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1

Fairchild Semiconductor

International, Inc.

May 2010

Investor Presentation

www.fairchildsemi.com2

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.com

Updated Financials (through Q1 2010, with segment revenue/gross margin breakouts)

• Quarterly Fact Sheet with Q1 2010 highlights

• This investor presentation

http://sec.gov/

http://investor.fairchildsemi.com/

http://investor.fairchildsemi.com/


3

Fairchild Overview


• Wireless Convergence and Energy

Efficiency mega-trends

• Power silicon content grows

faster than end market sales –

premium paid for efficiency

• Segment structure increases our

apps knowledge and ability to

sell solutions

• Large customers dominate these

markets and align well with

Fairchild’s strengths in SCM,

global presence and wide product

breadth

Markets That Drive Our Business


Power Silicon Content GrowthHandsets

• Handset growth still impressive as market hits 1.5B units in 2013

• Voltage regulator CAGR of 19% reflects greater power management value in the handset to support new features, better resolution displays and 3G/4G

Source: iSuppli, Jan 2010

0

1,000

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3,000

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5,000

0

200

400

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800

1,000

1,200

1,400

1,600

2009 2010 2011 2012 2013

M $

M U

nit

s

Silicon Content Growth - Handsets

Handset Units Voltage Regs/Refs & Interface Sales

8% Handset Unit CAGR19% Voltage Regs/Refs & Interface Sales CAGR


Power Silicon Content GrowthPower Supplies

• Greater power supply efficiency requires more advanced topologies and greater power silicon content

• Fairchild is a leader in supplying integrated and discrete power management solutions to the top power supply manufacturers in the world

Source: Climate Savers Computing Initiative 2008

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

80%+ 82%+ 85%+ 87%+

Efficiency

Total Discrete Content ($/supply)

Total IC Content ($/supply)

Power Silicon Content versus Efficiency

http://images.google.co.kr/imgres?imgurl=http://www.pcpower.com/images/products/b/S47ATX_photo_01_3824.jpg&imgrefurl=http://www.pcpower.com/power-supply/silencer-470-atx.html&usg=__fM-ZU3bo3EbM83ad2dlxPWUeF2o=&h=383&w=473&sz=17&hl=ko&start=87&um=1&itbs=1&tbnid=rkVv2cjkm92TpM:&tbnh=104&tbnw=129&prev=/images?q=atx&start=72&um=1&hl=ko&lr=&newwindow=1&sa=N&complete=1&ndsp=18&tbs=isch:1


Power Silicon Content GrowthLCD TV

• LCD TVs expected to continue to grow rapidly

• Power analog & transistor sales forecasted to grow even faster as screen resolution and backlighting requirements advance and concern over energy efficiency of these devices increases


0

200

400

600

800

1000

1200

1400

0

50

100

150

200

250

2009 2010 2011 2012 2013

M $

M U

nit

s

Silicon Content Growth - LCD TV

LCD TV Units Power Analog & Transistor Sales

15% LCD TV Unit CAGR

18% Power Analog & Transistor Sales CAGR


Power Silicon Content GrowthAppliances/Industrial Motors/Pumps

• Conversion to inverter type or BLDC variable speed motors significantly increase energy efficiency (60%+ typically) and improves cost of ownership

• This transition opens huge new markets to Fairchild power management solutions…typical SPM content on a washing machine is $4 – 6…no content before

• Fairchild is uniquely positioned to provide a full range of discrete and integrated power management solutions across the complete range of power requirements


Note: VF=Variable Frequency Control T=Total worldwide Shipments


Power Silicon Content GrowthAdvanced Lighting, PV, Wind Power & Smart Grid

• New markets for power discrete and analog solutions in the lighting, PV, wind and smart grid create huge new opportunities for Fairchild

• Fairchild has wide range of products to support these markets including PSR for low power apps and PFC for higher power requirements…both discrete and integrated power management solutions

Source: iSuppli, Jan 2010, IMS Research

CFL 2009 2010 Growth

Rev (M$) 4,604 5,697 23.7%

ASP 4.5$ 4.3$ -4.4%

Units(Mu) 1,023 1,325 29.5%

>20% Semi Growth

in Solar Inverters

through 2014


Engine Control

Ignition

Fuel Injection

Glow Plug

BLDC Motor Control

EPS

Cooling

Pumps

Body Load Control

HID

PTC-Heater

HEV

Full Hybrid

Mild Hybrid

Micro Hybrid (Start/Stop)

