Broadcom and Optimal+

1 Broadcom Proprietary and Confidential. © 2012 Broadcom Corporation. All rights reserved.

BROADCOM AND OPTIMAL TEST

Gary Eves

Jimmy Chan

2 Broadcom Proprietary and Confidential. © 2012 Broadcom Corporation. All rights reserved. 2

CAUTIONARY STATEMENT

This presentation may contain forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include the potential growth of the markets in which we compete and the development status and planned availability of new products. In fact, all statements that we make or incorporate by reference in the presentation, other than statements or characterizations of historical fact, are forward-looking statements. It should be clearly understood that these forward-looking statements, and our assumptions about the factors that influence them, are based on the limited information available to us at this date. Such information is subject to change, and we may not inform you when changes occur. We undertake no obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.

Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those described in the statements you hear today as a result of various factors. We refer you to our Form 10-K for the year ended December 31, 2011, subsequent and forthcoming 10-Qs and other filings with the SEC, which discuss some of the important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition.

For additional financial and statistical information, including the information disclosed in accordance with SEC Regulation G, please see the Investors section of our website.

Broadcom®, the pulse logo, Connecting everything®, and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Any other trademarks or trade names mentioned are the property of their respective owners.

3 Broadcom Proprietary and Confidential. © 2012 Broadcom Corporation. All rights reserved. 3

ABOUT BROADCOM

2011 Net Revenue of $7.39 Billion

Founded in 1991

Initial Public Offering in April 1998 (NASDAQ-BRCM)

A Global Leader in Semiconductors for Wired and Wireless Communications

Broad IP Portfolio with more than 17,300 U.S. and Foreign Patents and Applications

One of the Largest Volume Fabless Semiconductor Suppliers

~11,000 Employees Worldwide


BROADCOM’S CHIPS ARE PERVASIVE

99.98% of All Data Traffic Crosses a Broadcom Chip

Source: Broadcom internal estimate

Coax

Microwave Backhaul

Fiber Optic

Wireless Infrastructure

Service Provider Network

Macro Base Station

Wi-Fi Router

Data Center Corporate Enterprise

Wi-Fi Router

Coax

DSL

Ethernet

Ethernet

PON

Home

Fiber

5 Broadcom Proprietary and Confidential. © 2012 Broadcom Corporation. All rights reserved. Broadcom Proprietary & Confidential. © 2009 Broadcom Corporation. All rights reserved.

FABLESS BUSINESS MODEL

Diversified supplier base achieves optimum cost and availability.

Wafer Fab Wafer Probe Assembly Final Test Finished Goods

Shipping/Receiving


0

100

200

300

400

500

600

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Broadcom Ships ~5 Million Chips Per Day.

ONE OF THE LARGEST VOLUME FABLESS SEMICONDUCTOR SUPPLIERS

Actual Shipments (Units in Millions)

FY06 FY07 FY08 FY09 FY02 FY11 FY03 FY10 FY04 FY05 YTD 12


THE NEED

Higher Efficiency OSATs

– Hardware Yield Optimization

– “Rule” the Test Suppliers

– Skip Bin Analysis

– PM tracking

– ROI assessment

OSAT IOEE Normalization

– Drive down the cost of test

Statistical Bin Limits

– WLBGA

– WLCSP

– Customer-specific

– Automotive

Development Sites

– Control Rooms

Gap Reports

Δ (FY – FPY)

– Highlight Gaps in Test Solution

Part Average Testing

– Focus on Quality


THE PROCESS

Optimal Test’s rollout was a multiphase process:

Phase 1: Infrastructure and system integration

Phase 2: Proxy deployment and data collection

Phase 3: Data analysis and Rule settings for selected products

Phase 4: Rollout to all products

Phase 5: Kickoff Broadcom Optimal Test Team


THE SCOPE

OptimalTest’s deployment scope included:

All Broadcom's supply chain facilities and engineering sites

At E-Test (excluding data collection), Wafer Sort, and Final Test

Across all products and business units

Dozens of early detection rules

Full implementation and execution of outlier detection

Hundreds of end users


EXAMPLE OF VALUE DELIVERED: HARDWARE YIELD MANAGEMENT

Improvements:

1. Optimized detection

of operational issues

2. Optimized root-cause analysis

3. Shortened time to resolution

4. Significant improvement in operational performance

RULE OPTIMIZATION KEY TO DRIVING TEST PROGRAM OPTIMIZATION


BUILD A LIBRARY OF RESOLUTION PATHS ACROSS OSATS

HIGH VOLUME DEVICES ARE TESTED AT MULTIPLE OSATS.

17

25

12 8

4

29

1 2

2

Socket Pin

PC Clean

Socket Clean

LB Fix

PC Fix

Program Fix

Replace Socket

SkipBin

Tester Fix

(units are %)


DRIVING DOWN THE COST OF TEST

PRODUCTION TEAM OWNERSHIP OF OT KEY TO RESOLVING OSAT ISSUES.


PART AVERAGE TESTING

PART AVERAGE TESTING EXTENDED BEYOND STANDARD MARKETS.

Outlier Detection Deployment Requirements:

Accommodate BRCM’ s global operation model.

Securely distribute OD recipe.

Fully integrated with the supply chain systems.

Managed and controlled by BRCM’s engineers.

Operated and executed as mission- critical.


ENABLING ENGINEERS TO HONE IN ON ROOT CAUSES

Advanced data mining tools enable:

1. Better and faster understanding of systematic issues.

2. Short loop root cause analysis process.

3. Faster respond time and resolution cycle.

OPTIMAL TEST IMPLEMENTS FEEDBACK TO ENABLE PROBLEM RESOLUTION.


Broadcom Requirements:

Automate rules to prevent low-level PPM issues from reaching the field

Re-bin or allow for offline disposition of impacted material via post processing

Safety net for human error

BEYOND THROUGHPUT IMPROVEMENTS: QUALITY-BASED RULES

CUSTOMERS ARE DEMANDING ZERO DPPM.


INITIAL RULE LIST:

- Part Result Record: Ensure all tests are executed on every device.

- Checksum: Ensure OSATs do not mix program revisions in any lot.

- Program Release KPI: Ensure bin fallout does not disappear between program revisions.

- Bin 1 units with failing tests: Safety net for human error.

TARGETED QUALITY RULES WITH V5.0 RELEASE

RULE AUTOMATION IS THE KEY TO SUCCESS.

17

Thank You!

Broadcom and Optimal+

Technology

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