1Inphi Proprietary

Inphi Moves Big Data Faster

Inphi Corporate Update

February 4, 2020

2Inphi Proprietary

Safe Harbor Statement and Non-GAAP Financial Measures

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3Inphi Proprietary

Inphi Corporate Presentation

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Inphi at a Glance

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Inphi Snapshot: Lead in Physical Layer Data Movement

Focus on optical and networking physical layer solutions

Serve Cloud and Telecom customers and markets

Differentiate with broadband linear amplification and higher order modulation opto-electronic solutions

Core competence in high-speed analog, DSP, optics and packaging

Protect our Intellectual Property with 818 patents, trade secrets

Invest for growth with 85% headcount in engineering

Notes: Company data per human resources & legal reports 1/2020

6Inphi Proprietary and Confidential

Inphi Global Locations: Support Customers and Attract Talent

Inphi HQ:Santa Clara, CA

Design CentersUSA: Irvine, Santa Clara, Westlake Village

Canada: Ottawa, VancouverArgentina: Cordoba

Europe: Barcelona, Bucharest, Hanover, Northampton, Pavia

Asia-Pacific: Ho Chi Minh, Singapore

Sales & SupportUSA: Austin, Boston, Chicago, Folsom, Raleigh,

Santa Clara, Westlake VillageEurope: Berlin, Munich

Asia-Pacific: Beijing, Hsinchu, Shanghai, Shenzhen, Tokyo, Wuhan

OperationsUSA: Santa Clara,

Westlake Village

Asia-Pacific: Malaysia, Shenzhen, Singapore, Taiwan

Worldwide Offices in North America, Asia-Pacific, Europe

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Inphi: Trends Fueling Our Growth and Markets

8Inphi Proprietary

Social

5G Wireless

Cloud

Mixed, Virtual, Augmented Reality

Artificial Intelligence

New Media / Video

Data and Traffic

e-Commerce

IoT

▲44%Cisco Global Cloud Index

Cisco IoT White Paper

▲107%

Cisco Visual Networking Index

▲33%

eMarketer

▲12%

BCC Research▲17%

Nokono▲ 23%

IDC

▲37%

IDC

▲70%

CAGR data from various industry sources and Inphi estimates

Multiple Trends Fuel Exponential Data and Traffic Growth

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Explosion of Data and Traffic Drives Optical Market

$400M $1.2B$400M

Source: Light Counting, June 2018

Sales of Optical Interconnects ($M)

10Inphi Proprietary

Cloud

Inphi Provides Differentiated Solutions for Cloud & Telecom

Telecom

Coherent transmission >40km Long Haul: 1,000s km Metro: 600 km 5G: Backhaul 300km, Fronthaul 10km Access, Cable: 10-40 km

PAM is a once in a multi-decade change in data transmission

Inside data centers: 7m-10 km

Between data centers: 10-120 km

Fastest Speeds – Any Media / Any Distance

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Inphi Products and Technology

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Inphi Leads in Physical Layer Data Movement for Cloud and Telecom Customers

Analog, DSP, Optics

Processing

Storage

Networking

Switching,Routing, NIC

CPU, GPU, AI

Physical Layer

Storage, Memory

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Inphi Leads in Physical Layer Offerings across Multiple MarketsTelecom

Long Haul / Metro5G / Access / Cable

CloudInside Data Centers Between Data Centers

Coherent DSP, TiA, Driver

PAM DSP, TiA, Driver

DWDM Optical Module

Silicon PhotonicsRetimers, Gearbox

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Low PowerHigh Performance

Long Reach

Fast Time-to-market

Competitive Cost

Dedicated Customer Support

Best Quality

Inphi Provides Complete Electro-Optics PHY Platform for Customer Success

PAM DSPCoherent DSP

SiPhoor

Partner Optics

DriverTiA

Physical Layer Platform

15Inphi Proprietary

Inphi = Faster, Better, Cheaper Physical Layer

Physical Layer Higher Order Modulation

More Data

Faster SpeedsHigher Frequencies

Complete PlatformTiA + Driver + DSP + SiPho

Longer ReachDSP + FEC

More Cost EffectiveDSP + Optical Platform

Higher DensitySilicon Photonics

Lower PowerDSP + SiPho +

Advanced CMOS

16Inphi Proprietary

Higher Order Modulation = More Data, Higher Density, More Cost Effective Optics

Analog NRZ

1X

PAM 4 DSP

2X

Encoding

Inside DC / 5G

Coherent DSP8X for 16QAM

ZR / Long Haul-Metro

1980-2018 2019-2029

(2 bits/symbol)

(4 bits/symbol, dual polarization)

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World Class Operations at ScaleBest

