Ganesh Moorthy

President and

Chief Operating Officer

Microchip In Automotive ©June 2017

2 ©June 2017

Business Update

Net sales for Q1FY18 expected to be +4.5% to +6%

sequentially (previous guidance +2% to +7%).

Non GAAP EPS for Q1FY18 expected to be

between $1.22 to $1.26 per share (previous

guidance $1.17 to $1.27 per share).

Business conditions continue to be very strong.

Backlog is strong. Lead times stretching out.

Significant capacity challenges to persist for up to

one year before lead times are normal.

Long-term updated non-GAAP financial model is

now 62.5% gross margin, 22.5% operating

expenses and 40% operating profit.

3 ©June 2017

Corporate Overview

Leading provider of: • High-performance Microcontrollers, Digital Signal Controllers

and Microprocessors

• Mixed-Signal, Analog, Interface and Security solutions

• Clock and Timing solutions

• Wireless and Wired Connectivity solutions

• Non-volatile EEPROM and Flash Memory solutions

• Flash IP solutions

~ $3.5 Billion revenue in FY17

~13,000 employees

Headquartered near Phoenix in Chandler, AZ

4 ©June 2017

Our Vision

Be The Very Best Embedded Control Solutions Company Ever

5 ©June 2017

0100200300400500600700800900

1000110012001300140015001600170018001900200021002200230024002500260027002800290030003100320033003400350036003700380039004000

FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

MCU Analog Memory Licensing MMO

Annual Net Sales Growth

$ M

illi

on

106 consecutive quarters of profitability!

6 ©June 2017

WW MCU Market Share

Based on dollar shipment volume 2003-2016, Source: Gartner and Microchip

2003 2008 2009 2010 2012 2014 2015 2016

No. Rank Rank Rank Rank Rank Rank Rank Rank

1 Renesas Renesas Renesas Renesas Renesas Renesas Renesas Renesas

2 Motorola NEC NEC Freescale Freescale Freescale NXP NXP

3 NEC Freescale Freescale Samsung Infineon ST-Micro ST-Micro Microchip

4 Matsushita Infineon Samsung Microchip Microchip Microchip Microchip ST-Micro

5 Infineon Samsung Microchip Atmel ST-Micro NXP Infineon TI

6 Fujitsu Microchip TI TI TI TI TI Infineon

7 Toshiba ST-Micro Infineon Infineon Atmel Infineon Atmel Cypress

8 Microchip TI ST-Micro ST-Micro NXP Atmel Cypress Samsung

9 Samsung Fujitsu Fujitsu Fujitsu Fujitsu Spansion Samsung CEC Huada

10 ST-Micro NXP NXP NXP Samsung Samsung CEC Huada Toshiba

11 Atmel Toshina Atmel Toshiba Toshiba Cypress Datang Si Labs

12 TI Atmel Toshiba Denso Cypress Toshiba Toshiba Denso

13 Sanyo Panasonic Panasonic Cypress Denso Denso Denso Datang

14 Philips Denso Denso Panasonic Panasonic Datang Si Labs SH Fudan

15 Intel Sony Cypress Sony Sony Si Labs SHIC Panasonic

16 Sony Cypress Sony Datang Si Labs CEU-Huada Tongfang Holtek

17 Micronas Intel Datang JSC Sitronics CEC Huada Panasonic Panasonic Nuvoton

18 Oki Micronas Intel Si-Labs Melfas SHIC Holtek Unigroup

19 Sunplus Winbond Si-Labs Intel JSC Tongfang Winbond Maxim

20 Winbond Si-Labs Rohm INSIDE Holtek Nationz

7 ©June 2017

Revenue by End Market

Communication

8 ©June 2017

Automotive Semiconductor

Supplier Ranking

1. NXP

2. Infineon Technologies

3. Renesas Electronics

4. ST Microelectronics

5. Texas Instruments

6. Robert Bosch (mostly captive)

7. ON Semiconductor

8. Microchip

9. Toshiba

10. Rohm Semiconductor

Source: Semicast Research 2017

9 ©June 2017

Automotive Semiconductor Content

Source: Statista Source: PWC, Microchip Estimates

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Semiconductor Content / Vehicle

0

20

40

60

80

100

120

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Vehicle Shipments (Munits)

