SemiWEEK: VLSI 2020 Symposium and COVID; All eyes are focused on the second half

1. Semiconductor WEEK: July 1, 2020 An overview of results and conclusions from recent reports at VLSI Chip Market Research Services All eyes are focused on the second half • Order activity for semiconductor equipment edged higher, jumping above 75 degrees with nearly all segments recording increases • Fab Capacity Utilization by Wafer Size Semiconductor Analytics Semi Market results from last week: Semiconductor sales are forming a W as June’s normal peak is weak Semiconductor Sales Nowcast: 2Q20/2Q19 2Q20 slid to +12% – Semiconductor Weather1Report: Temperate, Warmer – IC Supply-Demand2Metrics: Tight – Electronics Price Trend: Roll over postponed Overall Semi Sales Status Trend: Peaked: Mar 18 Cold with Dark Clouds: Sep 18 Freezing: Nov 18 Frozen: Jan 19 Freezing: Mar 19 Cold: May 19 Cool: July 19 Temperate: Oct 19 Sunny: Nov 19 Warm: Dec 19 Flu Chills: Feb 28 WAHE Spring: Mar 25 WAHE Sputters: Jun 5 Chip History Center How Japan Lost its Semiconductor Industry: The 5 strategic causes behind the long-term failure of Japan’s Semiconductor industry are covered in this paper. Some were of their own making. How Power, Performance, Area, and Cost relate to Moore's Law: Sunlin Chou discusses how managing these parameters have evolved over time in this 2004 conversation. The Chip Insider Strategy and Tactics: VLSI 2020 Symposium and COVID Semiconductor Stocks • No Stock Update This Week VLSIresearch … intelligence to make better decisions faster Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.

2. The Chip Insider®'s Graphics File June 2020 All eyes are focused on the second half Order activity for semiconductor equipment edged higher, jumping above 75 degrees with nearly all segments recording increases The first half of the year is closing out and it’s been a strong one for both chipmakers and equipment suppliers The second half of the year, especially fourth quarter, look very uncertain due to rising COVID- 19 cases, the ongoing trade war with China, and the U.S. elections The positive is that VLSI’s Chip Price Performance Index continued to offer good news, finishing flat for the second straight week • • • This issue contains the latest forecast. • VLSIresearch … intelligence to make better decisions faster Call us to access more details Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.

3. The Chip Insider®Graphics Capacity Utilization by Wafer Size: – Utilization rates are improving across the board Fab Capacity Utilization by Wafer Size: Chart gives rolling averages for 300mm, 200mm, and smaller silicon wafers VLSIresearch … intelligence to make better decisions faster Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.

4. VLSI's Current Forecast Forecast as of June 2020: Semi Equipment ($B): Sequential Change Capacity Utilization: ICs ($B): Sequential Change IC Units (BU): Sequential Change Electronics ($B) : Sequential Change 2021 88.1 $ 6.5% 92.5% 408.6 $ 13.8% 334.4 11.0% 2,208 $ 9.3% 2019 77.0 $ -8.0% 84.6% 352.3 $ -13.4% 299.4 -6.0% 2,122 $ -2.0% 2020 82.7 $ 7.3% 89.6% 359.2 $ 2.0% 301.2 0.6% 2,020 $ -4.8% Severe COVID-19 impact in 2H20, recovery 2021 Forecast as of June 2020: Semi Equipment ($B): Sequential Change ICs ($B): Sequential Change IC Units (BU): Sequential Change Electronics ($B) : Sequential Change 2021 88.1 $ 23.8% 408.6 $ 22.0% 334.4 18.9% 2,208 $ 17.1% 2019 77.0 $ -8.0% 352.3 $ -13.4% 299.4 -6.0% 2,122 $ -2.0% 2020 71.2 $ -7.6% 334.9 $ -4.9% 281.1 -6.1% 1,885 $ -11.2% VLSIresearch … intelligence to make better decisions faster Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.

5. Links to Popular Interviews and Papers Join the conversation at weVISION New: Semiconductor solutions to the Coronavirus New: COVID-19 vs Semiconductor Equipment Subsystems COVID-19 & the Semi Value Chain Coronavirus impact on the semi value chain ... with Andrea Lati of VLSIresearch Metrology and Inspection's increasing importance, with Peter Jenkins of Infinitesima VLSI’s 2020 Forecast … with Andrea Lati of VLSIresearch www.vlsiresearch.com/wevision VLSIresearch … intelligence to make better decisions faster Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.

