders in the strategy development process

ATS utilizes several engagement strategies for key stakeholders to increase their participation and commitment to
strategic planning processes. Key stakeholders are engaged in the strategy development through the following channels
(Figure 3.1c.1):
Strategic Events / Mee0ngs Stakeholders / Objec0ves
Execu4ve Management
Annual Vision and Strategy Formula4on
To share goals and projec4ons for the next 5 years and to discuss short-term ini4a4ves to meet KPIs
Senior Management & Department Management

Annual Sales and Product Roadmap
To share strategic direc4ons for the next 2 to 3 years and to discuss short-term target
Senior Management & Department Management

Annual Manufacturing Review Mee4ng
To brainstorm on strategies and key issues based on the sales and product roadmap
Figure 3.1c.1: Engagement of Key Stakeholders in Strategy Development Process
Strategy C3-23
S
3.2
trategy Implementation
3.2b Manages organisational risks associated with plans
ASMPT manages global risks in a structured risk
management process. Figure 3.2b.1 shows the flow of ASMPT has to also look into internal factors (Figure 3.2b.4)
the strategic risk review process. Strategic Risk Review to ensure we are at the forefront in terms of technology,
Committee (SRRC) is now into the second wave of costs and value to customers. How the Group addresses
members, with the first wave serving from 2016 to Q3- and responds to business and markets’ changing needs,
2018, and the second wave serving from Q2-2018 for a our product strategy, quality and innovation, manufacturing
period of 2 Figure
years. 3.2b.1: Strategic Risk Review Process capabilities, as well as our social and environmental
responsibilities are considered.
ATS has four representations, including the Secretary
who has continued from After identifying the
the first wave to ensure Senng of potential and possible
common
consistent adoption of objec8ves
risks, Risk Assessment
review methodology, in Governing Scores derived from the
Re-assessments Objec8ves
the SRRC that comprises a COSO Impact Scale and
Lis8ng of all
total of 11 members. risk events Likelihood Scale that is
Iden8fy
Risks
covering tailored to suit ASMPT
every aspects
SRRC consulted The risk management,
Control
Committee of Sponsoring and evaluates the potential
Organizations of the Monitor impact of the risks
Treadway Commission Ac8on and (Figure 3.2b.5).
Control, Evaluate
(COSO) Enterprise Risk Mi8ga8on plans Analysis probability
/ Assess of the event
Management – Integrated or just “Watch Confirm Risks To ensure that ASMPT
List” Exco and occurring
Framework to implement members + RRC Priori8ze and rank its identifies the current
Risks
a structured process to impact thriving business
identify potential threats to requirements whilst still
Final observa8on and team
ASMPT, to manage risk to decision, rank the risks from most dramatically reinventing
be within our risk appetite to least cri8cal in 3x3 matrix table ourselves when defining
and to provide reasonable risks facing the Group,
Figure 3.2b.1: Strategic Risk Review Process
assurance regarding the SRRC adopts the 3
achievement of our Group
ASM Pacific Technology © 2019 Box Solution
page 21 by Vijay
objectives. Govindarajan (Figure 3.2b.6), a New York Times bestselling
author who pioneered the strategy for leading innovation.
In assigning the risks identified through the 3 Box Solution,

COSO is a joint initiative of five private sector organizations, SRRC ensures that ASMPT:
including the Institute of Internal Auditors, dedicated to
providing thought leadership through the development of 1. Manages the present by managing the core business at
frameworks and guidance on enterprise risk management, peak profitability
internal control and fraud deterrence. 2. Selectively forgets the past where ideas, practices and
attitudes that could inhibit innovation are abandoned
SRRC has put in place a unique ASMPT Risk Identification 3. Create the future to convert breakthrough ideas into new
Framework (Figure 3.2b.2) which is a comprehensive products and businesses
organizing framework for defining and understanding
potential business risks both external and internal that may The overall ASMPT Risk Identification Framework allows the
affect the achievement of ASMPT’s objectives. Group to systematically identify risks that poses strategic
and organizational challenges which allows the Group to
External factors have an impact in achieving Group constantly redefine the strategies in the face of dynamic
objectives. Recent trade disputes affecting global forces of technology and shifting customer preferences and
economy, customers’ mergers and acquisitions that result positions ASMPT to execute breakthrough strategies.
in higher bargaining leverage, or competitors’ mergers
and acquisitions that may negate ASMPT’s unique value SRRC regularly reviews the progress of the risk mitigation
proposition in total solutions, are some of the risks that strategies, considers and evaluates the effectiveness of
SRRC will assess and evaluate. Figure 3.2b.3 provides these implementations and assesses whether threats have
the guiding factors in considering external risks facing the been sufficiently reduced to ASMPT’s acceptable levels
Group. (Figure 3.2b.7).
Strategy C3-24
Figure 3.2b.2: Risk Identification Framework
Risk Iden>fica>on Framework

External Internal
R&D
Poli>cal Social Business Finance (Technology)
Economic Technological Products Manufacturing HR
Natural Ethics & Social

IT
Environment Integrity Responsibility
Figure 3.2b.2: Risk Identification Framework
Figure 3.2b.3: External RiskpageFactors

22

External
Poli>cal Economic Social Natural

Technological
Environment
• Governmental • Capital availability • Demographics • Interrup>ons • Emissions &

changes • Credit issuance, default • Consumer • Electronic waste
• Legisla>on • Concentra>on behavior commerce • Energy
• Public policy • Liquidity • Corporate • External data • Natural disaster
• Regula>on • Financial markets ci>zenship • Emerging • Sustainable
• Unemployment • Privacy technology development
• Compe>>on • Terrorism
• Mergers/acquisi>ons
Figure 3.2b.3: External Risk Factors
Figure 3.2b.4: Internal Risk Factors

page 23

Internal
R&D
Business Finance (Technology) Product Manufacturing
• Market needs • Currency • IP • Strategy • Capacity

• Business model/ • Liquidity & Credit • Time to market • Capability • Capability
strategy • Cash flow • Differen>a>on • Health & Safety • Quality
• Service • Profitability • innova>on • Compe>>ve • Technology
• Compe>>on • Cost • Resources alloca>ons advantages • Delivery
• Customer sa>sfac>on • Results/growth • Innova>on • Entry barriers • Outsourcing
• Pricing • Internal audit • Competences • Innova>on • Supply chain
• Down turn • M&A • Cost management
• Diversifica>on • Failure on site • Workforce
• Authority • Life cycle
• Reputa>on, Image &
PR
• Partnership
Ethics & Social
HR Responsibility IT
Integrity
• Genera>on Y • Infrastructure
• Succession planning • Code of conducts • Environment
• Compliance • Society awareness • Technology
• Knowledge & competences • Access & Efficiency
• Management Fraud
• Culture • Automa>on
• Legal, employees’ integrity
• Leadership • Alignment with
• Global alignment customers
• Communica>ons • MIS/EDP
• Process & system
Figure 3.2b.4: Internal Risk Factors
page 24
Strategy C3-25
Figure 3.2b.5: Risk Assessment Scores
Risk Assessment Score - Final

Risk Assessment Score - Final
Risk Assessment Scores
Impact Probability Final
(A) (B) (A x B)
Probability (B)
Low Medium High
(2) (4) (6)
Substan>al Extensive
Cri>cal Must monitor and
management management
(6) manage risks
required crucial
(12) (24) (36)
Impact (A)
Moderate May accept risks Management Management

(4) but monitor them effort useful effort required
(8) (16) (24)
Minor Accept risks but Monitor and

Accept risks
(2) monitor them manage risks
(4) (8) (12)
Risk
pageAssessment
Risk 25
Assessment Score -- Impact
Score Impact
Impact
Descriptor Defini>on Score (A)
• Sustained loss of market poten>al/posi>on/reputa>on
• Significant impact in long term compe>>ve edge
Cri>cal 6
• ≥ 10% decrease in sales revenue
• ≥ 20% decline in profit margin
• Some impact on market poten>al/posi>on/reputa>on
• Some impact in long term compe>>ve edge
Moderate 4
• 5-10% decrease in sales revenue
• 5-10% decline in profit margin
• No or minimal impact on market poten>al/posi>on/reputa>on

• No or minimal impact in long term compe>>ve edge
Figure
Minor3.2b.5: Risk Assessment Scores
• ≤ 5% decrease in sales revenue
2
• ≤ 5% decline in profit margin
RiskAssessment
Risk AssessmentScore
Score - Probability
- Probability
Probability page 26
Descriptor Defini>on Score (B)

High ≥ 80% of occurrence 6
Medium 30% - 70% chance of occurrence 4
Low ≤ 20% chance of occurrence 2
Strategy C3-26
Figure 3.2b.6: The 3 Box Solution
Risk Assessment Sanity Check

Risk 3 Box Solu>on*
TheAssessment Sanity Check
The 3 Box Solution* Check those risks from scores 36, 24 & 16, then assign
them into the correct box number
Box
Risk Type Descrip>on Target
Number
Manage the
Box 1 Those intended to improve today’s business performance
present
This is about pruning lines of business that are For companies to endure,
underperforming and/or ac>vi>es that no longer fits the they must get the forces of
Selec>vely Preserva>on (box 1),
company’s strategy.
Box 2 abandon Destruc>on (box 2), and
E,g products, services and people, obsolete policies and
the past Crea>on (box 3) in the right
prac>ces, outdated assump>ons and mind-sets
balance
Those that prepare your organiza>on for the long term ,

Create the
Box 3 winning companies typically allocate 20-30% of their
future
resources to Box 3
* Pioneered by Prof. Vijay Govindarajan (known as VG), who is the Coxe Dis>nguished Professor at Dartmouth’s Tuck School of Business, a Marvin Bower
Fellow at Harvard Business School, and widely regarded as one of the world’s leading experts on strategy and innova>on.
Page 28
Figure 3.2b.6: The 3 Box Solution
Figure 3.2b.7: Risks Identification Review for

Figure 3.2b.7: Risks Identification Review for
First Wave 2016 to Q3-2018 First Wave 2016 to Q3-2018
Total Number
Total Number of RisksFrom
of Risks Iden>fied Identified
Each ZoneFrom Each
Risk Zone
Iden>fica>on Process
Probability (B)
Low Medium High

External Internal
gical Financ
Impact-
Zone Risk Count Technolo e
Probability Prod (13) (14)
7 6 1 uct
Cri>cal
(13) s So
Respo cial
Cri>cal-High A 1 3% Ethics & nsibil
Integrity (2) ity
F C A Moderate-High B 5 16% Social (9)
(8) ness
Busi
Cri>cal-
C 6 19% Natural (20 )
Medium Econo
Environment
Poli>cal (28)mic
Impact (A)
Moderate 12 19 5 Moderate-
D 19 62% (7)
Medium
(15) R & D (16
)
H D B
31 100% HR IT
(16) (12)
Minor
7 4 0
Figure 3.2b.7: Risks IdentificationSRRC
Review
Filterfor
J G E
First Wave 2016 to Q3-2018
Total number of risks iden>fied: 61
Risk Iden>fica>on Process
page 30
External Internal
61 Financ
gical
Technolo e
Prod (14)
uct Risks (13) output
(13) s Soci
Respo al
Ethics & nsibil
Integrity (2) ity
page 29
Social (9)
(8) Busi ness
Figure 3.2b.7: Risks Identification Review for First Wave 2016 to Q3 2018 Natural (20)
Econo
Environment
(7) Poli>cal (28)mic
(15) R & D (16
)
HR IT
(16) (12)
SRRC Filter
61
Risks output
page 29
Strategy C3-27
3.2c Allocates resources in a timely manner to achieve strategic goals
Annual WIGs is synchronized with finance, capital investment and manpower allocation. All departments and Business
Units are required to submit their budget to Budget Office as part of their work plan submission according to the budget
timeline.
Budget Office is part of the Corporate Services with team members sitting in Singapore, reporting to the Chief Financial
Officer. Budget Office’s role is to set-up annual budget and long-term business plan for the Group and Business Segments.
The annual budget and long-term business plan are discussed in the yearly Annual Strategic Meeting, participated by
ASMPT Board of Directors and the EXCO Members. Annual Budget approved by the Board of Directors will then be
cascaded down to the Business Segment levels and tracked on their performance progress every month. If the actual
performance is deviating against budget, action plans will be discussed and implemented to remediate the situation.
Actual financial performance results against budget will be reported to Board of Directors on a quarterly basis through
the quarterly Board meeting.
3.2d Engages key stakeholders in the strategy implementation process

Regular platforms are available to engage key stakeholders in the strategy implementation process which also serves to
Figure 3.2d.1:
obtain feedback Engagement
on the strategies. of Key Stakeholders in Strategy
Implementation Process
Key stakeholders are engaged in the strategy implementation through the following channels (Figure 3.2d.1):
Strategic Events / Mee8ngs Stakeholders / Objec8ves
Present preliminary results to EXCO Members

Quarterly Financial Results - To review quarterly financial results
- To review actual results against budget
EXCO Members and Representa8ves from Business units and Departments

Monthly Financial Review Mee8ng
- To review financial results against budget
EXCO Members and Execu8ves

Monthly Singapore Management
PlaBorm for managers to present and feedback on departmental strategies /
Mee8ng
ini8a8ves
Senior Management and Representa8ves from Business units and

Departments
Monthly Opera8onal Review
- To review business and departments performance against budget allocated
Mee8ng
and KPIs.
- To review market trends and formulate strategy to address them
Figure 3.2d.1: Engagement of Key Stakeholders in Strategy Implementation Process
3.2e Measures performance against plans and targets

Key performance indicators are tracked, monitored and reviewed through various platforms such as Booking, Billing and
Backlog which provide real-time information by products, customers, market applications and geographic distributions.
Budget Office and Business Unit track the booking and billing against budget on a weekly basis. Tracking of actual results
and budget are reviewed and action plans discussed in the monthly Operational Review Meeting.
Strategy C3-28
Teambuilding
4.1
uman Resource Planning