Transmission Control

Engine Control

Ignition

Fuel Injection

Glow Plug

BLDC Motor Control

EPS

Cooling

Pumps

Body Load Control

HID

PTC-Heater

HEV

Full Hybrid

Mild Hybrid

Micro Hybrid (Start/Stop)

Transmission Control

Power Modules ($8.00 – $14.28)

• EPS/EHPS Modules

• Auxiliary VSD’s

Discrete Power($0.07 – $0.35)

• Low Voltage MOSFET’s

• Mid Voltage MOSFET’s

• High Efficiency Diode

Ignition ($0.30 – $4.00)

• Current Limit IGBTs

• Smart IGBT

Functional Drivers ($0.30 – $2.15)

• Smart Switches

• Gate Drivers

• Motor Controls

Power Silicon Content GrowthAutomotive

• Semiconductor content is growing rapidly in automotive designs to increase fuel efficiency and improve user experience

• Fairchild is expanding our power module technology into electronic power steering (EPS) control. Design wins at 3 major customers and more in process

• Fairchild is also a leader in ignition IGBTs that provide more precise spark control and better fuel efficiency


Power Silicon Content Growth Notebook PC

• Notebook unit growth projected to be robust through 2013

• Power transistor/FET sales growth remains strong even as CULV and netbooksrequire fewer power rails but place greater value on size and weight


0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

50

100

150

200

250

300

350

2009 2010 2011 2012 2013

M $

M U

nit

s

Silicon Content Growth - Notebook PCs

Notebook Units Power Transistor Sales

17% Notebook PC Unit CAGR

9% Power Transistor Sales CAGR


Capitalizing on these Market Trends

• Engage with industry-leading customers in key markets to build our

applications expertise (ex. Handsets, power supplies)

• Leverage our technology leadership in analog switches, HF Voltage

Regulators to expand content and increase integration level in handsets &

ultra-portable apps

• Leverage silicon-based technology leadership in power MOSFETs and

IGBTs to gain share and deliver industry-leading margins

• Accelerate share gains in power conversion business driven by new products

and transition to higher efficiency power supply designs

• Expand SPM business beyond Japan to support transition to variable speed

motors in appliances

• Drive higher GM and double-digit sales growth


10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%Q

1 0

0

Q2

00

Q3

00

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00

Q1

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Mid

Gu

ide

13

Gross Margin TrendNew Products & Mix Powering Breakout

Current 1st Benchmark

MCCC Analog 40 - 50% 45 - 55%

MOSFET 33 - 40% 35 - 50%

PCIA Analog 35 - 45% 40 - 50%

MOSFET 30 - 33% 35 - 40%

SCM fix

Mix Out/Product Direction

10 point GM swings

2 - 3 point GM swings

GM breakout

SG acquisition/prod line upgrade

R&D focus on MCCC and PCIA markets


14

Mobile, Computing, Consumer &

Communications (MCCC) Group

Overview


Fast Growing End Market Exposure

Wireless convergence and need for

greater efficiency in

lower voltage applications

Energy Regulations

Mobile Computing

Telecom & Server High Efficiency

Power Supplies

Consumer electronics

Handsets and wireless

http://kr.srd.yahoo.com/_ylt=A3ehCmVum7FLz0UAcO28FfZ6/SIG=11o0sbpth/EXP=1270017262/**http:/www.citec.co.th/Scan10063.JPG


MCCC Mobile ProductsExtend Battery Life, Enable Greater Functionality

• MOSFET

• IntelliMAX™

• Building Block Regulators

• ASSP Regulators

• Analog Switches

• USB

• µSerDes™

• Mixed Signal ASSP

Base Band and

Application Processor

PMIC

Memory

Display

Sub Display

LMU

Camera

Audio DataVideo

Display &

Camera

“uSerDes

Signal Path

Subsystems

GPSPower

SubsystemsLMU

DC:DC

RF

SD cardHDMI

Camera

DC:DC

Microphone

Power

PM

IC


Increasing Power Consumption

3G 3.5G Pre 4G 4G2.75G2G

GPRS

UMTS

WCDMA

TD-SCDMA

HSDPA

HSPAGSM

WiMax / WiFi

WiBroLTEEDGE

70M172M

14Mbps

384K180k56k9.6k

DATA RATE (bps)

