Semiconductor Update

Q3 | 2016

CONTENTS

3 Market Highlights

4 Semiconductor Sector Summary 5 Integrated Device Manufacturers (IDMs) & Foundries 6 Fabless Semiconductor Manufacturers 7 Semiconductor Equipment 8 Electronic Design Automation & IP 9 Selected M&A Transactions

11 Corporate Finance Services

12 Contact

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2 © ArmaninoLLP | armaninoLLP.com Semiconductor Update

Q3 | 2016

MARKET HIGHLIGHTS

The semiconductor industry continued its strong The positive valuation momentum is continuing, with performance: With an increase of 18.3%, the increasing revenue multiples as well as EBITDA Semiconductor & Semiconductor Equipment multiples in all segments over the last quarter as well Index outperformed the S&P 500 over 3 months. as over the last year. However, valuation multiples in The index also outperformed the S&P 500 over 6, 12 the fabless segment may have peaked and are and 24 months. declining for a number of its constituents. All semiconductor sectors showed a median The semiconductor industry continues its path to stock price increase over the last 3 months. With consolidation, with several large deals an increase of 19.2% over 3 months, Fabless announced and closing: Analog Devices companies showed the highest increase, followed by announced its acquisition of Linear Technologies for IDMs & Foundries (17.6%), tool vendors (11.9%) $15.7 billion (10x trailing revenue), Renesas is and the EDA segment (9.7%). buying Intersil for $2.8 billion (5.5x trailing revenue). ARM’s acquisition by SoftBank for $30.8 billion (22.0 Within the IDM/Foundry segment, stock price x trailing revenue) and On Semiconductor’s changes ranged from +40.2% (STM) to -5.6% acquisition of Fairchild for $2.3 billion also closed in (UMC). Within the Fabless segment, NVIDIA the third quarter. continued its strong performance (+45.8%), with Mellanox trailing (-9.8%). The Semiconductor Equipment segment saw changes ranging from 31.2% (Disco) to -4.8% (KLA Tencor). The EDA/IP segment saw increases between 2.0% (Ansys) and 29.9% (PDF Solutions).

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Median % Change Price PEG Ratio Earnings Ratio MARKET SECTOR 3 mo 12 mo 2016E LTM 2016E Integrated Dev ice Manuf acturers (IDMs) & Foundries 17.6% 31.1% 1.2x 21.2x 14.6x Fabless Semiconductor Manuf acturers 19.2% 39.8% 1.0x 33.0x 16.8x Semiconductor Equipment 11.9% 39.4% 1.1x 22.2x 17.1x Electronic Design Automation & IP 9.7% 14.7% 2.1x 35.0x 25.3x

EV/REVENUE MULTIPLES LTM NTM Median Median % Change Median MARKET SECTOR 9/30/16 3 mo 12 mo 9/30/16 Integrated Dev ice Manuf acturers (IDMs) & Foundries 2.5x 17.0% 30.0% 2.2x Fabless Semiconductor Manuf acturers 3.2x 19.2% 45.8% 2.6x Semiconductor Equipment 3.0x 12.3% 36.1% 2.6x Electronic Design Automation & IP 4.3x 6.2% 19.9% 3.9x

EV/EBITDA MULTIPLES Median % Change NTM Median LTM EBITDA Multiples Median MARKET SECTOR 9/30/16 3 mo 12 mo 9/30/16 Integrated Dev ice Manuf acturers (IDMs) & Foundries 8.4x 17.5% 36.9% 8.2x Fabless Semiconductor Manuf acturers 17.8x 13.8% 50.2% 11.9x Semiconductor Equipment 11.0x 11.9% 56.3% 10.1x Electronic Design Automation & IP 17.9x 6.4% 24.9% 13.7x

