www.fairchildsemi.com

Company Confidential 1

Fairchild SemiconductorInternational, Inc.

November 2008

Investor Presentation

2

Notes on Forward Looking Statements and Non-GAAP Measures

• Comments in this presentation other than statements of historical fact may constitute forward looking statements and are based on Fairchild’s management’s estimates and projections and are subject to various risks and uncertainties

• These risks and uncertainties are described in the Company’s periodic reports and other filings with the Securities and Exchange Commission (see the Risk Factors section) and are available at http://sec.gov and investor.fairchildsemi.com

• Actual results may differ materially from those projected in the forward looking statements

• Some data in this presentation may include non-GAAP measures that we believe provide useful information about the operating performance of our businesses that should be considered by investors in conjunction with GAAP measures that we also provide. You can find a reconciliation of non-GAAP to comparable GAAP measures at the Investor Relations section of our web site at http://investor.fairchildsemi.com

Recent additions to our website at http://investor.fairchildsemi.comUpdated Financials (through 2008 Q3, with segment revenue/gross margin breakouts)

• Quarterly Fact Sheet with 2008 Q3 highlights

• This investor presentation

3

• Sales were up 2.3% sequentially and up 0.4% annually

• Overall demand as expected…strongest in handsets and weakening in computers and industrial

• Record sales of our high frequency voltage regulators, analog switches, IntelliMAX™ load switches, and analog video filters

•Internal inventory decreased more than $7m QoQ or 3 days to 72 days…one of the leanest levels in the industry

• Channel inventory was flat sequentially and at the midpoint of the targeted range on 1% higher distributor sell through QoQ

• Gross margin was up 130 bps QoQ to 29.9% due to higher factory loadings, cost decreases related to product insourcing, lower material costs, and favorable currency exchange rates in Asia

• Pricing down 1- 2% QoQ and within our normal range

• Blended average lead time were reduced 1 week to 6 - 8 weeks

Q3 2008 Summary Sales Growth Driven by New Products

4

Forward Guidance – Q4 2008

• Sales expected to be down 16-21% QoQ…98% of guidance was booked at the start of the quarter.

• Gross margins expected to be down 100 to 200 bps to a range of 27.9% to 28.9%

• R&D and SG&A expected to be $73 million to 76 million.

• Net interest and other expenses expected to be $6.0 – 6.5m

www.fairchildsemi.com

Company Confidential 5

Fairchild Overview

6

Taking Care of Our Stakeholders

CustomersMake our customers successful

EmployeesAttract the best

talent in the industry

StockholdersDeliver a superior return

7

Fairchild Focused on the Right Markets

• Energy efficiency and the wireless mobility revolution are mega-trends that will shape our world for years to come

• Fairchild is uniquely positioned to capitalize on these trends with our leadership position in switching and power conversion

• Our new HF DC/DC regulators for ultra-portable applications offers us a high performance entry point into the voltage regulation market

Fairchild is building the right products for the right markets!

Source: iSuppli, April 2007

-

400

800

1,200

1,600

2,000

2006 2007 2008 2009 2010

Offline Power Conversion Market Forecast

Dollars Units

13% Sales CAGR2006 - 2010

-

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009 2010

Voltage Regulation Market Forecast

Dollars Units

14% Sales CAGR2006 - 2010

-

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009 2010

Power MOSFET Market Forecast

Dollars Units

8% Sales CAGR2006 - 2010

8

Source: WSTS

Industry Cyclicality

WW Semiconductor Unit Shipments Data shows 2-Year cycle since 1991

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

YoY

Cha

nge

in S

emic

ondu

ctor

Uni

t Shi

pmen

ts

9

Source: WSTS

Despite Cyclicality, Semis Remain aGrowth Industry

Industry Semi Units Shipped (24 mo Rolling Avg)

0

5

10

15

20

25

30

35

40

45

50

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Sem

icon

duct

ors

Ship

ped

(BU

)

10

FCS Transition to Higher Valueis Underway!

