SEMI Outlook Market Briefing

Jerome Boutant Europe Sales manager

June 17th , 2015

Agenda

High-level Overview

Fab Investment Trends Semiconductor Equipment Market

Semiconductor Materials Market

Summary

Overview

Evolution of Chip Demand

The Electronics Ecosystem

Materials

Semiconductor Equipment

Semiconductors

Electronic End Equipment

Source: SEMI, and McClean Report 2015, IC Insights

$1,488B

2014

$44B

$38B

$353B

2015

$42B

$46B

$378B

$1,584B

SEMI membership

Maturing Industry

Source: Presented by Scott McGregor, Broadcom, at SEMI ISS 2015

2015 Semiconductor Revenue Forecasts

3.4%

3.6%

4.0%

4.6%

5.0%

5.1%

5.9%

7.0%

8.0%

8.0%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

WSTS (Jun 15)

IDC (Jan 15)

Gartner (Apr 15)

Henderson Ventures (Apr 15)

JPMorgan (Jan 15; 4% to 6%)

Cowan LRA (Jun 15)

VLSI (May 15; IC only)

IC Insights (Jan 15)

Semico Research (May 15)

Semiconductor Intelligence (May 15)

Source: Compiled by SEMI

Chart1

0.034

0.036

0.04

0.046

0.05

0.051

0.059

0.07

0.08

0.08

Sheet1

WSTS (Jun 15)IDC (Jan 15)Gartner (Apr 15)Henderson Ventures (Apr 15)JPMorgan (Jan 15; 4% to 6%)Cowan LRA (Jun 15)VLSI (May 15; IC only)IC Insights (Jan 15)Semico Research (May 15)Semiconductor Intelligence (May 15)

3.40%3.60%4.00%4.60%5.00%5.10%5.90%7.00%8.00%8%

Fab Trends

March 20, 2015 Christian G. Dieseldorff, SEMI Industry Research Group, San Jose 9

Capacity chart does not include LED, EPI, Discrete.

Fab Equipment Spending- Driven by Foundry and Memory

Source: SEMI World Fab Forecast March 2015

Total Fab Capex by Region- Spending on Fab Construction and Equipping

Source: SEMI World Fab Forecast

Total fab capex to increase 3% to 4% in 2015 to reach ~$42B

36 fab constructions being tracked globally

Equipment spend total: $17B for Memory $14B for Foundry

Foundries- Ramping capacity in 2015 & 2016

2010 2011 2012 2013 2014E 2015F 2016FFoundry only- 200mm 2.12 2.19 2.27 2.29 2.28 2.37 2.43

1.952.002.052.102.152.202.252.302.352.402.452.50

2010 2011 2012 2013 2014E 2015F 2016F

Inst

alle

d Ca

pacit

y (M

illio

ns w

pm)

Installed 200mm Foundry Capacity

Source: SEMI World Fab Forecast

Equipment Market

SEMI North America Book-to-Bill Ratio

$600$800

$1,000$1,200$1,400$1,600$1,800

Mar

-13

Apr-1

3

May

-13

Jun-

13

Jul-1

3

Aug-

13

Sep-

13

Oct-1

3

Nov-

13

Dec-

13

Jan-

14

Feb-

14

Mar

-14

Apr-1

4

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct-1

4

Nov-

14

Dec-

14

Jan-

15

Feb-

15

Mar

-15(

f)

Apr-1

5(p)U

S$ M

illio

ns

North American Headquartered Manufacturers Global Capital Equipment Book-to-Bill(based on three month averages)

Bookings Billings

0.900.951.001.051.101.15

Mar

-13

Apr-1

3M

ay-1

3Ju

n-13

Jul-1

3Au

g-13

Sep-

13Oc

t-13

Nov-

13De

c-13

Jan-

14Fe

b-14

Mar

-14

Apr-1

4M

ay-1

4Ju

n-14

Jul-1

4Au

g-14

Sep-

14Oc

t-14

Nov-

14De

c-14

Jan-

15Fe

b-15

Mar

-15(

f)Ap

r-15(

p)

Book

-to-B

ill R

atio

Source: SEMI May 2015

Chart1

1103.3991

1173.91086.3

1321.31223.4

1334.21213.7

1207.21204

1063.91081.9

992.81020.9

1124.51071

12381113.9

1380.81349.7

1280.31233.2

1295.41288.3

1297.71225.5

14431403.2

14071407.8

14551327.5

1417.11319.1

1346.11293.4

1186.21256.5

1102.31184.2

1216.81189.4

1381.51395.9

1325.61279.1

1313.71280.1

1392.71265.6

1572.21510.3

Bookings

Billings

US$ Millions

North American Headquartered Manufacturers Global Capital Equipment Book-to-Bill(based on three month averages)

Sheet1

Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Jan-04Feb-04Mar-04Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04Jan-05Feb-05Mar-05Apr-05May-05Jun-05Jul-05Aug-05Sep-05Oct-05Nov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06Jul-06Aug-06Sep-06Oct-06Nov-06Dec-06Jan-07Feb-07Mar-07Apr-07May-07Jun-07Jul-07Aug-07Sep-07Oct-07Nov-07Dec-07Jan-08Feb-08Mar-08Apr-08May-08Jun-08Jul-08Aug-08Sep-08Oct-08Nov-08Dec-08Jan-09Feb-09Mar-09Apr-09May-09Jun-09Jul-09Aug-09Sep-09Oct-09Nov-09Dec-09Jan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Jan-11Feb-11Mar-11Apr-11May-11Jun-11Jul-11Aug-11Sep-11Oct-11Nov-11Dec-11Jan-12Feb-12Mar-12Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14Jul-14Aug-14Sep-14Oct-14Nov-14Dec-14Jan-15Feb-15Mar-15(f)Apr-15(p)

