Credit Suisse Presentation November 2017.112817

Microchip 2.0

Steve Sanghi, CEO Ganesh Moorthy, COO Eric Bjornholt, CFO ©November 2017

Business Update

 Net sales and earnings guidance from earnings call reconfirmed.  Due to our capacity investment efforts, lead times for many products improving. Overall lead times continue to be in a range of 4 to 20 weeks  Longer lead time challenges to be corrected by the middle of calendar year 2018  Continuing with Microchip 2.0 - Total system solutions - Smart, connected and Secure

©November 2017 2

MICROCHIP 1.0

1. Consistent growth 2. Perennial market share gains 3. High margin business model 4. Shareholder friendly with consistently increasing dividends and free cash flow 5. Successful M&A strategy

©November 2017 3 Annual Net Sales Growth

4000 3900 3800 3700 3600 108 consecutive quarters of profitability! 3500 3400 3300 3200 3100 MCU Analog Memory Licensing MMO 3000 2900 2800 2700 2600 2500 2400 2300 2200 2100 2000 $ Million 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 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 FY18 RR ©November 2017 4 Total MCU (8/16/32) Market Share %

©November 2017 5 Worldwide Microcontroller Market Share

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

Based on dollar shipment volume 2003-2016, Source: Gartner and Microchip ©November 2017 6 Analog Yearly Revenue (k$)

$1,000,000 $950,000 $900,000 $850,000 $800,000 $750,000 $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 RR

©November 2017 7 Expanding Our Solutions Through Acquisitions HI-TECH Supertex Roving Networks High-Voltage Analog & Development Tools Advanced Silicon Bluetooth® & Motor Drive Mixed-Signal Products Compiler Embedded Wi-Fi® Products

ZeroG Micrel Low-Power Hampshire Embedded LSS Novocell Analog, mixed-signal, timing & power Touch Screen Wi-Fi® High-Speed Non-volatile management Controllers ADCs Memory IP

2008 2009 2010 2011 2012 2013 2014 2015 2016

EqcoLogic Atmel SST Ident Equalizer & Microcontrollers, High-Density Flash 3D Gesture Capture Coaxial Wireless, Touch, & IP & Proximity Detect Transceiver R&E Products Automotive, MMT Security International & Memory Assembly & Test SMSC Security & Life Capacity ® ISSC Safety ASICs MOST , USB, Expansion Ethernet, Wireless Audio Bluetooth® & PC Controllers Low Energy

©November 2017 8 Microchip 2.0

Be The Very Best Embedded Control Solutions Company Ever

©November 2017 9

MICROCHIP 2.0

1. Total System Solution in Embedded Control 2. Leading customer preference to design with our MCUs 3. Multiple growth drivers 4. Record gross margin target with multiple drivers 5. Record low opex target with multiple leverage drivers 6. End market mix skewed to Industrial and Automotive 7. New LT model with industry leading operating profits

©November 2017 10

MICROCHIP 2.0

©November 2017 11

SNMPV3/HTTPS

Gateway

Classic Micrel

Microchip DSC1001 SST MEM’s 24MHz Oscillator WINC1000 Atmel

System Supply

SPI

PIC32MZ2048EFG144 Harmony 2.04 MIIM KSZ8041 MIC5219-3.3YMM Wolf SSL Ethernet

ECC508 SQI I2C

SST26VF016B SQI Flash 24AA256 MPFS file system

©November 2017 12 Inverter

Display Module

Classic Micrel Microchip DSC1001 MCP1650 SST MEM’s 24MHz Backlight

Oscillator Controller Atmel

PWM

Parallel Analog LCC FIRMWARE EBI/PMP RGB Driver

PIC32MZ2048EFG100 Vsync USART USART Harmony Seger Hsync

Pclk

Power

Host SQI GPIO I2C GPIO Inverter SQI I2C

LCD Display

INT SYNC

w/ ITO Layer

MIC4576-3.3WU SST26VF016B RX lines Ripple Blocker SQI Flash Touch Controller Graphics Pages