8 Qtr Average GM Trend

20.0

25.0

30.0

35.0

40.0

45.0Q

1Y20

02

Q2Y

2002

Q3Y

2002

Q4Y

2002

Q1Y

2003

Q2Y

2003

Q3Y

2003

Q4Y

2003

Q1Y

2004

Q2Y

2004

Q3Y

2004

Q4Y

2004

Q1Y

2005

Q2Y

2005

Q3Y

2005

Q4Y

2005

Q1Y

2006

Q2Y

2006

Q3Y

2006

Q4Y

2006

Q1Y

2007

Q2Y

2007

Q3Y

2007

GM

%

FCS - GAAP Peer Average

Transition Begins

Note: FCS Q3 is mid-point of guidance range…Peer group includes VSH, ONNN, IRF, DIOD, NSM, ISIL, TXN, MXIM

11

The Power Franchise®

Fairchild is a world leader in high performance semiconductors specializing in products for the optimization of system power

Our Power Franchise® Plan: • Enhance position in Power Conversion• Establish leadership in HF DC/DC regs• Extend lead in MOSFETs

This plan is supported through improved supply chain & POS mgmt to reduce cyclicality and package cost reductions through greater in-sourcing to improve margins

µSerDes™

Logic

Video filters

Amplifiers

Optocouplers

Analog switches

12

FCS Power SAM by Market Segment

Source: iSuppli Jun. 2007 (industry definitions)

9.0%

19.1%

5.3%

12.0%

4.3%

12.7%

9.8%

0

5,000

10,000

15,000

20,000

25,000

30,000

Automoti

ve Elec

tronic

sCom

putin

g

Consu

mer Elec

tronic

s

Wired C

ommun

icatio

ns

Wireles

s Com

munica

tions

Indus

trial E

lectro

nics

Worldw

ide SAM

$M

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

20062010CAGR ('06 - '09)

13

Share in Focus Markets

Switching

DC/DC Regulation

Offline Power Conversion

Tosh

Vishay

IRF

FCS

RenasasSTM

~10 Others

~40 Others

MXIM

FCS TXN

NSM

LINEAR

2006 TAM, 2005-2010 CAGRDC/DC Regulation

Linear Regs $2826 5.0%

DC/DC Regs $2297 15.9%

Battery Mgmt $1512 16.8%

Hot Swap $ 210 15.3%

MOSFET Drvr $ 771 14.1%

Non-ISO PWM $1416 16.0%

Offline Power Conversion

AC/DC Regs $ 744 13.3%

PFC $ 245 16.1%

ISO PWMs $ 586 14.4%

Switching

Lo Volt FETs $3369 8.5%

HI Volt FETs $1333 7.5%

$8.5B$8.5B

$1.5B$1.5B

$4.6B$4.6B

INF

Sanken

POWI

FCS

STM

TXN

ONNN

~5 Others

Source: iSuppli Jun. 2007

Huge potential with UP strategy

Achieved #1

Achieved #1

14

Increased Segment Focus

We have defined target markets and are focusing on key solution spaces for specific customers to drive higher content, market share & margins!

µSerDes™

Logic

Video filters

Amplifiers

Optocouplers

Analog switches

Product View

Increased Importance to Our Customers

Source: Fairchild estimates

GM Potential by Segment

0%10%20%30%40%50%60%70%

HandsetsAPG

Handsets -FPG

Displays -APG

Displays -FPG

Pw r Supplies- APG

Pw r Supplies- FPG

Computing -APG

Computing -FPG

Narrower, Deeper Focus

in Markets with Higher GM Potential

15

Segment Focus Drives Content Gains

Content Trends

$0 $2 $4 $6 $8 $10 $12 $14

Computing

LCD Displays (>40")

Handsets

2006 2008 2010

Power Supplies• Commercial & regulatory pressure for greater

efficiency drives PFC and higher silicon BOM• FCS content grows with addition of SG, PFC,

integrated HV MOSFETs and ICs, SR, QR & Digital Power

• Expect higher content to drive 3X SAM by 2010

Displays• Larger panel sizes and greater resolution require

improved backlighting which drives power BOM• FCS adds SPM, analog & HDMI switches, video

filters, power conversion solutions

Handsets• New features/3G/iPhone revolution while users

demand same or better talk time• FCS improves content with HF DCDC,

IntelliMAX™ added to the proliferation of analog switches, µSerDes™ and MOSFETs

Source: Fairchild estimates

16

Becoming a More Important Supplier

• Application intimacy

• Solve important problems

• Provide complete power management solutions

• Reduce BOM and costs for our customers

• Global supply chain support

• Consistent lead times & BIC performance to request date for key customers

• Leader in innovation where it matters most for our customers

Sales Growth: Strategic Customers

0

0.5

1

2007 Fcst 2009 Fcst

$ B

50% Growth

Source: Fairchild estimates

17

Update on Key Themes from 2007 Analyst Day

• On track to exit 2008 at about 40% outsourced vs65% outsourced a year ago• Expect about 150 bps improvement to GM