4.1a Anticipates HR needs and develops HR plans and policies which
are aligned to strategic goals and organisational values
We advocate a tripartite approach in playing the roles of In February 2019, we have been acknowledged as the
governance, business enabler and employee champion seventeenth (17th) company in Singapore and the first
in our HR process of identifying current and future HR (1st) in Semiconductor, Precision Engineering industry,
needs leveraging on our six HR functions (Figure 4.1a.1) to demonstrate exemplary support for our HR team to
as conduits to help us secure the right people for the right be IHRP-certified with the Institute for Human Resources
jobs, build a supportive and great place to work as well Professionals (IHRP) Corporate Partner Program, an
as develop our capabilities and capacity to ensure our exclusive corporate-led initiative. It is part of our continual
organization’s success. commitment to build a world-class HR community in
Singapore, maximize human capital and contribute to
For example, we scanned the external environment to business growth.
anticipate needs in a changing workforce market and
adapt our human capital aligned appropriately to the This IHRP competency framework has been mapped
organization’s strategic goals and operational priorities. directly into our HR charter which is aligned with ASMPT
Through progressive people practices embedded within strategic goals and operational priorities. Our HR charter
our recruitment practices, grievance handling, flexible translates into desired mindset and behavior, enable our
work arrangements and focus on providing a supportive functional roles with the necessary competencies and
work environment, among others, it enables our workforce achieve HR thrusts and outcomes through foundational
to thrive and achieve organizational goals amid a volatile, and technical competencies.
uncertain, complex and ambiguous environment.
ASMPT GOALS AND VALUES
HR CHARTER
Mindset & Behaviours
VISION Be a trusted partner in ASMPT
Display business and financial acumen
To support ASMPT becoming a Great Place to Work where Demonstrate change leadership
MISSION people are inspired to deliver outstanding results
Adopt a future orientaGon
Business Enabler
ROLES Employee Champion Uphold professional conduct
Governance
FuncGonal Competencies
HR FUNCTIONS Plan – corporate business planning
Recruitment & SelecGon Learning & Development ASract – talent acquisiGon
Employee RelaGons (ER)
(R&S) (L&D)
Develop – learning & development
HR InformaGon System
Payroll
(HRIS)
Shared Services (SS) Engage – employee relaGons
Separate – business partnering
HR THRUSTS
FoundaGonal Competencies
AnalyGcs and insights
OUTCOME RelaGonships and communicaGon
Technology and operaGonal excellence
Labour policies and legislaGon
REVIEW
Figure 4.1a.1: HR Charter aligned to the Company’s strategic goals and operational priorities (subscribed to IHRP competencies framework)
People C4-29
We leverage on the Agile Project Management (APM) We take on key leadership position within the HRMC
(Figure 4.1a.2) approach, an iterative approach to planning Central Committee and meet monthly with other
and guiding project processes. The APM approach is companies to discuss strategic HR topics and legislation.
implemented in the 2 key thrusts: Operational Excellence We anticipate HR needs through gaining first-hand
and HR digitalization involving both internal and external information from the meetings and devise appropriate
stakeholders. We apply APM across several projects, timely plans to address them. We serve to represent
including our new employee medical claim system, members’ interests and provide a credible industry voice
effective from 2019. Given the iterative development and when engaging government and non-government agencies
early and incremental feature delivery, we had successfully in policies affecting the industry.
planned for and released a functional ‘ready to market’
product and reap the following benefits. We maintain good relationships with organizations
such as Singapore National Employer Federation
Contribution to Industrial and Government Agencies (SNEF) for industry engagement and partner Singapore
Semiconductor Industry Association (SSIA) for best
We also contribute to our industry by playing an active role
practices sharing. We also subscribe to and benchmark
in the Human Resource Management Congress (HRMC),
against the Tripartite Standards to reinforce our adoption
comprising close to 40 companies of the high-technology
of Fair and Progressive Employment Practices (TAFEP).
electronics industry (ourselves included) and accounting
for over 68,000 employees within Singapore.
We work closely with both industrial and government
agencies to support and develop national agendas. As
In March 2018, we hosted a meeting for 60 HR leaders
part of our L&D contribution, we received a letter of
and shared on how we leverage technological tools (i.e.
appreciation from SkillsFuture Singapore towards the
Figure 4.1a.2:
Qualtrics) Applying
to further internal HR agile manifesto
capabilities and better in ATS
development of the Skills Framework (SFw) for Training
engage our stakeholders.
and Adult Education (TAE) in November 2018.
THE AGILE MANIFESTO
Agile is the ability to create and respond to change in order to succeed in a uncertain and turbulent environment
AGILE NON-AGILE ATS APPLICATION

Employee Medical Claim Portal Benefits of Agile:
CUSTOMER over CONTRACT NEGOTIATION √ Involve stakeholders throughout ≥ 70% development cost
COLLABORATION savings
development process Agile: S$6,000
Non-agile: S$21,000
√ Understand requirements from
INDIVIDUALS over PROCESSES & TOOLS stakeholders through review Cost
& INTERACTIONS meeGngs
√ Use MoSCoW prioriGsaGon

RESPONDING over FOLLOWING A PLAN
technique to plan features for
TO CHANGE different iteraGons
Time Quality
√ Document requirements as user 3.8X faster OpGmised medical
stories, which are sufficient enough development claim processes
WORKING SOFTWARE over FULL DOCUMENTATION
to begin development Agile: 4 months. Agile: 2 steps
Non-agile: 15 months Non-agile: 6 steps
Figure 4.1a.2: Applying agile manifesto in ATS
4.1b Establishes a recruitment and selection process to meet

organisational needs
As business partners, we build trusting partnership with the business units through the talent acquisition process and
manage business outcomes and hiring needs. We keep pace with flexible hiring needs and evolve our recruitment
schemes to engage our workforce effectively. (Figure 4.1b.1)
We leverage on market leading platforms and solutions such as LinkedIn and SAP Success Factors modules, Recruiting
Marketing (RMK) and Recruiting Management (RCM) to reach out to both active and passive job seekers. These effective
recruiting algorithms reduce our turn-around time, maintain a database of potential talent audiences and match the right
candidates to our job requirements. Successful candidates are welcome to the family with a comprehensive onboarding
program which includes culture and connection experience with Senior Management.
People C4-30
TA L E N T A C Q U I S I T I O N
Planning ASracGon Outreach SelecGon Onboarding
Headcount Planning Recruitment Talent Pipeline Interview OrientaGon

& BudgeGng Schemes
Enhance employer Use of Competency- Includes welcome
Conduct annual IdenGfy and adopt branding through Based Interview package, first day
budgeGng exercise reacGve and proacGve collaboraGon with EvaluaGon Form, inducGon and
and eview approved schemes which InsGtute of higher aligned to the New hire orientaGon
headcount in staff include, temp, Learning company POWER programme
requisiGon system contract, intern, values
outsource
Recruitment Needs Sourcing & ProbaGon

AdverGsing Strategy
Provision for long- New hire’s
term and short-term Tap on to external and performance review
organisaGon needs internal recruitment with reporGng
plajorms supervisors
Job DescripGon Candidate

RelaGonship
Review job descripGon Management
and job specificaGon
and conduct Use of social media to
competency mapping seek out passive
candidates
Figure 4.1b.1: Business partnership infused into the talent acquisition process
4.1c Identifies and grooms employees for high performance

Iden@fying & Grooming Process ATS Applica@on
Aligning with
Refer to Category 3 Strategy
Organisa@onal Goals
Iden@fy Key Roles and Define

Exposed to new func@ons, Redefined work boundaries, Involvement in new working commiYees
Leadership Capabili@es
Iden@fy Employee’s Performance

Performance Management System, Organisa@on appointment
and Emerging Leaders
Develop and Groom Employee Ver@cal progression – Promo@on, Lateral progression - Job enlargement, Horizontal progression - Job rota@on
Learning & Development interven@ons

Transi@on to New Role
(Sponsorship, Leadership development, Flagship programme, Func@onal/ Technical development)
Track and Review Performance Performance appraisal (twice yearly), Reward and recogni@on interven@ons
Figure 4.1c.1: Process of Identifying & Grooming Employees
People C4-31
DEC Job Enrichment and Exchange Program Talent undertakes a 6 months group project
Involve in individual training per development plan and

SEP Develop Individual Poten@al Program (DIPP)
defined target posi@on
Involved in design thinking hackathon and con@nued

JUN Design Thinking & In conversa@on with Leaders
support from leaders
Talent starts receiving mentorship from senior leaders

APR Talent Mentoring & Young Engineer Leader Program
whilst aYending the training program
Mentor coaching skills training

JAN Mentor Training
Talent manager briefing
Figure 4.1c.2: Learning & Development (L&D) interventions - Young Talent Program Roadmap
E
4.2
mployee Learning and Development

4.2a Engages employees to identify current and new competencies
required to achieve organisational goals
We embrace the spirit of the learning organisation Training Needs Identification/ Analysis
philosophy that “We have the POWER to learn”.
Our annual training needs identification/ analysis exercise
In line with our strategic thrusts and WIGs, we endeavour adopts a systematic PDCA cycle (Figure 4.2a.4) to identify
to shape a learning organisation culture and build a high current and future competencies and requirements
quality and responsive ecosystem to support the future of for continuous improvement in our learning process
work and provide learning and development opportunities management.
to employees to achieve organisational and personal
growth. Our L&D planning process and three domains Evaluation
of L&D (Figure 4.2a.1) encompass the agile mindset and Our course evaluation is built upon the Kirkpatrick
approach of lifelong learning. Model for analysing and evaluating the results of training
courses and flagship programmes. We had successfully
Career Development Pathway implemented digital processes such as interactivity tools
The Precision Engineering (PE) framework is an integral i.e. Kahoot and e-course evaluation for participants, that
component of the PE Industry Manpower Plan and aims is, Mentimeter for further productivity gains.
to enable skills mastery in the PE industry. Our career
development pathway subscribes to the Skills Framework Operational Review
(SFw) for Semiconductor, PE which is jointly developed by Our annual operational review exercise adopts an E2
SkillsFuture Singapore (SSG), Workforce Singapore (WSG), (effective-efficient) approach to increase the value of
the Economic Development Board (EDB) and Enterprise learning by identifying and prioritizing opportunities for
Singapore (Figures 4.2a.2 and 3). financial and operational improvements to stay on the
competitive edge. We have been progressively digitising
Learning Roadmap our operational processes. For example, all our training
We identify and map the competency for all employee and administrative tasks and processes may be executed
types into three broad categories: (i) Technical & Personal directly from our internal Training Management System
development, (ii) Flagship programs and (iii) Sponsorship (TMS).
for higher education.
People C4-32
L&D Overview
ImplementaGon and
Provisioning the Suite of
L&D Planning Process
Consolidate idenGfied current OpportuniGes

and future competencies and
Input from stakeholders requirements L&D Deliverables
Review EvaluaGon
3 Domains of L&D
Training AdministraGon Courseware Development FacilitaGon

A set of effecGve administraGon A conGnuous design and A role and process to create an
procedures to underpin the learning development process that leads to an environment which encourages and
& development funcGon. enhancement of facilitaGng and effecGvely enable our employees to
learning experience. flow ideas and soluGons.
Figure 4.2a.2: Career Development Pathway – Non-Managerial
Employee Figure
Figure4.2a.3:
4.2a.1: Career Development Pathway – Managerial Employee
L&D Overview
Non-Managerial Employee
Managerial Employee
Career Development Pathway Career Development Pathway
Technical Pathway Non-Technical Pathway Technical Pathway Non-Technical Pathway
Senior Engineer –
Senior Engineer
R&D
Senior Officer Fellow ExecuGve
Engineer I Engineer I – R&D Officer I Chief Engineer Senior Director
Engineer II Engineer II – R&D Officer II

Director
Engineer III Officer III

Principal Engineer Senior Manager
Engineering Assistant
Manager
Figure 4.2a.2: Career Development Pathway –
Non-Managerial Employee
Staff Engineer SecGon Manager
Figure 4.2a.5: Training Needs IdenGficaGon/ Analysis Process
Figure 4.2a.3: Career Development Pathway – Managerial Employee
Present analysis to develop Prepare TNI/ TNA based on the

more effecGve and agreed approach and
contextualised learning objecGves.
experience.
ACT PLAN
CHECK DO
Analyse quanGtaGve Consolidate
and qualitaGve data OrganisaGon, Industrial,
from focus group Legal and Learner’s (OILL)
discussion/ management needs.
review, performance appraisal
plajorm and employee
engagement programmes.
Figure 4.2a.4: Training Needs Identification/ Analysis Process
People C4-33
4.2b Provides learning and development opportunities to employees to
achieve organisational and personal growth
We provide a blended suite of learning and development
opportunities to help facilitate and catalyze our employees
to achieve organisational and personal growth (Figure
4.2b.1).
Flagship Programmes
We conceptualize, develop and implements flagship
programmes in collaboration with business leaders to
address specific business needs and performance gaps
(Figures 4.2b.2, 3 and 4). Figure 4.2b.4: Service Engineer Accelerated Learning program is curated to prepare Field Service
Figure 4.2b.3: Supervisory Excellence for Employee Development (SEED)
Engineers with the knowledge and skills to align and be assimilated into the organization
Program is curated to enhance supervisors’ performance and productivity
E-Learning to effectively manage their team in a represented environment
We identify the required competencies and incorporated

ICT tools and made them available to all employees to
enhance learning. With Udemy for Business e-learning
platform, employees are able to meet their learning
needs online and on-demand. The e-learning modules are
packaged into a series of thematic learning interventions
for targeted participant pools.
Product Training and Overseas Attachment

We provide diverse opportunities to build enthusiasm,
courage and confidence in our employees as our
ambassadors of our house products (Figure 4.2b.5).
Nanyang Technological University (NTU) Co-facilitation Figure 4.2b.4: Service Engineer Accelerated Learning programme is
Workshops curated to prepare Field Service Engineers with the knowledge and
skills to align and be assimilated into the organization
As an industry leader, we want to set our footprint for
our future talents. We partnered with NTU Career and
Attachment Office for the Insider Series: Exclusive co-
facilitated workshops to empower students to gain
insights on the industry, spur meaningful discussions and
innovative ideas (Figure 4.2b.6).
SUITE OF L&D OPPORTUNITIES
INTERNAL TRAINING EXTERNAL TRAINING
Category 1: Seminar/ Forum/
Core Training
Conference
FuncGonal/ Technical Skills Category 2: Course/ WorkshopFigure 4.2b.6: Ms. Angy Ang, Senior Learning Development Officer facilitated the Emotional Intelligence at
the Workplace in NTU on September
Figure 4.2b.5: Basic and Advanced Laser 1205 product training at
Personal Development Category 3: Licence & CerGficate
ALSI Beuningen in August 2017
Category 4: Sponsorship for Higher
Other Courses
EducaGon
Overlay: Product Training &
Flagship Programmes
Overseas ASachment
Figure 4.2b.1: The L&D suite of opportunities
Figure 4.2b.6: Ms. Angy Ang, Senior L&D Officer, facilitated the
Emotional Intelligence at the Workplace in NTU in September 2018.
Figure 4.2b.2: Management Induction (M3) Programme Participating NTU students rated the course 4 out of 5!
People C4-34
E
4.3
mployee Engagement and Well-Being

4.3a Supports individual and team participation to achieve
We foster a positive work environment which yields commendable results in supporting individual and team participation
to achieve our organization goals and employee’s participation (Figure 4.3a.1). For example, our ASMPT Quality Award
(AQA), now in its 11th year, a company-wide initiative that nurtures an innovative climate and encourages diverse and
inclusive teams to conceptualize and develop ideas. Another example, will be the recently concluded ASMPT Global
Technology Conference in November 2018, where more than 200 of our R&D employees gathered together to share
knowledges, embrace new ideas and drive innovation.
Individual
INDIVIDUAL & TEAM ENGAGEMENT Team
Domains Category Employee Engagement Programs / Schemes

