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 ...5.40 7.90 Notes: 0.0 1.50 12.20 0.20 0 0.20...

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

1

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

1

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

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

2

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

2 2 2

SEMICONDUCTOR DEAL DASHBOARD

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.

$124.7 Billion 51

M&A Volume YTD (1) M&A Transactions YTD (1)

Quarterly M&A Volume (1) Quarterly M&A Deal Count (1) Top M&A Transactions YTD

Target Acquirer EV ($Bn)

$46.1

$30.9

$14.2

$5.8

$4.3

$3.3

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

15 15 15

20

12

18

13

8

0

5

10

15

20

25

Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16

$22,224

$54,612

$2,110

$12,320

$6,494 $7,430

$51,522

$59,211

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

SPX SOX

37.8%

12.4%2.7x

1.7x

2.4x 2.4x 2.5x

4.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

2011 2012 2013 2014 2015 2016 YTD

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

3

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

3 3 3

MARKET SUMMARY

Automotive(1) Consumer(2)

Datacenter(3) Diversified(4)

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.

Industry Stock Market Performance

Last Twelve Months Last Three Years

Indexed Performance Over Time

Sector 3 Months 1 Year 3 Years

Automotive 14.3% 21.4% 55.4%

Consumer 8.8% 29.3% 39.2%

Datacenter 12.0% 15.7% 69.2%

Diversified 9.7% 28.7% 81.0%

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

4

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

4 4 4

MARKET SUMMARY

Multiples and Margins

CY 2017E EV / Revenue

CY 2017E Revenue Growth LTM Gross Margin (%)

CY 2017E EV / EBITDA

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

60.4% 59.3%

48.4%

42.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Datacenter Diversified Consumer Automotive

4.5x 4.3x

2.6x 2.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

Diversified Datacenter Automotive Consumer

15.2%

9.8%

8.6%

6.3%

0.0%

4.0%

8.0%

12.0%

16.0%

Datacenter Automotive Consumer Diversified

13.6x 13.3x

10.7x

9.6x

0.0x

4.0x

8.0x

12.0x

16.0x

Datacenter Diversified Automotive Consumer

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

5

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

5 5 5

MARKET SUMMARY

Semiconductor Trading Statistics

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

($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

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%





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%

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

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

6

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

6 6 6

MARKET SUMMARY







Consumer (cont'd)

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%

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%





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%

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

7

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

7 7 7


MARKET SUMMARY






Diversified

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

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

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%

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

8

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

8 8 8

RECENT ACQUISITIONS

Select Semiconductor Transactions

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.

($MM)

Announced Aggregate AV / Revenue

Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description

12/12/2016 Teledyne Technologies e2v technologies Semiconductor / Electronic

Components $783 2.7x 2.4x

Provides electronic, microwave, sensor, and RF-related related components

and sub-systems to businesses in the medical, science, aerospace and

defense, and industrial sectors worldwide.

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

networking equipment, storage systems and datacenters.

11/14/2016 Siemens AG Mentor Graphics Semiconductor Manufacturing /

EDA Simulation & Modeling$4,281 3.7x 3.4x

Provides chip and embedded systems electronic design automation

software for semiconductor OEMs and provides systems integration

services.

11/03/2016 Canyon Bridge Capital Partners Lattice Semiconductor Semiconductor Design / IP $1,303 3.2x 2.8x Designs field-programmable gate array, complex programmable logic

devices, clock and power management semiconductors.

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

systems and other software offerings.

11/01/2016 Inphi Corporation ClariPhy Communications Semiconductor Manufacturing /

Assembly$275 NA 5.8x

Provides fabless systems-on-chip semiconductor manufacturing for optical

networking and communication applications for OEMs of networking

equipment, enterprise local area networks and enterprise datacenters.

11/01/2016 Solomon SystechMicrochip Technology

(mobile touch semiconductor assets) Semiconductor Design / IP $23 NA NA

Design and manufacture microcontroller, mixed-signal, analog and Flash-IP

semiconductors.

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

computer and electronics manufacturers globally.

09/22/2016 Beijing Shanhai Capital Management Analogix Semiconductor Semiconductor Design / IP $500 NA NADesigns analog and mixed-signal semiconductors and controllers for use in

digital media, smartphones, graphics cards and displays.

09/20/2016 Tessera Technologies DTS Media Technologies / Content

Delivery $946 5.8x 4.8x

Provides digital audio encoding, decoding and processing software for

media companies and electronics OEMs.

