2 ©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.
3 ©June 2017
Corporate Overview
Leading provider of: • High-performance Microcontrollers, Digital Signal Controllers
and Microprocessors
• Mixed-Signal, Analog, Interface and Security solutions
• Clock and Timing solutions
• Wireless and Wired Connectivity solutions
• Non-volatile EEPROM and Flash Memory solutions
• Flash IP solutions
~ $3.5 Billion revenue in FY17
~13,000 employees
Headquartered near Phoenix in Chandler, AZ
5 ©June 2017
0100200300400500600700800900
1000110012001300140015001600170018001900200021002200230024002500260027002800290030003100320033003400350036003700380039004000
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
MCU Analog Memory Licensing MMO
Annual Net Sales Growth
$ M
illi
on
106 consecutive quarters of profitability!
6 ©June 2017
WW MCU Market Share
Based on dollar shipment volume 2003-2016, Source: Gartner and Microchip
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
8 ©June 2017
Automotive Semiconductor
Supplier Ranking
1. NXP
2. Infineon Technologies
3. Renesas Electronics
4. ST Microelectronics
5. Texas Instruments
6. Robert Bosch (mostly captive)
7. ON Semiconductor
8. Microchip
9. Toshiba
10. Rohm Semiconductor
Source: Semicast Research 2017
9 ©June 2017
Automotive Semiconductor Content
Source: Statista Source: PWC, Microchip Estimates
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Semiconductor Content / Vehicle
0
20
40
60
80
100
120
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Vehicle Shipments (Munits)
11 ©June 2017
Security
• >20 years in secure IC market
• Automotive grade stand alone Security ICs
• Secure Crypto Microcontrollers
• Securing in vehicle networks, including legacy CAN
• Enabling Secure BOOT – no fraudulent firmware
All you need is Trust
12 ©June 2017
Homelink – Garage Doors
Access Control Systems
Highly Secure Keyfobs
RF link + LF immobilizer
Relay Attack Theft Prevention:
Low Power UWB Radar
Passive Entry – Walk Away Locking
13 ©June 2017
Advanced HMI: Capacitive Sensing
Multi-Point Touch Screens Touch Pad Controls
Capacitive Gesture Recognition Buttons and Sliders
14 ©June 2017
Interior and Exterior Lighting
Interior Ambient Lighting - RGB
Exterior LED Front Lighting LED Tail Lights
Instrument Cluster Backlighting
15 ©June 2017
Body Electronics
Steering Wheel control
Door Handle Sensing
Kick Sensing
Pressure Monitoring
17 ©June 2017
Electrification / Fuel Economy
Start Stop Voltage
Stabilization (DC/DC)
EV Portable Charger
Inductive Wireless
Charging Control
48V System Solutions
18 ©June 2017
Advanced Driver Assist Systems
Collision Avoidance Systems Lane Departure Warning
Blind Spot Detection Smart Mirrors
19 ©June 2017
Microchip Content in ADAS
Autonomous Parking
LED Matrix Lighting
Surround View Camera
Back up Camera
Parking Sensors
Traffic Sign Recognition
Blind Spot Detection
Lane Departure
Lane Keep Assist
Adaptive Cruise Control
Automatic Emergency Braking
Front Collision Avoidance
V2X
Adaptive Lighting
Rain Sensor
TPMS
Pedestrian Detection
MCU Network/Analog Memory
20 ©June 2017
ADAS Drives Sensor Proliferation
Automation Level 2 Level 3 Level 4
Sensor / Year 2015 2020 2025
Radar ≥ 3 ≥ 6 ≥ 10
Camera * ≥ 1 = 2 ≥ 8
Lidar 0 ≤ 1 ≥1
Radar Camera Ultrasonic Laser
*) excluding backup camera and
surround view cameras
21 ©June 2017
Increasing Number of
Sensors Will Drive
Revenue
Growth
ADAS Sensors:
Security Needed
Increased
bandwidth
requirements –
raw data - high
speed links
Safety related
Parameterics
Monitoring &
Sensor control
22 ©June 2017
Applications in S-Class 29 MCUs / 8 Analog / 6 USB / 6 Memory / 6 MOST / 4 Kleer
PTC Heater
Throttle Control
Engine
Control
Timer Rear View Camera
Adaptive Light
Approach Sensors
LED DRL
Breakout Box
Navigation
HVAC Blower
Light Switch
Airbag
Head Unit
Parking Assist
Garage Door Opener
Door Switch Module
Cluster
COMPASS
Mirror
Surround View Camera
Telephone Touch Dialer
DewPoint Controller
Wiper Rear Seat
Entertainment
Roof Controller
Natural Vaccuum Leak
Detection
Amplifier
23 ©June 2017
Applications in Hyundai Genesis 30 MCU, 22 Analog, 5 Memory, 3 MOST®, 2 USB
Automatic
Defogger
Sensor
Steering - Vibration
Door Latch
Cabin Lamp
Seat Heater
Adaptive
Front
Leveling
CO2
Monitor
Hands-free
Module
Audio
Sunroof
Headunit Active Seatbelt
Overhead
Console
Lamp
Personal Lamp
Steering - Heater
LED
Driver
Module
I-Box
Breakout Box (Rear)
Airbag
AVN
DRL
Rear
Camera
Mirror
Garage
Opener
25 ©June 2017
Summary
Microchip is a significant Automotive
semiconductor player with 25 years
experience serving the market
Microchip dominates multiple
application areas in automobiles
Microchip is well positioned for the
explosive ADAS growth ahead