! ASMPT Quality Award
Product & InnovaGon ! Global Technology Conference
Growth ! 4 Disciplines of ExecuGon (4DX)
! Suit of L&D opportuniGes (refer to 4.2b)
Learning & Development
! Lunch workshops
Workplace Safety & Health ! Workplace Safety & Health (WSH) PromoGon
! Interest Groups (Yoga, Zumba, etc)
Healthy Workforce ! Fruits Week
! Bazaars & Roadshows
! FesGve Giveaways
Welfare ! Interest group funding scheme
Employee Benefits
! Teambuilding funding scheme
! Get-together funding scheme
! Club House (Skyloz) and Staff Cafeteria
FaciliGes ! Maternity and First Aid Room
! Pantries (i-Space, M-Café and others)
! Lunch with ExecuGve/ CEO
Management InteracGon ! Town-hall MeeGngs
! Teambuilding
! Annual Dinner/ Family Day
! Opening of TPB2 and Engagement
Inclusion & Corporate/ FuncGonal Events
Programmes
Belonging ! Plant Tours and ExperienGal Outreach
Inclusion
! Blood DonaGon
Corporate Social Responsibility
! Race Against Cancer
Learning & Development ! New Hire OrientaGon Programme
Policies ! Flexi work arrangement
Figure 4.3a.1: Examples of individual and team participations and schemes to support and achieve organisational goals
People C4-35
4.3b Develops a work environment that enhances employee health and
wellbeing
In continuing our aspiration to be a great place to work, HR CHARTER
our Happy Framework enable us to develop a happy and # H a p p y Wo r k H a p p y Yo u
healthy workplace which yields high levels of engagement
which goes directly to performance and productivity, GROWTH
Learning & Development
innovation plus creativity, team work and collaboration -
#HappyWorkHappyYou (Figure 4.3b.1). BELONGING
Corporate/ FuncGonal Events, CSR, CommunicaGon
DOMAINS
Channels
We promote organic growth through committee
WELFARE
formation. Our talents underpin the development of a Healthy Workforce, Employee Benefits, FaciliGes, Workplace
supportive work environment under the guidance of our Safety & Health
Management representatives. This partnership facilitates INCLUSION
both professional and personal development and creates New Hire InducGon, Flexi-Hours
accountability and ownership for our talents. POLICY
RESOURCES
Management HR CommiSees
Employees Systems External Vendors
MEASUREMENT
E V A L U AT I O N
& REVIEW
Happy Framework Review with internal and Review documentaGon and

external stakeholders results
Figure 4.3b.1: Happy Framework
4.3c Measures employee satisfaction, engagement and well-being

In October 2016, we partnered with an independent an inspiring increase of 6% across all 5 dimensions in just
party, Great Place to Work® Institute (GPtW), for our ATS a short span of two years! This is testimony to our strong
Workplace Culture Survey to obtain employee feedback Management support and intent to provide and facilitate
and input on how we can further enhance employee resources for a great place to work.
engagement, inclusion, welfare, belonging and accelerate
growth. Two new committees with representatives from various
departments were subsequently formed to review and
In 2018, our ATS Workplace Culture Survey participation address the consolidated feedback. Many initiatives
rate increased significantly since the previous assessment such as the enhanced Flexi Benefits, introduction of ‘’Get
in 2016. This is attributed to better employee engagement Together Fund’’, curation of ‘’Supervisory Excellence for
on the ground and improved willingness and participation Employee Development’’ (SEED) programme and the
from our employees as well as actioned feedback to formation of the Canteen Committee, amongst others,
provide paper alternatives for our employees since the were then implemented.
last survey. Our trust index, the key indicator registered
People C4-36
E
4.4
mployee Performance and Recognition

4.4a Supports high performance, productive and innovative behaviours
to achieve organisational goals
4.4a.1: The execuGon of each step within the Performance and
iGon Framework4.4b Reinforces
is closely desired
linked to POWER values behaviours and organisational value
PASSION Performance Planning

Q1
Q1
Q1
Q1 Q2
Q2
Q2
Q2 Q3
Q3
Q3
Q3 Q4
Q4
Q4
Q4
Allowances
Allowances
Allowances
Allowances Fixed
Fixed
Fixed
andand
Fixed
Variable
and
Variable
and
Variable
Variable
Allowances
Allowances
Allowances
Allowances
Performance Annual
Annual
AnnualWage Wage
Wage
Annual WageSpecial
OWNERSHIP Special
Bonus Bonus
Special
Special Bonus Bonus AWS AWS
AWS AWS
Monitoring Supplement
Supplement
Supplement
Supplement
(AWS) (AWS)
(AWS) (AWS)
& Bonus
& Bonus
& Bonus Performance
& BonusPerformance
Performance Bonus
PerformanceBonus
Bonus Bonus
MeritMerit
Merit Increment
Increment
Merit
Increment
Increment
Performance
WIN Increment
Increment
Increment
Increment
EvaluaGon PromoGon
PromoGon
PromoGon
PromoGon
Increment
Increment
Increment
Increment
PGS
PGSPGS
PayoutPayout
Payout
PGS Payout PGS Payout
PGS Payout
PGS
PGS
Payout
Payout PGS Payout
PGS PGS
PGS
PayoutPayout
Payout PGS
PGS PGS
Payout
PGS
PayoutPayout
Payout
IncenGve
IncenGve
IncenGve Scheme
Scheme
Scheme
IncenGve Scheme
PSS
PSSPSS Payout
Payout
Payout
PSS Payout
EXCELLENCE Rewards & RecogniGon
Transfers/
Transfers/
Transfers/
Transfers/ Transfers/
Transfers/
Transfers/
Transfers/
Transfers/
Transfers/
Transfers/
Transfers/
Career
Career
Career
Career RotaGon
RotaGon
RotaGon RotaGon RotaGon
RotaGon
RotaGon RotaGon RotaGon
RotaGon
RotaGon
RotaGon RotaGon
RotaGon
RotaGon
RotaGon
Development
Development
Development
Development
PromoGon
PromoGon
PromoGon
PromoGon
RESPECT Review
Awards
Awards
Awards
Awards
Ceremony
Ceremony
Ceremony Annual
Ceremony Annual Dinner
Dinner
Annual Dinner
Annual Dinner
Figure 4.4a.1: The execution of each step within the Figure 4.4b.2: Types of pay-out and pay-out periods
Performance and Recognition Framework is closely
Cat 4.4 Employee Performance & RecogniGon
linked to POWER values
COMPETENCIES
ORG. VALUES
MANAGERIAL EXEMPT NON-EXEMPT
P ASSION
• Focus on Customers
• Adaptability & Flexibility
• Customers’ Responsiveness
• Quan@ty of Work
O WNERSHIP
• Decision Making
• Role Model
• Commitment
• Job AStude
• Organising & Planning Ability
•
•
•
Mee@ng Schedule & Targets
Job AStude & Commitment
Ini@a@ve & Independent
W IN
• Strategy
• Innova@ve Entrepreneurship
• Customers’ Responsiveness
• Innova@on
• Quality of Work
E XCELLENCE • Execu@on Excellence
•
•
•
Job AStude
Analy@cal Skills
Technical Skills
• Quality of Work
• Interpersonal & Communica@on Skills
• Ini@a@ve & Independent
R ESPECT
• Coaching
• Promo@on of Teamwork & Alignment
• Teamwork • Teamwork
Figure 4.4b.1: Performance Criteria Mapping
People C4-37
4.4c Rewards and recognises employees to achieve organisational goals
Rewards and recognitions are essential to an outstanding workplace as we value, respect and recognise the contributions
of our employees. We administer a myriad of monetary and non-monetary reward mechanisms to motivate our employees
for higher performance. Besides improvements in employee engagement and overall work productivity, it also induces
desired work behaviours in other employees as well (Figure 4.4c.1).
ORG. VALUES OBJECTIVES MONETARY NON-MONETARY EXAMPLES
PASSION • To highlight notable Fixed Bonus Awards Ceremony/ Token • ASMPT Quality Award
employee achievements • Annual Wage of AppreciaGon (AQA) – Awarded to
Supplement (AWS) • ASMPT Quality Award winning teams with
• To inspire and insGl passion (AQA) innovaGve proposals to
in others to excel in their • Patent Award enhance quality
respecGve funcGons • Long Service Award standards in areas of
producGon and quality
control
OWNERSHIP • To empower employees to IncenGves Award Ceremony/ Token • Skyloz CommiSee – A

assume greater job • ProducGon of AppreciaGon self-organised team of
responsibiliGes beyond IncenGves • CommiSee Award high-performing
their exisGng job funcGon • Lead Auditor & employees from various
Allowances Internal Auditor job funcGons, including
• To build the employee’s • Transport Allowance Award IT, MarkeGng, R&D and
capacity and efficacy HR, managing staff
through equipping them Job Scope recreaGonal faciliGes
with adequate resources • Appointment in and acGviGes in Skyloz
to perform their work CommiSee
WIN • To rejoice in and celebrate Variable Bonus AppreciaGon Luncheon • Annual Dinner –
the organisaGon’s • Special Bonus • Product Unit InvitaGon is also
successes alongside our • Performance Bonus Achievement extended to employee’s
employees who form the • CelebraGons spouse to be part of the
contribuGng members and special occasion
make the achievements Corporate Events
possible • Annual Dinner
• Family Day
EXCELLENCE • To retain and moGvate Increment Job Scope • PSS – Targeted long-
employees for high • Merit Increment • Succession Planning term incenGve scheme
performance • PromoGon Increment with payouts in cash
and ASMPT shares
• To foster employee IncenGve Schemes awarded to eligible
idenGficaGon with • Performance Gratuity Senior employees by
organisaGon’s success and Scheme (PGS) merit
reward performance based • Performance Sharing
on specific goals and Scheme (PSS)
objecGves
RESPECT • To promote respect and Employee Funds & CommunicaGon • Flexi-Benefit Scheme:
camaraderie spirit among Schemes • Official Memorandum One-Gme top up of S
employees and create a • Teambuilding Fund of RecogniGon $500 for all employees
harmonious work • Get Together Fund • OrganisaGon-wide in 2018 in recogniGon of
environment for all • Flexi-Benefit Scheme Collaterals their contribuGon
Figure 4.4c.1: Rewards and Recognition Mechanisms and the linkage to POWER values
People C4-38
I
5.1
nnovation Capabilities
5.1a Develops and implements innovative ideas to create value
The accelerated growth of Virtual/Augmented Reality
*VR/ AR), 5th Generation data network (5G), Artificial Direc3ves:
Intelligence (AI), Internet of Things (IoT) and autonomous -- Business Unit Strategy
driving translates into higher demand in memory, -- Product/Process roadmap
processor, logic and power chips to cater for services
and products such as cloud computing servers, block-
chain, smart devices, wearables and advanced mobile
Resources:
appliances. Furthermore, to fuel the Era of Big Data, the
-- Training/ Seminar
upcoming 5G network mobile communication is creating
-- CAPEX/budget
more opportunity to device makers and service providers
-- Patents
as well as security concern.
As embracer and enabler of these exciting digital

Environment:
technologies, innovation is paramount element and
-- Innova3on Summit
essential for maintaining our leadership position by
-- ASMPT Quality Award
innovating equipment and materials. These opportunities
-- Global Technology Conference
generated intense global competition to meet customer
expectations in term of product quality, cost effectiveness Figure 5.1a.1: Innovation Framework
and advanced capabilities.
Directives: We engage our staff continuously and
We have made innovation one of our sustainable core
consciously to grow our repertoire of technology offering
competencies to achieve one of our Missions - We
deliver the Highest Value and Innovative Solutions to our to provide a state-of-art technology and competitive
Customers through Products and Solutions with Advanced products.
Technologies and Excellent Quality.
Resources: Competent staff is critical to our growth and
To accomplish this mission, we have established an sustaining competitiveness. We have around 78% or more
innovation framework to support and nurture our than 800 staff having tertiary qualifications (Diploma and
competitiveness. above), around 21% or more than 200 staff with Master or
PhD qualifications.
ATS Innovation Framework
In 2018, we collaborated with SIMTECH-SSG and Skills
We understand the importance of staff engagement in Future SG (WSQ) to enhance staff competency in data
applying innovative mindset in their work (Figure 5.1a.1). mining technologies and data analytics. In one example,
we had achieved remarkable success by building a model
In year 2017, we offered our customers our “Smart based on fuzzy neural network to “predict tail length and
Factory” digital solution for light-off operations with our Free Air Ball in wire bonding process” and implemented in
automation capability, robotic know-how and advanced Aero wirebonder. This wire bonder achieved 95% accuracy
software with data analytics for remote controls. Since the in prediction, reduced 50% process development time
inception, we had put in more focus to create best-in-class and 75% manpower reduction. This training program was
equipment with intelligent factory management system. awarded the “Best WSQ Industry Partner 2018” on 16th
The top down approach is effective to steer us to create August 2018 as testament of our commitment to our
higher value for semiconductor industry. innovation and applied data analytics.
Our annual product roadmap meeting is instrumental to Annually, we spent about 10% of our Backend equipment
strategize in developing new products. This global event revenue to fund R&D projects. We view Intellectual
involves executives and key personnel from Sales/ Property (IP) as an important element for innovation and
Marketing, Finance, Product Engineering, Enabling encourage our staff to patent our state-of-art inventions
Technology Group and Manufacturing. It serves as the for both designs and processes. To date, we have a total
most important platform for us to value-add our products of 1412 US patents granted. The Annual Patent Award
with advanced technology and unique value proposition. Ceremony held during our Annual Dinners to honour the
With careful planning and execution, crucial support and inventors.
greater awareness are instilled.
Processes C5-39
Environment: We engage our staff in this innovative We held discussions at Innovation Corner regularly. The
journey by exposing them to the latest technology and Corner was designed with a relaxing ambient, equipped
knowledge via various platforms such as technical with large TV screen and writing board to facilitate
seminars, technical publications, trade exhibitions and brainstorming and creation of ideas.
international conferences. We have our Annual Innovation
Summit to recognize innovative projects and promote The innovation framework described above is designed to
our ASMPT Quality Award (AQA) to spur innovations and support our mission. To sum-up what we had done to stay
continually celebrating innovation to ensure everyone true to our mission statement, we shall once again glance
shares the same commitment that innovation is our key at our drive for “Smart Factory” solution. The aim is to
to success. help semiconductor industry to achieve:
• Higher productivity, reduce manual work
In November 2018, we invited over 200 R&D engineers • Higher quality, Zero-Defect and reduce waste
and university professors from Asia & Europe to our • Best-in-class equipment and processes
“Enabling Smart Factory” Global Technology Conference
held in Hong Kong R&D Centre. They shared successful To achieve those targets, we deliver products and services
innovations and learned about Advanced Engineering in four key innovation areas (Figure 5.1a.2):
Materials, Mobile Device Application, Machine Prognostic • Advanced Production Capabilities
& Health management for predictive maintenance, AI • Automation
applications and Industrial Internet of Things (IIoT) for • Process Integration
equipment and factory level. • Material Logistics
Global Technology Conference 2018
Advanced Production Capabilities Automation
• Best-in-class Equipment • Towards unmanned operation at line

