Mark Cao, Vice President of Strategic Marketing, GigaDevice Semiconductor

Fabless Specialty Memory

March 14, 2017

A Growing Sector with a Vibrant Eco-System

2

Total Memory Market

Total Memory Market: ~$80B

Main Stream DRAM Market:Mobile

PCServer

Graphic

Main Stream NAND Flash Market:Mobile

Storage(SSD, Storage Card)

NOR Flash SRAM SLC/SPI

NAND OtherSpecialty DRAM

About a quarter of

the total

semiconductor

market

3

Specialty Memory Market

Total Specialty Memory Market: ~$7B

Exclude:Main Stream DRAM Market:

MobilePC

ServerGraphic

Exclude: Main Stream NAND Flash Market:

MobileStorage(SSD, Storage Card)

NOR Flash SRAM SLC/SPI

NAND OtherSpecialty DRAM

About 10% of

total memory

market

TotalFPGA Market

~$6B

SpecialtyMemory Market

~$7B

TotalCIS Market

~$12B

4

Relative Size and Significance

Significant in size,

but growth potential?

5

Future Growth of Specialty Memory

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

NVRAM Market Growth ($M)

NVSRAM FRAM/NVM PCM/XPoint MRAM RRAM NRAM

Emerging Memory Technologies Becoming Main-Stream

Source: Webfeet Research, 2016

2D NAND Flash Becoming Specialty Memory

Source: SEMI, 2015

6

Dynamics of the Specialty Memory Market

Specialty Memory

Main-Stream Memory

MatureEmerging

3D X-Point? 2D NAND?

7

Specialty Memory Market Sectors

0

500

1000

1500

2000

2500

Est. World Revenue ($M)

Est. China Revenue ($M)

Source: Web Feet Research, GD internal

8

Characteristics of the Specialty Memory Market

Growth

•Grow with the total memory

market

•Increased adoption of

emerging memory

•Maturity of main-stream

technology

Dynamic

•Constantly going through

transitions

•Provides occasional entry into

main stream memory market

•Frequently influenced by

entry/exit of main players

Segmented

•Legacy segment TAM settles to

below $3B

•Many different products specs

•Many different applications

•Many different process/cell

technologies

•Typical long-tail market

Vibrant Eco-System

• No monopoly/oligarchy

• Various business models

(IDM/Fabless)

• KGD opportunities

• Function/feature rich

• Wide variety of

technologies

9

Advantages of Fabless Business Model for the Specialty Memory Market

Growth

•Scalability of

Foundry/Fabless model

•Access to more

advanced

manufacturing tools

Dynamic

•Flexibility of

Foundry/Fabless model

•High capital efficiency

Segmented

•Foundries are

optimized for

simultaneous

production of many

products

Vibrant Eco-System

•Fabless specialty

memory vendors offer

unique market value as

well as IDMs

10

Specialty Memory Landscape in Mainland China

BusinessModel

SpecialtyDRAM

SpecialtyNAND Flash NOR Flash EEPROM SRAM NVRAM Emerging

Memory

Fabless ISSIGigaDevice

ISSIDoSilicon

GigaDeviceISSI

DoSiliconFudan ISSI NA

CiyuHikStorXinchu

AMT

Foundry/IDM Jinhua SMIC

SMICXMCHLMC

SMICHuahong

SMICHLMC NA SMIC

11

New Opportunities in China Brought by Emerging Memory Technologies

Challenges Opportunities

Limited market size More suitable for small-mid sized companies

Higher development cost andrisks

International technology companies are more openfor collaborations with Chinese partners

Fabless model for startups Local foundries has more leverage in technologyadoption

Need help on fundamentalresearch

Chinese research institutes and universities are veryactive in this area

A solution trying to find theproblem

China has one of the most diversified markets in theworld

12

Main Threats to the Healthy Development of the Chinese Memory Sector

Effects of government factorsare over-exaggerated

Everything takes much longertime and more resource thanmany would think

Elevated risks of low ROIinvestments

China’s memory industry stillsupplies less than 1% of the totalworld memory revenue, anddoes not have advanced main-stream memory technology.

Global memory sector is over-consolidated, and China couldbe the solution

Caused huge barrier for localcompanies in normalinternational collaborations

Irrational Expectations Falsely Alarmed

13

GigaDevice Revenue Growth

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016*

Revenue  ($M)

*: Estimated

14

GigaDevice Product Families

SPI NOR Flash

SPI NAND Flash

32-Bit ARM Cortex-M MCU

eMMC/eMCP

15

SPI NAND:An Example of Innovation in the Specialty Memory Market

128Mb SPI NOR Flash

1Gb SPI NAND Flash

Same SPI InterfaceSame ROM code for system boot

ECC support internalMuch lower $/bit

16

From Concept to Product

• P-NORèSPI NOR in feature phones

• Since 2011, GigaDevice has >50% SPI NOR market share in feature phones

• GigaDevice and MTK decided to co-develop SPI NAND

Concept Creation

• Joint project between GigaDevice and MTK is launched in Nov, 2011

• GigaDevice responsible for product

• MTK responsible for system compatibility and driver

Product Specification • Decided on

controller+NANDarchitecture

• Worked seamlessly withToshiba on productdevelopment

Product Development

• First sample, in Dec. 2012• MTK supported SPI NAND in

new platform in April 2013• Launch of 2nd generation of

SPI NAND controller with 4Gb support in Sept. 2013

ProductLaunch

17

SPI NAND Market Promotion

Analyst Coverage

First SPI NAND Report by IHS

Market Education

Customer trainings on SPI NAND advantages

System Adoption

Drive SoC system and programmer support

18

SPI NAND Standardization and Trademarking

Trade Mark

Won a trade mark dispute with Micron in 2014

China Standard

Lead China’s SPI NAND Standardization in 2016

International Standard

Lead proposal in JEDEC xSPI TG for NVM

19

SPI NAND Market Today:A Success Story

SPI NAND Vendors

Toshiba, GigaDevice, Micron, Macronix, Winbond, and many others

SoCVendors

More than 70 SoCdesign wins at

GigaDevice alone

Application Areas

NetCom, Surveillance,Set top Box, DV, AudioToys, BMS, Metering,etc.

20

Summary

• Specialty memory is a growing sector with significant market potential

• Mainland China has developed an eco-system for specialty memory.

However, it is still at an early stage of development

• There are plenty of room for innovations in specialty memory. SPI NAND

is an example of international collaboration lead by a Chinese

company.