3.3V

©November 2017 13

Wireless Fire Alarm

Classic

Micrel Microchip

Battery PIC16F1828 AC/DC SST

Atmel ATECC508A Power Control

Crypto Auth 2 x RS485 AC/DC and Bat Charge RE

12Vdc

I2C UART Battery MIC5302 LDO

MIC2238

3.3Vdc RE46C113 RE46C800 MCP32016 I2C 5.0Vdc Com. Stack SMOKE CO IO Expander I2C ASF FREERTOS

ATSAMD10D14A Keyboard UART UART GPIO SPI Com. Stack SYNC ATSAM4E16CA GPIO SEGMENTS INT SPI PIO ATSAMD10D14A DIPLAY

SPI Interface SPI GPIO MAC GPIO AT86TF212B SPI ATECC508A Crypto Auth MAC SPI 900MHz TRX

INT SYNC

AT86TF212B 30dBm 900MHz TRX SST26VF064B PA/LNA SQI Flash KSZ8081 Event Log 10/100MHz PHY Sensor Control Smoke Detector

©November 2017 14

Base Station

Micrel Classic MCP16301 Microchip MIC5219 WINC1500 SST WiFi Radio Buck 5V Regulator Regulator Atmel

SPI

UART UART UART

PIC32MX170F512

SPI SPI SPI Main CPU PIC32MX795F512 Ethernet Bridge BASE STATION FIRMWARE

Radio

SQI RMII

SQI

RMII

MCP1700 MCP1700 Regulator SST26VF064B Regulator SQI Flash LAN8720A Font Storage Ethernet PHY

©November 2017 15 GigE Switch

Micrel Classic

Microchip Atmel

ATECC508A ATSAMA5D33 Crypto Element MPU

DSC1101

125 MHz MEMS PL902171 Oscillator Jitter Blocker KSZ9477 7-Port Gigabit MIC826 Reset Switch

Generator

MIC25041 3.3V MCP1826 Buck 2.5V Linear Regulator Regulator

MCP1826 1.8V Linear Regulator

MIC23303 Switching 1.2V Regulator ©November 2017 16 Cash Dispenser Machine

Classic 2 x ATA6561 Microchip CAN

SMSC PMIC

Atmel

CAN 0/1 i/f I/F to PC or FPGA SPI AT24MAC02 USART SDIO SAMA5D28 AT24LC02 x 2 Cache Memory: 32kB I + 32kB D EMAC LAN8710 10/100 Secure Back-up area USB USB2513 6 x MCP6002 32-Bit DDR Controller

256M DDR3 SDCARD 4GB EMMC

MICROCHIP 2.0

Which of the following 8-bit chip families would you consider for your next embedded project?

46% Microchip PIC 39% 43% Atmel AVR 34% 18% STMicroelectronics ST6, ST7, ST8 19% 13% Freescale HC 17% 13% TI TMS370, 7000 10% 11% Intel 80xx, '251 10% 10% NXP/Philips P80x, P87x, P89x 13% 10% Atmel 80xx 8% 9% Renesas H8 12% 9% CypressPSoC 1 (M8C) / PSoC 3 (8051) 11% 9% Xilinx PicoBlaze (soft core) 10% 8% SiLabs 80xx 9% 7% Zilog Z8, Z80, Z180, eZ80 4% 3% Digi / Rabbit 2000, 3000 2% 2% Parallax 2% 2% Toshiba 1% 2% Infineon XC800, C500 3% 2017 (N = 462) 2% Maxim 80xx 2% 2015 (N = 695)

Which of the following 16-bit chip families would you consider for your next embedded project?

