S E M I C O N D U C T O R S E C T O R S U M M a R Y January 2017

12.20 0.20 0 0.20 12.20

5.40

0.0

1.50

S e m i c o n d u c t o r S e c t o r S u m m a r y January 2017 7.90

1 12.20 0.20 0 0.20 12.20

SEMICONDUCTOR DEAL DASHBOARD

$124.7 Billion 51 M&A Volume YTD (1) M&A Transactions YTD (1) 5.40 Quarterly M&A Volume (1) Quarterly M&A Deal Count (1) Top M&A Transactions YTD $70,000 25 Target Acquirer EV ($Bn) $59,211 $60,000 $54,612 20 $46.1 $51,522 20 18 $50,000 15 15 15 $30.9 15 13 $40,000 12 $14.2 $30,000 $22,224 10 8 $20,000 $5.8 $12,320 $7,430 5 $10,000 $6,494 $2,110 $4.3

0.0 $0 0 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 $3.3

1.50 LTM Semiconductor Performance vs. SOX (2) M&A EV / NTM Revenue Over Time (3)

5.0x 40% 37.8% 4.5x 30% 4.0x 20% 12.4% 3.0x 2.7x 10% 2.4x 2.4x 2.5x 0% 2.0x 1.7x (10%) (20%) 1.0x (30%) 0.0x (40%) SPX SOX 2011 2012 2013 2014 2015 2016 YTD

7.90 Notes: Source: Capital IQ and 451 Group. (1) Criteria based on global semiconductor transactions announced year to date with transaction values greater than $20MM. (2) PHLX Semiconductor Sector Index (^SOX), used as a proxy for the semiconductor landscape. Top holdings in the ETF include NVDA, QCOM and TXN. (3) Criteria based on global public semiconductor transactions announced year to date with transaction values greater than $20MM. 2 12.20 0.20 0 0.20 12.20

MARKET SUMMARY Industry Stock Market Performance

Last Twelve Months Last Three Years

5.40 40% 80%

70% 30%

60% 20% 50%

10% 40%

0% 30%

20% 0.0 (10%)

10% (20%)

1.50 0% (30%) (10%)

(40%) (20%) Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16

Indexed Performance Over Time Sector 3 Months 1 Year 3 Years Automotive(1) Consumer(2) Automotive 14.3% 21.4% 55.4% Consumer 8.8% 29.3% 39.2% Datacenter 12.0% 15.7% 69.2% Datacenter(3) Diversified(4) Diversified 9.7% 28.7% 81.0%

7.90 Notes: (1) Automotive: ENXTBR: MELE, SWX:UBXN, TSE: 6723, XTRA: ELG, XTRA: IFX. (2) Consumer: AMBA, AMD, CRUS, DIOD, INTC, INVN, KN, MRVL, MXL, NVDA, OB: NOD, QCOM, QRVO, SWKS, SWX:AMS, SYNA, TSE: 6963, XTRA: DLG. (3) Datacenter: AMCC, CAVM, IPHI, MLNX, MTSI. (4) Diversified: ADI, AVGO, ENXTPA: STM, IDTI, ISIL, LLTC, LSCC, MCHP, MPWR, MSCC, MXIM, NXPI, ON, POWI, SLAB, SMTC, TXN, XLNX. 3 12.20 0.20 0 0.20 12.20

MARKET SUMMARY Multiples and Margins

CY 2017E EV / Revenue CY 2017E EV / EBITDA

5.40 5.0x 16.0x 4.5x 4.3x 13.6x 13.3x 4.0x 12.0x 10.7x 9.6x 3.0x 2.6x 2.5x 8.0x 2.0x

4.0x 1.0x

0.0 0.0x 0.0x Diversified Datacenter Automotive Consumer Datacenter Diversified Automotive Consumer

1.50 CY 2017E Revenue Growth LTM Gross Margin (%)

16.0% 15.2% 70.0% 60.4% 59.3% 60.0%

12.0% 48.4% 50.0% 9.8% 42.1% 8.6% 40.0% 8.0% 6.3% 30.0%

20.0% 4.0%

10.0%

0.0% 0.0% 7.90 Datacenter Automotive Consumer Diversified Datacenter Diversified Consumer Automotive

Notes: Values presented are the median value for their respective sub-sector. Additional detail provided in later pages. 4 12.20 0.20 0 0.20 12.20