Quality

Inphi + eSilicon Lead in 2.5D Electro-Optics for Cloud + Telecom Customers

PAM SerDes

DSP

TiA, Driver

Silicon Photonics

2.5D Packaging

Custom Silicon

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Inphi Awards and Innovation

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Fujitsu

Inphi Recognized for Excellence: 19 New Awards for Quality & Technology in 2017-2019

2015

ECN ImpactNeoPhotonics

Supplier of the Year2015

SumitomoAwards

of Excellence Huawei

Best Quality Company

FiberHomeCore Partner

Cisco LightWave InnovationSumitomo Electronics Device Innovation (SEDI)

20152013

Best Partner Awards2013-2016

Quad Linear Driver

2014

PAM42016

2015

Excellence in Emerging Technology

Innolight

2015

COLORZCOLORZ®400GbE

2018

16nm Polaris™2017

2017 20182017

2017

2017 20172018

Best Delivery

20182017

Hisense

2019

Innovation

2018

Best Technical Support

Supplier of the Year

2019

Distinguished Partner

TechnicalAdvancement

2019Porrima™

2019

H3C

Best Cooperation

PAM42016 2017

PAM4 PlatformsOutstandingContribution

2019

2019

Supplier of the Year

20Inphi Proprietary

200140G Differential Driver

Modulator Driver+

40G TIA

200928G Coherent TIA

+28 Gbps Differential Modulator Driver

201228G CMOS SERDES

+32G Linear

Modulator Driver

201445G Linear

Modulator Driver +

45G Coherent TIA +

PAM

2016COLORZ for 80km DWDM

+SiPho Platform for 100G Data Center

+Shipped 1M 100G

Coherent Amplifiers & Drivers+

64G Coherent TIA+

Lowest Power CDR+

400G CFP8 Platform(28nm PAM DSP / Driver / TIA)

2015Smallest Form Factor

+SMT Linear Driver

+PAM 4

201764G Coherent Driver

+28G EML Linear Driver

+PolarisTM Platform

(16nm PAM DSP / Driver / TiA)+

M200 Low power Coherent DSP for Metro & Long Haul

+VegaTM DSP

16nm Retimer & Gearbox for LineCards

2018Porrima Platform

(Porrima 100/400G DSP + Driver + TiA)+

28G MMF Linear TiA + VCSEL Driver+

56G TiA & Driver+

CFEC Adopted as OIF ZR Standard

History of Delivering Leading Edge Products

2019Porrima 400G PAM4 Production

+2nd Gen Porrima with Integrated CMOS Driver

+56G TiA & Driver

2020CanopusTM First 7nm Coherent DSP

100/200/300/400G+

ColorZ II First 400ZR QSFP-DD Transceiver+

CapellaTM 7nm 56G SerDes

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Market & Financials

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Large Total Addressable Market (TAM)

Millions of 10 /40 / 50 / 100 / 200 / 400 / 600G Ports

Source: Inphi Estimates based on various market data

$4 Billion Interconnect TAM in 2022

100s Ks Ports10s Ks COLORZ Ports 100s Ks Coherent

ZR/ZR+Ports

Millions of PAM Ports 500K Ports

Coherent > 40kmPAM < 40km

TelecomLong Haul / Metro5G / Access / Cable

CloudInside Data Centers Between Data Centers

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49% 44% 37% 39% 40%51%

56% 63%

61%

60%

2018 2019 2020 2021 2022

$500

$894$1165

$2010

$3008Served Available Market, SAM ($M)

Telecom

DC

SAM grows 6X from ‘18 to ‘22, faster than TAM growth

SAM Grows Faster than TAM by Increasing Exposure to Cloud Customers

Source: Inphi Estimates based on various market data

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2019 Marks a Return to Revenue Growth

$36 $43

$100

$193

$266

$348

$295

$366

2012 2013 2014 2015 2016 2017 2018 2019

Inphi Revenue ($M)

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eSilicon Provides Team, Customers and Financial Synergies

Revenue Growth Acceleration

Scale to Invest for Customer/Partner Success+

Operating Leverage+

EPS Accretion and Acceleration=

+$440M*

>$500M

~$100M**

* 2020 consensus revenue estimate courtesy of NASDAQ** Company guidance at the midpoint on February 4, 2020

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Solid Financial Model

Q4’18 Q3’19 Q4’19 Long-Term Model

Gross Margin 69.3% 70.2% 69.2% 70% - 72%

R&D 35.8% 36.6% 37.3% 28% - 31%

SG&A 9.8% 10.9% 9.2% 10% - 12%

Op. Margin 23.7% 22.7% 22.7% 26% - 29%

Effective Tax Rate 2.6% 1.5% 4.8% 8% - 10%

Net Income 23.7% 22.8% 22.4% 24% - 27%

Non-GAAP

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PAM Inside Data Centers, DCI Edge Solutions Between Data Centers

