Presentation Title

Home , Atmel, Cypress PSoC, EFM32, Hercules (processors), Infineon AURIX, Infineon TriCore

Introducing Microchip 2.0

Steve Sanghi, CEO Eric Bjornholt, CFO ©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.  Introducing Microchip 2.0- Total system solutions- Smart, connected and Secure.

©June 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

©June 2017 3 Annual Net Sales Growth

4000 3900 3800 3700 3600 106 consecutive quarters of profitability! 3500 3400 3300 3200 3100 MCU Analog Memory Licensing MMO 3000 2900 2800

2700 2600 2500 2400 2300 2200 2100

$ $ Million 2000 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 ©June 2017 4 Total MCU (8/16/32) Market Share %

14 12

10 % 8

CY08 CY94 CY95 CY96 CY97 CY98 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CQ216 CQ2 16 includes Atmel ©June 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 ©June 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

©June 2017 7 Gross Margin % (Non-GAAP*)

Higher Utilization Richer Product Mix 65 Record  62.5% 60 Long-term GM goal

55 SST Atmel (%) Acquisition 50 Acquisition

45 Fab 4 Production start Worldwide Financial Business 40 Crisis Downturn

Q2FY02 Q3FY02 Q1FY03 Q2FY03 Q4FY03 Q3FY04 Q1FY05 Q2FY05 Q4FY05 Q1FY06 Q3FY06 Q4FY06 Q2FY07 Q3FY07 Q1FY08 Q2FY08 Q4FY08 Q1FY09 Q3FY09 Q4FY09 Q2FY10 Q3FY10 Q1FY11 Q2FY11 Q4FY11 Q3FY12 Q1FY12 Q2FY13 Q4FY13 Q1FY14 Q3FY14 Q4FY14 Q2FY15 Q3FY15 Q1FY16 Q2FY16 Q4FY16 Q1FY17 Q3FY17 Q1FY02 Q4FY02 Q3FY03 Q1FY04 Q2FY04 Q4FY04 Q3FY05 Q2FY06 Q1FY07 Q4FY07 Q3FY08 Q2FY09 Q1FY10 Q4FY10 Q3FY11 Q1FY12 Q2FY12 Q4FY12 Q3FY13 Q2FY14 Q1FY15 Q4FY15 Q3FY16 Q2FY17

*Excludes share-based compensation and acquisition-related expenses. A reconciliation of our GAAP to non-GAAAP results is available at www.microchip.com. ©June 2017 8 ~ $4.5B Returned To Shareholders $100,000 $0.50 Total Dividend Dividend per Share $90,000 $0.45 $80,000 $0.40 $70,000 $0.35 $60,000 $0.30 $50,000 $0.25 $40,000 $0.20 $30,000 $0.15 $20,000 $0.10

$10,000 $0.05

$0 $0.00

Q1FY11 Q2FY11 Q3FY11 Q4FY11

Q4FY08 Q3FY10 Q2FY12 Q1FY07 Q2FY07 Q3FY07 Q4FY07 Q1FY08 Q2FY08 Q3FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q4FY10 Q1FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 ~ $3.1B in dividends and ~$1.4B in share buy-backs!

©June 2017 9 Expanding Our Solutions Through Acquisitions

HI-TECH Roving Networks Supertex Advanced Silicon High-Voltage Analog & Development Tools Bluetooth® & Motor Drive Mixed-Signal Products Compiler Embedded Wi-Fi® Products

ZeroG Micrel Low-Power Novocell Hampshire Embedded LSS 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

©June 2017 10 Microchip 2.0

Be The Very Best Embedded Control Solutions Company Ever

©June 2017 11

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

©June 2017 12

MICROCHIP 2.0

©June 2017 13 Automotive Water Pump

Micrel Classic

Microchip

Atmel

3 phase

BLDC MIC28512/3 MCP1700 Motor Sw. Reg LDO

MIC4605 x 3 3x MOSFET

85V MOSFET pairs dsPIC33EP6 Driver

24LC16B 4MC504

Serial EE MCU

MCP6L04

Op Amp

MIC2920A ATA663211 LDO LIN Transceiver

©June 2017 14

Router

Micrel Classic

Microchip

Atmel

3G module

MIC69101 KSZ8995

(1.8V) Ethernet Sw.