Price % Change INDICIES 9/30/16 3 mo 6 mo 12 mo 24 mo S&P 500 Index 2,168.27 3.3% 5.1% 12.9% 9.9% Dow Jones Industrial Av erage 18,308.15 2.1% 3.3% 12.4% 7.4% NASDAQ Composite Index 5,312.00 9.7% 9.1% 15.0% 18.2% Russell 2000 Index 1,251.65 8.7% 12.7% 13.7% 13.6% S&P Composite 1500 Inf ormation Technology (Sector) Index 826.35 12.3% 9.1% 20.9% 22.1% S&P Composite 1500 Semiconductor & Semiconductor Equipment (Industry ) Index 660.60 18.3% 22.0% 36.6% 26.5% S&P Composite 1500 - Semiconductors (Sub Ind) (30-APR-03) Index 647.56 18.7% 21.9% 34.3% 28.5% S&P Composite 1500 - Semiconductor Equipment & Products (30-APR-03) Index 448.92 15.4% 22.7% 54.7% 14.1%

Source: Capital IQ. ($ in '000, except per share)

4 © ArmaninoLLP | armaninoLLP.com SEMICONDUCTOR UPDATE Q3 | 2016

Earnings PEG Price % Change 52-W eek Market Ent Val LTM NTM EPS Ratio Ratio COMPANY TICKER 9/30/16 3 mo 12 mo High Low Cap (TEV) Rev EBITDA Rev EBITDA 2015 2016E LTM 2016E 2016E Integrated Device Manufacturers (IDMs) & Foundries Samsung Electronics Co. Ltd. A005930 $1,453.02 17.6% 51.7% $1,540.31 $989.29 $198,400 $145,205 $ 187,052 $ 45,661 $188,595 $48,470 $106.83 $138.61 12.0x 10.1x 1.5x Intel Corporation INTC 37.75 15.1% 25.2% 38.05 27.68 178,595 189,631 56,614 22,532 60,791 23,428 2.33 2.59 18.3x 14.6x 1.5x Taiwan Semiconductor Manufacturing 2330 5.83 15.6% 47.7% 5.98 4.17 151,047 137,252 26,854 16,870 31,074 19,804 0.35 0.39 16.8x 13.9x 1.2x Company Limited Texas Instruments Inc. TXN 70.18 12.0% 41.7% 72.58 46.73 70,405 71,478 12,899 5,338 13,355 5,683 2.82 3.29 23.6x 20.8x 2.1x Sony Corporation 6758 32.52 11.8% 34.3% 35.23 21.71 41,028 48,310 78,113 6,345 75,824 7,452 (0.94) 1.02 49.0x NM NM NXP Semiconductors NV NXPI 102.01 30.2% 17.2% 104.64 61.61 34,603 42,350 7,717 2,019 9,718 3,387 6.10 5.72 33.1x 13.8x 0.7x SK H yni x Inc. A000660 36.55 30.1% 29.0% 38.19 23.32 25,806 26,648 15,401 6,478 15,424 7,000 5.10 2.32 10.8x 13.5x 0.9x Infineon Technologies AG IFX 17.85 23.9% 59.1% 17.85 10.93 20,101 19,765 7,189 1,759 7,671 2,013 0.61 0.85 21.2x 18.5x 1.2x Skyworks Solutions Inc. SWKS 76.14 20.3% (9.6%) 88.52 54.50 14,276 13,300 3,334 1,371 3,418 1,522 4.10 5.53 15.1x 12.3x 0.6x Toshiba Corporation 6502 3.31 22.9% 31.8% 3.55 1.53 14,005 25,160 54,567 (4,615) 53,606 3,855 (0.07) (1.08) NM NM NM Linear Technology Corporation LLTC 59.29 27.4% 46.9% 64.42 37.33 14,564 13,116 1,424 685 1,518 751 2.12 2.02 29.4x 24.1x 2.1x Maxim Integrated Products, Inc. MXIM 39.93 11.9% 19.6% 42.37 30.28 11,326 10,295 2,195 710 2,264 886 0.71 1.63 50.5x 23.3x 2.1x Renesas Electronics Corporation 6723 6.06 7.5% 15.0% 8.83 5.10 10,107 8,551 6,576 1,352 5,478 1,044 0.41 0.21 15.4x 23.5x 1.6x STMicroelectronics NV STM 8.17 40.2% 20.3% 8.23 5.04 7,042 6,677 6,806 882 7,055 1,047 0.12 0.24 96.2x 27.9x 0.7x United Microelectronics Corporation 2303 0.37 (5.6%) 12.5% 0.43 0.34 4,506 5,328 4,487 1,684 4,759 1,970 0.03 0.02 19.8x 16.7x 5.6x ON Semiconductor Corp. ON 12.32 39.7% 31.1% 12.55 6.97 5,120 8,028 3,439 611 4,645 943 0.48 0.85 31.6x 11.3x 1.1x Cypress Semiconductor Corporation CY 12.16 15.3% 42.7% 12.48 6.30 3,906 4,544 1,783 27 2,076 343 (1.25) 0.46 NM 23.2x 1.2x Median 17.6% 31.1% 21.2x 16.7x 1.2x