VOICE

SMS

Internet

Browsing

Email

Video call

Video Download

Interactive Gaming

Video Conference

Video Broadcast

VOIP

HDTV

Multiview Video

Digital TV

10hr 5hr 2:30hr 1:00hr ?hr

Talk / Connection time


USB Switch

WLAN

Module

Mobile Handset Targeted Subsystems

Audio

Connectors

Distributed Architecture Drivers :

• Dissimilar Process Technology

• Dissimilar IC lifecycles

• Optimized power consumption/efficiency

• Improved Time to Market (modularity)

• Differentiation (feature sets and user experience)

FAIRCHILD FOCUS: Distributed Signal Path

Subsystems and Power

OVPT

X

MU

S

Bluetooth

Module

SDIO

SwitchDACCodecADCAMPAMP AMP

Application

ProcessorPMIC

Broadband

ProcessorRF Power

Chipset

LCDBacklight

Driver

DisplayGPS

Mobile TV

FeaturesMP3

Other

P

P

P1

PN

P


Battery Life in Smartphones

• Only 5 – 6.4 hrs of 3G talk time

for leading smartphones

• Battery life gates user

experience

• All 4 phones use a similar

battery with a capacity of

1400mAh

• More functions…same battery

form factor

10MP image sensors

Multi core apps processors

3D MEMS gyroscopes

5.0 GBit/s datarates

AMOLED WQVGA displays

8 RF Bands….

Bridging the energy gap:

• Higher energy density batteries (new Chemistries)

• Optimized usage of features (HW & SW)

• More efficient conversion of battery power• Lower power consuming components


RFPA Power

Managament

Batt Mngment

ApplicationApplication

ProcessorProcessor

MemoryMemory

I/OI/O

WiMaxWiMax

Lighting

Management

WW--CDMACDMA

RFPARFPA

GSMGSM

RFPARFPA

Core Power

Management

Fairchild’s Mobile DC/DC Products

Battery Management

Core Power

RF Power Management

LightingDC/DC converters for digital cores

PMICs

RF DC/DC

microPMIC RF subsystem

LCD back lighting

AMOLED

LED Flash

Switching Chargers

Efficient DC/DC Conversion = Longer Battery Life

http://rds.yahoo.com/_ylt=A0WTb_322bFJwmcAEnqJzbkF;_ylu=X3oDMTBqaHBscmZmBHBvcwMxMwRzZWMDc3IEdnRpZAM-/SIG=1g59ioe1c/EXP=1236478838/**http:/images.search.yahoo.com/images/view?back=http://images.search.yahoo.com/search/images?p=usb+logo&fr=yfp-t-501&ei=utf-8&x=wrt&w=366&h=366&imgurl=www.right-click.ie/shop/images/new_usb_logo.jpg&rurl=http://www.right-click.ie/shop/images&size=12.2kB&name=new_usb_logo.jpg&p=usb+logo&type=JPG&oid=77e12d50977794a2&no=13&tt=73,671&sigr=11598v8vi&sigi=11fbb826a&sigb=12j9lbror


Mobile Power Solutions

We strive for excellence in electrical performance:

• Ultra Low standby current

• Highest Efficiency

• Fast transient response

• Low EMI

• High precision regulation

• Digital control


Mobile Subsystem Capabilities

USBAccessory DetectionSwitchesTransceivers (Std, full, high)Over Voltage Protection (OVP) Charging

AudioClass D AmpClass G AmpClass A/B AmpDigital Mic. ICSwitches

VideoFilter/DriversSwitchesMIPI SwitchuSerDesCamera Switches

ASSPPLL GPIO ExpandersTiny Logic SIMM Card SwitchReset Timer Memory SwitchTranslators