MARKET SUMMARY Semiconductor Trading Statistics ($MM, Except Per Share Data)

Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth Gross Margin 5.40 12/20/2016 Value Debt Value CY 17E CY 18E CY 17E CY 18E CY 17E CY 18E 17E/16E 18E/17E LTM CY 17E Automotive

Infineon Technologies AG $17.25 $19,438 ($529) $18,909 2.6x 2.4x 9.4x 9.0x 18.6x 15.8x 8.7% 7.1% 36.0% NA

Renesas Electronics Corporation $8.47 14,127 (1,664) 12,463 2.3 2.2 10.7 9.6 23.8 19.9 39.5% 3.7% 42.1% 43.1%

Melexis NV $66.44 2,661 (106) 2,555 4.9 4.6 15.8 14.3 23.9 21.6 9.8% 8.5% 45.8% 46.5%

u-blox Holding AG $184.05 1,256 (60) 1,196 2.8 2.3 12.2 10.2 24.5 20.2 17.1% 19.2% 46.3% 46.7%

ELMOS Semiconductor AG $14.99 297 (16) 282 1.1 1.1 5.1 4.7 16.3 14.2 5.8% 5.6% 41.1% 42.8%

Mean 2.7x 2.5x 10.6x 9.5x 21.4x 18.3x 16.2% 8.8% 42.2% 44.8% Median 2.6 2.3 10.7 9.6 23.8 19.9 9.8% 7.1% 42.1% 44.8%

($MM, Except Per Share Data) 0.0 Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth Gross Margin 12/20/2016 Value Debt Value CY 17E CY 18E CY 17E CY 18E CY 17E CY 18E 17E/16E 18E/17E LTM CY 17E

1.50 Consumer

Intel Corporation $37.21 $176,338 $10,060 $186,398 3.1x 3.0x 7.8x 7.5x 14.0x 12.8x 3.4% 2.9% 62.3% 62.6%

QUALCOMM Incorporated $66.91 98,818 (6,891) 91,927 3.8 3.7 9.8 8.9 13.9 13.0 1.1% 3.3% 60.5% NA

NVIDIA Corporation $105.17 56,687 (3,658) 53,029 6.7 6.0 21.3 16.4 33.1 27.5 15.7% 11.6% 58.0% 57.8%

Skyworks Solutions, Inc. $76.61 14,235 (1,086) 13,149 3.6 3.3 8.0 7.1 11.9 10.6 12.0% 9.9% 50.6% NA

Advanced Micro Devices, Inc. $11.51 10,668 374 11,042 2.4 2.2 41.6 44.6 NM NM 8.3% 10.1% 22.6% 32.9%

Marvell Technology Group Ltd. $14.34 7,283 (1,650) 5,633 2.4 2.4 9.6 8.6 15.9 12.8 (2.8%) 1.9% 53.6% 57.9%

Qorvo, Inc. $54.74 6,992 519 7,511 2.3 2.1 NA 5.8 10.0 8.0 8.9% 10.1% 38.6% NA

ROHM Co., Ltd. $56.63 5,990 (2,725) 3,265 1.1 1.1 5.0 4.5 30.6 23.4 6.4% 1.8% 32.9% NA

Cirrus Logic, Inc. $58.30 3,714 (89) 3,625 2.2 2.0 8.8 NA 13.9 12.3 15.4% 10.6% 48.8% NA

Dialog Semiconductor Plc $40.74 3,041 (646) 2,395 1.8 1.6 8.0 7.3 18.0 14.9 14.1% 9.6% 45.7% 46.5%

7.90 Synaptics Incorporated $55.00 1,919 (73) 1,846 1.0 0.9 6.2 6.8 10.1 10.1 14.8% 8.6% 34.2% NA

Notes: Source: Capital IQ and Capital IQ estimates. Multiples <0 or >50 considered NM. 5 12.20 0.20 0 0.20 12.20

MARKET SUMMARY Semiconductor Trading Statistics ($MM, Except Per Share Data)

ams AG $27.53 $1,897 $281 $2,178 2.9x 2.4x 10.6x 8.0x 16.2x 11.5x 30.4% 20.3% 54.3% 53.6%

Ambarella, Inc. $54.83 1,816 (372) 1,443 4.1 3.6 12.4 10.7 18.9 17.3 14.9% 14.2% 65.3% 63.6%