Bookings995.61105.21171.31181.91016.8831.6775.1776.7826.5739760.6777.3757.3723.5722.3706.9731.8778.8871923.31181.11226.11316.41378.81581.61559.61609.11587.41510.81349.81373.11329.11235.7986.41024.11003.4998.81015.310381007.31022.3984.11093.91093.21142.71225.91293.21385.31604.416191782.31734.61729.71639.21468.61426.51497.21445.81398.11419.61567.51641.91607.61406.31371.212351176.91130.71156.311411205.41165.61090.31029.3934.2889866.8649.9839.7783.8579.1277.2258.4245.6249287.8351.7571.8614.5758.9756.3791.8912.71178.41251.21332.61442.515251729.81836.61816.11651.21593.71512.61580151415961581$1,602.40$1,623.001540.41298.21162.4926.5$926.80$977.201102.91187.51336.9$1,445.701602.81613.7$1,424.30$1,234.601092.9912.8742.8718.6927.410761073.51103.3$1,173.90$1,321.301334.21207.21063.9992.81124.51238$1,380.80$1,280.301295.41297.7144314071455$1,417.10$1,346.10$1,186.20$1,102.30$1,216.80$1,381.50$1,325.601313.71392.71572.2

Billings814.6869.6927.1969.1994.81044.6999.9976.4878.3784.4777.7857.1840.4805.4776.5785.9792.3811.1866.5876.4962.91033.711441268.113941412.71503.41526.91497.81441.21430.61339.41317.31258.61330.61272.51239.212131152.21078.21055.51088.21145.91179.71223.61259.41283.31338.71441.41452.61557.41637.91742.81672.81562.91486.11482.3144814231436.41594.71670.21768.11685.81682.31557.41477.51383.21361.71279.31310.81344.91337.313131159.81077.21064.5927.3871.4806.8672.4584.2525.5438.3385.7392.6440.5538580648.4694.1744.2850.1957.61016.21100.81279.41344.81466.21495.81554.61610.91623.31567.31760.11786.918391657.5$1,635.40$1,669.201640.21521.21457.71313.5$1,258.30$1,176.7013001239.91322.8$1,287.601458.71539.3$1,535.70$1,442.801331.51164.4985.5910.11006.1968974.7991$1,086.30$1,223.401213.712041081.91020.910711113.9$1,349.70$1,233.201288.31225.51403.21407.81327.5$1,319.10$1,293.40$1,256.50$1,184.20$1,189.40$1,395.90$1,279.101280.11265.61510.3

To resize chart data range, drag lower right corner of range.

Chart1

1.11

1.08

1.08

1.1

1

0.98

0.97

1.05

1.11

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1.01

1.06

1.03

1

1.1

1.07

1.04

0.94

0.93

1.02

0.99

1.04

1.03

1.1

1.04

Category 1

Book-to-Bill Ratio

Sheet1

Column1May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Jan-04Feb-04Mar-04Apr-04May-04Jun-04Jul-04Aug-04Sep-04Oct-04Nov-04Dec-04Jan-05Feb-05Mar-05Apr-05May-05Jun-05Jul-05Aug-05Sep-05Oct-05Nov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06Jul-06Aug-06Sep-06Oct-06Nov-06Dec-06Jan-07Feb-07Mar-07Apr-07May-07Jun-07Jul-07Aug-07Sep-07Oct-07Nov-07Dec-07Jan-08Feb-08Mar-08Apr-08May-08Jun-08Jul-08Aug-08Sep-08Oct-08Nov-08Dec-08Jan-09Feb-09Mar-09Apr-09May-09Jun-09Jul-09Aug-09Sep-09Oct-09Nov-09Dec-09Jan-10Feb-10Mar-10Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Jan-11Feb-11Mar-11Apr-11May-11Jun-11Jul-11Aug-11Sep-11Oct-11Nov-11Dec-11Jan-12Feb-12Mar-12Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13Apr-13May-13Jun-13Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14Mar-14Apr-14May-14Jun-14Jul-14Aug-14Sep-14Oct-14Nov-14Dec-14Jan-15Feb-15Mar-15(f)Apr-15(p)

Category 11.271.161.020.80.780.80.940.940.980.910.90.90.930.90.920.951.011.051.231.191.151.091.131.11.071.041.010.940.960.990.940.780.770.780.810.840.90.930.970.90.950.930.930.971.011.031.111.111.141.060.990.980.940.961.0110.980.990.980.980.910.830.820.790.80.820.850.890.920.870.820.780.810.830.810.70.960.970.860.470.490.560.650.730.81.061.061.171.031.061.071.231.231.211.131.131.181.231.171.040.980.970.90.850.870.950.980.970.940.850.80.710.740.830.850.961.011.121.11.050.930.860.840.780.750.790.921.111.11.111.081.081.110.980.971.051.111.021.041.011.061.0311.11.071.040.940.931.020.991.041.031.11.04

To resize chart data range, drag lower right corner of range.

Capital Equipment Market- Moderated cycles?

$37 $33

$40 $43

$30

$16

$40 $44

$37

$32

$38 $41

-50%

-25%

0%

25%

50%

75%

100%

125%

15