• Real time process performance monitoring • Self-calibration
• Auto-ID and recipe control • Auto device setup
• Augmented Guidance Operator advisor • Auto conversion
Smart diagnostic • Auto consumable replacement
• Predictive maintenance - Wire spool, capillary, collet, epoxy, ejector
- Smart Sensors
• Remote monitoring and recovery
Material Logistic Process Integration
• Uninterrupted material supply to equipment • Process Expert System & Data Analytics
• Mobile Robot • Optimized Performance & Zero defect
• Material Tower • Line Planning
• Material Manager Software • Yield and Performance Monitoring
• Inventory Traceability • Predictive Maintenance
• Automated Storage and Retrival System
• Smart Traffic Control
• Automated Guided Vehicle
• Smart planning System
Figure 5.1a.2: Innovations Identified for Smart Factory
Processes C5-40
5.1b Involves key stakeholders in generating and implementing
innovative ideas and solutions
We believe in seeking creative ways for problem solving, We have also organised GTR sharing sessions to promote
making it easier for a person who is burdened with it. Our and instil Ownership of POWER with “I care” quality
employees, business partners, suppliers and customers culture. The GTR teams share the suggestions and
are stakeholders in this journey. In fact, to maintain implemented ideas during the Town Hall meeting or Get
healthy and win-win collaboration with stakeholders, we Together sessions.
are guided by ASMPT core values “POWER” to make sure
ATS is always a great partner and great place to work. ATS One example of innovation project with our partner (ATC)
has a wide range of innovation initiatives to encourage our is “material transfer by automated guided vehicle”, which
customers, partners and employees to carry out research helps ATS to reduce workshop machine manning-hours
and development plus innovations and tests. This includes and reduce waiting material transfer time.
the Innovation Summit to promote R&D, test-bedding,
product development and technology adoption as well ATS Etched Leadframe Production “iFactory connectivity”
as patents, improvement projects, joint developments of project planned and executed with partners in ATC. It is an
modules with partner. example of modernized factory process flow. Production
machines are connected to ATS network for online
Let us look at the conventional semiconductor wire monitoring, data logging and real-time feedback. During
bonding process, where there had been no major machine setup, after an operator has scanned the job-
breakthrough in the transducer technology since 1960. card, system will read parameters from server and carry
This old technology delivered ultrasonic energy only in out setting automatically. This prevents human mistakes.
Y-direction that could cause effect of “uneven-bonded ball In case machine breakdowns for long time, the system is
size quality in X-Y directions”; it was the wish-list from our able to trigger alert to related parties to take action.
wire bonder customers to overcome this effect.
Other innovations include predicting pump failure by
It compels ATS engineers and suppliers from Design analyzing pressure and frequency.
and Process Development team to study the solutions.
Finally, in 2016, ATS launched a patented (reference US Innovation projects in Leadframe production roadmap
9,640,512 B2) and production ready design called the were established and it is fanned out to our partners in
“Aeroducer with X-Power” in ATS latest Wire Bonder ATM and AMC.
equipment. It is for the first time a dual-directional (X-
Y) capillary oscillation technology is introduced in wire- Our ICT department has developed and implemented
bonding process. innovative ideas to create values such as introducing
VR/AR technology to reduce development cost, speed
Our patented transducer improves the ball size quality in up product design, facilitate process reviews, ergonomic
X-Y directions and intermetallic coverage and further gain review, production work instructions and product service
in term of productivity. This achievement is particularly trainings.
crucial for difficult and challenging IC devices that require
stringent bonding requirements. Our breakthrough design
delighted many of our customers and they recognized
its effectiveness to improve quality and stability of
wire-bonding process. The Aeroducer technology has
shortened bonding time up to 70% and increased
productivity by more than 20%. It creates a new dimension
AGV Robot
in wire bonding industry (Figure 5.1b.1).
Simple Innovation ideas and improvements are harvested

through various approaches, including gathering inputs Figure 5.1b.2: Patented Aeroducer with X-Power
and suggestions from employees from the ground,

bottom-up suggestions from the Grass Root teams; we
call it Great Team from the Roots (GTR). Empowerment,
engagement and involvement from the ground to drive
for quality improvement with innovative ideas are keys
in improving our processes and product quality. There
were various good innovative ideas suggested by the
GTR teams, which were implemented in the production
processes.
Figure 5.1b.1: Patented Aeroducer with X-Power
Processes C5-41
P
5.2
rocess Management
5.2a Manages key and support processes to meet customer and
operational requirements
We manage our key and support processes to meet extended to all sites, Facilities/Green Management
customer and operational requirements according to our expertise sharing and Quality Assurance practices (Figure
Overall Process Management Framework as shown in 5.2a.2).
Figure 5.2a.1.
Commodi2es Business process
The key processes are Corporate Services (consisting of Procurement Site Procurement
Procurement & Data Analy2cs
Corporate Operations, Resources Control & Compliance
and Enabling Technologies), Customer Relationship
Management (CRM), Product Life Cycle Management EM
(PLM) and Supply Chain Management (SCM). Each key External Site EM Commodity
EM
Business
Processes and
process is measured by KPIs and aligned to our Vision, Manufacturing Data Analy2cs
Mission and Values.
The support processes work in the background, providing Facili3es Service Management Property
effective support for our key processes to achieve targets,
which ultimately contribute to the organisational goals
and objectives.
Figure 5.2a.1: ATS Overall Process Management Framework
Quality Product Quality Process Quality People Quality
Assurance
Figure 5.2a.2: Corporate Operations

Vision Mission Values
Corporate Services
Resources Control
Corporate Opera2ons & Compliance Enabling Technologies
Procurement
Customer Rela3onship Product Lifecycle Supply Chain
Management (CRM) Management (PLM) Management (SCM) Within Procurement, we operate at
Customer Product Porrolio
three levels namely Site Procurement,
Requirement Management Plan Commodities Procurement and Business
Product Process and Data Analytics.
Customer Development Source
Experience
Commercialize Make Our various sites have responsibilities
Customer for different products to meet with the
Sa2sfac2on
Phase Out Deliver wide spectrum of applications such as
Opto wirebonding and IC wirebonding.
Site procurement is responsible to focus
Facili2es Financial
at each site for the assigned products to
Quality Info & Comm Human
Management Technology Resources Management Management fulfil customers’ demands in meeting with
their shipment dates and quantities for on
Figure 5.2a.1: ATS Overall Process Management Framework time delivery (OTD).
With all the various sites purchases,

Commodity Procurement team will
Corporate Operations
consolidate our purchases and evaluate
While ASMPT has facilities globally with autonomous sites suppliers’ performance for Quality, Cost,
operations responsibilities, the Corporate Operations is Delivery and Service & Technology. The
one of the three centralized functions based in Singapore team will select and allocate the business
to support the global operations in our organization, to volume according to each performance.
leverage the advantage of consolidated resources like This team will drive cost saving projects to
combined global purchase volumes for bottom discounts keep ASMPT’s competitive edge.
Processes C5-42
With ASMPT Merger & Acquisitions, Focus Groups are disposal. To Management, Facilities team is responsible
set up to drive Integrated Procurement Synergy (IPS) to for compliance to all related legislations and codes of
facilitate the various companies in its integration process practises involving environmental, health and safety,
by carrying out cost reviews and to identify opportunities building codes, mechanical and electrical installations
of cost savings to help improve on our cost structure and standards, indoor air/environment quality standards,
gain better competitiveness in the market. For example, as well as all IT systems related to the operations and
collaboration between ATS Commodity team with SMT maintenance of facilities systems and building. As for
and AMICRA. The respective teams have monthly and Property, Facilities team is responsible for the evaluation
quarterly meetings to report the status and progress of and execution of capital projects and renovation projects
the synergy projects to Management. for buildings and systems.
To lead the Procurement and EM team on the journey Quality Assurance

to digital procurement/Big data analytics, we set up
QA focuses on three key processes involving Product
this dedicated group to embark on projects to review
Quality, Process Quality and People Quality.
our procurement business processes. We will review to
utilize available data to structure and identify digital twins
One of quality initiatives, ASMPT Quality Award (AQA) was
that can be used to predict possible outcomes such as
introduced in May 2008; beginning with a clear direction
forecasting, over/under stock situations and etc.
from the Group CEO Mr. WK Lee “We need participation
from everybody…... We need to develop a culture of “I
External Manufacturing
care”, a culture of if I will not accept it, I will not pass it to
Within External Manufacturing (EM), we operate with the the customers”.
China EM Team and the EM Rest of Asia (ROA) Team.
The AQA framework consists of Five Aspects to cover
For 43 years, ASMPT has been very vertically integrated all key results areas and Four Pillars of execution.
and in the last 4 years, there was a strategic directional Five Aspects are Internal/ External Customer Focus,
change. The decision to start EM in China was in response Product Quality Assurance, In Process/ Stages Control,
to our company’s high growth rate. One of the criteria Continuous Improvement and Application of Quality Tools
was to have these EM vendors near to where we carry out & Knowledge. Four pillars refer to Quality Innovation,
machine final assemblies and we were successful in the Quality Management System, Quality Sustainability and
last 4 years. Quality Culture.
With the global currency instability, Chinese Yuan (RMB) A total of 66 manufacturing units from Singapore,
appreciation and Malaysia Ringgit (MYR) depreciation, Malaysia, Hong Kong and China plant had successfully
our Management made a further decision to build a core completed the first AQA in 2008. This had created a
manufacturing, base in Malaysia, to cushion the risks. very competitive environment for all sites to achieve top
With this, we have ATS EM ROA team to build a network honour in quality and recognition by Senior Management.
of EM vendors in Rest of Asia. EM ROA works with the Over the years, the AQA has expanded in participation and
manufacturing management team to identify the core assessment criteria (Figure 5.2a.3).
technology areas to keep within ASMPT. Our outsourcing
activities include manufacturing of chassis, fabrication Corporate Communications is responsible for
parts, module assemblies, PCBAs and cable assemblies. communications and branding for the Group. A brand is
a set of mental associations and emotions, held by the
Similar to Procurement, the site EM team takes care of customers, added to the perceived value of a product or
issuance of purchase orders and order fulfilment from the service. Brands have financial value because they have
EM vendors. created assets in the minds and hearts of customers/
consumers, distributors, prescribers and opinion leaders.
The commodity EM team sets the strategic direction
for its different commodities for outsourcing. We also In October 2018, Corporate Communications did a
collaborate with the ALSI, AMICRA and NEXX teams for Group Brand Survey to evaluate and obtain feedback on
cost savings projects in China and Asia. the current brand perception. The survey covered more
than 200 participants, which includes ASMPT customers,
Facilities partners, media and employees. The results showed very
positive perception of ASMPT image and branding by both
Facilities operate under three different branches, namely,
external and internal stakeholders.
Service, Management and Property. For Services, Facilities
team is responsible for the maintenance and upkeep
An extract of the result is illustrated in the Figure 5.2a.4.
of mechanical and electrical systems in the buildings,
landscaping, provision and management of utilities supply,
security of all personnel, as well as other supporting
services such as cleaning services, pest control and waste
Processes C5-43
2016/17
2013/14 5th AQA
✓ 5 Aspects & 4 Pillars
4th AQA ✓ Lean Implementation
2011/12 ✓ 5 Aspects & 4 Pillars to all units
✓ Lean Application to ✓ Process Centric
3 AQA
rd
all units System (PCS)
✓ 5 Aspects & 4 Pillars ✓ Process Centric ✓ Four Discipline of
✓ Lean concept to System (PCS) Execution (4DX)
2009/10 Manufacturing units ✓ Four Discipline of ✓ Metrology and SPC
2nd AQA ✓ 22 Service & Support units Execution (4DX)
✓ 5 Aspects & 4 Pillars ✓ 31 Design units ✓ Total 131 units
✓ 5 Service & Support units ✓ Total 135 units
2008/09 ✓ 3 Design units
✓ Total 85 units ✓ 5 Aspects & 4 Pillars
1st AQA ✓ Lean Implementation
✓ 5 Aspects & 4 Pillars
✓ 66 Manufacturing units 6th AQA ✓ Process Centric System (PCS)
2018/19 ✓ Four Discipline of Execution (4DX)
✓ Metrology and SPC
✓ Automation and Smart Factory
Figure 5.2a.5: ASMPT Brand Values
Figure 5.2a.3: Progress of AQA
Perceived Brand Values I A

Perceived Brand Values I All ll
Personable Distant
Personable
SoWware Distant
Hardware
SoWware
Smart Hardware
Cumbersome
How do you perceive the Smart
Old Cumbersome
Young
How do you perceive
company brand ASMPT? the Old Young
Progressive Tradi2onal
company brand ASMPT? Progressive Tradi2onal
(Please rate on the polarity Ra2onal Emo2onal
(Please rate on the polarity Ra2onal Emo2onal
scale – just on your ini3al Efficient Inefficient
scale – just on your ini3al Efficient Inefficient
thoughts/ gut feeling) Weak Strong
thoughts/ gut feeling) Weak Strong
Machines Solu2ons
Machines Solu2ons
Local Global
Local Global
Arrogant Humble
Arrogant Humble
Fast Slow
Fast Slow
Sta2c
Sta2c Flexible
Flexible
Unreliable
Unreliable Reliable
Reliable
Inexperienced
Inexperienced Experienced
Experienced
Profitable
Profitable Unprofitable
Unprofitable
Backward-looking
Backward-looking Forward-looking
Forward-looking
Lively
Lively Boring
Boring
Affordable
Affordable Expensive
Expensive
Future
Future Past
Past
Monochrome
Monochrome Colourful
Colourful
Academic
Academic Pragma2c
Pragma2c
Internal
Internal External
External
ASMPT
ASMPT brand
brand valuesperceived
values perceivedby byinternal
internaland
and external
external stakeholders
stakeholders are:
are:
strong,
strong, global,
global, reliable,experienced,
reliable, experienced,forward-looking
forward-looking and
and future
future
Product Life Cycle Management (PLM)

The Product Life Cycle Management (PLM) is geared towards our Company’s Vision, Enabling the Digital World. In our
annual product road map meetings, ATS Management uses inputs from Sales, Service, Marketing and R&D team to set
strategic direction and plan the development of future advanced Backend Equipment and Materials. Product features will
also be fine-tuned after understanding, benchmarking and receiving feedback on customers’ experience with our products.
Supply Chain Management (SCM)

Supply Chain Management (SCM) is one of the key pillars in alignment to meet our Company’s Mission and Values under
ATS Overall Process Management Framework. ATS provides manufacturing services for Backend Equipment business and
Materials business. The SCM processes include:
Processes C5-44
• Plan - Processes that balance aggregate demand and supply to develop a course of action which best meets
sourcing, production, and delivery requirements
• Source - Processes that procure goods and services to meet planned or actual demand
• Make - Processes that transform product to a finished state to meet planned or actual demand
• Deliver - Processes that provide finished goods and services to meet planned or actual demand, typically including
order management, transportation management and distribution management
The figure below shows the key requirements and measurements of the key processes (Figure 5.2a.5).
SCM Key Process Key Requirements Control Measures Measurements
Demand and
Plan Product Planning OTD MPS, MMP OTD and Quality KPI
Source Source Procurement SP/ ECO/ PR OTD OTD and Quality KPI
• XY Table • Modular Progressive Copy Exact • Copy Exact Spectrum

• Bond Head • Spectrum Test • Boundary compliance
Module Assembly • OpGcs • OpGc Dynamic FuncGoning Test • Dynamic FuncGon Test Result
• Wire Clamp • Transducer Sine Sweep • Frequency Bandwidth
• Transducer • Frequency Bandwidth Analyzing Test • Boundary compliance
• XYZ Module InstallaGon • Compliance to HIPOT Test

• HIPOT Test • Module InstallaGon Guide and
Module IntegraGon • Cabling & Tubing Layout • Module InstallaGon
• Electrical & FuncGonal TesGng Grounding VerificaGon Test
• Full Chassis Grounding VerificaGon Test Requirement
• Mechanical Alignment • Bond Force CalibraGon

• CalibraGon & VerificaGon • Work Holder Elevator Alignment • Compliance to CalibraGon and
Setup and CalibraGon • Performance TesGng Alignment Result as per Setup checklist
• Table Mapping CalibraGon
• Machine Dry Run • Transducer VibraGon CalibraGon
HVM
• Ball Size
• Ball Shear
• Auto-Portability CalibraGon • Ball Thickness
In-House QualificaGon • In-house device bonding for QA submission • Loop Height • First Past Yield for In-house bonding
sample submission to QA
• Wire Pull
• Placement
• SEM
• Ball Size
• Customer Device Setup • Ball Shear
• Customer Buy-Off • Ball Thickness
• Loop Height • Compliance to Customer Buyoff
Final Test / Shipment • Shipment PreparaGon Acceptance with customer devices
• Outgoing QA Audit • Wire Pull
bonding performance/ parameters
• Machine Packaging • Placement
• SEM
• Inter Metallic Check
Demand and Product

