Steve Sanghi, CEO

Eric Bjornholt, CFO ©June 2017

Introducing Microchip 2.0

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.

Introducing Microchip 2.0- Total system solutions- Smart,

connected and Secure.

3 ©June 2017

MICROCHIP 1.0

1. Consistent growth

2. Perennial market share gains

3. High margin business model

4. Shareholder friendly with consistently increasing

dividends and free cash flow

5. Successful M&A strategy

4 ©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!

5 ©June 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

6 ©June 2017

Worldwide Microcontroller

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

7 ©June 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

8 ©June 2017

30

35

40

45

50

55

60

65

Q1F

Y02

Q2F

Y02

Q3F

Y02

Q4F

Y02

Q1F

Y03

Q2F

Y03

Q3F

Y03

Q4F

Y03

Q1F

Y04

Q2F

Y04

Q3F

Y04

Q4F

Y04

Q1F

Y05

Q2F

Y05

Q3F

Y05

Q4F

Y05

Q1F

Y06

Q2F

Y06

Q3F

Y06

Q4F

Y06

Q1F

Y07

Q2F

Y07

Q3F

Y07

Q4F

Y07

Q1F

Y08

Q2F

Y08

Q3F

Y08

Q4F

Y08

Q1F

Y09

Q2F

Y09

Q3F

Y09

Q4F

Y09

Q1F

Y10

Q2F

Y10

Q3F

Y10

Q4F

Y10

Q1F

Y11

Q2F

Y11

Q3F

Y11

Q4F

Y11

Q1F

Y12

Q2F

Y12

Q3F

Y12

Q4F

Y12

Q1F

Y12

Q2F

Y13

Q3F

Y13

Q4F

Y13

Q1F

Y14

Q2F

Y14

Q3F

Y14

Q4F

Y14

Q1F

Y15

Q2F

Y15

Q3F

Y15

Q4F

Y15

Q1F

Y16

Q2F

Y16

Q3F

Y16

Q4F

Y16

Q1F

Y17

Q2F

Y17

Q3F

Y17

Gross Margin % (Non-GAAP*)

(%)

Fab 4 Production start

Higher Utilization

Richer Product Mix

Worldwide Financial

Crisis

Record

*Excludes share-based compensation and acquisition-related expenses. A reconciliation of our GAAP to non-GAAAP results is available at www.microchip.com.

SST Acquisition

Business

Downturn

62.5%

Long-term

GM goal

Atmel

Acquisition

9 ©June 2017

~ $4.5B Returned To Shareholders

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000 Q

1F

Y0

7

Q2

FY

07

Q3

FY

07

Q4

FY

07

Q1

FY

08

Q2

FY

08

Q3

FY

08

Q4F

Y08

Q1

FY

09

Q2

FY

09

Q3

FY

09

Q4

FY

09

Q1

FY

10

Q2

FY

10

Q3F

Y10

Q4

FY

10

Q1

FY

11

Q2

FY

11

Q3

FY

11

Q4

FY

11

Q1

FY

12

Q2F

Y12

Q3

FY

12

Q4

FY

12

Q1

FY

13

Q2

FY

13

Q3

FY

13

Q4

FY

13

Q1

FY

14

Q2

FY

14

Q3

FY

14

Q4

FY

14

Q1

FY

15

Q2

FY

15

Q3

FY

15

Q4

FY

15

Q1

FY

16

Q2

FY

16

Q3

FY

16

Q4

FY

16

Q1

FY

17

Q2

FY

17

Q3

FY

17

Q4

FY

17

Total Dividend Dividend per Share

~ $3.1B in dividends and ~$1.4B in share buy-backs!