Display

uSe

rDe

s

Base Band/ApplicationProcessor

CameraSwitch

PMIC Charging/OVP

USB TRX

Acc

. Det

. MU

X

uSerDes

USB

Audio

Video

ASSPASSP

SwitchCO

DEC

Class G

Class D

Class A/BO

VP

http://images.google.com/imgres?imgurl=http://de.bluewin.ch/internetzugang/images/symbol_usb.jpg&imgrefurl=http://msn83235502.fotopages.com/?&page=1&h=65&w=133&sz=3&hl=en&start=3&tbnid=hJIhRVX_e_KK2M:&tbnh=45&tbnw=92&prev=/images?q=usb+symbol&gbv=2&ndsp=20&hl=en&sa=X

http://images.google.com/imgres?imgurl=http://de.bluewin.ch/internetzugang/images/symbol_usb.jpg&imgrefurl=http://msn83235502.fotopages.com/?&page=1&h=65&w=133&sz=3&hl=en&start=3&tbnid=hJIhRVX_e_KK2M:&tbnh=45&tbnw=92&prev=/images?q=usb+symbol&gbv=2&ndsp=20&hl=en&sa=X


Mobile USB

23

• Solutions for the full USB signal path

• USB Switches

• Multimedia Switches

• Accessory Detection

• Transceivers

• Enable USB port sharing for data, audio,

video, and charging

• Reduce external components

• Power savings with low power modes

• Ultra-small packaging

Maximizing USB port functionality in mobile electronics

USB Accessory

DetectionDetect an accessory type

for automatic application

routing.

USB

TransceiversMaximizes design

flexibility and

assures USB

compliance.

http://images.google.com/imgres?imgurl=http://etc.usf.edu/te_WIN/hardware/i/usb2logo.gif&imgrefurl=http://etc.usf.edu/te_WIN/hardware/usb.html&usg=__4qmSM2GUjkNI6fIgap7XSrH04j8=&h=236&w=425&sz=4&hl=en&start=2&tbnid=kxCcXoWhDc-GIM:&tbnh=70&tbnw=126&prev=/images?q=high+speed+usb+logo&gbv=2&hl=en&sa=G


LV MOSFETLeading Technology = Best in Class Margins

1998 2000 2002 2003 2005 2006 2007 2008 2009 2010 2011

• Leading silicon and package

technology enables optimum size,

performance and profitability

• Move to next-gen packages lower

costs and improves performance

• Technology leverage is greater

than scale leverage

$-

$10

$20

$30

$40

$50

$60

$70

0 1 2 3 4 5 6 7Volume Scenario

Pa

cka

ge

Co

st

Next Gen

Current Pkg

Current Pkg

Next Gen

Next Gen

Long Term Die Cost Trends

Relative Package Cost Curve


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013

Notebook Footprint Transitions

S08 Power56 Power33 Other Packages

Form Factor Transition

25

A once every ten year event:Leaded (SO) to Leadless (QFN) conversion SO-8

Power56and

Power33

Fairchild is investing in PQFN capacity and is ahead of the transition

Fairchild product portfolio is positioned for the transition

Power33


Form Factor Leading Package Technology

Reference: SO-8Power 33

Power 56

QJA = 74.2ºC/W

Pd = 56 mW/mm2

QJA = 59.5ºC/W

Pd = 190 mW/mm2

QJA = 48.6ºC/W

Pd = 86 mW/mm2

30 mm230 mm211 mm2

• Form Factors for Singles:

Power 22

QJA = 65.8ºC/W

Pd = 475 mW/mm2

4 mm2

A package portfolio to drive mobile computing transitions!

• Power56 to Power33

• SO8 to Power33

• Power33 to Power22 and PowerStage Duals


Infineon Partnership

27


25A Control and Synchronous Solutions

S

7.2mΩ

Dual CoolTM 3x3

7.2mΩ

Dual CoolTM 3x3

2.4mΩ

30A Control and Synchronous Solutions

M

M

Power Trench® Dual Cool™

Component

Area:49mm2

Component

Area:21.5mm2

M

2.4mΩ

Dual CoolTM 3x3

7.2mΩ

Dual CoolTM 5x6

1.2mΩ

Component

Area:62mm2

Component

Area:41mm2


Shifting the Form Factor

29

MLP 3x3 Dual

9 mm2

2 x SO-8

60 mm2


Fairchild Integrated PowerStage SolutionsHigh Side and Low MOSFETs in a Single Package