Package cost reduction through greater in-sourcing

• Launched HF Voltage Regs in late 2007 and expect to exit 2008 at >$13m quarterly run rate

Increase market share in DC/DC voltage regulation market

• Greater engagement with top 5 handset customers and major power supply makers• OEM is our fastest growing channel

Focus on Tier 1 customers to drive apps knowledge

• Realigned APG & FPG to segment structure at the start of 2007• Increased field apps knowledge

Adopt Segment structure

2008 Update2007 Analyst Day Theme

18

Acquisition Landscape

Small Privates

Carve outs

<$1B Public

Large Public Combination

Technology/IP, Key Personnel Talents, Emerging Products

Easy path to profitability, Complementary Products

Change Competitive Structure

Enter new markets

Financial Leverage, Cost reduction possibilities, Complementary Products

Low, mostly around keeping talent

Low to High, very situation dependent

Med to High. Mgmt & change of control issues.

Risks of culture clash

High, if priced right and strategy fits

Pricing power elusive. Must have strategic synergies

Banks/sponsors and investors who flip shares will make the most

Reason to Pursue Integration RiskLikelihood of Value to FCS Shareholders

Med to High. Mgmt & change of control issues.

Risks of culture clash

High, if priced right and integration is crisp. Needs strategic value beyond beating DCF

Increasing Focus

19

Levers to Drive Higher Margins

• Expand content in key segments

• Upgrade HV business to perform in line with LV

• Roadmap for Power Conversion margin improvement

• Continue above-market growth for Signal Path

• Capitalize on HF DC/DC opportunities

• Run SPG at target model

• Package cost reductions

• Tight OPEX control

20

Fairchild Semiconductor Solid Progress, Exciting Potential

• Transition to a higher value company is well underway

• Demonstrated best ever trough sales & GM performance

• Cross-cycle metrics for sales / GM / EPS all positive

• #1 sales position in 2 of our 3 target markets

• Investment in Analog & Power Management drives exciting new products – Ramping across 2008 and 2009

• Segment focus drives greater application and customer intimacy – Enables us to become a more important supplier

• Package cost reductions & tight spending controls increase confidence in ability to achieve target model

www.fairchildsemi.com

Company Confidential 21

Mobile, Computing, Consumer & Communications (MCCC)

Group Overview

22

Analog Market Breakdown 2007

ASSP

Standard Linear

Standard Linear TAM$18.9B

(9.5% CAGR)

Analog TAM $51.2B

(8.4% CAGR)

Source = iSuppli Q2 2007, CAGR 2006-2010

Regulators$9.1B

(13.8% CAGR)

Data Converters$3.1B

(4.6% CAGR)

Amplifiers$3.1B

(6.4% CAGR)

Interface$2.8B

(8.8% CAGR)

Semiconductor IC TAM$250B

(6.4% CAGR)

Memory

Analog

Logic

Micro IC

23

Analog Power Management Market

DC:DC Regulation ($9B) 2007 TAM ($M) CAGR*Linear Regulators $3,174 5.0%

DC:DC Regulation $2,670 15.9%

Battery Management $1,775 16.8%

Hot Swap $ 242 15.3%

MOSFET Drivers $ 885 14.1%

Non-Isolated PWM $1,662 16.0%

Off-Line Power Conversion ($1.6B)

AC:DC Regulators $836 13.3%PFC $287 16.1%Isolated PWM $683 14.4%

*CAGR 2005-2010

Source: VDC

Ultra-portable

Computing/Point of Load

Power Conversion

Targeted >$6B TAM with CAGR ~15%

24

Application Specific Analog for Cell Phones, UP and PCs

Expand across top 5 manufacturers

Analog SwitchesµSerDes™ASSP’s

Ultra-portable (Cell Phones)

Focus

Product Categories

Market Segment

Top handset manufacturer as driverExpand across top 5 manufacturers

Building Block DC:DC

Ultra-portable (Cell Phones)

System PowerSignal Path

25

Ultra-portable

Interface ($1.50-$3.00)µSerDes™

Switch ($0.45-$0.50)AnalogUSB

Regulators ($1.20-$2.00)DC/DCLED DriversOff-line Power ($0.15-$0.25)

