Steve Sanghi, CEO

Eric Bjornholt, CFO ©March 2017

2 ©March 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

RR

105 consecutive quarters of profitability!

3 ©March 2017

Multiple Growth Drivers

1. Microcontroller market growth and share gains

2. Analog growth and attach opportunity

3. Wireless/IoT/Connectivity

4. Automotive networking, car access and electronics

5. Security

6. Technology licensing

4 ©March 2017

Total MCU (8/16/32) Market Share %

0

2

4

6

8

10

12

14

16

CY

94

CY

95

CY

96

CY

97

CY

98

CY

99

CY

00

CY

01

CY

02

CY

03

CY

04

CY

05

CY

06

CY

07

CY

08

CY

09

CY

10

CY

11

CY

12

CY

13

CY

14

CY

15

CQ

216

%

CQ2 16 includes Atmel

5 ©March 2017

Analog Yearly Revenue (k$)

$0$50,000

$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000$550,000$600,000$650,000$700,000$750,000$800,000$850,000$900,000$950,000

$1,000,000

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

RR

6 ©March 2017

2008 2009 2010 2011 2012 2013 2014

Expanding Our Solutions

Through Acquisitions

Hampshire Touch Screen

Controllers

Security & Life

Safety ASICs

Low-Power

Embedded

Wi-Fi®

High-Density Flash

& IP

Motor Drive

Products

Development Tools

Compiler

Assembly & Test

Capacity

Expansion

LSS High-Speed

ADCs

3D Gesture Capture

& Proximity Detect

Bluetooth® &

Embedded Wi-Fi®

MOST®, USB,

Ethernet, Wireless Audio

& PC Controllers

Non-volatile

Memory IP

Equalizer &

Coaxial

Transceiver

Products

High-Voltage Analog &

Mixed-Signal Products

Bluetooth®

Low Energy

2015

Analog, mixed-signal,

timing & power

management

HI-TECH

ZeroG

Advanced Silicon Roving Networks

Novocell

Supertex

Micrel

R&E

International

SST

MMT

Ident

SMSC

EqcoLogic

ISSC

2016

Microcontrollers,

Wireless, Touch,

Automotive,

Security

& Memory

Atmel

7 ©March 2017

Automotive Water Pump

3x MOSFET

pairs

3 phase

BLDC

Motor

Micrel

Classic

Microchip

Atmel

MIC2920A

LDO

MIC28512/3

Sw. Reg

MIC4605 x 3

85V MOSFET

Driver

ATA663211

LIN

Transceiver

dsPIC33EP6

4MC504

MCU

MCP6L04

Op Amp

MCP1700

LDO

24LC16B

Serial EE

8

Router

3G module

12V

Micrel

Classic

Microchip

Atmel

MIC4576

Sw. Reg

MIC69101

(1.8V)

LDO

MIC69101

(3.3V)

LDO

KSZ8081

Ethernet PHY

KSZ8995

Ethernet Sw.

AT91SAM9

G20B

MPU

9 ©March 2017

Alarm Panel Uplink

Micrel

Classic

Microchip

Atmel

MIC2128

Controller

MIC4723

Sw. Reg

MIC4723

Sw. Reg

MIC2875

Boost Sw. Reg

MIC95410

Load Switch

MIC5353

LDO

MIC94355

Ripple Blocker

MIC2039

Load Switch

MIC2039

Load Switch

MIC2039

Load Switch

MIC2039

Load Switch

MIC2039

Load Switch

MCP73833

Batt. Charger

MIC6143

Op Amp

MCP23017

I/O Expander

SMSC

USB4604

USB Hub

10 ©March 2017

PC Dock

Micrel

Classic

Microchip

Atmel

UCS3205 USBPD

Power Switch

MIC261201

Sw Reg

PIC32

USBC Manager & Bridge

SMSC

UPD350

Type C

Controller

20V Vin ECC508

Authentication

20

V V

in

USB5826

USB3.1 6 Port Controller/Hub

UPD360 Type

C Controller

MIC2033

Load Switch

UPD360

Type

C Controller

MIC2033

Load Switch

USB5744

4 Port USB Controller/Hub

MIC2033

Load Switch

MIC2033

Load Switch

MIC2033

Load Switch

USB 3.0

Type-A

USB 3.0

Type-A

USB 3.0

Type-A

USB 3.0

Type-A

USB 2.0

Type-A

Type-C

Type-C Type-C

DP-Hub

11 ©March 2017

Display Module

PIC32MZ2048EFG100

Host

LCD Display

w/ ITO Layer

I2C/SPI/USB I2C/SPI/USB I2C/SPI/U

SB

EBI/PMP Parallel

RGB

SQI GPIO GPIO I2C

GPIO GPIO

mXT337TPTP

PCAP Touch

Controller

I2C

LCC FIRMWARE

RX lines

Analog

Driver

INT SYNC

Vsync

Hsync

Pclk

SQ

I

SST26VF016B

SQI Flash

Font Storage

MIC2293-15YML

Backlight

Controller

PW

M

DSC1001

MEM’s 24MHz

Oscillator

Micrel

SST

Classic

Microchip

Atmel

MIC94300YMT

Ripple Blocker

3.3V

Power

12 ©March 2017

Summary of Accretion from Atmel Transaction

Atmel Accretion Forecast FY17 FY18 FY19

Initial accretion forecast

(w/share buyback)

$ 0.33

$ 0.66

$ 0.90

Accretion forecast

(w/o share buyback)

$ 0.25

$ 0.53

$ 0.75

August 2016 accretion forecast $ 0.40 $ 0.53 $ 0.75

November 2016 accretion forecast $ 0.50 $ 0.70 $ 0.90

February 2017 accretion forecast $ 0.64 $ 0.90 $ 1.00

February 2017 accretion forecast without share buy-back is better

than the initial accretion forecast from April 2016 with share buy-back.

13 ©March 2017

Business Update Microchip exceeded the high end of its non GAAP net sales and

EPS guidance for FQ3 2017.

Net sales for Q4FY17 expected to be down 0.5% to up 2.5%

sequentially.

Non GAAP EPS for Q4FY17 expected to be between $1.02 to $1.10

per share.

Atmel non-GAAP EPS accretion targets have been increased for

the current fiscal year and the next two fiscal years.

Net Debt/EBITDA leverage reduction ahead of schedule and

targeted to be under 2.1 by March 2017

Long-term non-GAAP financial model is now 60% gross margin,

24% operating expenses and 36% operating profit.