25A Buck

Converter Solution

6mm

5mm

6mm

5mm

5A Buck

Converter

Solution

S08

3mm

3mm

Standard Solution: 60mm2

PowerStage Solution: 30mm2

Better Performance, 3X Smaller Footprint

HSHS

LS

LS LS

HS

LS

HS

LS

Standard Solution: 90mm2

PowerStage Solution: 9mm2

Better Performance, 7X Smaller Footprint


Summary

• Focused R&D investment in mobile analog

• Gaining share in mobile analog…voltage regulator sales up 5%

in 2009

• Proliferating HF voltage regulator designs at multiple customers

• Customers moving to standard USB pin outs drive strong analog

switch sales growth

• Leading silicon and package technology enable profitable

growth of LV MOSFETs


32

Power Conversion,

Industrial & Auto (PCIA)

Group Overview


Markets that Drive PCIA Growth

Higher efficiency through

innovative semiconductor

power mgmt solutions

Energy Regulations

LED Lighting

High Efficiency

Power Supplies

High Voltage Backlight for

Flat Panel TVs and Displays

PV, Alt Energy &

Smart Grid

Transition to Variable Speed Inverter Type

Motors

Highly Efficient Induction Heating

http://kr.srd.yahoo.com/_ylt=A3ehCmVum7FLz0UAcO28FfZ6/SIG=11o0sbpth/EXP=1270017262/**http:/www.citec.co.th/Scan10063.JPG


Power Management Content Growth

In servers and high efficiency power supplies mandated efficiency regulations

are driving higher power management content

2007 2010 2013

Major Efficiency Level

Industry practice was 85 ~90% efficiency @100% load

Over 80~90% efficiency at 20% load and over

95% at 100% load

Efficiency at light load (10%) proposed to go up as telecom rectifier> 80%

BOM in HV Discrete(based on

600W)$2.80 $3.90 $6.50


Power Level vs. Topology Complexity

5W 75W 250W

Cell Phone

Charger

DVDSTB

Consumer

LCDM &

Printer

NB Adapter

32” ~ 50” LCD TV

32” ~ 50” LED TV

LED LightingLED Lighting

Desktop PC

PSR

Flyback

FF/QR

Flyback

Forward

LLC

Resonant

LC

ResonantCFL LFL

BCM PFC CCM PFC

ServerFull

Bridge

Aircon

500W

Interleave PFC

Multi

Phase

Topology

Power Level

Game

Console

35


Technology Roadmap

• Decrease Operating Current

• Decrease Quiescent Current

• Decrease Switching Frequency

• Reduce Acoustic Noise

• Reduce Control-circuit

• Reduce Switching/ Conduction Losses

• Reduce the need of EMI/EMS Filter

• Frequency Hopping

• Soft Switching

• High-side Transistor Driver

• Synchronous Rectifying

• Integrated Device Processes

• Analog Signal Process

• HV VDMOS & Multi-Chips Packaging

• Combo Circuits

• Primary-Side Control

Lower Standby Power Higher Power Efficiency Reduce Device Count

Environmental-friendly, Highly-efficient, Highly-integrated

36


Power Conversion

Market Opportunity

• Growing demand for greater efficiency is driving

rapid adoption of advanced power conversion

solutions is a wide range of end markets from power

supplies and industrial motors to consumer

electronics, LED lighting and battery chargers

Features and Performance

• Industry leading efficiency

• Ultra-low standby power consumption

• PSR technology now 30mw vs 1.0w industry

standard just 2 – 3 years ago

• Longer product life and lower cost of ownership

• Using HV IC to drive LED lights doubles the

element life vs current discrete approaches

• Lighter, smaller, simpler form factors

• Advanced power conversion techniques

enable smaller magnetics and less copper use

in power supplies and chargers

Strategic Importance to Fairchild

• Fast growing market

• Fairchild is worlds largest supplier of power

conversion products

• Industrial design wins typically generate longer

demand flows


2008 2009 2010 2011

Main size 32~42inch 40/42inch 40~50inch 50inch

Backlight CCFL CCFL CCFL / LED LED BLU

Output Power 250Watt 300Watt 300 / 180Watt 180Watt

Power type PSU Direct inverter Direct inverter Direct inverter PSU PSU

PFC CRM CRM CRM CRM

Efficiency 80% 82% 85% >85%

Stdby 170mWatt 150mWatt 130mWatt 100mWatt

high efficiency, low standby, LED BLU, Slim, BOM reduction

Inverter

Multi

Power

(Flyback)

