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Inphi Corporate Update
May 2, 2017
Inphi Moves Big Data Faster
2Inphi Proprietary
This presentation is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not
constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful. The notes and
the shares of Inphi Corporation common stock issuable upon conversion of the notes, if any, will not be registered under
the Securities Act of 1933, as amended (the “Act”) or any state securities laws, and unless so registered, may not be
offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and
applicable state laws. Any purchaser of such securities will be deemed to have made certain representations and
acknowledgments, including, without limitation, that the purchaser is a “qualified institutional buyer” as defined in Rule
144A under the Act.
This presentation includes forward-looking statements relating to matters that are not historical facts, including, without
limitation, statements regarding the expected terms of the notes, the timing and expected use of the net proceeds of the
proposed offering, Inphi’s short and long term growth strategies, trends in IP traffic and technology adoption, the future
sizes and anticipated growth of the networking infrastructure, cloud computing and data center markets, and the scaling of
memory capacity with CPU cores. In some cases, such forward-looking statements are identified by words such as
“anticipate,” “believe,” “plan,” “estimate,” “expect,” “strive,” “future,” “intend” and similar expressions. Although Inphi’s
management believes that the expectations reflected in the forward-looking statements are reasonable, such statements
involve known and unknown risks, uncertainties and other factors that may cause Inphi’s actual results to be different from
any future results expressed or implied by these statements, including the risks and uncertainties described in the
preliminary offering memorandum relating to the proposed offering report, and other filings with the U.S. Securities and
Exchange Commission made from time to time. We caution you that no forward-looking statement is a guarantee of future
performance, and you should not place undue reliance on these forward-looking statements which reflect the view of
Inphi’s management only as of the date of this presentation. We assume no obligation to, and expressly disclaim any
obligation to, update any forward-looking statements contained in this presentation as a result of new information or future
events or developments.
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP
financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in
accordance with U.S. GAAP. See the Appendix for a reconciliation between each non-GAAP measure and the most
comparable U.S. GAAP measure.
Safe Harbor Summary
3Inphi Proprietary
Invest for growth with 75% engineering
Non-GAAP Revenue ($M)*
Non-GAAP EPS
539 patents: high-speed analog and package design
Serve cloud, enterprise and service provider markets
Focus on high-speed data movement interconnects
Notes: Company data per human resources & legal reports 3/2017 and finance reports 5/2/2017
*Pro-forma, Non-GAAP revenue adjusted for continued operations of the sale of the memory business
Differentiate with broadband linear amplification and higher modulation opto-electronic solutions
Core competence in high-speed analog, DSP and optics
$0.30
$0.93
$1.51
$0.44
2014 2015 2016 Q1'17
Inphi Leads in Optical and Networking Physical Layer
$35 $43
$100
$193
$266
$94
2012 2013 2014 2015 2016 Q1'17
4Inphi Proprietary
Inphi HQ:Santa Clara, CA
Inphi Global Locations Support Customers and Attract Talent
Design CentersUSA: Irvine, Santa Clara,
Westlake Village
Canada: Ottawa, Vancouver
Argentina: Cordoba
United Kingdom: Northampton
Europe: Hanover
Asia-Pacific: Singapore
Sales & SupportUSA: Austin, Chicago, Folsom,
Kansas City, Raleigh
Santa Clara, Westlake Village
Europe: Milan, Munich
Asia-Pacific: Beijing, Hsin-Chu,
Shanghai, Shenzhen, Wuhan, Tokyo