Plan Planning OTD MPS, MMP OTD KPI
Source Source Procurement SP/ ECO/ PR OTD OTD and Quality KPI
Visual InspecGon, Electrical

Incoming & pneumaGc test/ Incorporated in the PRP ExecuGon Risk Assessment (ERA) and documented per SO# in
inspecGon System, Mold, PRP the IDM 3G PRP ConfiguraGon plus Incoming checklist
inspecGon
IntegraGon of 3G ONL, OFL, ITA, PHT,

system, PRP Alignment tests of PRP, Incorporated in the PRP ExecuGon Risk Assessment (ERA) and documented per SO# in
PH, Mold and etc Mold with system the IDM 3G PRP FuncGonal Test and Mold Matching checklist
and mold
ACM 3G System + MOLD Dry cycle test, Incorporated in the PRP ExecuGon Risk Assessment (ERA) and documented per SO# in
Auto cycle tesGng + PRP Cycle TesGng auto-cycle test, the IDM 3G PRP Cycle Test Report
Molded Final Process related PRP and Incorporated in the PRP ExecuGon Risk Assessment (ERA) and documented per SO# in
Process inspecGon Product TesGng mold tests the IDM 3G PRP 3G Degate QualificaGon/Shot InspecGon Checklist
Final QA buy-off Final InspecGon MTBA test, auto run Measurement by QA Assembly first pass trend chart
before shipment
1. Conveyor speed
Remove oil and oxidaGon on raw coil for dry film Sensor/ Gauges feedback to machine, 2. Chemical Temperature
Pre-clean laminaGon by chemical degreasing and acid alarm if out of seZng range 3. Chemical concentraGon
4. Spray pressure
1. Roller temperature
Aàch dry film photoresist onto both sides of Sensor/ Gauges feedback to machine, 2. Roller pressure
LaminaGon copper with good adhesion alarm if out of seZng range
3. Speed
Materials 1. Exposure energy

Transfer photo mask paèrn onto dry film Sensor/ Gauges feedback to machine, 2. UV lamp uniformity
UV photoresist alarm if out of seZng range
3. ResoluGon
1. Chemical analysis
2. Visual inspecGon 1. Chemical concentraGon
1. Develop away unexposed photoresist 2. Temperature
2. Etch away area without photoresist 3. Measurements
Etching 3. Spray pressure
producGon 4. Sensor/ Gauges feedback to
4. Visual inspecGon
3. Strip away remaining photoresist machine, alarm if out of
5. Dimension measurements
seZng range
Figure 5.2a.5: Key Processes Requirements and Measurements for HVM, ACM & Materials
Processes C5-45
5.2b Drives process improvement to enhance productivity and achieve
organisational performance
Productivity improvement is championed by Group Chief Operating Officer (COO) and the Manufacturing Executives and
Directors. We strongly believe that We have the POWER and Agility to Drive Change and the productivity improvements
are one of the essentials for our sustainable business growth through platform such as Annual Manufacturing Review.
ATS improves her processes by actively leverages on the latest technology, such as Additive Manufacturing, System
Figure 5.2b.1:
Integration Examples
and Autonomous of Con3nuous
Robots Process
as well as Lights-off Improvement on produc3vity and
manufacturing.
efficiency
Below are a list of examples of process improvement initiatives that ATS has put in place that have improved productivity
and efficiency (Figure 5.2b.1).
Methods Example of Improvement Before Aher
Offline measurement by CMM,
Electrode was measured on EDM
Electrode offline setup by CMM eliminate internal setup 2me and is the
machine by pin, average 10min/
(Supplier) pre-requisite for EDM automa2on
electrode
project
EDM AGV robot automa2on Manual tool change, machine Auto tool change, machine is able to
line for 23x machine (Partners) idles if no operator is in place run even when no operator is in place
Automa3on
Manual dressing and grinding, Auto dressing and compensa2on,
Grinding automa2on (Supplier/
not capable of controlling automated grinding by G code program,
Customer)
grinding distance capable of controlling grinding distance
Manual load and unload of Auto loading and unloading by robot

CNC electrode automa2on electrode, maximum 4x electrode arm, offline setup without disturbing
(Partner/Supplier) can be cut in one setup, cu\er the auto run, cu\er wear measurement
wear cannot be detected and compensa2on by laser system
Part status is tracked by barcode

Part status was tracked manually,
Bench e-Workshop Resource Planning scanning, enable pre-order of electrode,
no electrode priority for CNC
Marking system (Partner) setup 3x TV to display machine status
machinists
and electrode priority list
Figure 5.2b.1: Examples of Continuous Process Improvement on productivity and efficiency
Besides developing and selling machines to our customers, ATS also provides advanced
production capabilities. For example, our best-in class inspection equipment and High-Precision-
Vision-Inspection-Machine (HPVIM) (Figure 5.2b.2). These enable us to:
• Optimize Fabrication Process by Big Data
• Process Analysis
Figure& In-line
5.2b.4:Monitoring
High-Precision-Vision-Inspection-Machine (HPVIM)
• Improve machining CpK and etc
Make
Change EDM: Package
Depth Sampling
EDM: Package L
& W Sampling
Grinding: Package
Depth Sampling
Check Check Check
% Op3mize Fabrica3on Process

by Big Data
% Process Analysis and In-line
Monitoring
% Improve CpK
Figure 5.2b.2: High-Precision-Vision-Inspection-Machine (HPVIM)
Processes C5-46
Materials
ATS Materials team continues to drive project improvements. For example, to use automatic measurement/inspection
to replace human inspector. This improves accuracy and minimizes down time.
Some examples of continuous improvements are:

Panel etching requires one operator to peel mylar and load to machine, one operator to offload and put interleaf papers
on each leadframe. Human handling also creates scratches and deformation to leadframe. Reel to reel etching is a
continuous process and no human is involved in loading and offloading. Other benefits of reel-to-reel etching include
higher productivity and lower copper usage (Figure 5.2b.3).
PanelOn-loading
Panel On-loading
PanelOn-loading
Panel On-loading ReelOn-loading
Reel On-loading
ReelOn-loading
Reel On-loading
PanelOff-loading
Panel Off-loading
PanelOff-loading
Panel Off-loading ReelOff-loading
Reel Off-loading
ReelOff-loading
Reel Off-loading
Figure 5.2b.3: Comparison between panel and reel-to-reel operations
5.2c Sustains key processes in times of emergencies to ensure

business continuity
Business Continuity Planning – BCP
BCP is the process to deal with potential threats. It ensures business continuity in ATS and continuity to serve our
customers. It outlines a range of disaster scenarios, alternative production sites and the steps the business will take
in any particular scenario to provide short-term delivery and/or services support as well as action plan for returning to
regular operations.
The Business Continuity Management (BCM) Steering Committee, headed by ASMPT Management, provides policy
guidance to the Co-ordination & Entity Level Committee.
In essence, the Emergency Response Committee (ERC) will assume the executive command that sets out the overall
objective of the emergency operations whereas the Disaster Recovery Committee (DRC) will identify potential risks and
implement responses needed (Figure 5.2c.1 and 2).
Based on Business Impact Analysis (BIA) done yearly, we identified three main risks, namely Fire, IT and Haze. ATS has
conducted fire drills and IT drills on an annual basis. All drill records met the set KPI. Procedure for business continuity
due to haze is also put in place. ATS continues to drive for improvements. We had implemented ATS mobile application
to facilitate fire evacuation since 2017.
Processes C5-47
Figure 5.2c.1-2: Business Con3nuity Process Flow
Business Con3nuity Process Flow

Business Con3nuity Process Flow
Incident occurs
Incident occurs
ERC ac3vated Incident Level Defini3ons
(ERP invoked for all levels)
Incident Level Level 1 Level 2 Level 3 Level 4
ERC ac3vated
(ERP invoked for all levels) Degree of
Minimum Minor Moderate Major
Level 1 or 2 ERC resolves Disrup2ons
ERC assesses
incident
incident level Non-disaster Disaster
Level 3 or 4 Rou2ne - No casual2es - Several injuries or - Major impact

Level 1 or 2 ERC resolvesemergency - Minimal damage deaths to the
ERC to
ERC reports assesses
EC
incident incidents - Limited impact - Moderate opera2ons
incident level Disaster on customer damage
Classifica2on service - Some impact on
EC ac3vates DRC - No community customer service
(DRP invoked for level 3 or 4 only)
Figure 5.2c.2: Level
Disaster
3 or 4 Recovery Process Flow impact - Moderate
community
impact
ERC reports to ECcon3nues
Business opera3on - Media ac2vated
Figure 5.2c.1: Business Continuity Process Flow

EC ac3vates DRC
(DRP invoked for level 3 or 4 only)
Disaster Recovery Process
Ac2vateBusiness
DRP Resump2on
opera3on con3nues Restora2on
• Report to EC by ERC about • Damage assessment • Full restora2on of
Opera3on con3nues
the disaster level damaged infrastructure
• Priori2ze cri2cal processes/
• Form DRC by EC func2ons
• Ac2vate localized DRP • Restore cri2cal ASMPT business

func2ons
• Start communica2ons
• Impact analysis for:
- customers
- suppliers
- personnel
- other stakeholders
• Communica2on status to
stakeholders
Figure 5.2c.2: Disaster Recovery Process Flow
S
5.3
upplier and Partner Management

5.3a Identifies and manages key suppliers and partners to achieve
Our collaboration with our Suppliers, External market conditions with short and sharp cycles of up
Manufacturing (EM) Vendors and Partners play an and down. Prompt delivery of goods and services,
important role in the achievement of our strategic goals. technological services and advancement ensure smooth
It challenges us to excel in the dynamic semiconductor operations to support our customers’ order fulfilment.
Processes C5-48
ATS buys components and assemblies from suppliers that CPS are those with lead-time between one to three months
can be direct manufacturers, distributors and agents that and from historical performance, they can respond well to
are market players in their field of specialties. External fulfil our market demands with good VMI, OTD and Quality
Manufacturing (EM) vendors as the name implies are performances.
vendors that we qualified externally to be our extended
manufacturing capacity and capability to meet our We qualify a pool of AFS which have proven their
customers’ demand. Partners are ATS sister companies, resourcefulness to source and deliver certain items with
serving each other needs in manufacturing. short lead-time, however typically at a premium. AFS
serves us well typically during market ramp up beyond
Suppliers and EM Vendors are evaluated on five criteria 35% capacity and challenges the regular supplies.
in the areas of Quality, Costing, Delivery, Service and
Technology. Performance requirements are communicated To enable agility in our supply chain, we collaborate
to Suppliers and EM Vendors during the quarterly closely with our Suppliers and EM Vendors through the in-
reviews. These Suppliers and EM Vendors can view their house developed portal “ASMPT Procurement –Suppliers
performance in ATS grading and feedback on our “ASMPT (APS)” portal for Electronic Request for Quotation (eRFQ),
Procurement –Suppliers (APS)”. Vendor Managed Inventory (VMI) and OTD.
Suppliers and External Manufacturing (EM) Vendors VMI or buffer stock keeping at suppliers’ site serves to
shorten lead time from the suppliers to ATS. We share
We select and categorize our Suppliers and EM Vendors
our material plan/ forecast for the next 3-6 months in the
into Certified Strategic Suppliers (CSS), Certified Preferred
portal. The suppliers use this visibility to plan and keep
Suppliers (CPS), and Approved Firefighter Suppliers (AFS).
a buffer inventory of at least one month reserve for ATS’
CSS are those that supply critical items and perform well
consumption. This stock keeping is mutually agreed as
on Technological Capabilities, Vendor Managed Inventory
their commitment to serve ATS better and, at the same
(VMI), On Time Delivery (OTD) and other support such as
time, we commit to consume the VMI stock.
fast responses. We cultivate close relationship at both
their top levels as well as operational levels to ensure
We adopt the Plan-Do-Check-Act (PDCA) to identify
priority for capacity and supplies including sudden
monthly performance lapses and follow up with suppliers
demand-delivery situation that requires exception actions
for corrective actions to improve. This is done to manage
for compressed deliveries.
the OTD and VMI performance with the vendors.
5.3b Engages key suppliers and partners to co-create products

and services
Suppliers We also work with our suppliers to be on their portal where

ATS is able to view our purchase orders and pipeline
ATS collaborates and co-creates with our suppliers to
orders on line. Delivery status can be viewed on line on
incorporate new products and latest technology on our
our CSS, Future’s “FIRST” Platform for the Electronic parts
machines for cost savings purposes.
and “OMNI” platforms for viewing of distributors’ stock
online.
One good example is the personal computer (PC) box
outsourced to our CSS. In the past, our Partners have
EM Vendors
been very vertically integrated and have been able to
carry out assemblies of motherboard, RAM and other ATS collaborates with our EM vendors to modernize their
computer accessories in ATH. Currently, we have manufacturing. One such vendor is for machine frames/
successfully implemented a turnkey PC box with our CSS chassis/ sheet metal works using one stop full line
with substantial cost savings achieved and production automation combining robots, crane, Big CNC and human
efficiency increased. efforts to build wirebonder chassis. A full automation
Powder Coating line with degreasing system has also
Another example would be co-creation of encoders, with been built to ensure supply of consistent quality products
another of our CSS, which are to be used in our machines. to ATS (Figure 5.3b.1 and 2).
We managed to phase in RSF series of low cost encoders
on the XY table of AB383 successfully. Regular meetings ATS continues to work with our EMs on various projects
are held with the suppliers for review and to ensure that in driving for cost reduction, increase product quality
ATS is kept up to date with the latest technology available stability through means of automation and industry 4.0
and smooth supply chain and customer experience. approaches.
Processes C5-49
Figure 5.3b.3:EM Vendor - Trend Technologies
Figure 5.3b.4: Full Automation Powder Coating Line with
Before Aher degreasing system
Manual produc3on line Automated produc3on line
Before Aher
Manual Powder Coa3ng Line Automated Powder Coa3ng line
Figure 5.3b.7: ATM COBOT Magnet Assembly
Figure 5.3b.1: EM Vendor Figure 5.3b.2: Full Automation Powder Coating Line with degreasing system
Partners
One of the key projects being identified with ATM is the
Magnet Assembly Robot Project. Traditional gluing of
magnets with different polarity to the magnet plate is
replaced by Collaborative Robot.Figure 5.3b.8: ATM Cobot for Aero X-Plate and Combined Housing Screw
The positioning of magnet to the location can be achieved
precisely by using COBOT which is not subjected to
work fatigue. Glue dispensing accuracy had been further
improved by implementing volumetric glue dispensing
apparatus. Currently, this COBOT Magnet Assembly
Automation is capable of achieving unmanned operation
(24/7), which improved both quality and productivity
aspect (Figure 5.3b.3).
Figure 5.3b.3: ATM COBOT Magnet Assembly
With the successful application of COBOT for magnet
assembly, the team explores and fans out COBOT
automation and implements it to assemble precision cross
roller way onto X-Plate of the XY Table.
The COBOT is capable to perform precision tightening

task to well position the precision cross roller way onto
X-Plate, in sequential torque process. Servo feedback
control precision screwdriver to provide real time close
loop feedback of torque to controller (Figure 5.3b.4).
Figure 5.3b.9: AGVFigure
Automa3on in CNC machining Center
In CNC Machining Center, Automated Guided Vehicle 5.3b.4: ATM COBOT for Aero X-Plate and Combined
Housing Screwing
(AGV) was implemented to automate the work piece
dispatch, installation on CNC, collection from stocking
centre to CNC machining center and vice versus.
Material preparation was done offline in batches at