45% Microchip PIC24 / dsPIC 38% * 42% TI MSP430 43% * 22% STMicroelectronics ST9, ST10 21% 15% Freescale HC16 19% 11% Intel 8086, '186, '286 11% 11% Renesas RL78 12% 10% Freescale HC12 12% 9% Renesas R8C 7% 6% AMD 186, '188 5% 5% Zilog Z180, Z380 3% 4% Maxim 5% Infineon XE166, XC2000, XC166, C166 4% 6% 2017 (N = 412) 3% Other 5% 2015 (N = 621)

Which of the following 32-bit chip families would you consider for your next embedded project?

SiLABS Precision32 (ARM) 5% STMicro STM32 (ARM) 30% Qualcomm (any) 5% Microchip PIC 32-bit (MIPS) 20% Energy Micro EFM32 4% Microsemi SmartFusion2 SoC FPGA (Cortex-M3) 4% Xilinx Zynq (with dual ARM Cortex-A9) 17% Infineon XMC4000 (ARM) 4% Freescale i.MX (ARM) 17% AMD Fusion, Athlon, Sempron, Turion, Opteron, Geode 4% NXP LPC (ARM) 16% Atmel AT91xx 4% FreescalePowerQUICC 4% FreescaleKinetis (ARM/Cortex-M4/M0) 16% Renesas RH850 4% Atmel SAMxx (ARM) 14% Freescale PowerPC 55xx 4% TI Sitara (ARM) 14% Microsemi FPGA (Cortex-M1, softcore) 3% Freescale PowerPC 5xx, 6xx 3% Intel Atom, Pentium, Celeron, Core 2, Core iX 13% Intel Itanium 3% Altera (Intel FPGA) SoC-FPGA (with dual ARM Cortex-A9) 12% Freescale Vybrid (ARM) 3% Arduino 12% Freescale 68K, ColdFire 2% Microsemi SmartFusion SoC FPGA (Cortex-M3) 2% Altera (Intel FPGA) Nios II (soft core) 11% IBM PowerPC 4xx, 7xx 2% TI SimpleLink (ARM)* 11% Infineon XMC1000 (ARM Cortex-M0) 2% Marvell 2% TI TM4Cx (ARM) 11% Infineon Tricore 2% Atmel (AVR32) 11% Xilinx Virtex-5 (with PowerPC 405) 2% Atmel AT91xx/ATSAMxx (ARM) 10% Infineon AURIX (TriCore-based) 1% Cirrus Logic EP73xx, EP93xx (ARM) 1% Cypress PSOC 4 ARM Cortex-M0/PSoC 5 ARM Cortex-M3 9% AMD Alchemy (MIPS) 1% Renesas RX 8% SPARC (any) 1% Broadcom (any) 8% Xilinx Virtex-4 (with PowerPC 405) 1% Spansion (formerly Fujitsu) FM3 (ARM) 1% TI C2000 MCUs 7% Infineon TriCore 1% Xilinx MicroBlaze (soft-core) 7% 2017 (N = 617) Infineon TriCore-based 32-bit families AUDO MAX 1% AMCC PowerPC 4xx NVIDIA Tegra 6% 1% Other (please specify) 4% TI Hercules (ARM) 6%

68% 67% 65%

25% 26% 27%

7% 8% 8%

The chip itself The ecosystem surrounding the chip The chip's supplier/vendor (software, tools, support, etc.)

2017 (N = 719) 2015 (N = 960) 2014 (N = 1304)

(Unaided Open End) Microchip or Atmel (Microchip) 14%

Texas Instruments (TI) 14%

ST Microelectronics 11%

NXP/Freescale/Qualcom 11%

Xilinx 5%

Intel, Intel Altera 5%

ARM 4%

Digi-Key 4%

Cypress Semiconductor 2%

Renesas 2%

Arrow 2% 2017 (N = 328) Unaided Silicon Labs 2%

1. Microcontroller market growth and share gains 2. Analog growth and attach opportunity 3. Wireless and Wired Connectivity – IoT 4. Security 5. Automotive Networking, HMI, Access Control, Lighting and Body Electronics 6. Technology licensing

Communi- Defense & cation Aerospace 2% Computing 5% 9%

Industrial 35% Consumer 24% Automotive 25%

$4,000,000 $3,750,000 $3,500,000 $3,250,000 $3,000,000 $2,750,000 17.9% CAGR $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 *RR FY18