Knowles Corporation $16.98 1,507 292 1,798 2.0 1.9 9.6 NA 16.3 14.2 6.6% 5.0% 29.1% 39.4%

MaxLinear, Inc. $22.37 1,444 (98) 1,345 3.6 3.3 10.7 9.0 15.8 14.4 (3.4%) 9.5% 59.6% 64.1%

Diodes Incorporated $25.56 1,250 162 1,412 1.4 1.4 7.7 6.7 22.1 18.3 5.1% 3.9% 29.6% 32.3%

InvenSense, Inc. $10.84 1,019 (118) 900 2.8 2.5 22.5 NM NM 38.3 8.0% 8.9% 41.5% NA

Nordic Semiconductor ASA $3.85 623 (29) 594 2.5 2.1 13.9 9.4 27.2 16.4 23.2% 20.9% 48.0% 48.9%

0.0 Mean 2.8x 2.5x 12.6x 10.8x 18.0x 16.2x 10.1% 9.1% 46.4% 50.9% Median 2.5 2.3 9.6 8.0 16.1 14.2 8.6% 9.6% 48.4% 53.6%

($MM, Except Per Share Data)

1.50 Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth Gross Margin 12/20/2016 Value Debt Value CY 17E CY 18E CY 17E CY 18E CY 17E CY 18E 17E/16E 18E/17E LTM CY 17E Datacenter

Cavium, Inc. $65.24 $4,371 $577 $4,949 5.2x 4.6x 17.1x 14.4x 24.4x 18.8x 58.8% 13.4% 53.1% 66.3%

MACOM Technology Solutions Holdings, Inc. $49.22 2,644 227 2,871 4.3 3.9 12.7 11.4 18.0 15.7 15.2% 9.9% 52.1% NA

Mellanox Technologies, Ltd. $41.15 2,006 (43) 1,962 2.0 1.8 7.3 6.9 10.7 10.0 12.8% 9.8% 66.5% 71.2%

Inphi Corporation $47.14 1,943 (303) 1,641 4.6 3.8 13.6 11.4 25.4 20.0 32.9% 21.2% 62.9% 72.0%

Applied Micro Circuits Corporation $8.55 749 (82) 668 3.5 3.8 21.5 NA NM NM 15.1% (8.6%) 60.4% NA

Mean 3.9x 3.6x 14.5x 11.0x 19.6x 16.1x 26.9% 9.2% 59.0% 69.8% Median 4.3 3.8 13.6 11.4 21.2 17.3 15.2% 9.9% 60.4% 71.2%

7.90

Notes: Source: Capital IQ and Capital IQ estimates. Multiples <0 or >50 considered NM. 6 12.20 0.20 0 0.20 12.20

MARKET SUMMARY Semiconductor Trading Statistics ($MM, Except Per Share Data)

Texas Instruments Incorporated $74.04 $74,002 $474 $74,476 5.4x 5.3x 12.4x 11.8x 20.8x 20.0x 3.4% 3.1% 60.7% 62.2%

Broadcom Limited $182.07 72,342 10,545 82,887 5.0 4.7 9.0 8.3 12.8 11.7 7.3% 6.4% 60.0% NA

NXP Semiconductors NV $97.10 32,546 7,813 40,359 4.3 3.9 12.2 10.7 13.8 12.1 (0.0%) 7.8% 47.6% 51.7%

Analog Devices, Inc. $73.40 22,620 (2,324) 20,296 5.4 5.2 13.7 13.0 21.2 19.8 6.2% 4.8% 65.1% NA

Xilinx, Inc. $59.96 15,141 (1,904) 13,237 5.4 5.1 17.1 NA 25.4 22.8 6.4% 6.7% 69.5% NA

Linear Technology Corporation $62.51 15,025 (1,521) 13,504 8.6 8.2 17.3 17.0 27.4 26.5 6.1% 4.8% 76.1% NA

Microchip Technology Incorporated $65.30 14,106 2,615 16,721 4.7 4.5 13.6 10.5 16.5 15.2 12.5% 5.5% 56.7% NA

Maxim Integrated Products, Inc. $39.25 11,119 (1,053) 10,066 4.3 4.1 10.7 10.0 18.7 17.1 4.3% 6.6% 60.0% NA 0.0 STMicroelectronics NV $11.04 9,523 (464) 9,059 1.2 1.2 7.5 6.6 23.3 19.1 4.3% 4.5% 34.2% 36.2%