10 ©June 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

11 ©June 2017

Microchip 2.0

Be The Very Best Embedded Control Solutions Company Ever

12 ©June 2017

MICROCHIP 2.0

1. Total System Solution in Embedded Control

2. Leading customer preference to design with our

MCUs

3. Multiple growth drivers

4. Record gross margin target with multiple drivers

5. Record low opex target with multiple leverage

drivers

6. End market mix skewed to Industrial and

Automotive

7. New LT model with industry leading operating

profits

13 ©June 2017

MICROCHIP 2.0

1. Total System Solution in Embedded Control

2. Leading customer preference to design with our

MCUs

3. Multiple growth drivers

4. Record gross margin target with multiple drivers

5. Record low opex target with multiple leverage

drivers

6. End market mix skewed to Industrial and

Automotive

7. New LT model with industry leading operating

profits

14 ©June 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

15 ©June 2017

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

16 ©June 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

17 ©June 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

18 ©June 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

19 ©June 2017

MICROCHIP 2.0

1. Total System Solution in Embedded Control

2. Leading customer preference to design with our

MCUs

3. Multiple growth drivers

4. Record gross margin target with multiple drivers

5. Record low opex target with multiple leverage

drivers

6. End market mix skewed to Industrial and

Automotive

7. New LT model with industry leading operating

profits

© 2017 Copyright by AspenCore. All rights reserved. 2017 Embedded Markets Study

20

46%

43%

18%

13%

13%

11%

10%

10%

9%

9%

9%

8%

7%

3%

2%

2%

2%

2%

39%

34%

19%

17%

10%

10%

13%

8%

12%

11%

10%

9%

4%

2%

2%

1%

3%

2%

Microchip PIC

Atmel AVR

STMicroelectronics ST6, ST7, ST8

Freescale HC

TI TMS370, 7000

Intel 80xx, '251

NXP/Philips P80x, P87x, P89x

Atmel 80xx

Renesas H8

CypressPSoC 1 (M8C) / PSoC 3 (8051)

Xilinx PicoBlaze (soft core)

SiLabs 80xx

Zilog Z8, Z80, Z180, eZ80

Digi / Rabbit 2000, 3000

Parallax

Toshiba

Infineon XC800, C500

Maxim 80xx 2017 (N = 462)

2015 (N = 695)

Which of the following 8-bit chip families would you

consider for your next embedded project?

© 2017 Copyright by AspenCore. All rights reserved. 2017 Embedded Markets Study

21

45%

42%

22%

15%

11%

11%

10%

9%

6%

5%

4%

4%

3%

38%

43%

21%

19%

11%

12%

12%

7%

5%

3%

5%

6%

5%

Microchip PIC24 / dsPIC

TI MSP430

STMicroelectronics ST9, ST10

Freescale HC16

Intel 8086, '186, '286

Renesas RL78

Freescale HC12

Renesas R8C

AMD 186, '188

Zilog Z180, Z380

Maxim

Infineon XE166, XC2000, XC166, C166

Other 2017 (N = 412)

2015 (N = 621)

*

*

Which of the following 16-bit chip families would

you consider for your next embedded project?

© 2017 Copyright by AspenCore. All rights reserved. 2017 Embedded Markets Study

22

30%

20%

17%

17%

16%

16%

14%

14%

13%

12%

12%

11%

11%

11%

11%

10%

9%

8%

8%

7%

7%

6%

6%

STMicro STM32 (ARM)

Microchip PIC 32-bit (MIPS)

Xilinx Zynq (with dual ARM Cortex-A9)

Freescale i.MX (ARM)

NXP LPC (ARM)

FreescaleKinetis (ARM/Cortex-M4/M0)

Atmel SAMxx (ARM)

TI Sitara (ARM)

Intel Atom, Pentium, Celeron, Core 2, Core iX

Altera (Intel FPGA) SoC-FPGA (with dual ARM Cortex-A9)

Arduino

Altera (Intel FPGA) Nios II (soft core)

TI SimpleLink (ARM)*

TI TM4Cx (ARM)

Atmel (AVR32)

Atmel AT91xx/ATSAMxx (ARM)

Cypress PSOC 4 ARM Cortex-M0/PSoC 5 ARM Cortex-M3

Renesas RX

Broadcom (any)

TI C2000 MCUs

Xilinx MicroBlaze (soft-core)

NVIDIA Tegra

TI Hercules (ARM)

2017 (N = 617)

Which of the following 32-bit chip families would

you consider for your next embedded project?

5%

5%

4%

4%

4%

4%

4%

4%

4%

4%

3%

3%

3%

3%

2%

2%

2%

2%

2%

2%

2%

1%

1%

1%

1%

1%

1%

1%

1%

1%

4%

SiLABS Precision32 (ARM)

Qualcomm (any)

Energy Micro EFM32

Microsemi SmartFusion2 SoC FPGA (Cortex-M3)

Infineon XMC4000 (ARM)

AMD Fusion, Athlon, Sempron, Turion, Opteron, Geode

Atmel AT91xx

FreescalePowerQUICC

Renesas RH850

Freescale PowerPC 55xx

Microsemi FPGA (Cortex-M1, softcore)

Freescale PowerPC 5xx, 6xx

Intel Itanium

Freescale Vybrid (ARM)

Freescale 68K, ColdFire

Microsemi SmartFusion SoC FPGA (Cortex-M3)

IBM PowerPC 4xx, 7xx

Infineon XMC1000 (ARM Cortex-M0)