09/13/2016 Renesas Electronics Corporation Intersil Corporation Semiconductor Design / IP $2,834 5.5x 5.2x Designs and manufactures analog integrated circuits for flat panel

displays, optical storage and power management products.

09/12/2016 Supernova Investment Actions Semiconductor Semiconductor Design / IP $123 2.4x NADesigns multimedia and mobile internet system-on-chip (SoC)

semiconductors for use by the mobile electronics sector.

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

9

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

9 9 9

RECENT ACQUISITIONS



($MM)



08/25/2016 Littelfuse ON Semiconductor

(automotive electronics division) Semiconductor Design / IP $104 1.9x NA

Provides transient voltage suppression diode, switching thyristors and

insulated gate bipolar transistor design and manufacturing services for the

automotive industry.

08/18/2016 Analog Devices Sypris Electronics

(CSS business) Security / Encryption $42 NA NA

Provides ruggedized secure encrypted communications, key management

and identity authentication hardware and software systems.

08/17/2016 GlobalWafers Co Ltd. SunEdison Semiconductor Limited Semiconductor Manufacturing /

Assembly$671 0.9x 0.8x

Manufactures wafers for the semiconductor and solar cell manufacturing

sectors.

08/01/2016 Mycronic AB Shenzhen Axxon Automation Semiconductors Manufacturing

/ Fabrication $67 3.8x NA

Develops, manufactures, and sells in-line, jetting dispensing equipment for

use in printed circuit board manufacturing for the electronics industry.

07/29/2016 STMicroelectronics N.V.ams AG

(NFC & RFID reader assets)

Semiconductor Devices /

Wireless$78 NA NA

Provides embedded NFC and RFID wireless connectivity components and

middleware for use in mobile handheld and IoT-enabled wearable devices.

07/26/2016 Analog Devices Linear Technology Corporation Semiconductors / Analog $14,210 10.0x 9.5x

Designs and manufactures analog integrated circuit semiconductors for

use in signal conversion and conditioning, power management and timing

applications.

07/21/2016 Dassault Systemes S.A. Computer Simulation Technology AG Semiconductor Manufacturing /

EDA Simulation & Modeling$242 4.7x NA

Provides electromagnetic field and frequency band simulation and CAD

software used by businesses globally.

07/18/2016 SoftBank Corp. ARM Holdings Semiconductor Design / IP $30,856 22.0x 19.4x

Provides IP for use in manufacturing semiconductors, including

microprocessors, graphics processors, video engines, and embedded

memory and M2M and IoT connectivity chips.

07/14/2016 Infineon Technologies AG

Cree

(wolfspeed power and RF division

assets)

Semiconductors Manufacturing

/ Chemicals $850 4.9x NA

Manufactures and provides silicon carbide wafer substrates and gallium

nitride substrates used in power switches and RF wireless devices.

06/30/2016 Rambus Inphi Corporation

(memory interconnect business)


Interconnects$90 NA NA

The memory interconnect business provides buffers and registers;

providing the ability to connect CPUs to a server's memory.

06/24/2016Semiconductor Manufacturing

International Corporation LFoundry Europe GmbH

Semiconductor Manufacturing /

Assembly$78 0.3x NA

Owns and operates an analog and mixed-signal semiconductor foundry

facility for semiconductor providers in Europe.

06/16/2016 ASML Holding NV Hermes Microvision Semiconductor Manufacturing /

Testing$2,749 14.7x 10.3x

Provides integrated circuit pattern verification and wafer defect E-beam

inspection systems for semiconductor manufacturers.

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

10

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

10 10 10

RECENT ACQUISITIONS



($MM)



06/15/2016 Cavium QLogic Corporation Semiconductor / Storage $947 2.1x 2.0x

Manufactures and provides storage network infrastructure hardware and

related storage networking management software to OEMs, resellers and

system integrators.

06/06/2016 Rambus Semtech Corporation

(snowbush IP assets) Semiconductor Design / IP $33 1.9x NA

Provides SerDes-based analog and mixed-signal IP for ASSP, ASIC, and SoCs

semiconductor OEMs.

06/02/2016 Beijing E-Town Chipone Technology Integrated Memory Logic Limited Semiconductor Design / IP $136 NA NADesigns standard and custom analog and mixed-signal integrated circuits

for LCD flat panel display OEMs worldwide.

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

networking, controls and communications components.