OperationsUSA: Santa Clara,
Westlake Village
Asia-Pacific: Malaysia,
Singapore, Taiwan
Worldwide Offices in North America, Asia-Pacific, Europe
5Inphi Proprietary
Data and Traffic Are Growing Exponentially
Data and Traffic
Explosion
Notes
1. Smartphone users as of 2015
2. CAGR calculated from 2014 – 2019, for sources refer the references section
3. Social Media users CAGR 2010-2020 estimate
▲44%Cisco Global
Cloud Index
Video
Social
▲23%IDC
Smartphone Users
Cisco IoT
White Paper
▲107%
IDC
▲10%
Cloud Services IoT
Cisco Visual
Networking Index
▲33%
Nokono
▲ 23%
Big Data
eMarketer
▲12%
e-Commerce
Trends, Dec. 2015
6Inphi Proprietary
New Trends Fuel Further Data and Traffic Growth
Chatbots
5G Wireless
Secure Cloud Autonomous Vehicles
Mixed, Virtual,
Augmented Reality
Artificial Intelligence
New Media
New End User Trends, Oct. 2016
Data and Traffic
Explosion
7Inphi Proprietary
Cloud Hardware and Software LayerAggregation Network
Connecting Data Centers
“The Data Center is the Computer™”
“The Data Center is the Computer™”
Cloud Hardware and Software LayerAggregation Network
“The Cloud is the Network™”
DCI Long Haul >600km
DCI Metro 100km-600km
DCI Edge 2km-100km
Inside DC
500m-2km
Inphi Solves Data Movement Between & Inside Data Centers
8Inphi Proprietary
Data MovementData Manipulation
Processor, GPU, NIC, Switch Optical, Networking
Analog, Mixed Signal, DSPDigital
Inphi Leads in Data Movement Interconnects
9Inphi Proprietary
Long Haul / Metro
Data Movement Around the Globe
Between Data Centers
Data Movement Between Data Centers
Inside Data Centers
Data Movement Inside Data Centers
Optical
Amplifier
Coherent
DSP CDR/PHY PAM
DWDM
Optical Module
Reference Design
Silicon
PhotonicsGearbox
Optical
Driver
Inphi Leads in Data Movement Interconnects
10Inphi Proprietary
Large Total Addressable Market (TAM)
Note: 2016 data from Cignal AI, Crehan Research, LightCounting,
HIS and Inphi Estimates
90 Million 10G/40G/100G Ports
Data Centers Cloud EnterpriseService Providers
Long Haul / Metro Between Data Centers Inside Data Centers
$3 Billion Interconnect TAM in 2019
11Inphi Proprietary
Provide Complete Component Solution for Optical Platform
Long Haul / Metro Data Center
Partner Optics
TiA
Driver
High Performance
Coherent DSP
SiPho
TiA
Driver
Low Power PAM DSP
Partner
Optics
PartnersInphi *
12Inphi Proprietary
201920182017201620152013 2014
Building an “Annuity” Infrastructure Business
Transimpedence Amplifier (TiA)
Optical PHY: Gearbox, CDR, PAM
Driver
ColorZ
Coherent DSP
13Inphi Proprietary
Data Movement Interconnect Market Has Multiple Growth Vectors Ahead
2016
2018
2017
North America
Telecom Operator
200G Metro
400G LH/Metro/Client
100G Long Haul,100G Client CFP2
Cloud,
MSDCs
100GInside DC
ColorZ, 100GBetween DC
200/400G,Inside, Between DC
Enterprise
Data Centers
100G
40G
China
Telecom Operator
ProvincialTier 2/3 Cities,
100G Client CFP2
200G Metro,
5G Wireless
NationalBackbone,
100G Client CFP
14Inphi Proprietary
Deliver Consistent Revenue Growth
Non-GAAP Revenue $M
$35 $43
$100
$193
$266
$94
$0
$50
$100
$150
$200
$250
$300
2012 2013 2014 2015 2016 Q1'17
*Pro forma. Non-GAAP revenue adjusted for discontinued operations of the sale of the Memory Business
15Inphi Proprietary
Consistent and Growing Profitability
Non-GAAP
Operating Margin EPS
9.0%
22.4%
27.1%
23.1%
2014 2015 2016 Q1'17
$0.30
$0.93
$1.51
$0.44
2014 2015 2016 Q1'17
*Pro forma. Non-GAAP, adjusted for discontinued operations of the sale of the Memory Business
16Inphi Proprietary
Inphi Strong Leadership from Comms/Optical
John Edmunds SVP, CFO
Loi Nguyen Founder, SVP, Optical Interconnect
Siddharth Sheth SVP, Networking Interconnect
Lawrence Tse SVP, Engineering
Charlie Roach SVP, Worldwide Sales
Radha Nagarajan CTO, Optical Interconnect
Sudeep Bhoja CTO, Networking Interconnect
Ford Tamer President and CEO
Ron Torten SVP, Operations and IT
Nariman Yousefi SVP, Coherent DSP
Oscar Agazzi VP Engineering, Coherent DSP
17Inphi Proprietary
Inphi Recognized for Excellence
New Emerging
Technology Supplier
2015
ECN Impact Awards