EV/REVENUE MULTIPLES EV/EBITDA MULTIPLES TTM NTM TTM NTM Trailing % Change Trailing % Change COMPANY TICKER 9/30/16 3 mo 12 mo 3 mo 12 mo 9/30/16 3 mo 12 mo 3 mo 12 mo Integrated Device Manufacturers (IDMs) & Foundries Samsung Electronics Co. Ltd. A005930 0.8x 0.9x 0.6x (9.0%) 26.4% 0.8x 3.2x 3.5x 2.9x (10.0%) 10.1% 3.0x Intel Corporation INTC 3.3x 2.9x 2.6x 14.1% 30.0% 3.1x 8.4x 7.2x 6.0x 17.5% 39.5% 8.1x Taiwan Semiconductor Manufacturing 2330 5.1x 4.6x 3.5x 10.7% 44.8% 4.4x 7.8x 7.1x 5.4x 9.8% 45.5% 6.9x Company Limited Texas Instruments Inc. TXN 5.5x 5.0x 4.0x 10.9% 39.1% 5.4x 13.4x 12.2x 9.8x 9.9% 36.9% 12.6x Sony Corporation 6758 0.6x 0.5x 0.4x 18.5% 40.4% 0.6x 7.5x 6.3x 5.6x 19.0% 33.3% 6.5x NXP Semiconductors NV NXPI 5.5x 5.1x 3.8x 8.6% 43.2% 4.4x 20.9x 19.0x 13.9x 10.2% 50.1% 12.5x SK H yni x Inc. A000660 1.7x 1.3x 1.4x 32.2% 27.8% 1.7x 3.9x 2.8x 2.7x 39.5% 44.3% 3.8x Infineon Technologies AG IFX 2.7x 2.3x 2.1x 19.8% 31.3% 2.6x 11.1x 9.6x 9.2x 15.0% 20.8% 9.8x Skyworks Solutions Inc. SWKS 4.0x 3.2x 4.8x 24.6% (17.4%) 3.9x 9.7x 7.9x 13.4x 22.6% (27.8%) 8.7x Toshiba Corporation 6502 0.5x 0.4x 0.5x 31.0% 2.1% 0.5x NM NM 9.1x NM NM 6.5x Linear Technology Corporation LLTC 9.2x 6.8x 5.9x 34.9% 56.9% 8.6x 19.1x 14.1x 11.8x 35.5% 62.9% 17.5x Maxim Integrated Products, Inc. MXIM 4.7x 4.2x 3.8x 11.7% 22.0% 4.5x 14.5x 13.2x 12.3x 10.1% 17.9% 11.6x Renesas Electronics Corporation 6723 1.3x 1.2x 1.2x 10.9% 4.8% 1.6x 6.2x 5.3x 5.4x 17.7% 16.0% 8.2x STMicroelectronics NV STM 1.0x 0.7x 0.8x 40.2% 28.7% 0.9x 7.4x 5.5x 5.7x 36.4% 31.0% 6.4x United Microelectronics Corporation 2303 1.2x 1.1x 0.9x 7.8% 35.9% 1.1x 3.1x 2.9x 2.2x 8.2% 37.4% 2.7x ON Semiconductor Corp. ON 2.3x 1.3x 1.4x 81.6% 71.2% 1.7x 13.1x 7.2x 7.7x 83.8% 70.1% 8.5x Cypress Semiconductor Corporation CY 2.5x 2.2x 3.1x 17.0% (18.4%) 2.2x NM 55.7x 19.4x NM NM 13.2x Median 2.5x 2.2x 2.1x 17.0% 30.0% 2.2x 8.4x 7.2x 7.7x 17.5% 36.9% 8.2x Source: Capital IQ. ($ in '000, except per share)