Stocking Center. AGV dispatches the work piece prepared
for CNC based on auto scheduling programme, according
to production status of each CNC machine. CNC
machining utilization and output were increased.
This transforms the traditional practice in CNC machining

centre which was highly dependent on setup by machinists
(Figure 5.3b.5).
Figure 5.3b.5: AGV Automation in CNC machining centre
Processes C5-50
What are my
18 expectations for
20 this Technology
Conference?
ce
ren
nfe
Co Mr. Lee Wai Kwong,
ogy CEO of ASMPT
nol
ech
balT
PT Glo
A SM
6.1
nowledge Management
6.1a Collects and manages information for strategy development,
decision-making and organisational learning
ATS has established a Knowledge Management (KM) In addition to core applications, ATS also develops Virtual
Framework to enable consistent performance and steer Reality (VR) / Augmented Reality (AR) and Artificial
decision-making. The KM framework has structured Intelligence (AI) for product and business process
information management into KM Content, KM Process, applications. Design review can be conducted in VR
KM Technology and KM Culture. mode which speeds up the design iterations and reduces
prototype cost. With networking capabilities built into the
As a global high-tech organization, we receive huge VR/AR platform, partners and customers are able to join
volume of data daily, from our core operations and reviews and discussions in VR world.
corporate services systems. In order for us to manage
and make good use of this big data, ATS has developed ATS is leveraging AR for production and service training,
a comprehensive Knowledge Management Framework to to provide immersive step-by-step instructions for
collect, classify and achieve our Wildly Important Goals technicians, leading to time saving through improved
(WIGs). This framework captures the tacit and explicit performance and cost reduction through the use of fewer
knowledge, disseminates and utilizes it for various resources. User obtains information in an intuitive manner
processes and harnessing experience. instead of reading hardcopy documents. Product quality
inspection is being gradually replaced by AI technology.
Information is accessible to all ASMPT Global employees, KM technology evolves along digitalization technology in
through Product Life Cycle Management (PLM), Enterprise ATS.
Resource Planning (ERP) and Customer Relationship
Management (CRM), so as to support them in achieving Knowledge sharing forms an important part of our
their essential learning objectives. For example: (1) During knowledge management process. We structurally
customer visits, our Sales and Service engineers are consolidate knowledge in our web portal to share best
able to obtain up-to-date customer information from our design practices in the industry and best design concepts
Customer Relationship Management (CRM) system while within our organization.
on the move through their mobile devices. (2) Design
Manager (DM) system provides self-guided templates to ATS Sales and R&D teams attend trade shows and
guide our budding Product Development teams to walk exhibitions periodically to gather information on
through their product development cycle systematically competitors and upcoming cutting-edge technologies. This
and minimize time-to-market. (3) The customized ERP information is consolidated to build product roadmaps
Vendor Managed Inventory (VMI) system facilitates and develop sales strategies.
effective management of inventory for our manufacturing
teams thereby reducing their storage and downtime costs. Business Units (BU) meet monthly to review customers’
feedback and fine-tune production plan according to
Our KM Platform has been developed to have the market information. The results are applied to our core
capability to support daily operations, responsiveness, operations to achieve better cost control and modulate
accessibility, analytics plus predictive capability and thus product development plans. Generated information
enabling the digital world. is analyzed to facilitate further data analytics for
improvement. Together with organized ‘knowledge
SAP, the best-in-class Enterprise Application Platform- sharing events’, benchmarking activities and ‘innovation
is the most established ERP system which we have to sharing platforms’, knowledge is transferred to people and
support our business operations from Sales, Finance and processes for continuous improvement.
Manufacturing Process to Supply Chain. It ensures data
integrity along business functions and data accuracy in Knowledge Sharing, Learning and Transfer
workflow design. SAP CRM is also deployed to manage
This comprises of established knowledge transfer
market opportunities and sales analysis. For product
through organized activities. Figure 6.1a.1 shows ATS
development, we are currently in the process of migrating
Web Learning Platform for effective learning of design
to Teamcenter Application for PLM which supports global
technologies used. This allows easy administration of
product development collaboration.
large amounts of information in a user friendly, web based
environment.
Knowledge C6-51
Figure 6.1a.4: Web Learning Platform
Figure 6.1a.2 showcases ATS’

participation in ASMPT Global
Technology Conference that took
place in November 2018. The
internal conference achieved
several of its objectives, resulting
in successful sharing of best
technologies across different
business units and identification of
available innovative technologies
with highest value proposition for
customers.
One of the greatest advantages

of learning technology is that it
removes communication barriers
and increases the ease and
efficiency of information transfer.
Our training team conducts training
for customers and new staff.
Figure 6.1a.1: Web Learning Platform

Global Technology Conference 2018
Enabling Smart Factory
240 Expert Participants
120 Overseas Staff
50 ATS Staff
24 Project Posters
11 Global Sites
10 Workshops
6 Speeches
3 Days
Together #1
Figure 6.1a.2: ASMPT Global Technology Conference 2018
6.1b Ensures the accuracy, accessibility and security of information

IT applications are designed together with business For Information Protection, Server Hardware/Software
process owners to support operation and business goals. Protection, Anti-virus and Firewall are in place. Critical
Roles are defined for information creation, review and product information is synchronized to alternate server in
approval. ASM Hong Kong.
With clear information, information ownership, ‘review and Since ATS is a high-tech organization, additional systems
announcement mechanism’ and IT technology, information are add-on. Network is designed to isolate different
accuracy, reliability, timeliness and accessibility are inbuilt functional areas. In case there is a virus attack, the risk is
into the processes. confined to one area. Unauthorized hardware is rejected
by network protection. Mobile users can access defined
All processes and information are role-based-control to applications from the internet with data loss protection
ensure right information access and format is assigned to software installed to prevent data loss. High security
the right job. information transfer is encrypted; only designated
receivers are allowed to access it.
Knowledge C6-52
A
6.2
nalytics for Performance Management

6.2a Leverages knowledge and information to create new value
ATS adopts First-Class Industrial Analytical Framework Diagnostic Analytics
and Platform to continuously drive performance. In addition to standard reports, users build their own
reports that are drill-down to very detailed operations.
Statistical Analytics Diagnostic analysis correlates this information to find the
Statistical Analytics reports are widely used among all source of the problem.
operations to report what has happened. In addition, it
compares performances to targets to ensure operations Business Intelligent and Analytic Services
are in control.
In a large operation, data volume consists of hundreds
Figure 6.2a.5: ATS Database Analytic Service
of millions of records. ATS has established a Database
Report portal is built for operations group to review
Analytic Service (Figure 6.2a.1) to allow users to
their performances. Report portal consolidates essential
dynamically construct and drill in information in real time.
information for supporting decision-making and triggering
action.
Large
Opera=on Data modeling Report Portals Data analy=c
Data & consolida=on Diagnosis & & predica=on
Control
Figure 6.2a.9: Predictive Analytics Tools
Figure 6.2a.9:
Figure 6.2a.9: Predictive
Predictive Analytics
Analytics
Figure 6.2a.1: ATS Tools
Database Analytic Service
Tools
Trend line and Correlation Analytics
Trend
ASMline analytics
Pacific summarizes
Technology © 2019 data in timeline and correlate performances among different operations. page 15
Computer
Computer
AidedEngineering
Aided
Engineering Mo=on and process simula=on
Computer Aided Engineering Mo=on
Mo=onand process
and processsimula=on
simula=on
For vibra=on,
Computer Aided
For vibra=on, thermal,
For vibra=on, electric
Engineering
thermal, electric
thermal, electric Mo=on and process simula=on
magne=c
For
magne=c ,..
vibra=on,
,.. thermal,
magne=c ,.. electric
magne=c ,..
Knowledge C6-53
VR Technology as Predictive Tool
Workflow Deliverables Virtual Reality / Augmented Reality

(VR/AR) technology enables digital
twin concept. Activities such as design,
training and validation can now be
Proceed done in VR instead of building physical
QM200 A prototypes. This reduces development
cost drastically and enables fast
iteration and validation process.
ATS has developed its own VR

Define process Machine Key
flow (MA) Process (MA) technology that not only enables
Define physical handling of parts like in the
Machine
concept (MA, Define real world; it also completes machine
PM, PL) design idea & Layout motion simulation. Our VR network
machine layout Report (MA)
(MA) capability also allows multiple parties
to join a VR session from different parts
of the world to join product discussion
and interact with the machine. VR is
also a knowledge sharing platform for
No POC Yes POC (MA, POC training in manufacturing processes
required? Mech Eng, successful? such as assembly procedure. It also
ETG Eng)
supports monitoring for Industry 4.0
Smart Factory.
Yes
Scan the QR code (Figure 6.2a.4) to
experience ATS VR technology which
Concept Innovation includes VR Assembly and Service
brainstorming, / winning Training, Design Ergonomic Review,
Concept Innovation / feature report
preparation winning feature (MA) Interactive Cable Layout in VR and
& selection Product Show Case. In addition, there
(MA, PM, PL, Figure 6.2a.10: QR Code to View ATS VR/AR Technology
Mech E) Concept Concept are AR applications for work instruction
selection (MA, selection and spare part support.
PM, PL) report (MA)
Prelim concept
design review PDR report
(MA, PM, PL, (MA)
Mkt-L, ETG-L)
Figure 6.2a.3: Part of Project system Guideline for Deliverables workflow diagram Figure 6.2a.4: ATS VR/AR Technology
AI Technology Converts Data to Inspection Tool

Artificial Intelligence (AI) techniques are currently applied to Vision technology for Product Quality Analysis. Figure 6.2a.5
Figure 6.2a.11: Product Quality Inspection by AI
shows detection of solar panel quality.
$ Challenges
% Separate microcrack and saw mark
% Separate microcrack and crystal gra=ng
% Separate microcrack and black dot (FM, inclusion)
Saw Mark Microcrack Crystal Gra=ng Microcrack Black Dot Microcrack
Figure 6.2a.5: Product Quality Inspection by AI
Knowledge C6-54
AI technology is first applied to product development.
Machine learning and AI will be further extended to data
analytic areas.
ATS collaborated with SIMTech on Data Analytics, with

SIMTech sharing their technical expertise and case
studies with our employees. This partnership had won
us the Best WSQ Industry Partner Award, as a testament
to our collaboration and mutual gains realized in smart
product development and manufacturing. (Figure 6.2a.6)
Figure 6.2a.6: Mr. Anthony Koh, Technical Director, Product

Development received the Best WSQ Industry Partner Award from
SIMTech
6.2b Uses comparative and benchmarking knowledge to improve

performance
Benchmarking activities are planned throughout various The Smart Factory describes an environment where
processes: machinery and equipment are able to improve processes
a. Product benchmarking through automation and self-optimization. The innovative
b. Technology benchmarking drivers of smart factories are (1) Advanced Production
c. Process benchmarking Capabilities such as Real Time Process Monitoring (2)
Equipment Automation with Unmanned Operation (3)
Product Benchmarking Smart Process Control with self-learning inline expert
system and (4) Automated Materials Supply.
Benchmarking (Figure 6.2b.1) has allowed us to (1)
Gain an independent perspective on our performance in
In 2018, ATS partnered with a lead customer, a world
comparison to competitors and other companies, (2) Drill
Figure 6.2b.4:
down performance gaps to identify areas for improvement, QR in
leader Code to View
providing ATS Smartsolutions,
semiconductor Factory to develop an
i4.0 Lights-off Smart Factory (Figure 6.2b.2).
and (3) Develop a standardized set of processes and
metrics.
This project sets out the strategic environment, priorities
and plans for ATS. It is intended to ready ATS for the fourth
Besides product benchmarking, we also carry out
industrial revolution and allows ATS to better realize our
technology and process benchmarking against our
Figure 6.2b.1:
competitors as wellBenchmarking
as existing models toProcess
ensure our
Mission and Vision.
competitiveness.
Enabling Smart Factory into ATS Products and

Processes
Organizations worldwide are integrating the internet of
things (IoT) closely into how they conduct their businesses.
The IoT is at the heart of changes being implemented in
many industries, and it is closely associated with what is
Figure 6.2b.2: ATS Smart Factory
being hailed as the fourth industrial revolution or Industry
4.0, the current trend in manufacturing, the Smart Factory.
Decide what Understand Use the

Learn from
to current Plan Study Others Findings
the Data
benchmark performance
Department Department Department

ASM Pacific Technology © Department
2019 Department Department page
Figure 6.2b.1: Benchmarking Process
Knowledge C6-55
ASMPT Recognized as TOP 100 Global
Tech Leaders
ONLY Back-end Equipment Supplier Being Recognized
“The Top 100 Global Technology

Leaders are the organizations poised
to propel the future of technology”,
Brian Scanlon, Chief Strategy Officer
Thomson Reuters, 2018
R&D Commitment Makes Us a Preferred Partner of Choice