Charger adapters

Discrete ($0.43-$0.45)LV MOSFETIntelliMAX™

Logic ($0.25-$0.60)TinyLogic®Translators

Total FSC Content $4.30-$7.30

Market Opportunity* 480MuFSC SAM $2.1B-$3.5B

Signal Conditioning ($0.30-$0.50)Current Sense Amplifiers

Source: iSuppli June 2007 estimate handsets in mid to high end range for 2008

26

µSerDes™Serializer / Deserializer Technology

Features & Performance

• Industry leader in Serializer / Deserializer technology for small display and camera applications in handsets

• Proprietary technology reduces wires through hinge by up to a factor of 5x

• First SerDes solution to support primary and secondary displays, camera, keypad, and GPIO control in one IC pair

Strategic Importance to Fairchild

• Proprietary signal path solution for cell phones capitalizing on expanded multimedia functionality

• More valued supplier to top 5 cell phone manufacturers

Potential Business Opportunity

• Existing leadership in embryonic application in cell phone market evolving to dominant position during high growth ramp.

• Up to 4 units per phone

1,349Mu

2010 Market Size

8.1%990Mu

2006 – 10 CAGR

2006 Market Size

Source: iSuppli Jun. 2007

27

Analog Switch

$375M

2010 Market Size

10.7%$250M

2006 – 10 CAGR

2006 Market Size

Features & Performance• New Analog Quad Switches are being used in phones with two

SIM cards. This is a rapidly emerging application in those countries that allow one phone number with two service providers

Strategic Importance to Fairchild• The early recognition of this opportunity for non-US designs is

changing our model to adopt both application specific solutions and market specific solutions

Potential Business Opportunity• With the vast majority of cell phones now sold outside of the US,

the opportunity is significant

FSA2567 Quad Analog Switch

SIM Card #1 SIM Card #2Dual SIM Card Cell Phones

Source: iSuppli Jun. 2007

28

DC/DC Regulators for Cell Phones

$1.41B

2010 Market Size

3.9%$1.21B

2006 – 10 CAGR

2006 Market Size

Features & Performance• “DC/DC Regulators” convert the varying

battery power of a cell phone to a stable voltage that supplies power to digital components inside the cell phone

• Fairchild delivers the smallest and most efficient DC:DC regulators, resulting in cell phones with longer operating times

Strategic Importance to Fairchild• Build a business in the large DC:DC power

management segment

• More valued supplier to top 5 cell phone manufacturers

Potential Business Opportunity• $100M+ business potential over 3 to 5 years

Source: iSupply 2006

DC/DC

DC/DC

DC/DC LDO

LMU

Display Module

Camera Module

D/DC

LDO

DC/DC

PA

PMU

PMU

graphics accelerator

WLAN Module

DDR2/SDRAM

Base Band and application processor

subsystem

Audio

RTCPLLSIMM

LDOSDCARD

DC/DC

PMU Sub Display

SDCARD

29

Evolution of Switching Frequencies in DC:DC Converters

100

1000

10000

100000

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Year

Sw

itchi

ng F

requ

ency

(KH

z)

FAIRCHILD 16MHz

Micrel MC13882 8MHz

Freescale Semiconductor 6MHz

Fairchild FAN5350 3MHz

Linear LTC3411

National LM3671

Linear LTC1616Linear LTC1767

Linear LTC1701

MAXIM MAX887

Linear LTC1307

Motorola MC34063

LTC LTC3448

TI TPS62300

National LP5552

Freescale MC13882 Micrel

MIC3358

75

77

79

81

83

85

87

89

91

93

95

0.1 1 10 100Switching Frequency in MHz

Pow

er E

ffici

ency

(%).

FairchildCompetition

Fairchild is leading in high frequency

….at high efficiency

30

IntelliMAX™

$200M+

2010 Market Size

43%$60M

2006 – 10 CAGR

2006 Market Size

Value to the Customer• A Power Management solution that solves the protection

issues around low Vdd IC processes

• Features: Over Voltage Protection, in-rush current, transients, ESD…CSP/MLP packaging.