NeoPhotonicsSupplier of the Year
2015
SumitomoAwards of Excellence
HuaweiBest Quality
Company
2015
FiberHomeCore Partner
2015
Cisco
LightWaveInnovation Awards
Sumitomo Electronics
Device Innovation (SEDI)20152013
Best Partner
Awards
2013-2015
2014Quad
Linear
Driver
GSANeedham
Favorite
Semiconductor
Company
2015
DeloitteFast 500
Technology
Company
2016
2016PAM4
2017ColorZ
2016PAM4
2017400GbE PAM 4
Platform
18Inphi Proprietary
Innovation Drives Customer Success
200140G Differential Drive
Modulator Driver+
40G TIA
200928G Coherent TIA
+28 Gbps Differential Modulator Driver
201228G CMOS SERDES
+32G Linear
Modulator Driver
201445G Linear
Modulator Driver +
45G Coherent TIA +
PAM
2016ColorZ for 80km DWDM
+SiPho Platform for 100G Data Center
+Shipped 1M 100G
Coherent Amplifiers & Drivers
+64G Coherent TIA
+Lowest Power CDR
+400G CFP8 Platform
(28nm PAM DSP / Driver / TIA)
2015Smallest
Form Factor+
SMT Linear Driver+
PAM 4
201764G Coherent Driver
+28G EML Linear Driver
+PolarisTM Platform
(16nm PAM DSP / Driver / TiA)+
Low power Coherent DSP for Metro and Long Haul
Long Haul / Metro:
The Cloud is the NetworkTM
20Inphi Proprietary
103
167
254
352
484
646
823
2014 2015 2016 2017 2018 2019 2020
100G/200G Adoption is Accelerating in Long Haul & Metro
Source: IHS (Infonetics) and Company Estimates, December 2016
100G & 200G Long Haul & Metro Coherent Ports (KU Ports)
December 2016
41% CAGR 2014-2020
21Inphi Proprietary
Inphi Leads Transition from Limiting to Linear
10G 40G 100G 200G 400G 1T
TIA
Driver
Linear
Linear
Limiting
Limiting
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016 2017 2018
Estimated market share of
Linear Drivers for 100G – 1T
Limiting
Prior Estimate
July 2015
22Inphi Proprietary
Industry Leading Linear Coherent Solutions
100G/200G 400G
Next-Gen 45GBaud Linear Amplifier32GBaud Linear Amplifier
32GBaud Linear Driver 45GBaud Linear Driver
4 Top 4 Tier 1OEMs use Inphilinear amplifiers
3 out of 4 Tier 1OEMs use Inphilinear drivers
Inphi is first tomarket with nextgeneration linearamplifier and driversolutions
23Inphi Proprietary
0.0
1.0
2.0
3.0
2010 2011 2012 2013 2014 2015 2016
2.7M Coherent Units Shipped > All Competitors Combined
Industry First 100G
Linear Driver
Industry Smallest SMT
100G Linear Driver
Industry First 100G
Linear Amplifier
Cumulative Shipments (M Units)
24Inphi Proprietary
Enter Metro
Take share with Linear
Ramp new 45 Gbaud products
Grow with both module and line card customers
Support partner products: SiPho, CFP DCO, CFP2 ACO
Ramp new modulations: 8QAM and 16QAM
Growing Optical Interconnects Between Data Centers
Ports grow 30%
Between Data Centers:
Coherent DSP Solutions
26Inphi Proprietary
Low PowerHigh Performance
Long Reach
Fast Time-to-market
Competitive Cost
Dedicated Customer Support
Best Quality
Note:
1. Wireless subscriptions and social media users are as of 2015
2. CAGR calculated from 2014 – 2019, for sources refer the
references section
Complete Platform to Enable Customer Success
Driver
SiPho
or
Partner Optics
TiA
Optical Platform
Optical PHY
Coherent DSP
27Inphi Proprietary
Coherent DSP Group
Leading merchant coherent DSP for data center,metro, long haul optical communication
First to deliver 28nm 200Gbps QAM16
Strong 16nm and 7nm roadmaps to low power,high bandwidth solutions
Design wins and shipping to Tier 1 customers worldwide
28Inphi Proprietary
Inphi Supports Discrete, DCO and ACO Customers
New coherent DSP complements Inphi TiA and Driver
Inphi remains committed to all its customers’ success,for discrete line cards, and DCO/ACO modules
Line Card - Discrete
Modulator
Hybrid
Optics
DSPLaser
Modulator
Hybrid
Optics
DSPLaser
Modulator
Hybrid
Optics
DSPLaser
Modulator
Hybrid
Optics
Laser
ACO modules
Modulator
Hybrid
Optics
DSPLaser
Modulator
Hybrid
Optics
DSPLaser
DCO modules
TIA
TIA
TIA
TIATIA
TIA
Driver
Driver
Driver
Driver
Driver
Driver
DSP
29Inphi Proprietary
Inphi Has Full End-to-End Capability for Customer Success:High-Speed Analog, DSP, Layout, Firmware, Software
ManufacturingSystem SupportArchitecture, IP