13V Audio

5.3V Stand by

12V or 5.3V Main

Lamps

Lamps

400V

Std by

Power5V Stand by

PFCMain

Power

(LLC)

Std by

Power

400V24V Inverter

12V Main

5V stand by

PFC

Direct Inverter Type PSU Type

LCD TV Technology Trend

38


Lighting Technology Trend

• Discrete solution is major portion for

CFL

• Get Compact (Integration solution)

• Get Thinner T8 T5

(High efficiency and Reliability,

EOLL function required)

• Dimming solution

• Market : Still big potential

• Philips, GE, Osram, Lutron, ULT

• High efficiency

• Longer Life time

• Environment (Hg free, No UV)

• Cost issue

• Dimming

• Broad light color

• Market : Emerging, Government Driving.

• Philips, GE, Osram and Many makers join

Efficiency, Life Time, Environment

• Ban Incandescent

• Ban Magnetic ballast

• Get Phasing out

LED Incandescent Halogen CFL LF

Lighting efficiency

(lm/W)59 10 20 50 75

Efficiency of

lighting equip (%)80~90 30~50 30~50 50~60 50~70

Total efficiency

(lm/W)42 4 8 23 38

Life expectancy

(Hr)10K~50K 1k 3k 10k 15k

(Source : LEDs Magazine, 2007 May)

39


HV Product Portfolio

IGBT

Non-Punch Through Trench IGBT

Field Stop IGBT- FS Planar IGBT G2- FS1 Trench IGBT- FS1/2 SA Trench IGBT

HV Planar MOSFET- UniFET1/2- Standard QFET- QFET C/V2 Series- Old FET

MOSFET

MV MOS- PT3/4/5/6/7- UFT, UFP

FR Diode

HyperFast Diode

UltraFast Diode

Damper Diode

Stealth Diode

Duexpeed Diode

SPM

Motion SPM

- SPIM <10kW

- SPM2 <5kW

- SPM3 <2.2kW

- SPM4 DBC<2.2kW

- SPM45L/H <1.5kW- SPM5 <0.1kW- SPM7 <0.1kW- PFC SPM

HID SPM

SuperJunctionMOSFET- SupreMOS- SuperFET1/2

Legacy IGBT- Standard IGBT- SMPS IGBT

Punch Through Trench IGBT

SPM5~0.1kW

SPM2 ~5kW

SPIM ~10kW

SPM45 ~1.5kW

SPM3 ~2.2kW


Motion SPM Portfolio

Capacity

Application

Mid. Power Industrial Inv.

Fan motor

System A/C

Room A/C

Refrigerator

W/M

VacuumCleaner

Power tool

Low Power Industrial Inv.

Dish washer

SPIM

600V / 50A ~ 100A

1200V / 30A ~ 75A

10kW5kW2kW1kW0.5kW0.1kW

Package A/C

SPM2

600V / 15A ~ 75A

1200V / 10A ~ 20A

SPM3

600V / 3A ~ 30A

SPM5

500V / 1A, 3A

250V / 3A

SPM4

600V / 20A ~ 30A

PumpSPM7500V / 1A

E-bike

SPM45600V / 3A ~ 15A

40V / 60A

60V / 40ASPM45H

SPM45L

41

Fairchild Supports Full Range of

Power Needs


BLDC Fan Motor

Drive

Compressor

Drive

Motion-SPM

Market Opportunity

• Home appliance market is rapidly adopting inverter

technology to improve efficiency


• Simple to Design

–Optimized footprint

–Built-in protection functions

–Matched component performance

• Simple to Assemble

–Reduced components

–Increases productivity and reliability

–Eliminates additional insulation material


• Key component in an inverter system

• Value solutions

• Growth driver for HV organization

2008

Market Size

2011

Market Size

2008 – 11

CAGR

$238M $408M 20%

Source: IMS, Fuji Chimera Institute, Fairchild


Why Use Inverters in Motion Control?

43

Because of Energy Savings and High Performance !!