* Run rate for FY18 represent Q1 + Q2 FY18 actual results multiplied by two ©November 2017 26 Non-GAAP Net Income and Diluted EPS Growth $1,400,000 $7.00 $1,300,000 $1,200,000 $6.00 $1,100,000 $1,000,000 $5.00 $900,000 $800,000 $4.00 $700,000 $600,000 $3.00 $500,000 $400,000 $2.00 $300,000 $200,000 $1.00 $100,000 $0 $0.00 FY12 FY13 FY14 FY15 FY16 FY17

Non-GAAP Net Income $ Non-GAAP Diluted EPS *RR FY18

* Run rate for FY18 represent Q1 + Q2 FY18 actual results multiplied by two ©November 2017 27 Free Cash Flow as a % of Revenue $1,400,000 42.0% $1,300,000 39.0% $1,200,000 36.0% $1,100,000 33.0% $1,000,000 30.0% $900,000 27.0% $800,000 24.0% $700,000 21.0% $600,000 18.0% $500,000 15.0% $400,000 12.0% $300,000 9.0% $200,000 6.0% $100,000 3.0% $0 0.0% FY12 FY13 FY14 FY15 FY16 FY17 Free Cash Flow $ Free Cash Flow as a % of Sales *RR FY18

* Run rate for FY18 represent Q1 + Q2 FY18 actual results multiplied by two. Free cash flow = operating cash flow minus capital expenditures. ©November 2017 28 EBITDA and Net Leverage

$500,000 3.50 $450,000 3.15 $400,000 2.80 $350,000 2.45 $300,000 2.10 $250,000 1.75 $200,000 1.40 $150,000 1.05 $100,000 0.70 $50,000 0.35 $0 0.00 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18

EBITDA $ Net Leverage fcst Q3FY18 * EBITDA as calculated in accordance with Microchip’s Credit Facility. Net leverage excludes 2037 convertible debt, consistent with Credit Facility

Actual Results Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Net Sales $844.0 $873.8 $881.2 $902.7 $972.1 $1,012.1 Gross Profit $471.1 $499.9 $509.7 $534.7 $587.2 $617.8 Gross Margin 55.8% 57.2% 57.8% 59.2% 60.4% 61.0% Operating Expenses $240.0 $233.6 $220.6 $213.6 $222.9 $227.3 Operating Income $231.1 $266.3 $289.1 $321.2 $364.3 $390.5 Operating Margin 27.4% 30.5% 32.8% 35.6% 37.5% 38.6% Net Income $194.0 $219.6 $246.5 $276.9 $319.1 $344.1 Diluted EPS $0.84 $0.94 $1.05 $1.16 $1.31 $1.41 EBITDA $264.1 $298.8 $321.3 $356.5 $395.6 $422.5 Q3 FY18 Guidance Long Term Model Net Sales $971.7 - $1,012.1 Revenue Growth 7% - 9% Gross Margin % 61.0% -61.4% Gross Margin 62.5% Operating Expense % 22.2% to 22.6% Operating Margin 38.4% to 39.2% Operating Expenses 22.5% Diluted EPS $1.30 - $1.40 Operating Margin 40.0%

Microchip does not utilize a GAAP long-term model. All figures in long-term model are non-GAAP. Excludes share-based compensation, acquisition related charges, non-recurring items. A reconciliation of our GAAP to non-GAAAP results is available at www.microchip.com. ©November 2017 30 Summary

 A consistent revenue grower and market share gainer with multiple growth drivers  High margin business model and shareholder friendly  Lead times improving from planned capacity additions  Capacity challenges to persist through the middle of calendar year 2018 before lead times are normal.  Premium long-term non-GAAP financial model to 62.5% gross margin, 22.5% operating expenses and 40% operating income.  Executing on Microchip 2.0- Total system solutions- Smart, connected and Secure.