Cloud Market:

The Data Center is the Computer™&

The Cloud is the Network™

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Cloud Leadership Inside DCs with PAM DSP, TiA, and Driver

The Data Center is the Computer™

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Inside Data Center 100G+ Port Count

LightCounting: LC Ethernet Forecast, September 2018

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2016 2017 2018 2019 2020 2021 2022 2023

100/200/400GbE Port Count

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-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Ethernet Optical Ports

Ethernet Switch / Optical Port Ramp by Speed

LightCounting: LC Ethernet Forecast, September 2018

10GSFP+

40GQSFP+

100GQSFP28

10G

100G

200G/400G

40G

200/400GQSFPDD/OSFP

31Inphi Proprietary

3.2T

2016

128 x 25Gbps(NRZ)

SwitchHost Speed2x in 2year

Switch ASICs

ModuleBandwidth 100G

Switch ASICs

12.8Tb

256 x 56Gbps(PAM4)

2019

200/400G

25.6Tb

512 x 56Gbps(PAM4)

2021 2022

256 x 112Gbps(PAM4)

Switch ASICs

Switch ASICs

400G 800G

51.2Tb

2024

512 x 112Gbps(PAM4)

Switch ASICs

800G+

Module SerDes PAM4

Retimer

56Gbps

56Gbps

PAM4Gearbox

112Gbps

56Gbps

PAM4Retimer

56Gbps

56Gbps

PAM4Gearbox

112Gbps

56Gbps

PAM4Retimer

112Gbps

112Gbps

PAM4Retimer

112Gbps

112Gbps

NRZRetimer

25Gbps

25Gbps

Higher Density Switching Drives Need for Faster I/O

32Inphi Proprietary

Inside Data Centers: Distances, Speeds Drive Transition to DSPs

Flexible reach with Single Mode Fiber & Multimode FiberCost Effective DSP-based PAM4 Optical Interconnects

Source: Corning

Mega-Scale Data Centers

7m to 2km connections

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Data Center Transition to Optical Physical Layer

Source: Inphi Estimates, Crehan Research, 2018

1G 10G 25G 40G 50G 100G 400G

BASE-TFiber / DAC

0%

100%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Estimated Capture Rate by Optical into BASE-T PHY Share

BASE-T PHY

34Inphi Proprietary

Inphi PAM DSP Drives Inside Data Center Connectivity

Driving Front Panel & Backplane

Leading the Market: PAM DSP / FEC / SerDes

Enabling IP / ASICInside Optical Modules

35Inphi Proprietary

Inphi PAM4 DSPs Lead the Inside DC Interconnect Market

Highest Performance PAM4 DSP

Integrated EML/VCSEL/SiPho

Drivers

10G-400G Backplane Retimer

IEEE FEC/PCS

50/100/200/400G QSFP-DD / OSFP

Optics

Platform Solutions with TiA/Driver for VCSEL,

DML, EML, SiPho

36Inphi Proprietary

Inphi Delivers Multiple Generations of PAM4 DSP

28nm

16nm

7nm

Multiple Generations

25GNRZI/F

50GPAM4

I/F

28Gbaud Optics

Host ASIC25G NRZ

I/O

Optical Module

PAM4 DSP

50GPAM4I/F

50GPAM4

I/F

28Gbaud Optics

Host ASIC50G PAM4

I/O

Optical Module

50GPAM4I/F

100GPAM4

I/F

56Gbaud Optics

Host ASIC50G PAM4 I/O

Optical Module

100GPAM4I/F

100GPAM4

I/F

56Gbaud Optics

Host ASIC100G PAM4I/O

Optical Module

PAM4 DSP

PAM4 DSP

PAM4 DSP

37Inphi Proprietary

Cloud Leadership Between DCs with Silicon Photonics, DCI Edge Solutions

The Cloud is the Network™

38Inphi Proprietary

Data Center Moving Towards Distributed Architecture

Distributed Metro Data Center

DWDM Bandwidth (<120km)

Peta

bit/s

5 year CAGR: 55%

0

140

Source: Cignal AI 2019 & Inphi Estimates 2019

39Inphi Proprietary

Microsoft is very clear on the benefits of COLORZ

Mark Russinovich, CTO, Azure, Microsoft Ignite 2017

40Inphi Proprietary

Silicon Photonics Enables Robust Platform Solution, Lower Power, Higher Density

Optics

Silicon Photonics

Analog

Linear Driver and TIA

DSP

PAM DSP, High Speed SERDES

Quality

Validation and Manufacturability

Inphi COLORZ Leading Volume Shipments for 100G IP over DWDM

29%

2018 DCI Market Share by Port Count

Source: Cignal AI & Inphi estimates November 2018

41Inphi Proprietary

COLORZ Surpasses Significant Milestone of 100,000 Units Shipped

Industry first QSFP28 DWDM optical module

100k

2016 2017 2018 2019

Cumulative COLORZ Unit Shipments

42Inphi Proprietary

Pluggable Optics Enable Low Cost IP over DWDM

2010 2014 2016 2019

Inphi COLORZ100G QSFP28

PAM DWDM

OTN Transport

Source: Inphi estimates

Switch & Router Pluggable Optics enable IP over DWDM

“DCI Box”