R&D expenses
250
9.3% 2018 R&D
200 expenditure
USD million
150
US$ 205 million
100
9.3% of
50 equipment sales
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
USD1,423 million invested in R&D
Package Interconnection Optics precision engineering Vibration control Laser dicing & grooving SMT
35
C
7.1
ustomer Results
7.1a Customer satisfaction and experience
We have several ways to measure and monitor our customer satisfaction and retention through 3rd Party Survey by VLSI
Research, survey software such as Qualtrics as well as customers’ awards and periodically customer scorecards which
allow us to further improve our products and services and continue to delight our valued customers.
Continuously, we are being awarded several great achievements from VLSI Research which conducts survey of worldwide
participants on equipment suppliers based on fifteen categories focusing on three key factors: supplier performance,
customer service, and product performance as shown on Figure 7.1a.1. In Year 2018, we were awarded triple-crown
for the 2nd time for The 10 BEST, The BEST and RANKED 1st Awards with highlight on our Field Engineering Support and
Support After Sales.
Figure 7.1a.1: VLSI Awards on Best Supplier
In addition, we also received several awards from customers as part of appreciation due to ASMPT’s efforts over the years.
In 2017, our Group CEO received the Best Partner Supplier Award from one of the China Big 4 Companies (Figure 7.1a.2).
Figure 7.1a.2: Best Partner Supplier Award Figure 7.1a.3: Various Supplier Award for Backend and
Materials Business
Results C7-56
We also review customer scorecard received to drive further improvement as shown on Figure 7.1a.4.
NXP Scorecard:
NXP Scorecard:
NXP Scorecard:
SRS - Quality Excellence
SRS - Quality Excellence
RaAng Excellence
SRS - Quality Area Type Weightage Max Score H1-2017 H2-2017
RaAng Area Type Weightage Max Score H1-2017 H2-2017
RaAng Area Type
Quality Excellence Weightage Max Score H1-2017 H2-2017
Quality Excellence 30% 22.40% 20%
(Criteria
Quality Weightage as 30%)
Excellence 30% 22.40% 20%
(Criteria Weightage as 30%) 30% 22.40% 20%
(Criteria Weightage as
Social Responsibility30%) 5% 10 10 0
Social Responsibility 5% 10 10 0
SocialUpAme
Responsibility 5% 25% 10 10 10 6 0 4.86
UpAme 25% 10 6 4.86
UpAmeSupplier Quality System 25% 15% 10 10 6 10 4.86 10
Supplier Quality System 15% 10 10 10
Supplier
MTBF Quality System 15% 25% 10 10 10 6.57 10 6.67
MTBF 25% 10 6.57 6.67
MTBFQuality Complaints 25% 25% 10 10 6.57 7.75 6.67 8.29
Quality Complaints 25% 10 7.75 8.29
Quality Complaints 25% 10 7.75 8.29
Key Achievements:
Key
- ISOAchievements:
9001, ISO 14001 and OHSAS 18001
Key Achievements:
- ISO 9001, ISO 14001 and OHSAS 18001
- ISO 9001, ISO 14001 and OHSAS 18001
Figure 7.1a.4: Example of supplier scorecard from customer
Area of Improvements:
Area ofUT:Improvements:
Area-ATKH Suffer T/F pre cut issue and not closed (LJ Chen T'F)
of Improvements:
7.1b-ATKH Product
-ATKH
-ATKH UT:
MTBF:
UT: Suffer and
Suffer
preservice
T/FT/F
Suffer
T/F
prepre
cutcut
cut issue performance
issue and notnot
issue
and notand
closed (LJ Chen
closed
closed (LJ Chen(LJ
T'F)T/F)
Chen
T'F)
-ATKH MTBF: Suffer T/F pre cut issue and not closed (LJ Chen T/F)
-ATKH 1H2018
MTBF:RankSuffer2017
T/F Rank
pre cutLFissue and not
Supplier closed1H2016
2H2015 (LJ Chen2H2016
T/F) 1H2017 2H2017 1H2018
In order to provide excellent
1H2018 Rank 2017services
Rank LFto our customers,
Supplier 2H2015 we track 2H2016
1H2016 on the Backend
1H2017 Equipment
2H2017 performance through the
1H2018
1H2018 Rank1 ASM 2H2015
2017 Rank 1 LF Supplier 1H2016
88.00% 82.80%2H2016 1H2017
79.15% 2H2017
82.80% 1H2018
81.15% 87.75%
Field Installation Report
1
(FIR) 1
(Figure 7.1b.1)
ASM and Field
88.00%
Part Return
82.80%
(FPR)
79.15%
(Figure
82.80%
7.1b.2)
81.15%
by our
87.75%
competent Customer
Support Engineering
1 2 teams.1 4 ASM B 88.00%86.00% 82.80%75.00%79.15%74.70%
82.80%77.38%
81.15%80.48%
87.75%85.59%
2 4 B 86.00% 75.00% 74.70% 77.38% 80.48% 85.59%
3 2 4 2 B C 86.00%85.00% 75.00%82.70%
74.70%78.99%77.38%80.78%
80.48%81.89%
85.59%82.11%
The results from Year 2013 to52Year 2018C
Dhad been improving and it60.05%
is a good indicator of customer satisfaction on both
3 85.00% 82.70% 78.99% 80.78% 81.89% 82.11%
3 4 2 C 85.00%67.00%82.70%45.00%
78.99% 80.78%61.02%
81.89%72.84%
82.11%81.10%
our Materials and 4Backend Equipment
5 businesses.
D 67.00% 45.00% 60.05% 61.02% 72.84% 81.10%
4 5 5 3 D E 67.00%76.00% 45.00%67.60%
60.05%77.50%61.02%83.32%
72.84%79.01%
81.10%77.39%
5 3 E 76.00% 67.60% 77.50% 83.32% 79.01% 77.39%
Good
5 3 E 76.00% 67.60% 1.2
77.50% 83.32% 79.01% 77.39%
1.0
Good
100%
98%
0.8
96%
Qty/ Machine year
94%
0.6
92%
90%
Yield%
88% 0.4
86%
84% 0.2
82%
80% 0.0
2014 2015 2016 2017 2018 2016 2017 2018
Yield% Target% Aero -Failure
Product A Qty per Machine OperaAon Life(1year)
AB383 -Failure
Product B Qty per Machine OperaAon Life(1year)
Good
96% Figure 7.1b.1: Field Installation Report (FIR) Success Rate % Figure 7.1b.2: Field Part Return Quality Performance
94%
92%
90%
Yield%
88%
86%
84%
82%
80%
2014 2015 2016 2017 2018
Yield% Target%
Results C7-57
F
7.2
inancial & Market Results

7.2a Financial performance, including financial results and economic value
ASMPT delivered excellent financial performances and generated impressive shareholder values. Since its inception in
1975, ASMPT manages to achieve profitability every year. In fact, ASMPT has entered into high growth period.
For financial year ending 31 December 2018, both Group Bookings and Billings attained new records (Figures 7.2a.1 and
2). Group revenue grew 11.6% year-on-year to US$2.49 billion, of which Backend Equipment and Materials recorded total
revenue of US$1.47 billion. Group revenue has, in fact, consecutively set new records over the past three years. All three
Business Segments (including SMT) attained two years running records in revenue (Figure 7.2a.3). Group revenue has
grown close to four times over the past ten years.
Group Half Yearly Billings 2H18 Rev

(US$ m) vs 1H08
3.4X
1,400
1,267
1,200
1,000
800
600
400
200
0
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H
05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18
Figure 7.2a.1: ASMPT has entered into high growth period
Yearly Group Bookings New

(US$ m) Record!
3,000
2,575
2,500
2,000
1,500
1,000
500
0
2014 2015 2016 2017 2018
Figure 7.2a.2: ASMPT achieved 2 years running Bookings record
Results C7-58
Yearly Billings
BE EQT Billings
Group Billings
YoY Growth: +11.6% (US$ m) YoY Growth: +7.3% New
(US$ m) New
1,400 Record!
3,000 Record!
1,200
2,500
1,000
2,000
800
1,500
600
1,000
400
500 200
0 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
SMT Billings
Materials Billings YoY Growth: +5.2% YoY Growth: +19.1%
New (US$ m) New
(US$ m)
Record! 1,200 Record!
350
300 1,000
250 800
200
600
150
400
100
50 200
0 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Figure 7.2a.3: ASMPT achieved 2 years running revenue record (SMT is not within the scope of this report)
7.2b Marketplace performance, including growth and market share,

position and acceptance 1,300 27.0%
1,200
26.0%
1,100
As the market leader, ASMPT Backend Equipment 25.0%
Revenue (in US$ mil)
Market Share %
1,000
traditionally outpaces the PAE (“Packaging Assembly and 900 24.0%
Equipment”) industry growth rate. In 2018, VLSI Assembly 800
23.0%
and Packaging Equipment forecasted a year-on-year 700
22.0%
growth of 3% but ASMPT Backend Equipment outpaced 600
500 21.0%
the industry and reported a year-on-year growth of 7% 2014 2015 2016 2017 2018
(Figure 7.2b.1). BE EQT Revenue BE EQT Market Share
Figure 7.2b.2: ASMPT Backend Equipment market share growth
Geographically, China (inclusive of Hong Kong), Europe,

Malaysia, the Americas and Taiwan were the top 5
markets for the Group in 2018. We have strong presence
in China and are the preferred partner for customers. We
continue to widen our gap with our rivals in China.
Our introduction of new leadframe products gained

market traction significantly. For ATS Leadframe Selective
Ag (RSA), the sales grew significantly from US$3 million in
Figure 7.2b.1: ASMPT Backend Equipment outpaced industrial growth 2013 to US$19.3 million in 2018 with a compound annual
growth rate (CAGR) at 44% for the last 6 years which
ASMPT Backend Equipment continues to retain the No. 1 reflects the market well acceptance of the product from
position in the global market, a position we first attained our customers.
in 2002. In fact, over the past 17 years (68 quarters), the
Group had maintained the No. 1 position, except for only The Group also saw good progress from business that it
once in Q1 2012. We further widen the revenue gap with had acquired over the past few years as the SMT Solutions
our closest rival. In 2018, we also beat our closest rival in Segment and ALSI continued to deliver outstanding
terms of profitability. results. The SMT Solutions Segment saw its revenue
exceeded US$1 billion in 2018, with a record profit of
ASMPT Backend Equipment continues to chase after HK$1.27 billion. ALSI, the laser business in the Backend
the wallet of our customers. Over the past five years, we Equipment Segment, was acquired in 2014, achieved a
continue to gain market share, growing from 22.5% in new record in revenue in 2018 that was around fivefold
2014 to 25% in 2018 (Figure 7.2b.2). that of 2014.
Results C7-59
P
7.3
eople Results
7.3a Human Resource Planning
Figure 7.3a.1 shows that our outreach engagement with various Institutes of Higher Learning (IHLs) and candidate pool
has increased tremendously. In 2018, the number of outreach events has increased more than 11 times as compared
to 2013. This is attributed to our engagement efforts in building and sustaining stakeholder ownership by involving
our internal stakeholders, such as hiring managers, regularly. The increase in outreach events has helped to grow our
candidate pool by more than 22,000 within a short span of 2 years. This indicates that we have built up a growing
pipeline of potential candidates to help support and meet our organisational needs.
Good
40 30,025 30000
No of Outreach Events
Candidate Pool
30
23 20000
20 15,024
12
10000
10
Good
4 7,267
4
2 2
5.0 4.3 4.3 4.5
0 0
3.8 3.8 3.8
2013 2014 2015 2016 2017 2018 4.0
RaAng Score
Outreach Events Target Candidate Pool

3.0
Figure 7.3a.1: Recruitment outreach events and our candidate pool
2.0
from our HRIS
1.0
Good
25 23 0.0
No. of Recruitment
20 2013 2014 2015 2016 2017 2018

16
RaAng Score Target
Plalorms
15 13
7.3b 10Employee learning and development
5 5 5
5
Encompassing the agile mind-set and approach of
0
lifelong learning, our L&D planning process involves the
Good
2013 2014 2015 2016 2017 2018
consolidation of current and future interventions from 100% 96% 94% 97% 92% 98%
No. Target 83%
Good
stakeholders’ inputs (Figure 7.3b.1) as well as providing 80%
timely L&D interventions and deliverables. Figure 7.3b.1 2000 100%
Trainee per Headcount

60%
RaAng
shows that the identified interventions in 2019 are 5 times 88%

78% 81% 80%
No. of Trainees
1500
40% 75% 76%
more since 2013. The positive trend is attributed to the 65% 1019
1148
950 957 60%
increasing business focus on upskilling and reskilling our 20%
1000 810
employees and the need for new employee capabilities. 580 40%
0%
500
Through our annual training needs identification/ analysis 2013 2014 2015 2016 2017 20%
2018
exercise, we review and develop our interventions 0 Aoendance RaAng Target 0%
regularly to ensure that they remain current and relevant 2013 2014 2015 2016 2017 2018
to the business needs and emerging L&D trends. Examples No. of
Figure 7.3b.2: Trainees
L&D % ofAttendance
Review – Overall Employee Rate
of future intervention in 2018 are Emotional Intelligence
and Data Analytics.
Good
40 36 95% 95% 91%

100% 91%
Trainee per Employee Type
No. of iodenAfied IntervenAosn
89% 89%
75% 83% 83% 86%
30 75%
80% 73% 70% 75%
30 25 64%
58%
19 60% 46%
20
13 40%
9 19%
10 6 20%
0%
0 2013 2014 2015 2016 2017 2018
2013 2014 2015 2016 2017 2018 2019
NE EX MGR
Figure 7.3b.1: Identification of current and future interventions Figure 7.3b.3: Opportunities – Trainees per Employee Type
30 100%
25 85% 83%
78% 80% Results C7-60
losed
ables
20
7.3c Employee
Skylop – FaciliAes engagement
Booking and well-being
New from 2015
912
We1000
work on and sustain various employee
809 engagement Skylop – FaciliAes Booking
No of booking
800
platforms and execute well-being strategies for a great New from 2015
1000 912
600 451 809
workplace for our employees. We are supported by our
No of booking
400 800
Happy Framework and relevant policy levers. 600
200 106 451
0 400
2015 2016 2017 2018 200 106
No. of Bookings 0
2015 2016 2017 2018
No. of Bookings
No of parAcipants in interest groups Figure 7.3c.1: Supportive environment - Skyloft facilities usage
300 No of parAcipants in interest groups

No of parAcipants
250 10 120%
9
300
100% 100% 100% 100% 100% 100% 100%
200 8
No of I.Group
6 6
No of parAcipants
7
250 80%
150 6 5
5
200 4 4 60%
100 4
40%
3
1501
50 2
20%
1
100
0 0 0%
2013 2014 2015 2016 2017 2018 50
2013 2014 2015 2016 2017 2018
No of parAcipants 0 No. of Interest Group ParAcipaAon Rate

2013 2014 2015 2016 2017 2018
Figure 7.3c.2: Cumulative number of employees who participated in Figure 7.3c.3: Achieving 100% minimum take
No of parAcipants up rate for every interest
interest groups group introduced
Employee Benefits Family Day- No of parAcipants

CORPORATE INDIVIDUAL SCHEME
1800
1600
1400
No of parAcipants
1200 921
Discovery Center
Universal Studio
Adventure Cove
1000
Singapore Zoo
800 623
Waterpark
Singapore
566
600
Sentosa
400 313 739
200 491 408
228
0
2015 2016 2017 2018
No of staff No of family members
Teambuilding Fund ($)

New Benefit from 2015
100 100 100 100 100
Eligible Quota
80
60
40
20
0
2015 2016 2017 2018
2013 2014 2015 2016 2017Average UAlisaAon EnAtlement
Figure 7.3c.4: Corporate Individual Scheme offered to employees
Teambuilding Fund ($) Get Together Fund ($)

New Benefit from 2015 Teambuilding Fund
Teambuilding
New ($) Fund
Benefit from ($)
2017
New Benefit from
New2015
Benefit from 2015
100 100 100 100 100 26,500.00 26,325.00
Eligible Quota
80 100 100 100 100

100 100
100 100
100 100
Eligible Quota
Quota
26,000.00
Quota Claimed
60 80 80
60 25,500.00
60
40 24,981.90
Eligible
20 40 25,000.00
40
0 20 20
24,500.00
2015 2016 2017 2018 0 0
24,000.00
2015 2016
2015 2017
2016 2018
2017 2018
Average UAlisaAon EnAtlement Total UAlisaAon
Average UAlisaAon
Average UAlisaAon
EnAtlement EnAtlement
Figure 7.3c.5: Teambuilding fund utilisation rate Figure 7.3c.6: Get together fund utilisation rate
Get Together Fund ($) Results C7-61

