Formerica Profile 20210903

Company Profile September 3rd, 2021

Agenda Who is Formerica Optoelectronics Key products Global Customers Differentiators & Advantages Product Roadmap

Who is Formerica Optoelectronics Founded in 2000 and with headquarters, design & manufacturing in Taiwan. Formerica is an optical interconnect solution leader: Optical transceivers, Active Optical Cables (AOC), SDI interface devices, Optical Bypass Modules, Extender Cables Data rates from 155M, 1G, 10G, 25G, 40G, 50G*, 100G, 200G*, 400G*. Operation Temperature: commercial, extended, industrial temp Shipping customized AOC length from 1m to 100m+. We provide the most reliable, energy efficient, lowest life cycle cost solution. Trusted by data centers in High-Speed Trading and Network Equipment Manufacturers, as well as mission critical applications in Medical Imaging, Industrial Automation & Control, Fire/Safety/Security, Defense. Extender Cable * Available Q4’21

Application of Transceivers and Data Rates Industrial Automation & Controls MSO/Carriers/ISP/Telecoms 5G / AI / IoT Data Center/Enterprise Networking – Medical Imaging Hyper Scale/Cloud Computing Routers, Servers, Gateways, Storage Critical Infrastructures – Digital Broadcasting Protocol Analyzer/Test & Utilities, Transportation, Telecom Security Surveillance Measurement Instruments Source: Ethernet Alliance

Trusted by Global Customers

Formerica Differentiators and Advantages Triple Play: TAA compliant, NDAA compliant, no China Tariff Made-in-Taiwan means TAA compliance for GSA contracts: • US Gov’t/Mil/DoD/TLA (Three Letter Acronyms - YKW) • GSA contracts: tax payers’ money. Our money. • Priority to buy “Made-In-USA” or “Made-In-US Friendly Countries” – Taiwan, Japan, South Korea in Southeast Asia. Not China, Vietnam, Thailand, Malaysia, Philippines, India, Indonesia, etc. • Most competitors’ are Non-TAA compliant b/c their factories are in “Non-Designated Countries”. • BAA (Buy American Act): GSA supply contracts valued between $25,000~$182,000 • TAA (Trade Agreement Act): GSA supply contract above $182,000 • Buy American/Trade Agreement Acts: based on “Country of Origin”, sources of content and last country of “Substantial Transformation”. “COO” may not always be equivalent to “Product of”. Made-In-Taiwan means NDAA compliance (and no Cybersecurity Risk): • NDAA (National Defense Authorization Act) • Prohibits US Gov’t using products from Huawei, ZTE, Hytera, Hikvision, Dahua, etc. • Formerica does not have relationships (OEM, ODM or JDM) with these named vendors Made-In-Taiwan means No China Tariff

Formerica Differentiators and Advantages Pandemic Impact • Caused China, Malaysia, Philippines to shut down for extended period of time • Disruption of the global supply chain impacted every industry • Industries realized the need to lessen dependency on China’s supply chain • Those buying from China experiencing lead-time increasing to 10+ weeks • Many customers are qualifying alternate manufacturers outside of China COVID-19 under control in Taiwan: daily new cases in low double digits Formerica’s factory never shut down Quick turn and nimble Short Lead-Time: 8-10 weeks, even shorter w/ Distributor bonded inventory Increased component and semi-finished goods buffers Procuring raw materials aggressively (more and earlier) Customers’ forecasts is CRITICAL in our procurement process

Formerica Differentiators and Advantages Lowest Power Consumption for 100G SR4 CT (1.7W vs. 2.9W or 3.5W) • Generate less heat, longer life span, higher reliability, reduced cooling cost • Lowest cost of ownership Wider Extended Temperature Range for 100G for greater reliability: -20 to 85℃ • 35℃more range than competitions • Reduces SKU count which reduces inventory costs • Soon 100G SR4 -40 to 85℃: “Industrial Temp” • Shipping 10G LR -40 to 95℃: “Industrial Temp+” Robust 12G SDI (Serial Digital Interface) Video Modules • Backwards compatible with 6G/3G/1.5G and 270Mb (Standard Def) • Highest signal integrity without re-clocker, lower power consumption • Pass stringent Pathological Test for 4K transmission

Key Product: Optical Bypass Module (OBM) Purpose: Provides fail-safe ports and remove single point of failure in networks Mitigates cascading failures in daisy chain networks Application: 5G, IoT, Embedded Systems, Industrial PC, Firewalls, Network Traffic Optimizers, Cybersecurity Appliances, Smart Infrastructure in transportation and utilities, Security and Surveillance Features: • Short Latency (reacts in milliseconds) • Selection of # of Ports, Port Speeds, Connectors: dual or quad ports, 1G/10G/40G/100G, LC or MPO • Low Insertion Loss • High Reliability (switching cycles tested ≧107 times) • Compact Dimensions for space saving Advantages: • Makes network easier to recover from failures • Removes complexity of integrating optical and electrical interfaces • Cost effective solution then building their own version • Easy integration with Network Interface Cards (NIC) Benefits: • Provides redundancy for high availability networks • Simplifies implementation of fault tolerant • Mitigates network interruption due to network appliance failures (Firewall, UTM, Spam filter, Antivirus)

Key Products: Optical Bypass Module Types 1. Passive OBM (POBM) – Optical Bypass Switch Used in Industrial Ethernet Switches (IES) Hardware activated – switches on automatically when there is no power Can be installed internally or externally 2. OBM - Optical Bypass Switch + Optical Engines Used in Industrial PCs (IPC) Uses Watchdog Timer to verify appliance status Installed internally 3. Intelligent OBM – Optical Bypass Switch + Optical Engines + Firmware/Software Used in Deep Packet Inspection (DPI) or Intrusion Prevention Systems (IPS) Uses heart-beat packets to verify appliance status Software/Firmware integration with host Requires joint development with customer and integration with their system POBM and OBM are standard products and intelligent bypass switch as custom products.