Microsemi Corporation $56.79 6,511 1,990 8,501 4.6 4.4 13.3 12.0 14.3 13.2 4.6% 4.6% 60.9% NA

1.50 ON Semiconductor Corporation $12.81 5,341 2,756 8,097 1.6 1.6 8.2 7.1 11.1 9.0 29.1% 3.0% 34.2% 35.4%

Monolithic Power Systems, Inc. $85.43 3,475 (259) 3,216 7.2 6.3 22.7 18.4 30.3 24.8 15.2% 15.0% 54.1% 55.7%

Integrated Device Technology, Inc. $24.80 3,324 (95) 3,229 4.3 NA 11.7 NA 16.4 NA 2.2% NA 58.4% NA

Intersil Corporation $22.29 3,051 (284) 2,767 4.9 4.6 21.0 17.6 27.8 25.7 5.3% 5.5% 59.1% 60.5%

Silicon Laboratories Inc. $65.65 2,741 (207) 2,534 3.4 3.1 17.2 NA 24.0 20.8 6.8% 10.1% 60.1% 59.3%

Semtech Corporation $32.75 2,150 (50) 2,100 3.5 3.2 11.7 11.8 20.2 16.1 9.5% 10.4% 59.5% 60.5%

Power Integrations, Inc. $68.40 1,993 (227) 1,767 4.0 3.6 20.9 NA 24.1 NA 12.9% 13.6% 49.4% 50.1%

Lattice Semiconductor Corporation $7.19 871 236 1,108 2.3 NA NA NA 25.7 NA 11.8% NA 58.1% 55.3%

Mean 4.5x 4.3x 14.1x 11.9x 20.8x 18.3x 8.2% 7.0% 56.9% 52.7% Median 4.5 4.5 13.3 11.8 21.0 19.1 6.3% 6.0% 59.3% 55.5%

7.90

Notes: Source: Capital IQ and Capital IQ estimates. Multiples <0 or >50 considered NM. 7 12.20 0.20 0 0.20 12.20

RECENT ACQUISITIONS Select Semiconductor Transactions

($MM) Announced Aggregate AV / Revenue Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description Provides electronic, microwave, sensor, and RF-related related components 5.40 Semiconductor / Electronic 12/12/2016 Teledyne Technologies e2v technologies $783 2.7x 2.4x and sub-systems to businesses in the medical, science, aerospace and Components defense, and industrial sectors worldwide.

Designs and manufactures semiconductors for use in wired and wireless 11/21/2016 M/A-COM Technology Solutions Applied Micro Circuits Corporation Semiconductor / Networking $651 3.9x 3.6x networking equipment, storage systems and datacenters.

Provides chip and embedded systems electronic design automation Semiconductor Manufacturing / 11/14/2016 Siemens AG Mentor Graphics $4,281 3.7x 3.4x software for semiconductor OEMs and provides systems integration EDA Simulation & Modeling services.

Designs field-programmable gate array, complex programmable logic 11/03/2016 Canyon Bridge Capital Partners Lattice Semiconductor Semiconductor Design / IP $1,303 3.2x 2.8x devices, clock and power management semiconductors.

Provides enterprise storage area networking systems, IP networking 11/02/2016 Broadcom Corporation Brocade Communications Systems Storage / Networking $5,818 2.5x 2.3x systems and other software offerings.

Provides fabless systems-on-chip semiconductor manufacturing for optical Semiconductor Manufacturing / 11/01/2016 Inphi Corporation ClariPhy Communications $275 NA 5.8x networking and communication applications for OEMs of networking Assembly equipment, enterprise local area networks and enterprise datacenters. 0.0 Microchip Technology Design and manufacture microcontroller, mixed-signal, analog and Flash-IP 11/01/2016 Solomon Systech Semiconductor Design / IP $23 NA NA (mobile touch semiconductor assets) semiconductors.

Designs and manufactures analog and mixed-signal semiconductors for 10/27/2016 Qualcomm Incorporated NXP Semiconductors Semiconductor Design / IP $46,077 5.3x 4.7x 1.50 computer and electronics manufacturers globally.