5 © ArmaninoLLP | armaninoLLP.com SEMICONDUCTOR UPDATE Q3 | 2016

Earnings PEG Price % Change 52-W eek Market Ent Val LTM NTM EPS Ratio Ratio COMPANY TICKER 9/30/16 3 mo 12 mo High Low Cap (TEV) Rev EBITDA Rev EBITDA 2015 2016E LTM 2016E 2016E Fabless Semiconductor Manufacturers QUALCOMM Incorporated QCOM $ 68.50 27.9% 27.5% $ 70.40 $ 42.24 $ 100,945 $ 95,599 $22,826 $ 7,668 $ 23,665 $ 9,645 $ 3.22 $ 4.33 20.1x 13.4x 1.1x Broadcom Limited AVGO 172.52 11.0% 38.0% 179.42 111.53 68,547 83,332 10,944 4,178 16,017 8,570 4.95 11.21 NM 14.7x 0.9x NVIDIA Corporation NVDA 68.52 45.8% 178.0% 69.19 23.79 36,658 33,227 5,439 1,369 6,455 1,728 1.12 1.57 45.0x NM NM Xilinx Inc. XLNX 54.34 17.8% 28.2% 55.49 40.44 13,774 11,839 2,240 744 2,380 756 2.35 2.04 25.8x NM NM MediaTek Inc. 2454 7.64 1.0% 3.5% 9.80 6.13 12,035 8,528 7,887 893 9,313 1,042 0.50 0.51 16.1x 15.7x 1.6x Marvell Technology Group Ltd. MRVL 13.27 39.2% 46.6% 13.56 7.40 6,795 5,171 2,458 130 2,378 410 0.84 0.39 NM 25.8x 2.2x Mellanox Technologies, Ltd. MLNX 43.25 (9.8%) 14.4% 55.80 37.54 2,081 2,072 760 116 936 278 1.94 3.57 34.3x 14.4x 0.7x Cirrus Logic Inc. CRUS 53.15 37.0% 68.7% 58.08 25.09 3,321 3,247 1,146 216 1,490 375 0.85 2.22 33.0x NM NM Advanced Micro Devices, Inc. AMD 6.91 34.4% 301.7% 8.00 1.72 6,184 7,465 3,878 (112) 4,265 104 (0.84) (0.19) NM NM NM Himax Technologies, Inc. HIMX 8.59 4.0% 7.8% 12.00 5.77 1,477 1,441 725 57 868 99 0.14 0.44 41.5x 22.2x 1.0x Silicon Laboratories Inc. SLAB 58.80 20.6% 41.6% 59.35 36.56 2,446 2,275 653 83 701 136 0.69 2.54 66.8x 21.1x 2.1x Silicon Motion Technology Corp. SIMO 51.79 8.3% 89.6% 56.25 27.04 1,826 1,607 447 112 541 144 1.72 3.25 23.1x 17.8x 0.9x Median 19.2% 39.8% 33.0x 16.8x 1.0x