Marvell

Infineon Tricore

Xilinx Virtex-5 (with PowerPC 405)

Infineon AURIX (TriCore-based)

Cirrus Logic EP73xx, EP93xx (ARM)

AMD Alchemy (MIPS)

SPARC (any)

Xilinx Virtex-4 (with PowerPC 405)

Spansion (formerly Fujitsu) FM3 (ARM)

Infineon TriCore

Infineon TriCore-based 32-bit families AUDO MAX

AMCC PowerPC 4xx

Other (please specify)

© 2017 Copyright by AspenCore. All rights reserved. 2017 Embedded Markets Study

23

25%

68%

7%

26%

67%

8%

27%

65%

8%

The chip itself The ecosystem surrounding the chip (software, tools, support, etc.)

The chip's supplier/vendor

2017 (N = 719) 2015 (N = 960) 2014 (N = 1304)

What’s most important when choosing a

microprocessor?

© 2017 Copyright by AspenCore. All rights reserved. 2017 Embedded Markets Study

24

14%

14%

11%

11%

5%

5%

4%

4%

2%

2%

2%

2%

Microchip or Atmel (Microchip)

Texas Instruments (TI)

ST Microelectronics

NXP/Freescale/Qualcom

Xilinx

Intel, Intel Altera

ARM

Digi-Key

Cypress Semiconductor

Renesas

Arrow

Silicon Labs 2017 (N = 328) Unaided

(Unaided Open End)

Which vendor has the best ecosystem for your

needs?

25 ©June 2017

Multiple Growth Drivers

1. Microcontroller market growth and share gains

2. Analog growth and attach opportunity

3. Wireless and Wired Connectivity – IoT

4. Security

5. Automotive Networking, HMI, Access Control,

Lighting and Body Electronics

6. Technology licensing

26 ©June 2017

Gross Margin Drivers

1. Increasing Fab utilization

2. Savings from Micrel Fab closure

3. Increasing back end plants utilization

4. Porting Atmel products to Microchip assembly/test

technology

5. Transfer of Micrel and Atmel’s U.S. test areas to

Thailand

6. Stable to rising pricing environment

7. Richening product mix

27 ©June 2017

Operating expense leverage drivers

1. Consolidation of Atmel’s G&A

2. Synergy in roadmaps on MCU, analog, wireless and

memory

3. Convergence of Microchip and Atmel to common

process technology platforms

4. Synergy in common development of IP libraries

5. Synergy in development of tools echo-system

6. Synergy in marketing - trade shows, technical

conferences, website, training

7. Lower incremental opex for sales growth

28 ©June 2017

Revenue by End Market

Industrial35%

Automotive25%

Consumer24%

Computing9%

Communi-cation

5%

Defense & Aerospace

2%

29 ©June 2017

Industrial (35% of Sales)

30 ©June 2017

Automotive (25% of sales)

31 ©June 2017

Consumer (24% of sales)

32 ©June 2017

Computing (9% of sales)

33 ©June 2017

Communications (5% of sales)

34 ©June 2017

Defense and Aerospace (2% of sales)

35 ©June 2017

MCHP Financial Information Consolidated

Q1FY18

Actual Guidance Long-Term

Mar. 31, 2017 June 30, 2017 Model****

Net Sales ($MM ) $902.7 $943.3 – $956.8

Gross Margin** 59.2% 59.75% - 60.0% ~ 62.5%

Operating Expenses**

(% of Sales) 25.7% 23.0% - 23.25% ~ 22.5%

Operating Profit 35.6% 36.50% - 37% ~ 40%

EPS*** (Non-GAAP***) $1.16 $1.22 – $1.26

EPS*** (GAAP) $0.57 $0.62 – $0.64

* Microchip does not utilize a GAAP long-term model. All figures in long-term model are non-GAAP.

** Excludes share-based compensation, acquisition related charges, non-recurring items and adoption of ASC Subtopic 470-20.

*** A reconciliation of our GAAP to non-GAAAP results is available at www.microchip.com.

Actual Guidance

36 ©June 2017

Summary

A consistent revenue grower and market share gainer with multiple

growth drivers

High margin business model and shareholder friendly

Currently strong business conditions with June quarter revenue

guidance increased and now expected to be up 4.5% to 6%

sequentially

Significant capacity challenges to persist for up to one year before

lead times are normal.

Revised long-term non-GAAP financial model to 62.5% gross

margin, 22.5% operating expenses and 40% operating income.

Launching Microchip 2.0- Total system solutions- Smart, connected

and Secure.

Thank You!