Designs analog and mixed-signal semiconductors and controllers for use in 09/22/2016 Beijing Shanhai Capital Management Analogix Semiconductor Semiconductor Design / IP $500 NA NA digital media, smartphones, graphics cards and displays.

Media Technologies / Content Provides digital audio encoding, decoding and processing software for 09/20/2016 Tessera Technologies DTS $946 5.8x 4.8x Delivery media companies and electronics OEMs.

Designs and manufactures analog integrated circuits for flat panel 09/13/2016 Renesas Electronics Corporation Intersil Corporation Semiconductor Design / IP $2,834 5.5x 5.2x displays, optical storage and power management products.

Designs multimedia and mobile internet system-on-chip (SoC) 09/12/2016 Supernova Investment Actions Semiconductor Semiconductor Design / IP $123 2.4x NA semiconductors for use by the mobile electronics sector.

7.90 Notes: Source: 451 Group and Capital IQ. Aggregate value defined as implied equity value plus net assumed liabilities. Criteria based on global semiconductor transactions announced year to date with transaction values greater than $20MM. 8 12.20 0.20 0 0.20 12.20

RECENT ACQUISITIONS Select Semiconductor Transactions

($MM) Announced Aggregate AV / Revenue Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description Provides transient voltage suppression diode, switching thyristors and 5.40 ON Semiconductor 08/25/2016 Littelfuse Semiconductor Design / IP $104 1.9x NA insulated gate bipolar transistor design and manufacturing services for the (automotive electronics division) automotive industry.

Sypris Electronics Provides ruggedized secure encrypted communications, key management 08/18/2016 Analog Devices Security / Encryption $42 NA NA (CSS business) and identity authentication hardware and software systems.

Semiconductor Manufacturing / Manufactures wafers for the semiconductor and solar cell manufacturing 08/17/2016 GlobalWafers Co Ltd. SunEdison Semiconductor Limited $671 0.9x 0.8x Assembly sectors.

Semiconductors Manufacturing Develops, manufactures, and sells in-line, jetting dispensing equipment for 08/01/2016 Mycronic AB Shenzhen Axxon Automation $67 3.8x NA / Fabrication use in printed circuit board manufacturing for the electronics industry.

ams AG Semiconductor Devices / Provides embedded NFC and RFID wireless connectivity components and 07/29/2016 STMicroelectronics N.V. $78 NA NA (NFC & RFID reader assets) Wireless middleware for use in mobile handheld and IoT-enabled wearable devices.

Designs and manufactures analog integrated circuit semiconductors for 07/26/2016 Analog Devices Linear Technology Corporation Semiconductors / Analog $14,210 10.0x 9.5x use in signal conversion and conditioning, power management and timing applications. 0.0 Semiconductor Manufacturing / Provides electromagnetic field and frequency band simulation and CAD 07/21/2016 Dassault Systemes S.A. Computer Simulation Technology AG $242 4.7x NA EDA Simulation & Modeling software used by businesses globally.

Provides IP for use in manufacturing semiconductors, including 07/18/2016 SoftBank Corp. ARM Holdings Semiconductor Design / IP $30,856 22.0x 19.4x microprocessors, graphics processors, video engines, and embedded 1.50 memory and M2M and IoT connectivity chips. Cree Semiconductors Manufacturing Manufactures and provides silicon carbide wafer substrates and gallium 07/14/2016 Infineon Technologies AG (wolfspeed power and RF division $850 4.9x NA / Chemicals nitride substrates used in power switches and RF wireless devices. assets)

Inphi Corporation Semiconductor Devices / The memory interconnect business provides buffers and registers; 06/30/2016 Rambus $90 NA NA (memory interconnect business) Interconnects providing the ability to connect CPUs to a server's memory.

Semiconductor Manufacturing Semiconductor Manufacturing / Owns and operates an analog and mixed-signal semiconductor foundry 06/24/2016 LFoundry Europe GmbH $78 0.3x NA International Corporation Assembly facility for semiconductor providers in Europe.

Semiconductor Manufacturing / Provides integrated circuit pattern verification and wafer defect E-beam 06/16/2016 ASML Holding NV Hermes Microvision $2,749 14.7x 10.3x Testing inspection systems for semiconductor manufacturers.