COLORZ II400G-ZR QSFP-DD

Coherent DWDM

43Inphi Proprietary

Coherent DWDM

COLORZ II Benefits – Reinventing DCI with Lowest Cost & Power, Higher Density

400G FR4

400G FR4

400G FR4

400G FR4

COLORZ II 400ZR Eliminates 2 Gray Modules & Box

“Shrinks” DCI Box Layer into Pluggable Module

Switch/Router

44Inphi Proprietary

DCI – Campus5km

DCI – Edge120km

DCI – Metro/Long Haul120km ~ 3,000km

5G Backhaul/Core

BBU

5G

5G

5G

5G Midhaul, AnyhaulRRH

Expanding DCI … With ZR+ and ZR-

Cable,Access

45Inphi Proprietary

Coherent DSP, Coherent TiA and Driver

Telecom Market (including 5G & Cloud Between DCs):

46Inphi Proprietary

440

980

2018 2022

Inphi Coherent DSP, TiA, Driver Lead Telecom in Going Back to Growth

New Products + Markets/Customers + Increased Share

Coherent DSP 64G TiAs, Drivers

Line Card Customers Module Customers Optical SubsystemCustomers

Company Data and Research Estimates, July 2019

100G+ Port Shipments22% CAGR 2018-2022

47Inphi Proprietary

Telecom: Leadership in Coherent DSP

48Inphi Proprietary

M200 Coherent DSP Leads with Highest Performance

Differentiates withhighest performance

16nm SoC for 100G & 200G

Low power technology

EnablesCFP DCO, CFP2 DCO,

MSA, Line Cards

Framer & encryption integrated

Strategic partner for leading system OEM

customers

49Inphi Proprietary

Comprehensive Inphi product offering: Coherent DSP, TiAs and Drivers

Inphi Supports Discrete, DCO and ACO Customers

High Performance Line Cards - Discrete

Modulator

Hybrid Optics

DSP Laser

Modulator

Hybrid Optics

DSP Laser

Modulator

Hybrid Optics

DSP Laser

Modulator

Hybrid Optics

Laser

ACO modules

Modulator

Hybrid Optics

DSP Laser

Modulator

Hybrid Optics

DSP Laser

DCO modules

TIA

TIA

TIA

TIATIA

TIA

Driver

Driver

Driver

Driver

Driver

Driver

DSP

50Inphi Proprietary

Long Haul / Metro100km-2000km

DCI120km

Inphi Coherent DSP Expands Telecom Markets

Cable Networks100km

5G40-200km

Highest BW efficiency

DSP PHY removes Fiber Chromatic Dispersion

Works on existing Fiber Infrastructure

Only viable technology for 40km-10,000km

Coherent TechnologyEnabled by DSP

51Inphi Proprietary

Future Paradigm for DCI Modular: 400G ZR in QSFP-DD or OSFP

7nm DSP

400G QSFP-DD

QSFP-DD Enables Routers/Switches

with Coherent Tech

Lowest powerLowest cost

Most space efficient

7nm DSP

52Inphi Proprietary

Telecom: Leadership in Coherent TiA/Driver

53Inphi Proprietary

Inphi Supports Customer Transition to Disruptive New Encoding

NRZ

2006 2010 2014 2019

QPSK 16QAM 64QAM

TiA

Driver Limiting Limiting

Linear LinearLimiting Linear

Linear Linear

Encoding 6X2X 4X1X

54Inphi Proprietary

Broadband + Linear = High Barriers for Entry

Next-Gen 64GBaud TiA

64GBaud Linear Driver

100G / 200G / 400G / 600G

55Inphi Proprietary

PAM4 Transition: A Once in Multi-Decade Opportunity

Analog NRZ

1X Encoding

PAM 4 DSP

2X

2019-20291980-2018

56Inphi Proprietary

0.0

1.0

2.0

3.0

4.0

5.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

5.2M Coherent Units Shipped > All Competitors Combined

Industry First 200G Driver

Industry Smallest SMT 100G Driver

Industry First 100G TiA

Coherent TiA/Driver Cumulative Shipments (M Units)Industry First 400G/600G Driver

Industry First 400G/600G TiA

All references relate to coherent TiA/driver

Industry First Smallest Bare Die 400/600G Driver

57Inphi Proprietary

Inphi Moves Big Data Faster