05/23/2016 Grand Chip Investment GmbH AIXTRON SE Semiconductors Manufacturing

/ Fabrication $546 2.7x 2.5x

Provides semiconductor manufacturing equipment, including metal-organic

chemical vapor deposition equipment.

05/20/2016 GlobalWafers Co Ltd.Topsil Semiconductor Materials A/S

(silicon businss assets)

Semiconductors Manufacturing


Manufactures ultrapure silicon and silicon substrates for semiconductor

manufacturers globally.

05/18/2016 ARM Holdings Apical Systems / Sensors $350 NA NAProvides embedded computer imaging and vision display subsystems used

in smartphones, tablets and IP cameras.

05/17/2016 Broadcom Corporation MagnaCom Carrier Infrastructure / Wireless

Infrastructure $60 NA NA

Develops 5G wireless and wired connection infrastructure for carriers,

handset manufacturers, wired and wireless system OEMs.

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

system OEMs.

05/09/2016 IPG Photonics Corporation Menara NetworksCarrier Infrastructure / Optical

Infrastructure$47 2.2x NA

Manufactures tune-able pluggable optical transmission modules,

demarcation interconnect devices and transceivers.

05/09/2016 MaxLinear

Broadcom Corporation

(wireless infrastructure backhaul

business)


Wireless$80 2.7x NA

Designs and manufacturers baseband and RF backhaul SoC and integrated

transceivers.

04/28/2016 Cypress SemiconductorBroadcom Corporation

(wireless IoT business)


Wireless$550 2.9x NA

Provides Wi-Fi and Bluetooth connectivity embedded hardware and

software to customers worldwide.

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

11

5.40

7.90

0.0

1.50

12.20 12.20 0 0.20 0.20

11 11 11

RECENT ACQUISITIONS



($MM)



04/28/2016 MaxLinear Microsemi Corporation

(broadband wireless division)


Wireless$21 NA NA

Designs RF wireless base station transceivers, synthesizers and remote

radio heads to enable 3G, 4G, and 5G broadband networks.

04/11/2016 Cadence Design Systems Rocketick Semiconductor Manufacturing /

EDA Simulation & Modeling$40 NA NA

Provides CPU and graphics processing unit simulation acceleration

software for use by semiconductor manufacturers.

04/04/2016 GigOptix Magnum Semiconductor Semiconductors / System-on-

chip$55 2.9x NA

Designs video broadcast encoding, decoding, transcoding and video

compression system-on-chips, integrated circuits and related software.

03/23/2016 Mercury Systems

Microsemi Corporation (embedded

security, RF & microwave, & custom

microelectronics businesses)


Embedded$300 3.0x NA

Designs and manufactures microwave and RF embedded security

components, mixed signal system-on-chip processors and SSD devices.

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

medical and industrial OEMs.

03/15/2016 Fagerhult AB LED Linear GmbH Semiconductors / Photonics $45 1.9x NAManufactures and distributes scalable linear LED lighting modules and

interior and exterior lighting fixtures for businesses.

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

electronics OEMs.

02/23/2016 MKS Instruments Newport Corporation Semiconductors / Photonics $1,003 1.7x 1.6x Provides photonic and optical components, sub-systems, and precision

lasers for computer and electronics manufacturers globally.

02/04/2016 FormFactor Cascade Microtech Semiconductor Manufacturing /

Testing$314 2.2x 2.1x

Provides integrated circuit probing, testing and characterization systems

for semiconductor manufacturers.

01/26/2016 Sony Corporation Altair SemiconductorSemiconductor Devices /

Wireless$212 4.7x NA

Designs and provides 4G LTE processor and modem chipsets and related

software.

01/25/2016 Rambus Smart Card Software Ltd.Mobile Applications / Mobile

Payments$92 NA NA

Provides mobile payments, mobile identification credential management

and smart public transport ticketing software and smart cards.

01/19/2016 Ciena Corporation

TeraXion Inc.

(high-speed photonics components

assets)

Semiconductors / Photonics $32 NA NAProvide indium phosphide and silicon photonics optical components for use

in optical chipsets and fiber-optic networking equipment.

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RECENT ACQUISITIONS

($MM)



01/19/2016 II-VI Incorporated ANADIGICS Semiconductors / Microwave

Devices$71 1.2x 1.2x

Manufactures gallium arsenide radio-frequency integrated circuits for

broadband wireless and wireline telecommunications devices.

01/19/2016 II-VI Incorporated EpiWorks Semiconductors Manufacturing


Manufactures and provides high volume epitaxial growth of compound

semiconductor wafers.