RECENT ACQUISITIONS Select Semiconductor Transactions

($MM) Announced Aggregate AV / Revenue Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description Manufactures and provides storage network infrastructure hardware and 5.40 06/15/2016 Cavium QLogic Corporation Semiconductor / Storage $947 2.1x 2.0x related storage networking management software to OEMs, resellers and system integrators.

Semtech Corporation Provides SerDes-based analog and mixed-signal IP for ASSP, ASIC, and SoCs 06/06/2016 Rambus Semiconductor Design / IP $33 1.9x NA (snowbush IP assets) semiconductor OEMs.

Designs standard and custom analog and mixed-signal integrated circuits 06/02/2016 Beijing E-Town Chipone Technology Integrated Memory Logic Limited Semiconductor Design / IP $136 NA NA for LCD flat panel display OEMs worldwide.

Designs and manufactures electronic components, power supply, 05/24/2016 TransDigm Group Incorporated Data Device Corporation Semiconductor / Networking $1,000 NA 5.0x networking, controls and communications components.

Semiconductors Manufacturing Provides semiconductor manufacturing equipment, including metal-organic 05/23/2016 Grand Chip Investment GmbH AIXTRON SE $546 2.7x 2.5x / Fabrication chemical vapor deposition equipment.

Topsil Semiconductor Materials A/S Semiconductors Manufacturing Manufactures ultrapure silicon and silicon substrates for semiconductor 05/20/2016 GlobalWafers Co Ltd. $49 1.2x NA (silicon businss assets) / Chemicals manufacturers globally.

0.0 Provides embedded computer imaging and vision display subsystems used 05/18/2016 ARM Holdings Apical Systems / Sensors $350 NA NA in smartphones, tablets and IP cameras.

Carrier Infrastructure / Wireless Develops 5G wireless and wired connection infrastructure for carriers, 05/17/2016 Broadcom Corporation MagnaCom $60 NA NA 1.50 Infrastructure handset manufacturers, wired and wireless system OEMs.

Designs SoC components for use by in-vehicle infotainment and navigation 05/13/2016 NavInfo AutoChips Semiconductor Design / IP $600 NA NA system OEMs.

Carrier Infrastructure / Optical Manufactures tune-able pluggable optical transmission modules, 05/09/2016 IPG Photonics Corporation Menara Networks $47 2.2x NA Infrastructure demarcation interconnect devices and transceivers.

Broadcom Corporation Semiconductor Devices / Designs and manufacturers baseband and RF backhaul SoC and integrated 05/09/2016 MaxLinear (wireless infrastructure backhaul $80 2.7x NA Wireless transceivers. business)

Broadcom Corporation Semiconductor Devices / Provides Wi-Fi and Bluetooth connectivity embedded hardware and 04/28/2016 Cypress Semiconductor $550 2.9x NA (wireless IoT business) Wireless software to customers worldwide.

RECENT ACQUISITIONS Select Semiconductor Transactions

($MM) Announced Aggregate AV / Revenue Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description

5.40 Microsemi Corporation Semiconductor Devices / Designs RF wireless base station transceivers, synthesizers and remote 04/28/2016 MaxLinear $21 NA NA (broadband wireless division) Wireless radio heads to enable 3G, 4G, and 5G broadband networks.

Semiconductor Manufacturing / Provides CPU and graphics processing unit simulation acceleration 04/11/2016 Cadence Design Systems Rocketick $40 NA NA EDA Simulation & Modeling software for use by semiconductor manufacturers.

Semiconductors / System-on- Designs video broadcast encoding, decoding, transcoding and video 04/04/2016 GigOptix Magnum Semiconductor $55 2.9x NA chip compression system-on-chips, integrated circuits and related software.

Microsemi Corporation (embedded Semiconductor Devices / Designs and manufactures microwave and RF embedded security 03/23/2016 Mercury Systems security, RF & microwave, & custom $300 3.0x NA Embedded components, mixed signal system-on-chip processors and SSD devices. microelectronics businesses)

Manufactures laser systems and photonic components for electronics, 03/16/2016 Coherent Rofin-Sinar Technologies Semiconductors / Photonics $779 1.5x 1.5x medical and industrial OEMs.

Manufactures and distributes scalable linear LED lighting modules and 03/15/2016 Fagerhult AB LED Linear GmbH Semiconductors / Photonics $45 1.9x NA interior and exterior lighting fixtures for businesses.