Optical Bypass Module Customers Advantech, Cas-Well, Nexcom Network appliance companies integrate OBM onto their Network Card to sell as a network adapter/module for use with Industrial PC, Gateway, Server and Switches that supports Network Security, IIoT, Cloud Computing, Edge Computing, and SDN devices. These network adapter/module provides Bypass/Failover function in case network devices shut down due to system failure or network attack. Networks with OBMs will not be affected by single device failure. https://www.cas-well.com/products/network-adapters-and-modules/10gbe-proprietary-adapters.html Available Products: Product Description OBM 2 Port 10G LR OBM 2 Port 10G LR (Mini) OBM 2 Port 10G SR OBM 2 Port 10G SR (Mini) OBM 2 Port 25G SR OBM 2 Port 40G SR4 OBM 2 Port 100G SR4 OBM 4 Port 1.25G LX OBM 4 Port 1.25G SX OBM 4 Port 10G LR OBM 4 Port 10G SR

Market Trends: Immersion Cooling for Data Centers What is Immersion cooling? The latest transformation of the liquid cooling in High Performance Computing and Next Gen Data Center. Also known as liquid submersion cooling, it is the practice of submerging computer components (or full servers) in a thermally, but not electrically, conductive liquid (dielectric coolant). Liquid submersion is a routine method of cooling large power distribution components such as transformers. Still rarely used for the cooling of IT Hardware, this method is gaining market traction and popularity with green computing & innovative datacenters the world over.

Market Trends: Immersion Cooling for Data Centers Immersion Cooling Types: Single-Phase and Two-Phase Application: High Performance Computing, Edge Computing, Blockchains, AI, Cloud/Enterprise Computing, ML, VR Cooling Fluid Type: Synthetic Oil, Mineral Oil, Fluorocarbon Based Fluids, Others (Vegetable Oil, Bio-oils, and Deionized Water)

Immersion Cooling Advantages Radical Cost Savings Unlimited Capacity Simplification Capex & Opex & Flexibility Cost Reduction 60% 90% 50% Data Center Construction Cooling Energy Total Energy & Costs Expenses Maintenance Costs

Immersion Cooling Market • Immersion cooling market is projected to grow from USD 177 million in 2019 to USD 501 million by 2024, at a CAGR of 23.2% from 2019 to 2024. • Market growth due to rising chip and server rack density, new application, such as harsh edge computing environments, artificial intelligence, machine learning, and cloud computing. • Pressure to reduce Total Cost of Ownership (TCO): cooling/energy cost, construction cost, space, time, maintenance. https://www.marketsandmarkets.com/Market-Reports/immersion-cooling-market-107040948.html

100G QSFP28 Extension Cable for Immersion Cooling Liquid cooling has been an accepted method of conditioning electronics for more than half a century. Immersion Cooling is at the foundation of Immersed Computing. It means the complete immersion of electronic components in a dielectric liquid. By doing so, all the heat generated by the IT is captured in the liquid. Suitable dielectric liquids can absorb approximately 1500 times more heat energy than air with the same volumes and temperatures. Concerning the device temperature control, the application of immersed computing design is a trend. However, the performance of fiber lens degrades in liquids, which means that the I/O link can't support the deployment of transceivers and active optical cables. QSFP28 Extender, is designed to be applied for immersion solution. It extends the 100G interfaces to surface, aiming to realize the interconnection of 100G transceivers and AOC cables. Features: • Compliant QSFP28 MSA specifications and SFF-8665 • Low EMI radiation • Insertion Loss < 7dB @12.89GHz/channel within 50cm • Oil-resistant, dust-proof and anti-corrosion • 100 ohm differential impedance system • Low Near-End Crosstalk • RoHS compliant • Available length 22cm, 36cm, or custom length Applications: • Extend the 100Gb/s high speed interconnection for liquid immersion solution • Extend the link of 100G AOCs • Extend the link of 100G transceivers

100G QSFP28 Extension Cable for Immersion Cooling

100G QSFP28 Extension Cable for Immersion Cooling

100G QSFP28 Extension Cable Mechanical Specification

Product Roadmap 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 400G QSFP-DD 400G PAM4 AOC/SR8 CT QSFP112 AOC/SR4 CT QSFP-DD 400G PAM4 Fan-out CT QSFP-DD 400G PAM4 DR4 CT QSFP112 DR4 CT QSFP-DD 400G PAM4 FR4 CT 200G QSFP56 200G PAM4 AOC/SR4 CT QSFP56 200G PAM4 FR4 CT QSFP-DD 200G NRZ AOC/SR8 CT SFP112 PAM4 DR1 CT SFP112 PAM4 FR1 CT 100G SFP112 AOC/SR/VR CT SFP-DD AOC/SR CT SFP112 LR1 CT 400G: Add DSP solution Multi-Mode 200G: Search for low cost solution. Add DSP solution 100G: Single lambda key component supplier. Add DSP solution Single-Mode