EV/REVENUE MULTIPLES EV/EBITDA MULTIPLES TTM NTM TTM NTM Trailing % Change Trailing % Change COMPANY TICKER 9/30/16 3 mo 12 mo 3 mo 12 mo 9/30/16 3 mo 12 mo 3 mo 12 mo Fabless Semiconductor Manufacturers QUALCOMM Incorporated QCOM 4.2x 3.3x 2.8x 27.6% 50.1% 4.0x 12.5x 9.0x 8.1x 38.9% 53.3% 9.9x Broadcom Limited AVGO 7.6x 8.7x 5.6x (12.7%) 35.2% 5.2x 19.9x 22.1x 13.1x (9.7%) 52.8% 9.7x NVIDIA Corporation NVDA 6.1x 4.2x 2.1x 44.8% 186.5% 5.1x 24.3x 17.8x 9.8x 36.1% 146.7% 19.2x Xilinx Inc. XLNX 5.3x 4.5x 4.0x 17.8% 32.8% 5.0x 15.9x 13.4x 11.2x 18.4% 42.7% 15.7x MediaTek Inc. 2454 1.1x 1.2x 1.1x (9.1%) (5.0%) 0.9x 9.1x 9.2x 5.6x (1.0%) 62.1% 8.2x Marvell Technology Group Ltd. MRVL 2.1x 0.9x 0.7x 137.4% 210.5% 2.2x 39.8x 11.8x NM 238.6% NM 12.6x Mellanox Technologies, Ltd. MLNX 2.7x 3.2x 2.3x (16.0%) 20.8% 2.2x 17.8x 19.2x 14.8x (7.0%) 20.4% 7.5x Cirrus Logic Inc. CRUS 2.8x 2.0x 1.9x 41.1% 52.9% 2.2x 15.0x 9.8x 10.2x 53.2% 47.5% 8.7x Advanced Micro Devices, Inc. AMD 1.9x 1.5x 0.6x 30.4% 221.3% 1.8x NM NM NM NM NM 72.0x Himax Technologies, Inc. HIMX 2.0x 2.1x 1.7x (4.2%) 19.4% 1.7x 25.4x 32.9x 17.9x (22.9%) 42.0% 14.5x Silicon Laboratories Inc. SLAB 3.5x 2.9x 2.5x 20.6% 41.5% 3.2x 27.4x 24.1x 19.2x 13.8% 42.6% 16.8x Silicon Motion Technology Corp. SIMO 3.6x 3.8x 2.2x (5.3%) 63.3% 3.0x 14.4x 15.9x 8.9x (9.4%) 60.9% 11.2x Median 3.2x 3.1x 2.2x 19.2% 45.8% 2.6x 17.8x 15.9x 10.7x 13.8% 50.2% 11.9x

Source: Capital IQ. ($ in '000, except per share)

6 © ArmaninoLLP | armaninoLLP.com SEMICONDUCTOR UPDATE Q3 | 2016

Earnings PEG Price % Change 52-W eek Market Ent Val LTM NTM EPS Ratio Ratio COMPANY TICKER 9/30/16 3 mo 12 mo High Low Cap (TEV) Rev EBITDA Rev EBITDA 2015 2016E LTM 2016E 2016E Semiconductor Equipment ASML Holding NV ASML $109.81 11.9% 25.9% $112.97 $ 79.29 $ 46,751 $ 44,762 $ 6,807 $ 2,146 $ 8,080 $ 2,337 $ 4.06 $ 3.57 31.5x 28.6x 1.5x Applied Materials, Inc. AMAT 30.15 25.8% 105.2% 31.07 14.44 32,589 32,666 9,896 2,129 12,669 3,365 1.12 1.76 23.8x 17.1x 1.1x Lam Research Corporation LRCX 94.71 12.7% 45.0% 95.77 63.10 15,273 12,778 5,886 1,416 6,464 1,735 3.70 6.22 18.1x 14.1x 0.9x KLA-Tencor Corporation KLAC 69.71 (4.8%) 39.4% 77.85 48.85 10,897 11,464 2,984 1,054 3,171 1,116 2.24 4.29 15.5x 17.6x 0.9x Tokyo Electron Limited 8035 87.65 5.0% 86.9% 94.59 56.79 14,378 12,100 6,389 1,248 7,404 1,573 3.33 3.98 20.7x NM NM Teradyne Inc. TER 21.58 9.6% 19.8% 21.84 17.34 4,366 3,543 1,747 395 1,611 395 0.97 1.26 NM 14.8x 1.1x ASM Pacific Technology Ltd. 522 8.24 15.3% 26.3% 8.68 6.44 3,346 3,304 1,636 231 1,834 326 0.31 0.42 35.5x 19.1x 0.7x Disco Corporation 6146 117.40 31.2% 68.1% 121.06 83.93 4,202 3,670 1,216 330 1,302 349 4.68 5.47 19.1x NM NM ASM International NV ASM 40.93 5.8% 26.8% 45.43 31.30 2,523 2,107 653 162 696 149 2.72 2.27 24.0x 16.0x 1.4x MKS Instruments, Inc. MKSI 49.73 15.5% 48.3% 54.73 29.00 2,664 2,948 891 170 1,490 337 2.28 2.68 32.5x 20.1x 1.3x Entegris, Inc. ENTG 17.42 20.4% 32.1% 17.73 10.37 2,460 2,718 1,107 235 1,157 259 0.57 0.91 27.2x 18.4x 1.6x SCREEN Holdings Co., Ltd. 7735 63.89 18.6% 162.9% 67.64 28.63 3,017 2,912 2,588 297 2,728 351 2.13 3.21 15.1x NM NM ULVAC, Inc. 6728 29.57 (2.5%) 82.5% 39.64 19.77 1,460 1,686 1,874 241 2,038 283 1.21 2.86 8.9x 10.3x NM Advantest Corporation 6857 13.43 21.5% 87.8% 15.36 8.30 2,344 1,944 1,582 194 1,514 183 0.73 0.35 26.4x NM NM Median 11.9% 39.4% 22.2x 17.1x 1.1x

