Power Management Series PETROV GROUP

2012 Edition

Texas Instruments Power Business

Competitive Aspects of TI’s Power Business

One-of-a-kind Business Machine

--- Driven by the Solutions Strategy

Market Dominance in Analog ICs

-- Size superiority

Role of Power Business in TI’s

Strategy and Value -- Business leverage

Solutions Dominance -- Major Competitive

Barrier

12 Power Domains -- PG Segmentation

Model of Power Product Portfolio

Integration and Leverage of National

Power Products

Increasing Analog Leadership - National acquisition - Solutions dominance - Technology leadership and manufacturing capability

Growth in the Emerging Markets Lighting & Displays, Solar,

Wireless, Nano-energy Harvesting, Smart grid,

Digital Power, other

1 2 3

4 5 6

7 8

Analog segment total: $6,375, OM 26% High volume analog & logic (HVAL), $2,435M - Custom analog products, $1,915M - Catalog logic products, $520M

High performance analog (HPA), $1,854M (Catalog signal chain products)

Power, $1,774M (Catalog power chain products)

Embedded processing segment DSPs ( including OMAP processors) MCUs (including ARM-based processors)

$2,110, OM 17%

Wireless segment Application processors (OMAP) Connectivity products (RF ICs) Other (Baseband products – exiting in 2012) $2,518M, OM 16%

Total 2011 Semiconductor Revenues $11,003 -- 48% GM and 22% OM (3) (Total 2011 Revenue -- $13,735M)

Other segment: DLP, calculators, foundry, royalties, and other (2) $2,732, OM 19%

Silicon Valley analog (SVA), $312M (1) (ex-National Catalog analog products)

(1) Former National Semiconductor revenues from 9/23/11 to 12/30/11 (2) Also included are acquisition charges related to National as well as losses associated with the Japan earthquake (3) GM, gross margin; OM, operating margin

Battery power

Solar power

Nano-energy harvesting

Power actuation

Smart grid

Digital power

Analog power

conversion

Power distribution

Wireless power

Lighting & displays

TI’s Twelve Power Domains

PG Model

National power domains

• Benchmarq/ Unitrode (1999)

• Ciclon (2009)

• L&L Engineering (2008)

• Commergy Technologies (2008) • PowerPrecise Solutions (2007) • Power Trends (1999) • Unitrode (1999)

Power supply support

• Act Solar (2009) • Energy Recommerce (2009)

Special power

functions

TI Acquisitions by Power Domain

Slide 8 Business segment Product category

FY11 revenue Gross

margin

Operating margin

$M % $M % revenue % total

Analog products

Total xx xx 53% 1,632 26% 56%

• High- performance analog (HPA) xx 75% 649 35%

• High-volume analog & logic (HVAL) -- Custom analog -- Catalog logic

xx 40% 400 16%

• Catalog power 55% 489 28%

• Silicon Valley analog (SVA) 57% 94 30%

Embedded processing products

Total xx xx 42% 368 17% 12%

• Catalog DSP (non-handsets & OMAP application processors)

xx

• Catalog MCU (TI & ARM-based) xx

Wireless products (handsets)

Total xx xx 40% 412 16% 14% • Baseband (DSP) (exit in 2012) xx

• Connectivity products xx • Application processors (OMAP) xx

Total semi All 11,003 100% 48% 2,412 22% 82%

Other DLP, calculators, foundry, royalties, and other 2,732 — 55% 519 19% 18%

2011 Revenue by Business Segment and Product Category

Petrov Group Model of Analog ICs

Power Chain ICs (Energy)

Signal Chain ICs (Information)

Signal Chain ICs

Analog Shell

Mixed-Signal Buffer • Power Monitor/Control/Management • Signal (Data) Conversion

• Power Delivery • Signal Conditioning • Sensor and Interface

End-Equipment Solutions

Digital Nucleus

Analog IC Products1 Terminology Used in PG Reports

Product Type Description Intended use

1 GENERIC (or Base)

A product featuring a unique (base) part number used to spin off catalog products

Internal only

2 CATALOG (OR STANDARD)

Function oriented (a.k.a., general purpose)

Regardless of an end-equipment system application

Application oriented (a.k.a., ASSP/application-specific standard products where “standard” is synonymous with “catalog”