& Chip Design
State of the art analog
Innovative DSP/FECtechnology
World Class IC / backend
Direct relationship with fab, assembly, test partners
In house production test capability
Firmware/Software
Quality evaluation boards
Advanced Optical lab
Between Data Centers:
DCI Edge Solutions
31Inphi Proprietary
1 1026
73
124
207
332
2014 2015 2016 2017 2018 2019 2020
100G Adoption Ramping Between Data Centers
DCI Edge
100G
Source: Cignal AI, January 2017
100G DCI Edge Port Forecast (KU Ports)
January 2017
32Inphi Proprietary
Cloud Hardware and Software LayerAggregation Network
Connecting Data Centers
“The Data Center is the Computer™”
“The Data Center is the Computer™”
Cloud Hardware and Software LayerAggregation Network
“The Cloud is the Network™”100Gb/s
80km
4.5W
ColorZTM Delivers 100G QSFP28 for 80km Data Center Interconnect
33Inphi Proprietary
0 2 10 100 600 10,000
Distance (km)
4Tb/s
80km
100G Switch 100G Switch
40x 40x
Metro Data Center Interconnect (DCI) Gap
Point to Point Links
IEEE 802.3ba /
CR4,SR4, LR4
Sta
nd
ard
s
100G
10G
DWDM
SFP+
ROADM Networks
OIF / Coherent
QPSK/16-QAM
100G/200G
DWDM
OIF / Coherent QPSK/8QAM
100G/200G/400G
DWDM
ColorZ delivers a cost effective approach to resolve these DCI bottlenecks
No Cost Effective 100Gb/s
DWDM Solutions Today
34Inphi Proprietary
ColorZ Delivers Complete Solution for Time-to-Market
SiPho
Optics
Linear
TiA,
Driver
PAM:
DSP,
ADC
Validated
Design
100G,
QSFP28,
80km
Lower
Power
Lower
Cost
100G
Speed
35Inphi Proprietary
ColorZ Moves the Library of Congress in <1 Second
10 Terabytes of data moved at 100 Terabits per second
36Inphi Proprietary
ColorZ Platform Enables Virtual Mega-Cloud in 2H’16
Offers compelling value proposition in terms of power,
faceplate density, and cost per bit for 80km reach
Provides a cost effective upgrade path from 10G DWDM in
SFP+ to 100G DWDM in QSFP28
Complements coherent technology for end-to-end 100G
DWDM connectivity for Inter-DCI for Cloud customers
Expands market opportunity for the optical industry and
Inphi, with strong benefits for cloud customers
Industry firsts 100G PAM Silicon Photonics, 80 km PAM4
ASIC, and DWDM Reference Design for QSFP28
Inside Data Centers:
The Data Center is the ComputerTM
38Inphi Proprietary
“Fiber PHY” Growing Rapidly in Data Center, SMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
39Inphi Proprietary
“Fiber PHY” Growing Rapidly in Data Center, SMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
40Inphi Proprietary
“Fiber PHY” Growing Rapidly in Data Center, MMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
41Inphi Proprietary
Data Center Transition to Fiber, DAC PHYs
Source: Inphi Estimates, Crehan Research, 2016
1G 10G 25G 40G 50G 100G 400G
BASE-T
Fiber / DAC
0%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Estimated Capture Rate by Fiber/DAC
into BASE-T PHY Share
BASE-T PHY
42Inphi Proprietary
Distances, Speeds Drive Optics/Electrical Transition
Longer Distances = Single Mode Fiber
Cost Effective DSP-based PAM Optical Interconnects
Source:
Corning
Mega Data Center
500m-2km
distances
43Inphi Proprietary
Industry Leading NRZ and PAM Optical PHY Solutions
Enterprise Service Provider Data Center
Server Line
Card
CFP CFP2/8 QSFP SFP OSFP and
QSFP-DD
nx10G PHY
100G Gearbox
nx25G CDR
nx50G PAM
nx100G PAM
44Inphi Proprietary
2012
CFP 12W-24W
2014
CFP2 12W-14W
2015 onwards
QSFP 3.5W
Roadmap to Lower Cost, Higher Density
2008
SFP 10G 1.5W
2015 onwards
SFP 1.5W
25/50G
SFP Inflection
N x 100G
QSFP Inflection
Lower Power Lower CostHigher Density
2012
N x 10G SFP
Enterprise Server
SOC Inflection2015
N x 10G SFP
Router
Switch
Server
45Inphi Proprietary
Ramp 10G/40G in servers with Broadwell & Skylake generation
Accelerate 100G ramp with CFP and CFP2
Grow 100G NRZ CDR/TiA/Driver for QSFP28
Ramp PAM for 40/100G first, 50/200/400G next
Address both single- and multi-mode fiber
Partner with VCSEL, DML, EML and SiPho optics
Growing Networking InterconnectsInside Data Centers and for Service Providers
Ports grow 35% for 10G/40G, 300% for 100G
Thank You