EV/REVENUE MULTIPLES EV/EBITDA MULTIPLES TTM NTM TTM NTM Trailing % Change Trailing % Change COMPANY TICKER 9/30/16 3 mo 12 mo 3 mo 12 mo 9/30/16 3 mo 12 mo 3 mo 12 mo Semiconductor Equipment ASML Holding NV ASML 6.6x 6.0x 5.3x 9.9% 25.0% 5.5x 20.9x 18.9x 16.2x 10.1% 28.4% 19.2x Applied Materials, Inc. AMAT 3.3x 2.8x 1.8x 17.8% 87.3% 2.6x 15.3x 13.5x 8.6x 13.3% 77.8% 9.7x Lam Research Corporation LRCX 2.2x 1.9x 1.6x 12.3% 32.2% 2.0x 9.0x 8.3x 7.5x 9.0% 19.6% 7.4x KLA-Tencor Corporation KLAC 3.8x 4.3x 3.1x (11.6%) 25.2% 3.6x 10.9x 13.2x 11.1x (17.6%) (2.1%) 10.3x Tokyo Electron Limited 8035 1.9x 1.8x 1.0x 6.0% 78.1% 1.6x 9.6x 8.5x 5.3x 11.9% 81.9% 7.7x Teradyne Inc. TER 2.0x 1.9x 1.8x 7.1% 10.3% 2.2x 9.0x 7.8x 8.0x 14.4% 12.2% 9.0x ASM Pacific Technology Ltd. 522 2.0x 1.8x 1.4x 13.6% 47.0% 1.8x 14.3x 12.8x 7.9x 11.6% 80.6% 10.1x Disco Corporation 6146 3.0x 2.1x 2.0x 39.8% 47.4% 2.8x 11.0x 7.4x 7.0x 48.2% 56.3% 10.5x ASM International NV ASM 3.2x 2.7x 2.3x 19.7% 36.1% 3.0x 12.4x 9.1x 6.9x 35.6% 78.0% 14.1x MKS Instruments, Inc. MKSI 3.3x 2.1x 1.7x 58.8% 89.5% 2.0x 17.3x 10.3x 7.7x 67.5% 123.5% 8.7x Entegris, Inc. ENTG 2.5x 2.2x 2.0x 13.4% 19.9% 2.4x 11.6x 10.2x 9.2x 13.6% 26.3% 10.5x SCREEN Holdings Co., Ltd. 7735 1.1x 1.0x 0.7x 7.1% 64.6% 1.1x 9.7x 9.4x 7.0x 2.8% 37.9% 8.3x ULVAC, Inc. 6728 0.9x 1.0x 0.7x (7.4%) 30.1% 0.8x 6.8x 7.0x 6.5x (2.6%) 5.2% 5.9x Advantest Corporation 6857 1.2x 1.0x 0.6x 24.8% 97.4% 1.3x 9.9x 9.2x 5.1x 8.1% 93.1% 10.6x Median 3.0x 2.1x 1.8x 12.3% 36.1% 2.6x 11.0x 9.1x 7.9x 11.9% 56.3% 10.1x

Source: Capital IQ. ($ in '000, except per share)