Optimized in functionality and performance for one or a limited number of end-equipment system applications

3 CUSTOM Referred to as ASICs when jointly developed with a customer

Tailored for a specific customer specification

1 Defined as ICs that provides analog functionality and performance attributes to an end-equipment system

Product terminology that PG uses describes what products a company sells • Terms like “general-purpose” and “application-specific” are application-oriented rather

then product-oriented terms

Analog Company Classification Used in PG Reports

Analog Analog intensive

MS Balanced Mixed-Signal (MS)

A-D Spectrum of an IC’s Functional Content

Digital Digital intensive

MS

Functional Integration

Analog performance

Analog IC companies e.g., TI

Analog

Broader analog

Mixed-signal IC companies Digital IC companies e.g., Broadcom e.g., Intel

Mixed-signal Digital

Application dependent Broader digital

Attributes

IC

Company

Primary business (product portfolio and revenues)

Addressed market

Top-10 Analog IC Companies 2011 Revenues and Revenue Shares

Company Total Catalog Custom

Description $M % $M % $M %

1 Texas Instruments 5,855 24% 3,940 20% 1,915 42% Catalog products include HPA, Power, and SVA (from Sept. 23, 2011)

2 STMicroelectronics 4,204 17% xx xx xx xx Broadly covers the semiconductor components landscape

3 Analog Devices 2,705 11% xx xx xx xx A highly focused pure-play analog IC company

4 Maxim Integrated Products 2,385 10% xx xx xx xx A pure-play analog IC company with an

emphasis on integration

5 Infineon 2,150 9% xx xx xx xx Broadly covers the semiconductor components landscape

6 NXP 1,527 6% xx xx xx xx Broadly covers the semiconductor components landscape

7 ON Semiconductor 1,500 6% xx xx xx xx Broadly covers the semiconductor components landscape

8 Skyworks Solutions 1,425 6% xx xx xx xx A wireless connectivity company expanding into power management area

9 Linear Technology 1,336 6% xx xx xx xx A pure-play analog IC company with a focus on ultra-high performance

10 National Semiconductor 1,199 5% xx xx xx xx A pure-play analog IC company (CY11

revenues up to Sept. 23, 2011)

Total 24,286 100% xx 100% xx 100%

PG models Catalog and Custom IC revenues for Analog vendors

2011 Catalog IC Revenues for Top-10 Analog Vendors

Company Total catalog Function oriented Application oriented

$M % $M % $M %

1 Texas Instruments 3,940 20% xx xx xx xx

2 Analog Devices xx xx xx xx xx xx

3 Maxim Integrated Products xx xx xx xx xx xx

4 STMicroelectronics xx xx xx xx xx xx

5 Infineon xx xx xx xx xx xx

6 NXP xx xx xx xx xx xx

7 Skyworks Solutions xx xx xx xx xx xx

8 Linear Technology xx xx xx xx xx xx

9 National Semiconductor3 1,199 6% xx xx xx xx

10 ON Semiconductor xx xx xx xx xx xx

Total 19,752 100% 11,936 100% 7,816 100%

PG models Function- and Application-oriented Catalog revenues for Analog vendors

2011 Function-Oriented Catalog Analog ICs Top-10 Companies -- Revenues and Market Share

Company1 Total Function

Catalog Power Path2 Signal Chain3 Description

$M % $M % $M %

1 Texas Instruments 3,940 29% xx xx xx xx Dominant vendor

2 Analog Devices xx xx xx xx xx xx With TI dominant in Signal chain

3 Maxim Integrated Products xx xx xx xx xx xx Second-ranked in Power

4 Linear Technology xx xx xx xx xx xx Business focus

5 National Semiconductor 1,159 9% xx xx xx xx CY11 revenues until 9/23/2011

6 ON Semiconductor xx xx xx xx xx xx Business focus

7 STMicroelectronics xx xx xx xx xx xx Not the company’s business focus

8 Intersil xx xx xx xx xx xx Business focus

9 Sanken Electric xx xx xx xx xx xx Business focus on power

10 Fairchild Semiconductor xx xx xx xx xx xx Not the company’s business focus

Total 13,472 100% xx 100% xx 100%

PG models Function-oriented Catalog revenues for Power and Signal Chains

Catalog Power Product Revenues by Power Domain Power domain FY11 Rev.