Potential Business Opportunity• Revenue > 45% CAGR since inception (2007 ≥ $10M)

• Achieves Gross Margins compatible with leading analog competitors

• Continues to “jump” market Segments…initial target was ultra portable, but continues to expand in the computing space

Source: iSuppli & Fairchild estimates

31

Computing

Silver Box ($3.25)ControllersPower DiscretesSPM

Servers ($4.00–$5.00)ControllersDriverMOSDriversLDO

Desktop ($3.00-$3.50)Switching RegulatorsLDODiscretesLogicDriverMOS

Gaming ($2.00-$3.50)Power DiscretesControllersDriversLDOMarket Opportunity

FSC SAM $2.5B-$3.25B

Notebooks ($4.00-$4.50)DriverMOSLDOPower DiscretesIntellimaxLogic

Total FSC Content $2.00-$5.00

32

Silicon Technology Drives Performance & Cost Advantages

Align the Technology…..Transition every 18 to 24 months• Continuously improve Figure of Merit• Reduce Die Size by 30%

Primarily based on technologies released

in ’04-’05

2004-2005 Technology 2006 Technology

Technology-MarginLow Voltage High Volume Package

Revenue vs. ASP/Cost per Unit

2001 2002 2003 2004 2005 2006E 2007E

Revenue

ASPCost

Rev

enue

Cost ↔ Value Delta

New Technology!

33

DriverMOS

Value to the CustomerProvides a cost effect path to the performance requirements of the next Gen. High End Desktops, Servers and Games

• State-of-the-art system efficiency

• High Frequency Operations

• Lower Overall System Cost

• Fewer passive components

Potential Business Opportunity• DriverMOS is a flexible Product Family that can

be scaled across all value / performance tradeoffs

• The combined computing market size totals $2.0B. This includes FETs, drivers, controllers and functional power solutions

$630M

2010 Market

8%$500M

CAGRSAM2010 Market SAM

2007 - 10CAGR

2007 Market

64 mm2

D D D D

S S S G

=

3 D-Pak’s 180 mm2 + Driver 30 mm2 = 210 mm2

• SAM is based on Vcore MOSFET/Driver ContentCalculated from Notebook, Driver, Server and Gaming units

34

Digital Control Technology

Features & Performance• Communication: The power supply can become an

intelligent module instead of a black box

• Performance: Easier optimization through communication means higher system efficiency

• Cost: >50% component reduction and higher reliability for lower Total Cost of Ownership (TCO)

Strategic Importance to Fairchild• Digital control and management is an emerging

trend in power management. As a leader in power conversion, vetting new technology to better serve our customers is a key imperative

Potential Business Opportunity• Significant strides have been made in digital power

management and control technology in the past few years, driving market forecasts close to $1B in 2011 with a CAGR > 36%. Power supply manufacturer, OEM and ODM adoption will depend on solution cost, performance and ease of use.

Source: Darnell June, 2006

AC - DC DC - DCInput OutputDigital Control

Comm

Digital Power Management:

Board / System Level

Digital Power Management:

Rack / Facility LevelComm

Digital Loop Control ICs

Digital Power ICs

36%$589M$169M

$315M

2010 Market Size

23%$137M

2006 – 10 CAGR

2006 Market Size

35

Consumer - Displays

Off-line Power ($2.30-$2.60)FPS

Signal Conditioning ($0.25-$0.35)Video Filters/Drivers

Switch ($0.35-$0.55)AnalogHDMI

Lighting IC ($0.70-$0.95)HVIC Backlight Inverter IC

Total FSC Content $9.75-$12.80

Market Opportunity* 268MuFSC SAM $2.6B-$3.4B

Discrete ($3.35-$4.85)Low Voltage MOSFETHigh Voltage MOSFET

Logic ($0.80-$1.00)

DC/DC Regulators ($2.00-$2.50)Switching Regulators

Source: iSuppli June 2007 estimate LDC TV/Monitor for 2008

36

Summary

• Revenue and margin expansion through growth of new products

• Application specific products targeted at cell phones, UP, consumer applications

• Continued evolution of supply chain and sales channel to supportthis business

• Upgrade silicon based MOSFET technology for better performance, lower costs and smaller size

• Reduce packaging costs through greater in-sourcing

www.fairchildsemi.com

Company Confidential 37

Power Conversion, Industrial & Auto (PCIA)

Group Overview

38

Analog Power Management Market

DC:DC Regulation ($9B) 2007 TAM ($M) CAGR*Linear Regulators $3,174 5.0%

DC:DC Regulation $2,670 15.9%

Battery Management $1,775 16.8%

Hot Swap $ 242 15.3%

MOSFET Drivers $ 885 14.1%

Non-Isolated PWM $1,662 16.0%

Off-Line Power Conversion ($1.6B)