7 © ArmaninoLLP | armaninoLLP.com SEMICONDUCTOR UPDATE Q3 | 2016

Earnings PEG Price % Change 52-W eek Market Ent Val LTM NTM EPS Ratio Ratio COMPANY TICKER 9/30/16 3 mo 12 mo High Low Cap (TEV) Rev EBITDA Rev EBITDA 2015 2016E LTM 2016E 2016E Electronic Design Automation & IP Synopsys Inc. SNPS $ 59.35 9.7% 28.5% $ 60.00 $ 39.26 $ 8,982 $ 8,170 $ 2,376 $ 419 $ 2,509 $ 704 $ 1.43 $ 3.02 37.8x 19.5x 2.2x Ansys, Inc. ANSS 92.61 2.0% 5.1% 98.99 80.51 8,077 7,234 961 440 1,032 521 2.76 3.63 32.1x 25.3x 2.0x Cadence Design Systems Inc. CDNS 25.53 5.1% 23.5% 26.24 18.32 7,463 7,452 1,776 422 1,859 546 0.81 1.20 30.2x 21.1x 2.1x Mentor Graphics Corp. MENT 26.44 24.4% NA 28.09 16.10 2,860 2,843 1,110 151 1,245 321 1.26 1.40 46.0x NM NM Rambus Inc. RMBS 12.50 3.5% 5.9% 14.50 9.86 1,374 1,275 300 104 371 113 1.80 0.15 7.1x 80.4x 8.0x Imagination Technologies Group Plc IMG 3.21 24.4% (3.4%) 3.51 1.32 893 945 156 (70) 179 43 0.01 (0.05) NM NM NM PDF Solutions Inc. PDFS 18.17 29.9% 81.7% 18.18 8.70 569 447 100 18 115 30 0.39 0.68 67.4x 26.6x 1.5x Median 9.7% 14.7% 35.0x 25.3x 2.1x

EV/REVENUE MULTIPLES EV/EBITDA MULTIPLES TTM NTM TTM NTM Trailing % Change Trailing % Change COMPANY TICKER 9/30/16 3 mo 12 mo 3 mo 12 mo 9/30/16 3 mo 12 mo 3 mo 12 mo Electronic Design Automation & IP Synopsys Inc. SNPS 3.4x 3.2x 2.9x 6.2% 19.9% 3.3x 19.5x 18.4x 15.2x 6.1% 28.1% 11.6x Ansys, Inc. ANSS 7.5x 7.5x 7.5x 0.4% (0.3%) 7.0x 16.4x 16.4x 16.4x 0.3% 0.3% 13.9x Cadence Design Systems Inc. CDNS 4.2x 4.1x 3.4x 2.8% 23.1% 4.0x 17.7x 16.5x 14.5x 6.8% 21.6% 13.7x Mentor Graphics Corp. MENT 2.6x 2.1x 2.2x 24.9% 15.0% 2.3x 18.1x 12.2x 9.6x 48.3% 88.6% 8.8x Rambus Inc. RMBS 4.3x 4.3x 4.1x (0.3%) 3.5% 3.4x 12.3x 12.2x 12.3x 0.7% 0.1% 11.2x Imagination Technologies Group Plc IMG 6.0x 3.4x 3.5x 76.3% 71.3% 5.3x NM NM NM NM NM 22.0x PDF Solutions Inc. PDFS 4.5x 3.2x 1.9x 40.3% 139.4% 3.9x 24.9x 17.6x 7.1x 41.9% 253.1% 15.1x Median 4.3x 3.4x 3.4x 6.2% 19.9% 3.9x 17.9x 16.5x 13.4x 6.4% 24.9% 13.7x

Source: Capital IQ. ($ in '000, except per share)

8 © ArmaninoLLP | armaninoLLP.com SEMICONDUCTOR UPDATE Q3 | 2016

Enterprise Value / Date Headquarters Enterprise Value LTM LTM

ACQUIRER TARGET Announced B u yer Target Announcement Revenue EBITDA Revenue EBITDA

Selected Semiconductor Transactions (Announced in Q3)

Analog Devices, Inc. Linear Technology Corporation 7/26/2016 United States United States 14,209,542 1,423,936 684,962 10.0x 20.7x

Renesas Electronics Corporation Intersil Corporation 9/12/2016 Japan United States 2,833,746 518,310 94,526 5.5x 30.0x

Infineon Technologies AG Wolfspeed, Inc. 7/14/2016 Germany United States 850,000 160,000 NA 5.3x NA

GWafers Singapore Pte. Ltd. SunEdison Semiconductor Limited 8/17/2016 Singapore United States 671,388 743,900 (27,100) 0.9x NM