$M % of total Dominant product types

Power domain

TI National

Analog power conversion xx xx Non-isolated DC/DC converters ● ●

Power supply support xx xx Voltage supervisors, sequencers, and references ● ●

Power distribution xx xx Power-over-Ethernet, USB switches, and hot-swap controllers ● ●

Battery power xx xx Battery charge and fuel gauge ICs ● ●

Lighting & displays xx xx LED driver and FPD power ICs ● ●

Power actuation xx xx Power MOSFET drivers and switches, motor drive/control ICs ● ●

Digital power conversion xx xx AC/DC and DC/DC power converters and controllers ●

Special power products xx xx RF power ICs, real-time clocks, and NV SRAMs ●

Nano-energy harvesting xx xx Solar and vibration energy conversion ICs ●

Wireless power xx xx Transceiver and receiver ICs, and modules ●

Solar power xx xx MPPT power sensing and SolarMagic ICs ●

Smart grid xx xx Metering ICs and PLC modems ●

Total 1,930 100%

Battery Fuel Gauge Product Portfolio

Attributes

Battery Charge Management

Product Portfolio Attributes

AC/DC and DC/DC power supplies • Power factor correction (PFC) ICs • PWM power supply controllers • Plug-in DC/DC converter modules

Power actuation • Power MOSFETs • MOSFET driver ICs

Power supply support • Load share controllers • PMOS switches • Feedback signal generators

Switching DC/DC ICs • Converters (internal switch) • Controllers (external switch) • Charge pumps (inductorless) Linear regulators • Low dropout (LDO) • Standard

Plug-in DC/DC converter modules

Loads

• Processors • Memory • FPGA • MCUs • DSPs • System voltages • Audio power • RF power functions • Hard drive • Analog • Circuitry • USB peripheral • PMCIA peripheral

Support power functions • Voltage supervisors • Voltage references

Power actuation • Power MOSFETs • MOSFET driver ICs • Integrated MOSFET driver ICs (internal switch)

+ - 48V

Power distribution • Hot swap controllers and switches • Power muxes and current switches

• USB and PCMCIA controllers and switches • Power-over-Ethernet

AC line

Isolated power functions Non-isolated power functions Isolation barrier

An Overview of Power Product Categories AC Line and Non-portable Battery Energy Sources

# of products

Power conversion Battery charger

Audio codec

WLED boost

# of channels Buck

converter Buck

controller LDO

92 ● ● 3 to 13

19 ● ● ● ● 5 to 14

4 ● ● 3

13 ● ● ● 2

2 ● ● ● ● 13

1 ● ● ● 5

1 ● ● 3

4 ● ● ● 7

Number of Multi-function Products by Content and Channels

TI AC/DC and DC/DC Power Conversion Products with Full Digital Control

Number of

products

Display backlight Keypad LED drivers

Camera flash light

Audio synchronized

lights

Blinking lights

Fun lights Color LED White LED

1 ● 4 ● 1 ● ● 1 ● 1 ● ● 3 ● 2 ● ● ● ● 2 ● ● ● 2 ● ● ● 1 ●

National Portable Device Lighting ICs by Product Type

Chipset solution 5x6mm SON package Cross-sectional view

Multichip power stage integration 5x6mm 22-pin SON package

Single-chip DC/DC POL converter 30W with 800W/in3, 44-pin QFN (9x15x2.8mm)

Acquisition of Ciclon’s NexFET Technology Completes TI’s DC/DC Converter Solutions

TI12-194 TI’s MicroSip™ module package

TI’s Proprietary MicroSiP™ Module Package for DC/DC Converters

Sample of TI Recent Patents and Patent

Applications

Select U.S. Patent Applications in the Analog

Power Conversion Domain

Select U.S. Patents in the Battery Power Domain

Energy Harvesting Systems

Photo-voltaic solar cell

Induction

Thermophile

Detailed Analysis of TI’s U.S. Patent Application 20110221416 -- Sept. 15, 2011 “Battery Charger and Method for Collecting Maximum Power from Energy Harvesting Circuit”