ANALOG SEMICONDUCTOR

CONSOLIDATION IN DISCUSSIONDespite Attractive Margins and

Stability Analog Semiconductor

Consolidation Likely

BILL KOHNEN PAC RIM SEMI CONFERENCE

NOTES OCTOBER 2013

SUMMARY

The Analog Semiconductor segment is relatively stable, maintains good margins and has modest but consistent growth with low capital and operational cost for existing well managed companies.

There has been some recent consolidation (Texas Instruments and National Semi)

Various factors continue to make consolidations/mergers likely

Active discuss likely going on now including major players outside of current Analog Space

BILL KOHNEN PAC RIM SEMI CONFERENCE

NOTES OCTOBER 2013

FACTORS DRIVING CONSOLIDATION

Current Excess Capacity

Industry wide G&A Excess

Constrained Analog Design Technology Expertise Worldwide

Always interest from DSP, Processor, and Memory players to look

to own more of the signal chain or motherboard

Major Analog Buyers starting to look at market

Global Industrial Giants that may already have some internal Semi production

BILL KOHNEN PAC RIM SEMI CONFERENCE NOTES OCTOBER

2013

SERIOUS EVALUATIONS IN ANALOG

SPACE ONGOING

Analog is a small community so there have generally always been

lukewarm discussions going on

However, seriousness of talks seems to be at high level global

driven by changing of guard within industry executive

management as well as interest of outside players

Even those on inside probably can not say who and when but

likely sooner rather than later and will include companies in

revenue range of one to two billion.

BILL KOHNEN PAC RIM SEMI CONFERENCE

NOTES OCTOBER 2013