AC:DC Regulators $836 13.3%PFC $287 16.1%Isolated PWM $683 14.4%

*CAGR 2005-2010

Source: VDC

Ultra-portable

Computing/Point of Load

Power Conversion

Targeted >$6B TAM with CAGR ~15%

39

Market Drives IC Technology

Legislative/MarketTrend

Power Supply/IC Trend

Low Standby Power1W → 300mW

Transmission Efficiency

Operation EfficiencyDC to DC, AC to DC

Linear to SwitchingSynchronous RectificationQuasi Resonant ConversionDigital

Incandescent to CFL, LED

AC Motor to BrushlessDC Motors

Power Factor Correction (PFC) Controllers (active)

Burst Mode and Soft Switching

HVIC, Electronic Ballast, LED Drivers

BLDC Controllers and Drivers

Longer Battery Life Low Power TechnologyMarket

Smaller Footprint Integration and Small PackagesHigh Frequency @ High Efficiency

40

Primary Side Regulation for Charger/Adapters

$315M

2010 Market Size

13%$206M

2006 – 10 CAGR

2006 Market Size

Features & Performance• PSR eliminates components enabling a cost effective switcher solution for consumer ultra-portable chargers

Strategic Importance to Fairchild• Enables technology-driven entry into the charger market

Potential Business Opportunity• Low power charger/adapters are largest segment of off-line regulators Source: VDC Mar 2006

41

Motion SPMValue to the customer• A Smart Power Technology that enables manufacturers of White Goods to meet the new Government Regulated efficiency requirements for their product (USA, EU, JPN)

• SPM is a family of products sized for Power as well as Drive Configuration

• Washing machines

• Air Conditioning

• Refrigerators

Potential Business OpportunityGovernment Regulations with respect to Utility Power (Power Factory and Efficiency) will continue to drive this market for the foreseeable future. The SPM product family is staged to follow this trend

$1.4B

2010 Market Size

15%$800M

2006 – 10 CAGR

2006 Market Size

2010 Market Size

2006 – 10 CAGR

2006 Market Size

Source: Fuji Chimera, Darnell, IMS)

42

Value to the customer• A Smart Power Technology that enables the Offline

Power Supply Market (Consumer, Telecom, Computing, Industrial) to meet the new Government Regulated efficiency requirements for their product (USA, EU, JPN)

• SPM is a family of products to meet

•Power Factor Correction

•Flyback and Forward

•Full and Half Bridges

Potential Business OpportunityGovernment Regulations with respect to Utility Power (Power Factory and Efficiency) will continue to drive this market for the foreseeable future. The SPM product family is staged to follow this trend

Power Supply SPM

PWMController

Optocoupler

VDC OUT

VAC IN

PWMController

Optocoupler

VDC OUT

VAC IN

$2.5B

2010 Market Size

8.5%$1.8B

2006 – 10 CAGR

2006 Market Size

2010 Market Size

2006 – 10 CAGR

2006 Market Size

Source: Fuji Chimera, Darnell, IMS)

43

Industrial –Lighting/HVIC/LED

HVIC ($0.60)

Ballast ($0.58)Ballast Control ICPFC IC

CFL ($0.40)Control IC

LED Lighting ($0.35) AC-DC LED Driver

44

Summary

• Capitalize on growing demand for greater power supply and system efficiency…Energy Efficiency Implemented Simply!

• Innovative power conversion and DC motor control products to support move to high efficiency BLDCs

• Rapid growth of highly integrated SPM™ products for consumer and industrial applications

• Upgrade silicon based MOSFET and IGBT technology for better performance, lower costs and smaller size

• Reduce packaging costs through greater in-sourcing

www.fairchildsemi.com

Company Confidential 45

Standard Products Group Overview

46

SPG’s Value to Shareholders

• Generates solid cash flow and ROIC• SPG extracts value from older product lines and

manufacturing assets through intensive product life cycle management

• Increases cost awareness for the whole company• Drive improvements in manufacturing and operation costs

• Enhances our BOM position with customers to solve more of their needs

• Creates potential to generate even more cash when market offer on divestiture exceeds our discounted cash flow expectations

47

Q1'04

Q2'04

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Q2'07

Q3'07

Q4'07

Rev

($M

)

EBIT

(%)

Rev-8 Qtr M/A EBIT-8 Qtr M/A

SPG Rev & EBIT Development

Transition Begins

48

Margin Progression

• Cost reductions• Manufacturing• Business support structure• Simplification

• Disciplined business practices• Price management• Inventory control, both internal and channel