Energy SavingInverter control can save average 40% electricity than conventional on/off control

ComfortableIn air contitioner, Inverter can - save cooling time (50% faster)

- Precise temperature control (±1ºC control)

SilentIn fan motor, Inverter can reduce audible noise


Smart Power Integrated ModuleSystem Air Conditioning

Market Opportunity

• New energy regulations driving rapid increase

in variable speed drives


• 3 phase IGBT inverter using HVIC reduces

auxiliary power parts

• Higher reliability

• Advanced IGBT technology

• Built-in sensing


• Increased functionality evolution of SPM

• Flexible structure easily modified

2008

Market Size

2011

Market Size

2008 – 11

CAGR

$42M $97M 32%

Source: IMS, Fuji Chimera Institute, Fairchild


High Voltage MOSFETTransition to Deep Trench Requires Strong IP

• Significant Design IP Required to Make Transition• Termination and isolation critical in handling high voltage• High Epi efficiency required to reduce specific resistance• No standard design approach in HV

• Process challenges and difficulties• Deep junction & long diffusion process required…3X longer than planar• Deep trench uniformity• Process control for Superjunction is challenging• Capex investment and experienced, tight maintenance control required

• Epi expertise is essential• Control the uniformity in thickness and resistivity for various HV devices• Epi process-sensitive device are common• In-house Epi capability is required

Smaller, local competitors rarely enter the HV market!

Planar MOSFETSuperjunction MOSFET

Muti-Epi tech Deep Trench tech

45


HV MOSFET – SupreMOSPFC Switching

Source: iSuppli 2008

2008

Market Size

2011

Market Size

2008 – 11

CAGR

117M units 208M units 21%

AC Input

PFC

HV BLU

Switch

DC-DC

HV BLU

Driver

& FB

[LCD TV PSU & BLU board]

Market Opportunity

• Address the PFC switching needs in the LCD

TV market and other high power/efficiency

applications such as Servers


• World-class deep Trench Super-junction

technology


• Next generation super-junction MOSFET

improves both cost and performance


HV MOSFET - Ultra FRFETHV Back Light Unit

Source: Displaybank 2008

2008

Market Size

2011

Market Size

2008 – 11

CAGR

25M units 90M units 53%

ConventionalMOSFET(trr > 200ns)

UltraFRFETTM

(Ultra fast trr)

AC Input

HV inverter with Ultra-FRFET Current CCFL HV inverter

DriverDriver

PFC

HV BLU

Switch

DC-DC

HV BLU

Driver

& FB

[LCD TV PSU & BLU board]Market Opportunity

• LCD TV makers constantly driving for reduced system

cost

• HV BLU solution is more cost effective than

LVBLU


• Ultra FRFETTM supports the fastest reverse recovery of

body diode and good EMI performance

• Eliminates four external diodes in existing HV BLU

• System cost reduction, eases assembly, and reduces PCB

sizes


• Unique solution for HV BLU applications with class

leading technology

AC Input


Summary

• Drive for greater energy efficiency fuels demand for our

products

• Higher power supply efficiency requires greater power

management complexity and content

• Move to inverter style motors with much greater energy

efficiency creates enormous opportunity for our SPMs

• Deep trench, high voltage MOSFET and IGBT technology is IP

intensive and creates a significant competitive edge

• Revenue and margin progression will occur through a

combination of new product/technology introductions and cost

reductions


49

Finance Overview


Highlights of the Quarter – Q1 2010

Sales were $378m, up 7% QoQ and 69% YoY... Solid performance in what is typically a down sales quarter

Demand was higher across a broad range of end markets and regions

Under-shipped POS to reduce channel inventory 2% QoQ or 1/2 week to record low 7.8 weeks supply

Internal inventory held at very lean 69 DOI…higher sales more than offset the $9m increase in raw materials

& WIP

Generated $36m in free cash flow (cash from operation – capex) due to margin and earnings growth coupled

with strong asset management…Net cash positive…as cash & securities top $481m at the end of Q1

Adjusted gross margin was 32.5%, up >2 points QoQ, due to ramp of new products, mix out of less profitable

products, and higher factory loadings

Pricing remained better than typical at down <1% QoQ as customers continue to focus on product availability

Utilization increased again in Q1 causing lead times to extend. Using capacity reservations for top tier

customers (75% of sales) to continue to provide them the product support they need