10 ©June 2017

Networking

Ethernet

11 ©June 2017

Security

• >20 years in secure IC market

• Automotive grade stand alone Security ICs

• Secure Crypto Microcontrollers

• Securing in vehicle networks, including legacy CAN

• Enabling Secure BOOT – no fraudulent firmware

All you need is Trust

12 ©June 2017

Homelink – Garage Doors

Access Control Systems

Highly Secure Keyfobs

RF link + LF immobilizer

Relay Attack Theft Prevention:

Low Power UWB Radar

Passive Entry – Walk Away Locking

13 ©June 2017

Advanced HMI: Capacitive Sensing

Multi-Point Touch Screens Touch Pad Controls

Capacitive Gesture Recognition Buttons and Sliders

14 ©June 2017

Interior and Exterior Lighting

Interior Ambient Lighting - RGB

Exterior LED Front Lighting LED Tail Lights

Instrument Cluster Backlighting

15 ©June 2017

Body Electronics

Steering Wheel control

Door Handle Sensing

Kick Sensing

Pressure Monitoring

16 ©June 2017

Motor Control

Fuel Pumps

Water Pumps

Cooling Fans

Turbo Wastegate

17 ©June 2017

Electrification / Fuel Economy

Start Stop Voltage

Stabilization (DC/DC)

EV Portable Charger

Inductive Wireless

Charging Control

48V System Solutions

18 ©June 2017

Advanced Driver Assist Systems

Collision Avoidance Systems Lane Departure Warning

Blind Spot Detection Smart Mirrors

19 ©June 2017

Microchip Content in ADAS

Autonomous Parking

LED Matrix Lighting

Surround View Camera

Back up Camera

Parking Sensors

Traffic Sign Recognition

Blind Spot Detection

Lane Departure

Lane Keep Assist

Adaptive Cruise Control

Automatic Emergency Braking

Front Collision Avoidance

V2X

Adaptive Lighting

Rain Sensor

TPMS

Pedestrian Detection

MCU Network/Analog Memory

20 ©June 2017

ADAS Drives Sensor Proliferation

Automation Level 2 Level 3 Level 4

Sensor / Year 2015 2020 2025

Radar ≥ 3 ≥ 6 ≥ 10

Camera * ≥ 1 = 2 ≥ 8

Lidar 0 ≤ 1 ≥1

Radar Camera Ultrasonic Laser

*) excluding backup camera and

surround view cameras

21 ©June 2017

Increasing Number of

Sensors Will Drive

Revenue

Growth

ADAS Sensors:

Security Needed

Increased

bandwidth

requirements –

raw data - high

speed links

Safety related

Parameterics

Monitoring &

Sensor control

22 ©June 2017

Applications in S-Class 29 MCUs / 8 Analog / 6 USB / 6 Memory / 6 MOST / 4 Kleer

PTC Heater

Throttle Control

Engine

Control

Timer Rear View Camera

Adaptive Light

Approach Sensors

LED DRL

Breakout Box

Navigation

HVAC Blower

Light Switch

Airbag

Head Unit

Parking Assist

Garage Door Opener

Door Switch Module

Cluster

COMPASS

Mirror

Surround View Camera

Telephone Touch Dialer

DewPoint Controller

Wiper Rear Seat

Entertainment

Roof Controller

Natural Vaccuum Leak

Detection

Amplifier

23 ©June 2017

Applications in Hyundai Genesis 30 MCU, 22 Analog, 5 Memory, 3 MOST®, 2 USB

Automatic

Defogger

Sensor

Steering - Vibration

Door Latch

Cabin Lamp

Seat Heater

Adaptive

Front

Leveling

CO2

Monitor

Hands-free

Module

Audio

Sunroof

Headunit Active Seatbelt

Overhead

Console

Lamp

Personal Lamp

Steering - Heater

LED

Driver

Module

I-Box

Breakout Box (Rear)

Airbag

AVN

DRL

Rear

Camera

Mirror

Garage

Opener

24 Confidential

OEMs using Microchip

25 ©June 2017

Summary

Microchip is a significant Automotive

semiconductor player with 25 years

experience serving the market

Microchip dominates multiple

application areas in automobiles

Microchip is well positioned for the

explosive ADAS growth ahead

Thank you!

Questions?