6. Semiconductor Analytics Last Week in the Semiconductor Market: W/W: Week-over-Week sequential growth W/Q: Week-over-Quarter W/Y: Week-over-Year Semiconductor sales are forming a W as June’s normal peak is weak due to the transition to phase 2 of the WAHE and US imposed restrictions on shipping to Huawei. The 2Q20 Nowcast slipped again as the market zeros in on the quarter’s close. Still, it's predicting an annual gain of 14%. Semiconductor Sales Nowcast: 2Q20/2Q19 2Q20 slid to +12% Semiconductor Weather1Report: 74˚ F Temperate, Warmer IC Supply-Demand2Metrics: Tight DRAM continued to breakout Electronics Pricing Trend: Roll over postponed Thank you for supporting us through this last issue of 2018. Semiconductor Analytics will return January . Overall Semi Sales Status Trend: Peaked: Mar 18 Cold with Dark Clouds: Sep 18 Freezing: Nov 18 Frozen: Jan 19 Freezing: Mar 19 Cold: May 19 Cool: July 19 Temperate: Oct 19 Sunny: Nov 19 Warm: Dec 19 Flu Chills: Feb 28 WAHE Spring: Mar 25 WAHE Sputters: Jun 5 1: Measures Order Activity 2: Measures Pricing Power VLSIresearch … intelligence to make better decisions faster Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.

7. 2020 Semiconductor Market Drivers Integrated Circuit sales are weakening with the end of phase 1 of the WAHE: • Certainties: – Coronavirus Pandemic infected economies – Governments ending economic defibrillation with cash – World’s Economy saved by Semiconductors • WAHE (Work-At-Home Economy) • WAHE to have 3 Phases – 7/10nm and 5/7nm demand ramps • Uncertainties: – U.S.-China Trade War – China-India Tensions – 2020 Elections in U.S. VLSIresearch … intelligence to make better decisions faster Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.

8. www.chiphistory.org How Japan Lost its Semiconductor Industry: The 5 strategic causes behind the long-term failure of Japan’s Semiconductor industry are covered in this paper. Some were of their own making. Others were macroeconomic tsunamis that could not have been avoided. But they could have been adapted to, as some companies did. It also provides the lessons that can be learned from the errors made. How Power, Performance, Area, and Cost relate to Moore's Law: Sunlin Chou discusses how managing these parameters have evolved over time in this 2004 conversation. As semiconductor chips get larger it would seem they would consume more power. Learn why this is not the case. Also, the new issues that were emerging as semiconductors crossed the 100nm barrier. Content approved for public release with attribution. Copyright © 2017 VLSI Research Inc. All rights reserved.

9. www.chiphistory.org How Japan Lost its Semiconductor Industry: The 5 strategic causes behind the long-term failure of Japan’s Semiconductor industry are covered in this paper. Some were of their own making. Others were macroeconomic tsunamis that could not have been avoided. But they could have been adapted to, as some companies did. It also provides the lessons that can be learned from the errors made. How Power, Performance, Area, and Cost relate to Moore's Law: Sunlin Chou discusses how managing these parameters have evolved over time in this 2004 conversation. As semiconductor chips get larger it would seem they would consume more power. Learn why this is not the case. Also, the new issues that were emerging as semiconductors crossed the 100nm barrier. Content approved for public release with attribution. Copyright © 2017 VLSI Research Inc. All rights reserved.

10. The Chip Insider® Strategy & Tactics Strategy and Tactics: VLSI 2020 Symposium and COVID Summaries: Coronavirus Watch: I recently found myself in some arguments with family members who had picked up really wrong ideas on Coronavirus data and the collection of it from social media sites that seek to dismiss the danger of this disease and frame as a political and personal rights issue. Now I did not want to get into the political issue, because this is personal. But I did want to fact check the points being made to see if they were true and arm myself for next week’s American Independence Holiday weekend. So, I did what I do with data. Anyway, I thought I would share them with you, as I am sure you’ve run into others who have been swayed by these social media sites. I know it’s not normal Chip Insider material, but it will arm you for discussions that may come up around the barbeque grill next weekend. VLSI 2020 Symposium: Normally held in Hawaii, VLSI 2020 showed how participation could zoom up when the travel barrier is removed — plus lowering prices. There was an increase in registrations. The IEEE also had record submissions to the Technology side of the conference… This indicates that research action is shifting from circuits to technology. And the technology focus is on finding ways to improve PPAC (Power, Performance, Area, and Cost). Once in the conference some interesting trends could be seen. First, and least surprising, was that work in nanoribbon GAAs as a replacement for tri-gate FinFETs was hot. Kangguo Cheng of IBM presented … The Last Wavelength: An emergent trend I saw was researchers appear to be … the plenary from Mike Mayberry of Intel had all the ingredients of a great plenary. delivered by laying out a new Cost-of- Ownership problem for our industry… “Intelligence is quickness in seeing things as they are” — George Santayana Contact us to get the full report and more VLSIresearch … intelligence to make better decisions faster Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.

11. Thank You Get VLSI’s ChipChirps™ and Semiconductor WEEK by downloading VLSI’s App for Android and iOS: VLSIresearch … intelligence to make better decisions faster Copyright © 2020 VLSI Research Inc. All rights reserved. Distribution rights contained in T&Cs.