Q2 Forward Guidance & Current Market

Environment

• Sales expected to be $395 – 400m…current scheduled backlog covers low end of

this range

• Gross margin expected to improve to 33 – 34%

• R&D and SG&A forecast at $82 – 84m…<21% of sales at mid-point…making

good progress towards our target of 20% of sales

Current Market Environment

• Demand remains robust and Q2 sales and gross margin are tracking to the high end

of the range

• Demand strength remains broad based across all regions

• Backlog continues to build for Q3 indicating seasonal strength is likely


Adjusted Revenue & GM%


Adjusted EPS

$0.10

$(0.02)

$(0.03)

$0.11

$0.21

$0.23 $0.25

$0.21 $0.16

$0.14

$0.27

$0.33

$0.19

$0.17

$0.27

$0.06

$(0.32)

$(0.03)

$0.12

$0.23

$0.25

$(0.40)

$(0.30)

$(0.20)

$(0.10)

$-

$0.10

$0.20

$0.30

$0.40

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

Q2

'08

Q3

'08

Q4

'08

Q1

'09

Q2

'09

Q3

'09

Q4

'09

Q1

'10

Ad

j EP

S $

Option expense included starting in Q1 06


Gross Margin ImprovementKey Drivers

• Growth of new product families with higher margins

• USB and Mutimedia Switches, HF Voltage Regulators, PT6 & 7 LV MOSFETs, Power Conversion T-Series, primary side regulator (PSR), SupreMOS, integrated power systems (SPM), IntelliMAX™

• Improved product mix

• Mix out standard products and older technology MOSFETs to free up capacity to support higher margin new products

• Manufacturing cost reductions and product redesigns

• Lean manufacturing techniques

• Capex spending < depreciation

• Convert to 8” wafers…Maine largely done, more to follow

• Fab process upgrades/shrinks for HV & LV MOSFETs, IGBTs and Power Conversion

• Close Mountain Top fab…current schedule Q2 2011

• Higher factory loadings


Balance Sheet ImprovementDisciplined Asset Management

• Q1 balance sheet is strongest in the history of the company:

• Cash and investments exceed debt

• Debt at lowest level in company history at $471m

• Internal inventory at near record low of 69 DOI

• DSO at very low 37 days

• Days of payables at normal level of 45 days

• S&P recently upgraded Fairchild’s corporate credit rating to BB from BB- with a stable outlook

• Generated record $129m FCF in 2009 and on track to deliver even greater FCF in 2010

• Primary focus remains investing in our business

• Reducing debt to increase operational flexibility is also a top priority


0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

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

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Internal Inventory DOI Distribution Inventory DOI

56

Fairchild Inventory TrendsTight Supply Chain Control Drives Inventory to Historic Lows

Higher ratio of A to C

runners enables

Fairchild to meet

customers needs at

historically lean

inventory levels


Capex TrendsContinued Discipline – 4 Qtr Rolling Average & 2010 Consensus

Capex budgets remain disciplined at 7 – 8% of sales for FCS & peer

group…still well below prior super-cycle peaks of 12%+

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 2010

FCS ONNN IRF NSM ISIL Average


-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Revenue 4 Qtr Rolling Depreciation 4 Qtr Rolling Capex

58

4 Qtr Rolling Depreciation vs Capex

Depreciation expense is returning to a

more normalized 6 – 8% of sales


Free Cash Flow % of Revenue


4 Qtr Rolling Free Cash Flow

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

4Q

tr R

olli

ng

Fre

e C

ash

Flo

w M

illio

ns

$


Debt Composition & Interest Trend

0

200

400

600

800

1,000

1,200

1997 1999 2001 2007 2008 2009 2010

Mill

ion

s

Term Loan Drawn Revolver High Yield Convert


Net Debt & Interest Trend

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

-$100.0

$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 2008 2009 2010

Net Debt Net Interest % of Revenue

Cash exceeds debt for

first time in our history!


Fairchild: The Power Franchise®

• Wireless convergence and energy efficiency mega-trends create huge market opportunities

• New products and better mix are driving improved margins

• Profitable sales growth in analog and power management products

• Better mix of products due to more new products and reduction of low margin business

• Product cost reduction driven by efficiency gains, fab shrinks, fab consolidation and new processes

• Reduced D&A due to consolidations and long term lower CAPEX spending

• Structural changes to reduce OPEX and improve earnings

• Earnings growth coupled with capex and working capital discipline expected to enable strong cash generation in 2010

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