New Benefit from 2017 Get Together Fund
Get Together
($) Fund ($)
From the workplace culture survey conducted, we observed a significant improvement in the participation rate for the
survey conducted across 2016 and 2018.
2016 2018 Delta
Participation Rate 56% 80% ↑ 24% more participation
Total Response 592/1056 837/1051 ↑ 245 staff
Survey Period 19 days 15 days ↓ 4 days
Figure 7.3c.7: Score by Dimension for 2016 and 2018 Surveys
25% 400
24.0%
7.3d Employee performance and recognition 350
Annual AoriAon Rate (%)
20% 19.9%
19.1% 300
17.5% 17.9%
No. of Employees
242
We invest Staff Retention 16.2%
15% in our human capital and reward our employees 216 250
196
using different mechanisms to recognise 186 and
their effort 190
175
We have a well-proportioned workforce of employees200
contributions
10% to the
138 organisation. 74 who form the various service year categories
116 illustrated
80 96 150
in Figure 7.3d.1. In most 93 of the years, except in 2014
Variable Bonus 100
5% (28%), at least 30% of our workforce has been serving the
97 113 97 82 89
The Annual Wage Supplement (AWS) and Special Bonus organisation for 10 years
76 or more. This healthy balance50
are some
0% 7 9
examples of variable bonuses in place for our 9 between12 the experienced6 and inexperienced
11 allows
0 for
2013 2014 2015 2016
knowledge and 2017
skills transfer from 2018
more experienced
employees.
Managerial Exempt employees to the nextNon-Exempt
generation workforce to ensure a
We have been administering AWS as a fixedMachinery steady organisation
payment&toEquipment Industry (MOM) growth and succession planning to
All Industries (MOM) High Technology Industry (HRMC)
all employees throughout the years and on top of their take place.
total annual wages,
ATS Resignees (All)despite it being a discretionary wage
component.
100%
18% 17% 21% 21% 23% 24%
No. of Employees (%)
75% 12% 11% 9% 11% 10% 11%

17% 13%
21% 20% 18% 17%
50%
36%
40% 35% 33% 33% 33%
25%
22% 15% 15% 15%
13% 14%
0%
2013 2014 2015 2016 2017 2018
Less than 1 year 1 to 5 years 5 to 10 years 10 to 15 years 15 years & above
Figure 7.3d.1: Spread of employees by their service years category in ATS over the years
Results C7-62
O
7.4
perational Results
7.4a Process performance
With our high investment and focus in R&D and innovation drive, ATS continuously file and attain for patents over years
as shown on figure 7.4a.1.
Our productivity for product has increased by 34% over a period of five years with various improvement programmes such
as application of lean manufacturing, process centric approach in assembly and functional testing, automation, Design
for Manufacturability (DFM) and so on (Figure 7.4a.2).
Good
Good
1,476 140
CumulaAve no of patents granted
120
1,376
100
Hours/ maachine
1,276
80
1,176
60
1,076 40
20
976
0
876 2013 2014 2015 2016 2017 2018
<2013 2014 2015 2016 2017 2018
Actual Target
Figure 7.4a.1: Cumulative number of patents granted Figure 7.4a.2: High Volume Manufacturing (HVM) Average Labour
hours per Machine
7.4b Suppliers and partners performance
Good
Suppliers 7 8.0%
6.74%
7.0%
Figure7.4b.1 shows the yearly cost savings 6 6.12%
achieved based on our annual spend of US$80 5
5.40%
5.08%
5.33% 6.0%
million with an annual cost saving target of 5.0%
Percentage
4
US$ million
5%. The above shows that we have maintained 4.0%

a robust level of cost savings of about 5% to 3
3.0%
6% yearly from 2014 to 2018. This was driven 2
2.0%
by direct negotiation and alternative sourcing
1 1.0%
based on procurement strategy from each
commodity, namely electrical, mechanical and 0
2014 2015 2016 2017 2018
0.0%
electronics respectively. Actual Savings Target % Savings
Figure 7.4b.1: Cost savings achievement
7.4c Governance system and contribution to the community, society and

the environment
Governance system A new review, Information Technology General control

(ITGC), was introduced in 2017. This review applies to
The internal audit programme for ATS cantered around the
all systems, components, processes and data for the
Control Assessment & Monitoring System (CAMS), which
information technology environment, which includes
is aligned to Sarbanes-Oxley Act of 2002 (SOX). After
review of system and data backup and recovery controls.
considering the risks facing the entity, CAMS test plans
ITGC is important as companies rely on systems and
are drawn up and audit review will be carried out annually.
such ITGC review ensures the integrity of the data and
Group Internal Audit will recommend process and control
processes that our systems support. An ITGC review of
enhancements to ensure the effectiveness of these key
ATS was conducted in 2017.
controls. The most recently completed SOX review for ATS
was 2018.
Results C7-63
Every quarter, the Audit Committee will review the Market Authority and the Economic Development Board.
quarterly report on internal audit from Group Internal The EENP Awards aims to foster a culture of sustained
Auditor. This quarterly Audit Committee meeting also energy efficiency improvement in industry and public
involves the external auditor Deloitte Touche Tohmatsu, sector agencies. The EENP Awards also aims to encourage
who will similarly receive and review the internal audit companies/ organizations/ individuals to adopt a
reports. proactive approach towards energy management by
identifying and sharing best practices for all to emulate.
Moving from a paper to a digital environment, all the Our Facilities Management had received this prestigious
internal audit documentation from 2016 has migrated award for the efforts in promoting and driving energy
from the hardcopy version to be available on the internal efficiency improvement within our organization.
audit shared intranet.
At the same time, in recognition of ASMPT’s initiative to
Figure
In area of Corporate Social 7.4c.4: BCA
Responsibility (CSR),Green
severalMarkshape
GOLD Award
a more environmentally friendly and sustainable
activities had been launched and Figure 7.4c.1 are environment, we were awarded the GOLD standard by
examples on contribution to community and
Photo from society.
write up BCA Green Mark (Figure
Scan copy 7.4c.3) for our new Tech-Park
Building 2.
Facilities teams across the 9 plants have implemented
various energy savings projects. As shown in Figure
7.4c.2, although our energy consumption remained fairly
constant since 2012 to 2017, the total revenue generated
has been increasing. This shows significant energy
efficiency with a reduction of the energy intensity index by
37% since 2012.
The Energy Efficiency National Partnership (EENP) award

is organized by the National Environment Agency, Energy
Race Against Cancer ParAcipaAon Rate
Good
100
No of parAcipants
80
Race Against Cancer ParAcipaAon Rate
Good
60
100
No of parAcipants
40
80 Figure 7.4c.3: BCA Green Mark GOLD Award
20
60
0
40 2015 2016 2017 2018
20
0
2015 2016 2017 2018
Blood DonaAon Drive ParAcipaAon Rate

Good
95
No of parAcipants
90
85 Blood DonaAon Drive ParAcipaAon Rate
Good
80
95
75
No of parAcipants
90
70
85
65
80
2014 2015 2016 2017 2018
75
70
Figure
65 7.4c.1: Examples of contribution to the community and society Tech-Park Building 2
2014 2015 2016 2017 2018
Figure 7.4c.2: ASMPT Energy Consumption, Revenue and Energy Intensity Trend
Results C7-64
8D
A bbreviations / Acronym
8 disciplines or the 8 critical steps for EM External Manufacturing
solving problems
EP Expandable Press
ABIT Universal Abit (formerly ABIT Computer
Corporation) was a computer EQT Equipment
components manufacturer, based in ERC Emergency Response Committee
Taiwan
ERP Enterprise Resource Planning
ACM Advanced Customized Manufacturing
ESG Encapsulation Solutions Group
AFS Approved Firefighter Suppliers
ESI Earlier Supplier Involvement
AGF Automated Guided Forklift
ESS Encapsulation Solutions and System
AGV Automated Guided Vehicle
ETTV Envelope Thermal Transfer Value -->
AP Advanced Packaging A useful indicator for the thermal
APM Agile Project Management performance of a building envelope
AQA ASMPT Quality Award FAMless Film Assist Molding
ASMPT ASM Pacific Technology FEA Finite Element Analysis
ASRS Automated storage and retrieval FOA Financial & Operational Audit
Systems FSM Fire Safety Manager
ATS ASM Technology Singapore Pte Ltd GDP Gross Domestic Product
BCA Building and Construction Authority GTR Great Team from Roots (Bottom up
BGA Ball Grid Array Improvement teams) --> To build an
engaging team that drive towards World
BOT Brown Oxide Treatment (to increase the Class Quality
adherence of shiny copper surface to
resin) --> Increase mold adhesion by HPVIM High-Precision-Vision-Inspection-
increase copper surface roughness Machine
BU Business Unit HRIS Human Resource Information System
CAE Computer Aided Engineering HVM High Volume Manufacturing
CAMS Control Assessment & Monitoring i4.0 Industry 4.0
Systems IC integrated circuit
CAR Corrective Action Report ICT Information Communication and
CCM CMOS Camera module Technology
CFD Computational Fluid Dynamics IDM Integrated Device Manufacturer
CIP Continuous Improvement Plans IHQ In House Qualification
CIS CMOS Imaging Sensor IHRP Institute for Human Resource
Professionals
CLAM Closed Loop Automatic co-Planarity
IIoT Industrial internet of things
COO Cost of Ownership
IoT Internet of things
CPS Certified Preferred Suppliers
IP Intellectual property
CRM Customer Relationship Management
ITGC Information Technology General Control
CSR Corporate Social Responsibility --> Use windows user account as
unified access control for most of the
CSS Certified Strategic Suppliers applications
DFA Design for Assembly KPI Key Performance Index
DFM Design for Manufacturability LED Light-Emitting Diode
DRC Disaster Recovery Committee MBD Multibody Dynamics --> A multibody
EBIT Earnings Before Interest and Taxes dynamic (MBD) system is one that
consists of solid bodies, or links, that
ECM Engineering Change Manangement are connected to each other by joints
EDB Economic Development Board that restrict their relative motion.
The study of MBD is the analysis of
EDP Electronic Data Processing how mechanism systems move under
EEPS Enhanced Electronic Pull System the influence of forces, also known as
forward dynamics.
EFIR Electronic Field Installation Report
ME
A bbreviations / Acronym
Micro-etching roughness --> Roughness SAP System Administration Product -
of copper surface after micro-etching Enterprise resource planning (ERP)
treatment System
MI Module Integration SCM Supply Chain Management
MIS Management Information System SEMI A global industry association for
electronics serving the manufacturing
MMP Master Manufacturing Plan supply chain for electronics industry
MPC Material Planning and Control SFw Skills Framework
MPS Master Production Schedule SiP System-In-Package
MTBA “Mean Time Between Assists --> SLIM Smart Lean Integrated Manufacturing
MTBA is the average number of
hours the equipment is running SMT Surface Mount Technology
until an assist is required.
Assists are not failures but are SNC Setup and Calibration
essentially interruptions that require a SNEF Singapore National Employer Federation
reset and do not require spare parts;
often this is as simple as rebooting the SRRC Strategic Risk Review Committee
computer. SSG SkillsFuture Singapore
NPI New Product Introduction SWOT Strengths, Weakness, Opportunities,
OECD Organization for Economic Co-Operation Threats
and Development TAE Training and Adult Education
OR Operational Review TAFEP Tripartite Guidelines released by
OSAT Outsourced Assembly and Test Tripartite Alliance for Fair and
Progressive Employment Practices
PA Performance Appraisal
TNA Training Needs Analysis
Pd Palladium
TNI Training Needs Identification
PDCA Plan-Do-Check-Act
TPB2 Tech-Park Building 2
PE Production Engineer
UPH Units Per Hour
PEST PEST analysis (political, economic,
socio-cultural and technological) USPs Unique Selling Points
PGS Performance Gratuity Scheme UV Ultra-Violet
PLM Product Life Cycle Management VLSI Very Large Scale Integration
POWER Passion-Ownership-Win-Excellence- VLSI --> VLSI Research is VLSI Research, Inc
Respect Research VLSIresearch is an award-winning
provider of market research and
PPF Pre-Plated leadframe economic analysis on the technical,
PPM Parts Per Million business, and economic aspects of the
semiconductor supply chain
QBR Quarterly Business Review
VMI Vendor Managed Inventory
QFN Quad Flat No-Leads --> QFN package
(type of surface mount package) VMV Vision, Mission and Values
R&D Research & Development WB Wire Bonders
RBA Responsible Business Alliance WHS Workplace Health and Safety
RCM Recruitment Management WIP Work-In-Progress
RDLs Redistribution Layers --> A redistribution WIGs Wildly Important Goals
layer (RDL) is an extra metal layer on WLP Wafer-Level Packaging
a chip that makes the IO pads of an
integrated circuit available in other WSG Workforce Singapore
locations WSH Workplace Safety & Health
RMK Recruiting Marketing WSTS World Semiconductor Trade Statistics
RSA Reel Selective Silver --> Photomask
Silver plating in roll form
SAO Sales Administration Officers
www.asmpacific.com
2 Yishun Avenue 7 Singapore 768924

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Enabling the Digital World

C1-03 ... C1-13 Leadership

C2-14 ... C2-21 Customer

C3-22 ... C3-28 Strategy

C4-29 ... C4-38 People

C5-39 ... C5-50 Processes

C6-51 ... C6-55 Knowledge

C7-56 ... C7-64 Results

Great People Around the World Inspired to Deliver InnovaNve SoluNons!

MUNICH BEUNINGEN CHENGDU TAOYUAN

WEYMOUTH PORTO REGENSBURG BILLERICA

ASMPT Enabling Technologies R&D Centres

2016 • Top 10 of Best Managed HK Companies in 2016 by Finance Asia

Awards and Accolades

Enabling the Digital World

P assion to be the #1 Go-to-Partner

VMV Communica7on Sessions ! Communica7on and feedback sessions Quarterly

Corporate Events Twice

Media (Corporate Website) ! Ease of VMV informa:on Ongoing

! Share and update employees on VMV promo7onal ac7vi7es

Figure 1.1b.1: Engagement with stakeholders

1.1c Acts as role models and grooms future leaders

4 Experience sharing ! Dialogue sessions

Leadership exposure ! Involvement in internal and

Figure 1.1c.1: Illustration on how future leaders are identified in ATS

SOLICIT FEEDBACKS FROM VARIOUS CHANNELS

SUPPORT TEAM-ANALYSE GAPS

DEVELOP AND IMPLEMENT MEASURES

Figure 1.2a.1: Developing ATS culture to drive growth

1.2b Translates values into desired employee behaviours to enable

Opportuni)es Improvements Opportuni)es Improvements

Ensuring manpower ﬂexibility

Opportuni)es Improvements Opportuni)es Improvements

Engage employees with the Streamline work processes through

Groom employees to meet current and

Figure 1.2c.1: The 4 domains guiding change and sustainability

orporate Governance and Social Responsibility

With endorsements from the Institute of Auditors and the

01. MANAGEMENT ACTION PLAN

05. MANAGEMENT REPORTING

Figure 1.3a.2: Internal Audit framework

• Control Assessment & Monitoring Systems (CAMS)

• Financial & Operational Audit (FOA)

Compliance Statement: A trusted company commiCed to the highest ethical standards.

Communica7on and dissemina7on of guiding compliance principles

Ongoing communica7ons to ins7ll values to become business-as-usual

ASMPT aligns its compliance guidance to local and other

Supporting the Environment Social Governance

Figure 1.3b.1: Ms Orasa Livasiri, Chairman, Board of Directors

1. Industry Discussions & Valida7on 1. Memberships

3. Corporate Social Responsibility

2. Reduce, Reuse, Recycle Projects

3. Awards & Cer:ﬁca:on

Figure 1.3b.2: ATS leaders supporting various forms of CSR initiatives

Organisa:on Frequency Ac:vi:es

Figure 1.3b.3: Our CSR involvement and activities

Contributing to MINDS and Singapore

Contribution to the SFw for TAE under SkillsFuture,

Colleagues participating in Hong Kong

1. RSA is to promote Copper (Cu)/ Epoxy Mould