01/19/2016 Microchip Technology Atmel CorporationSemiconductor Manufacturing /

Assembly$3,282 2.6x 2.8x

Designs and manufactures microcontrollers, embedded systems, wireless,

mixed-signal and radio frequency components, memory chips, power

management systems and touch-screen semiconductors.

Mean 4.0x 4.5x

Median 2.7x 2.8x


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RECENT ACQUISITIONS

Most Active Semiconductor Acquirers Year to Date

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

1

1

2

2

2

2

2

3

0 1 2 3

1

2

3

4

5

6

7

8

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

$2,749

$2,834

$3,282

$4,281

$5,996

$14,252

$30,856

$46,077

$50,000 $40,000 $30,000 $20,000 $10,000 $0

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PERSPECTIVES ON CONSOLIDATION

Semiconductor Industry Increasing Rate of Consolidation

Public Companies(1):

130


121


103


73 (7%) (15%) (29%)

10 Years Ago

5 Years Ago

3 Years Ago

Today

$17.3BN

$18.2BN

$14BN

$37BN

$6.6BN

$3.5BN

$3BN

$8BN $4.9BN

$3.6BN $3.6BN

$3.5BN

$18BN

Sponsors

$4.2BN

Notable Acquisitions Notable Acquisitions Notable Acquisitions

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.

$48BN

$31.5BN

$16BN $15.7BN

$7.1BN

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$70MM

We advised the Buyer

Acquisition of Sale of Mass Flow

Controller and Related Product Lines to


$44MM

Sale of Semiconductors Encapsulating Materials

Business to

We advised the Seller

Undisclosed

Divestiture of

Instrumentation Division to


Undisclosed


Acquisition of

$1.1 Bn

Joint Venture Agreement with

We advised DNP

$1.1Bn

Acquisition of


$66MM

Acquired by


$63MM

Acquisition of


$850MM


Sale of Certain Assets of

DigitalOptics Micro-Optics Business to

$15MM

Divesture of Cleanroom Integrated

Solutions Business


Undisclosed

Acquired by


Undisclosed

We advised SuVolta

Strategic Investment &

License by

Undisclosed

Strategic Investment by

We advised IMI

$8MM


Semiconductor Business

Acquisition of

$140MM

Acquisition of


$400MM

Sale of IP Assets to


$65MM

Acquired by


Undisclosed


Sale of

to

Undisclosed

Acquisition of


Undisclosed


Acquired by

Undisclosed

Preferred

Stock

We advised the Issuer

Undisclosed

Sale of Communication Devices Business

to

We advised the Seller Undisclosed

Acquisition of Silicon Valley Tech Center from

We advised the Buyer $53MM

Acquired by


Undisclosed

Acquired by


Undisclosed

Acquired by


Undisclosed

Diode & LED Business


Undisclosed

Acquisition of Industrial

& Consumer Laser

Sale of IP Portfolio to


Undisclosed

Acquisition of

A wholly-owned subsidiary of

Zhuhai, China facility of

We advised the Buyer Undisclosed

Sale of Semiconductor Automatic Test

Equipment Assets to


$20MM


Sale of Extended Factory Business to

Undisclosed

Participation in IP License Sale by

We advised RPX

$525MM

Acquisition of Back-End Production

Facilities from

Undisclosed We advised the Buyer

Acquired by


Undisclosed

We Advised the Buyer

Acquisition of Timing Solutions Business

from

$35MM

GCA OVERVIEW

Deep Semiconductor Sector Expertise

http://j-devices.co.jp/index.html

http://am.renesas.com/index.jsp

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GCA OVERVIEW

Semiconductor Team

*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. *Shohei Taniguchi is a Managing Director at GCA Corporation.

San Francisco

One Maritime Plaza, 25th Fl. San Francisco, CA 94111

United States Phone: (415) 318-3600

New York

640 Fifth Avenue, 10th

Fl. New York, NY 10019

United States Phone: (212) 999-7090

Tokyo

11-1 Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6230

Japan Phone: +81 (3) 6212-7100

London

1 Southampton St. London WC2R0LR United Kingdom

Phone:+44 20 7484 4040

Kamal Ahmed Clark Callander Geoff Baldwin Akikazu "Kaz" Ida* Aki Watanabe* Alex VitaleManaging 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 SteinAssociate

Phone: (415) 318-3662

Mobile: (415) 515-0820

[email protected]

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