12V MIC4576 LDO AT91SAM9

Sw. Reg MIC69101 G20B

(3.3V) MPU

LDO KSZ8081 Ethernet PHY

©June 2017 15 Alarm Panel Uplink

Micrel Classic

Microchip

Atmel MIC4723 MIC5353

MIC2128 Sw. Reg LDO SMSC Controller

MIC4723 MIC94355 Sw. Reg Ripple Blocker

MCP73833 MIC2875 Batt. Charger Boost Sw. Reg

MIC95410 MIC6143 Load Switch Op Amp MIC2039 Load Switch

MIC2039 Load Switch USB4604 USB Hub

MIC2039 Load Switch

MIC2039

Load Switch MCP23017 MIC2039 I/O Expander Load Switch

©June 2017 16 PC Dock

Classic Type-C Microchip

Micrel UCS3205 USBPD ECC508 20V Vin Power Switch Authentication

Atmel UPD350 PIC32 Type C SMSC USBC Manager & Bridge

Controller 20V Vin DP-Hub

USB5826 USB3.1 6 Port Controller/Hub MIC261201 Sw Reg

USB5744 4 Port USB Controller/Hub

UPD360 UPD360 Type MIC2033 MIC2033 MIC2033 MIC2033 Type C Controller Load Switch Load Switch Load Switch Load Switch C Controller

MIC2033 Load Switch

USB 3.0 USB 3.0 USB 3.0 USB 3.0 USB 2.0 Type-C Type-C Type-A Type-A Type-A Type-A Type-A

©June 2017 17 Display Module

Classic Micrel Microchip DSC1001 MIC2293-15YML SST MEM’s 24MHz Backlight

Oscillator Controller Atmel

PWM

Parallel Analog LCC FIRMWARE I2C/SPI/U EBI/PMP I2C/SPI/USB I2C/SPI/USB RGB Driver

Vsync PIC32MZ2048EFG100 GPIO GPIO Hsync

Pclk

Power

SQI GPIO I2C GPIO

Host SQI I2C LCD Display

INT SYNC

w/ ITO Layer

MIC94300YMT SST26VF016B mXT337TPTP RX lines Ripple Blocker SQI Flash PCAP Touch Font Storage Controller

3.3V

©June 2017 18

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)

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)

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% NVIDIA Tegra 6% AMCC PowerPC 4xx 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

1. Increasing Fab utilization 2. Savings from Micrel Fab closure 3. Increasing back end plants utilization 4. Porting Atmel products to Microchip assembly/test technology 5. Transfer of Micrel and Atmel’s U.S. test areas to Thailand 6. Stable to rising pricing environment 7. Richening product mix

1. Consolidation of Atmel’s G&A 2. Synergy in roadmaps on MCU, analog, wireless and memory 3. Convergence of Microchip and Atmel to common process technology platforms 4. Synergy in common development of IP libraries 5. Synergy in development of tools echo-system 6. Synergy in marketing - trade shows, technical conferences, website, training 7. Lower incremental opex for sales growth

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

Industrial 35% Consumer 24% Automotive 25%

Actual Guidance Q1FY18 Actual Guidance Long-Term Mar. 31, 2017 June 30, 2017 Model**** Net Sales ($MM ) $902.7 $943.3 – $956.8 Gross Margin** 59.2% 59.75% - 60.0% ~ 62.5% Operating Expenses** (% of Sales) 25.7% 23.0% - 23.25% ~ 22.5% Operating Profit 35.6% 36.50% - 37% ~ 40% EPS*** (Non-GAAP***) $1.16 $1.22 – $1.26 EPS*** (GAAP) $0.57 $0.62 – $0.64

* 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 and adoption of ASC Subtopic 470-20. *** A reconciliation of our GAAP to non-GAAAP results is available at www.microchip.com.

©June 2017 35

Summary

 A consistent revenue grower and market share gainer with multiple growth drivers  High margin business model and shareholder friendly  Currently strong business conditions with June quarter revenue guidance increased and now expected to be up 4.5% to 6% sequentially  Significant capacity challenges to persist for up to one year before lead times are normal.  Revised long-term non-GAAP financial model to 62.5% gross margin, 22.5% operating expenses and 40% operating income.  Launching Microchip 2.0- Total system solutions- Smart, connected and Secure.