• Focused promotional programs

• Selective investment / divestiture

49

Translator ProductsFXL4TD245 4 Bit Low Voltage Configurable Translator

FXL4TD245Mobile Phone

Chipset

3V 1.8V

T-Flash/microSDUsing SPI mode4 wire interface(clock, serial in, serial out, chip select)

Features and Performance• Provides voltage translation between 3.6V

and 1.8V

• Allow designers to set either side as the high or low voltage

• DQFN Packaging saves nearly 75% board space compared to TSSOP packages

• Unique control over the direction of all four bits provides designers control of individual bits in their design

Strategic Importance to Fairchild• Unique function, no direct competition

• Above average margin

Potential Business Opportunities• Applies in the fast growing portable market

such as hand phones, MP3, PMP, etc including portable instrumentation

Translator ($M)

2006 TAM 2010 TAM CAGR%

72.1 102.6 9.2%

Source: Selantek 2006

50

Summary

• SPG business provides solid cash flow and reasonable profitability

• With good discipline, SPG business is able to weather business cycles and provide more stable profits

• SPG business drives manufacturing and operation cost reduction initiatives that will benefit other business in Fairchild

• Demand for Standard products is here to stay

• Fairchild will continue to manage the standard products portfolio and make selective investment/divestiture to achieve our target business model

www.fairchildsemi.com

Company Confidential 51

Finance Overview

52

Financial Highlights

• Better cycle management has driven more consistent financial performance

• Top priority is to drive future margin expansion • Gross margin leverage

• OPEX leverage

• Target operating model

• Strong cash flow and balance sheet

www.fairchildsemi.com

Company Confidential 53

Better Cycle Management and More Consistent Financial Performance

54

Improved Cycle Management Inventory Impact

Inventory & Distributor POS Trends

50

100

150

Q102

Q202

Q302

Q402

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407

$0.0

$100.0

$200.0

$300.0

$400.0

Internal DOI Channel DOI Channel POS

Just 5% Peak-Trough POS ∆Inventories Stable Through the Cycle

55

Adjusted Revenue & Gross Profit %

200

250

300

350

400

450

500

Q1'02

Q2'02

Q3'02

Q4'02

Q1'03

Q2'03

Q3'03

Q4'03

Q1'04

Q2'04

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Q2'07

Q3'07

Q4'07

(In $

M)

18%

20%

22%

24%

26%

28%

30%

32%

Total Revenue Gross profit %

56

200.0

250.0

300.0

350.0

400.0

450.0

500.0

Q1'00

Q2'00

Q3'00

Q4'00

Q1'01

Q2'01

Q3'01

Q4'01

Q1'02

Q2'02

Q3'02

Q4'02

Q1'03

Q2'03

Q3'03

Q4'03

Q1'04

Q2'04

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Q2'07

Q3'07

Q4'07

Q1'08

(in $

M)

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

Total Revenue Gross profit %

Solid Sales & GM Growth8 Qtr Rolling Average Adjusted Sales & GM

Notes : Includes Equity CompSystem General included from Q107 onwards

57

Improving Financial Results Drives Free Cash Flow (FCF)

8 Qtr Rolling FCF

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q4'01

Q1'02

Q2'02

Q3'02

Q4'02

Q1'03

Q2'03

Q3'03

Q4'03

Q1'04

Q2'04

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Q2'07

Q3'07

Q4'07

Free

Cas

h Fl

ow $

M

Note: FCF defined as Operating Cash Flow - Capex

58

Strong Cross-Cycle EPS Improvement:8 Qtr Rolling Average Adjusted EPS

Note: System General included from Q107 onwards

$0.14$0.13

$0.11

$0.06

$0.05$0.03

$0.14

$0.31

$0.23

$0.20

$0.15

$0.15

$0.03

$0.06

$0.09

$0.14

$0.13

$0.13

$0.13

$0.14$0.16

$0.18

$0.14

$0.13

$0.20

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

Q4'01 Q1'02 Q2'02 Q3'02 Q4'02 Q1'03 Q2'03 Q3'03 Q4'03 Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Q2'05 Q3'05 Q4'05 Q1'06 Q2'06 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1 '08

Adj

EPS

$

www.fairchildsemi.com

Company Confidential 59

Top Priority: Increasing Gross Margins

60

Gross Margin ImprovementKey Drivers

Growth of new product families with higher margins• µSerDes™, Analog Switches, HF Voltage Regulators, System

General, SupreMOS, integrated power systems (SPM), IntelliMAX™, DrMOS, Digital Power