0.0 Leaba intends to provide fabless semiconductor design for computer and 03/02/2016 Cisco Systems Leaba Semiconductor Semiconductor Design / IP $320 NA NA electronics OEMs.

Provides photonic and optical components, sub-systems, and precision 02/23/2016 MKS Instruments Newport Corporation Semiconductors / Photonics $1,003 1.7x 1.6x 1.50 lasers for computer and electronics manufacturers globally.

Semiconductor Manufacturing / Provides integrated circuit probing, testing and characterization systems 02/04/2016 FormFactor Cascade Microtech $314 2.2x 2.1x Testing for semiconductor manufacturers.

Semiconductor Devices / Designs and provides 4G LTE processor and modem chipsets and related 01/26/2016 Sony Corporation Altair Semiconductor $212 4.7x NA Wireless software.

Mobile Applications / Mobile Provides mobile payments, mobile identification credential management 01/25/2016 Rambus Smart Card Software Ltd. $92 NA NA Payments and smart public transport ticketing software and smart cards.

TeraXion Inc. Provide indium phosphide and silicon photonics optical components for use 01/19/2016 Ciena Corporation (high-speed photonics components Semiconductors / Photonics $32 NA NA in optical chipsets and fiber-optic networking equipment. assets)

RECENT ACQUISITIONS Select Semiconductor Transactions

($MM) Announced Aggregate AV / Revenue Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description

5.40 Semiconductors / Microwave Manufactures gallium arsenide radio-frequency integrated circuits for 01/19/2016 II-VI Incorporated ANADIGICS $71 1.2x 1.2x Devices broadband wireless and wireline telecommunications devices.

Semiconductors Manufacturing Manufactures and provides high volume epitaxial growth of compound 01/19/2016 II-VI Incorporated EpiWorks $43 3.1x NA / Chemicals semiconductor wafers.

Designs and manufactures microcontrollers, embedded systems, wireless, Semiconductor Manufacturing / 01/19/2016 Microchip Technology Atmel Corporation $3,282 2.6x 2.8x mixed-signal and radio frequency components, memory chips, power Assembly management systems and touch-screen semiconductors.

Mean 4.0x 4.5x Median 2.7x 2.8x

0.0

1.50

RECENT ACQUISITIONS Most Active Semiconductor Acquirers Year to Date

No. of Semiconductor Acquisitions Total Transaction Value ($MM)

5.40

8 3 $46,077

7 2 $30,856

6 2 $14,252

5 2 $5,996 0.0

4 2 $4,281 1.50

3 2 $3,282

2 1 $2,834

1 1 $2,749

0 1 2 3 $50,000 $40,000 $30,000 $20,000 $10,000 $0

7.90

Notes: Source: 451 Group and Capital IQ. Criteria based on global semiconductor transactions announced year to date with transaction values greater than $20MM. 13 12.20 0.20 0 0.20 12.20

PERSPECTIVES ON CONSOLIDATION Semiconductor Industry Increasing Rate of Consolidation

5.40 10 5 3 Today Years Ago Years Ago Years Ago

Public Companies(1): Public Companies(1): Public Companies(1): Public Companies(1):

130 121 103 73 (7%) (15%) (29%)

Notable Acquisitions Notable Acquisitions Notable Acquisitions

0.0

$8BN $4.9BN $48BN $37BN Sponsors 1.50 $18BN $14BN $31.5BN $18.2BN

$3.6BN $3.6BN

$3.5BN $17.3BN $15.7BN$16BN

$4.2BN $3.5BN

$3BN $7.1BN $6.6BN

7.90

Note: 10, 5 and 3 years ago time periods represent data as of 1/1/2006, 1/1/2011, 1/1/2013, respectively. “Today” represents data as of 12/20/2016. Deal values represent total transaction value, calculated as implied enterprise value plus cash per Capital IQ. (1) Represents U.S.-based public semiconductor companies with a market capitalization greater than $100MM. 14 12.20 0.20 0 0.20 12.20

GCA OVERVIEW Deep Semiconductor Sector Expertise

5.40 Sale of Mass Flow Sale of Semiconductors Divestiture of Acquisition of Joint Venture Acquisition of Acquired by Acquisition of Controller and Related Encapsulating Materials Instrumentation Acquisition of Business to Division to Agreement with Product Lines to We advised We advised the Buyer We advised the Buyer the Buyer We advised the Buyer We advised the Seller We advised the Seller We advised the Buyer We advised DNP We advised the Seller $850MM $70MM $44MM Undisclosed Undisclosed $66MM $1.1Bn $1.1 Bn $63MM