China Integrated Circuit Industry Investment Fund; et al. Analogix Semiconductor, Inc. 9/22/2016 NA United States 500,000 NA NA NA NA

Wonik IPS Co., Ltd. Tera Semicon Corporation 9/9/2016 South Korea South Korea 193,079 95,243 5,875 2.0x 32.9x

Shekoy Korea Semiconductor New Material Co., Ltd UP Chemical Co., Ltd. 8/19/2016 South Korea South Korea 183,569 51,030 NA 3.6x NA

TSMC Partners VisEra Technologies Company Ltd. 8/2/2016 BVI Taiwan 203,353 NA NA NA NA

Juniper Networks, Inc. Aurrion, Inc. 8/2/2016 United States United States 165,000 NA NA NA NA

GCL-Poly Energy Holdings Ltd. Certain Assets and 65.25% stake in SMP Ltd. 8/26/2016 Hong Kong United States 150,000 NA NA NA NA

Roshow Technology Co., Ltd. Jiangsu Aiduo PV Technology Co., ltd. 8/5/2016 China China 102,986 NA NA NA NA

OCI Company Ltd Tokuyama Malaysia Sdn. Bhd. 9/28/2016 South Korea Malaysia 98,000 78,669 NA 1.2x NA

Median 193,079 127,622 5,875 4.5x 30.0x

Source: Capital IQ. ($ in '000, except per share)

Enterprise Value / Date Headquarters Enterprise Value LTM LTM ACQUIRER TARGET Closed B u yer Target Close Revenue EBITDA Revenue EBITDA

Selected Semiconductor Transactions (Closed in Q3)

SoftBank Group Corp. ARM Holdings plc 9/5/2016 Japan United Kingdom 30,874,204 1,405,170 614,263 22.0x 50.3x

ON Semiconductor Corp. Fairchild Semiconductor International Inc. 9/16/2016 United States United States 2,267,398 1,389,600 210,900 1.6x 10.8x

Cavium, Inc. QLogic Corp. 8/16/2016 United States United States 983,595 458,913 100,066 2.1x 9.8x

Tongwei Co.,Ltd. Tongwei Solar (Hefei) Co., Ltd. 9/26/2016 China China 747,311 507,905 NA 1.5x NA Broadcom Limited, Wireless Internet of Things Business Cypress Semiconductor Corporation and Related Assets 7/5/2016 United States Singapore 550,000 189,000 NA 2.9x NA Beijing Sevenstar Electronics Co., Ltd. Beijing North Microelectronics 7/19/2016 China China 295,490 40,221 NA 7.3x NA Intel Corporation Soft Machines, Inc. 9/9/2016 United States United States 270,000 NA NA NA NA Wonik Holdings Co., Ltd. Wonik IPS Co., Ltd. 7/27/2016 South Korea South Korea 830,053 NA NA NA NA Zhongli Science and Technology Group Co., Ltd. Zhongli Talesun Solar Co., Ltd. 7/19/2016 China China 701,750 71 NA NM NA STMicroelectronics NV ams AG, NFC and RFID Reader Assets 7/29/2016 Switzerland Austria 114,800 NA NA NA NA

Atlas Copco AB CSK Inc. 8/5/2016 Sweden South Korea 203,348 111,835 NA 1.8x NA Inphi Corporation, Memory Buffer and Memory Register Bell ID Singapore PTE. Limited Business 8/4/2016 Singapore United States 90,000 NA NA NA NA Unis Technology Strategy Investment Limited Sun East Technology (Holdings) Limited 8/26/2016 Hong Kong Hong Kong 328,140 93,730 366 3.5x NM Ardentec Corporation Giga Solution Tech. Co., Ltd. 8/25/2016 Taiwan Taiwan 65,259 48,989 22,101 1.3x 3.0x

Semiconductor Manufacturing International Corp. LFoundry S.r.l. 7/29/2016 China Italy 78,217 242,397 NA 0.3x NA

Kyocera Corp. Nihon Inter Electronics Corporation 7/27/2016 Japan Japan 162,041 183,889 5,768 0.9x 28.1x

Median 311,815 186,445 61,084 1.8x 10.8x

Source: Capital IQ. ($ in '000, except per share)

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