Divest / Reduce low margin business• Divest = Motor ICs, LEDs, RF• Reduce = Planar MOSFETs, small signal and bipolar transistors

Manufacturing cost reductions and product redesigns• Package in-sourcing• 8” upgrade in Maine• Fab process upgrades/shrinks for HV & LV MOSFETs, IGBTs and

Power Conversion

61

Margin DriversGrowing Profitable New Product Families

MCCC Growth Drivers

-Switches USB and multimedia applications

-High Frequency Voltage Regulators Highly efficient regulators for handsets

-Power Trench Technology Potentially best figure of merit for lowvoltage applications

-µSerDes™ Proliferation to top 5 cell phone suppliers

-Digital Power Flexible power mgmt for high-end POL andpower supply applications

PCIA

-Power Conversion System General acquisition, driver for energy efficiency

-SupreMOS/FS IGBT Potentially best figure of merit for highvoltage applications

-HF Voltage Regulators New high performance platform addresses emerging needs

-SPM Highly efficient package-level integratedpower management solutions

62

$0

$200

< 0 0 > 10 10 > 20 20 > 30 30 > 40 40 > 50 50 >

Mill

ions

$

0%

40%

% o

f Tot

al

Margin DriversShifting Our Margin Profile

Decrease Population I

• Minimize through lead time

• Obsolete / exit / divest

• Cost reductions / product redesigns

Manage Population II

• Cost reduction

• Pricing

• Technology migrations

Grow Population III

• New product design wins

• Responsive supply chains

Low Margin Average Margin High Margin

63

Margin DriversIncrease In-sourced A&T

Cost Reduction Opportunity• Backend drives 30% - 70% of total product cost depending on product line • Subcon costs have risen due to exchange rates and higher utilization• Invest $90M+ over 3 years to increase backend capacity

• Payback is < 2 years• Impact on gross margins is 1.5% to 2.0%

Today

In-Source %

2 – 3+ Years

80%

60%

100%

40%FCS

Peers

64

Margin DriversProcess Upgrades will Drive Front End Savings

• Maine 8” conversion will increase die capacity by ~70% with minimal impact to fixed and variable overhead

• Migration of System General and other Bucheon processes to Maine fab on 0.5µm or lower will increase Power Conversion margins by ~600 bps

• SupreMOS and FS Trench IGBT processes in Bucheon drive 30% to 40% die shrink while maintaining RDS on performance

• PT4, PT6, PT5, RP5 processes in Salt Lake underway to increase die per wafer by 30% to 45%

www.fairchildsemi.com

Company Confidential 65

Strong Cash Flow and Balance Sheet

66

Strong Balance Sheet Stable Cash Flow Drives Lower Financial Leverage

Trended Debt

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Total Year Total Year Total Year Total Year

1997 (Mar 11- Dec 21,1997)

1999 2001 $2,007

0.0%1.0%

2.0%3.0%4.0%

5.0%6.0%7.0%8.0%

9.0%

Drawn Revolving Credit Bank Debt Convertible DebtHigh Yield Debt Undrawn Revolving Credit Net Interest % of Sales

Net Debt

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

1999 2000 2001 2002 2003 2004 2005 2006 2007

Stable cash flow and disciplined balance sheet

management enabled FCS to decrease debt and secure

lower interest rates

8 Qtr Rolling FCF

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q4'01

Q1'02

Q2'02

Q3'02

Q4'02

Q1'03

Q2'03

Q3'03

Q4'03

Q1'04

Q2'04

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

Q1'07

Q2'07

Q3'07

Q4'07

Free

Cas

h Fl

ow $

M

67

Capital Expenditures

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

% o

f Sal

esStrong Balance Sheet Investment to Drive Margin Improvement

Increased Investment toDrive A&T Cost Reduction

68

Fairchild: The Power Franchise®

• Better cycle management has produced improved financial results

• 8 quarter rolling average for sales / GM / EPS show good progress

• Top priority going forward is margin growth through:• Profitable sales growth in analog and functional power products • Better mix of products due to more new products and reduction/divestiture of low margin

business• Product cost reduction driven by increased A&T in-sourcing, fab shrinks and new

processes• Good cost controls to reduce OPEX as a % of sale to target levels

• Expect strong cash flow as we progress to financial targets, which enables lower leverage and allows us to invest in the business

We’re making solid progress at transitioning Fairchild to be a premier power management company…not only in sales but also

profitability!