Sale of Certain Strategic Assets of Acquisition of Sale of IP Assets Divesture of Investment & Strategic Acquisition of Acquired by DigitalOptics Micro- Acquired by Investment by to Cleanroom Integrated Optics Business to License by Solutions Business Semiconductor Business We advised the Seller We advised the Buyer We advised the Seller We advised SuVolta We advised the Seller We advised IMI We advised the Buyer We advised the Seller We advised the Seller

0.0 Undisclosed $15MM Undisclosed Undisclosed $8MM $140MM $400MM Undisclosed $65MM

Sale of 1.50 Acquisition of Sale of Acquired by Acquired by Communication Acquired by Preferred Acquired by Devices Business Acquisition of Silicon to Stock Valley Tech Center from to We advised the Issuer We advised the Buyer We advised the Seller We advised the Seller We advised the Seller We advised the Seller We advised the Seller We advised the Buyer We advised the Seller Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed Undisclosed $53MM Undisclosed Undisclosed

A wholly-owned Sale of Sale of IP Acquisition of Industrial subsidiary of Sale of Extended Acquisition of Timing Semiconductor Portfolio to & Consumer Laser Participation in IP Acquired by Solutions Business Automatic Test Diode & LED Business Acquisition of Factory Business to Acquisition of License Sale by from Equipment Assets to Back-End Production Zhuhai, China Facilities from facility of We advised the Seller We advised the Buyer We advised the Seller We advised the Seller We advised the Seller We advised the Buyer We advised RPX We Advised the Buyer We advised the Buyer $20MM Undisclosed Undisclosed Undisclosed Undisclosed $525MM Undisclosed Undisclosed $35MM

7.90

15 12.20 0.20 0 0.20 12.20

GCA OVERVIEW Semiconductor Team

San Francisco New York Tokyo London

th 5.40 One Maritime Plaza, 25th Fl. 640 Fifth Avenue, 10 Fl. 11-1 Marunouchi 1-chome 1 Southampton St. San Francisco, CA 94111 New York, NY 10019 Chiyoda-ku, Tokyo 100-6230 London WC2R0LR United States United States Japan United Kingdom Phone: (415) 318-3600 Phone: (212) 999-7090 Phone: +81 (3) 6212-7100 Phone:+44 20 7484 4040

0.0

1.50 Kamal Ahmed Clark Callander Geoff Baldwin Akikazu "Kaz" Ida* Aki Watanabe* Alex Vitale Managing Director Co-Head of Investment Banking Co-President & CEO Managing Director Managing Director Managing Director

Phone: (415) 318-3622 Phone: (415) 318-3680 Phone: (415) 318-3640 Phone: +81 (3) 6212-7241 Phone: +81 (3) 6212-7102 Phone: (415) 318-3618 Mobile: (650) 213-2139 Mobile: (415) 515-2468 Mobile: (415) 867-9366 Mobile: +81 (80) 9027-3023 Mobile: +81 (80)-3453-4181 Mobile: (650) 799-7674 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Tobias Schultheiss* Sascha Pfieffer* Alex Grunwald* Shingo Yatsui Kevin Walsh Shohei Taniguchi* Managing Director Managing Director Managing Director Director Director Vice President

Phone: +49 69 20 434 6416 Phone: +49 69 20 434 6415 Phone: +41 43 499 43 47 Phone: (415) 318-3642 Phone: (415) 318-3629 Phone: +81 (3)-6212-7236 Mobile: +49 160 534 6278 Mobile: +49 177 741 5643 Mobile: +41 79 620 00 93 Mobile: (650) 906-8665 Mobile: (415) 816-1394 Mobile: +81 (80)-9027-3010 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Arthur Stein Associate

Phone: (415) 318-3662 Mobile: (415) 515-0820 [email protected]

7.90 *Akikazu Ida is a Managing Director at GCA Corporation. *Aki Watanabe is a Managing Director at GCA Corporation. *Tobias Schultheiss is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Sascha Pfieffer is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Alex Grunwald is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. 16 *Shohei Taniguchi is a Managing Director at GCA Corporation.