Investors Conference

2009/2/5
 2008-2009 WW NAND Flash production

NAND Flash Monthly Production

800
700
8Gb Equiv. Mn units

600
500
400
300
200
100
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 83 86 89 93 104 119 126 142 160 179 210 223

2008 239 256 295 277 299 316 335 344 377 429 422 362
2009 336 318 339 431 495 531 552 577 596 616 630 644

2
CONFIDENTIAL
 Sufficiency vs. Price Forecast – NAND Flash 16Gb MLC
2 0 0 8 - 2 0 0 9 1 6 G b M L C P r ic e Fo r e c a s t
6 .0 30%
5 .5 25%
5 .0 20%
4 .5 15%

USD $
4 .0 10%
3 .5 5%
3 .0 0%
2 .5 -5 %
2 .0 -1 0 %
1 .5 -1 5 %
1 .0 -2 0 %
1Q08 2Q08 3Q08 O c t- 0 8 N o v- 0 8 D e c -0 8 J a n -0 9 F e b -0 9 M a r-0 9 Ap r-0 9 M a y- 0 9 J u n -0 9 3Q09 4Q09

S u ffi c i e n c y 1 9 .4 % 4 .2 % 1 0 .0 % 6 .7 % 3 .3 % 4 .4 % 2 .2 % 3 .3 % 3 .0 % 7 .3 % 1 6 .8 % 2 1 .7 % 8 .4 % 3 .9 %
C o n tr a c t p r i c e 5 .5 4 5 .1 4 3 .1 0 2 .1 2 1 .8 5 2 .0 4 2 .1 5 2 .5 0 2 .3 5 2 .3 0 2 .1 5 1 .9 0 1 .6 4 1 .9 0
S p o t p ric e 5 .2 3 4 .6 9 3 .0 2 2 .2 0 1 .9 2 1 .9 4 2 .4 0 2 .6 5 2 .5 0 2 .2 5 2 .0 5 1 .7 5 1 .6 2 1 .8 5

S o u r c e : i n S p e c tr u m T e c h . In c

2 0 0 9 3 2 Gb M L C P r ic e Fo r e c a s t
6 .0 30%

5 .5 25%
20%
5 .0
15%
USD $

4 .5 10%
4 .0 5%

3 .5 0%
-5 %
3 .0
-1 0 %
2 .5 -1 5 %
2 .0 -2 0 %
J a n (e ) F e b (f) M a r(f) Ap r(f) Ma y(f) J u n (f) J u l(f) Au g (f) S e p (f) O c t(f) N o v(f) D e c (f)
S u ffic ie n c y -2 .2 % -3 .3 % -3 .0 % 7 .3 % 1 6 .8 % 2 1 .7 % 1 2 .6 % 7 .9 % 4 .6 % -1 .0 % -8 .4 % -2 .1 %
C o n tra c t P ric e 4 .4 5 4 .9 0 4 .8 5 4 .7 0 4 .4 5 3 .6 5 3 .4 7 3 .2 5 3 .1 8 3 .2 7 4 .2 3 3 .9 0
S p o t P ric e 5 .0 0 5 .1 0 4 .9 0 4 .5 7 4 .1 0 3 .5 0 3 .3 5 3 .1 0 3 .4 0 3 .5 2 3 .8 8 3 .7 2

S o u rc e : in S p e c tru m T e c h . In c

3
CONFIDENTIAL
 NAND Flash Contract Price vs. Spot Price-16Gb MLC
1 6 G b M L C C o n t r a c t v s . S p o t p r ic e t r e n d
6 .0
5 .5
5 .0
4 .5
4 .0
3 .5
USD$

3 .0
2 .5
2 .0
1 .5
1 .0
0 .5
0 .0
02 24 16 08 01 23 17 10 02 24 16
6/ 6/ 7/ 8/ 9/ 9/ 0/ 1/ 2/ 2/ 1/
/0 /0 /0 /0 /0 /0 /1 /1 /1 /1 /0
08 08 08 08 08 08 08 08 08 08 09
20 20 20 20 20 20 20 20 20 20 20

S o u r c e : i n S p e c tr u m Feb. 2009 Spot C o n tr a c t

NAND Cost
Market
price Demand

Supply

2008/0 2008/0 2008/1 2008/1 2009 2009 2009

6 8 0 2 /1 /2 /3
4
CONFIDENTIAL
NAND Industry Supply Chain

A B C
NAND Market
NAND Flash Manufacturers
D E

Somebody WHO?

X Y Z End Market (Brand)

Brand names who need
V W constant product updates
to the market

CONFIDENTIAL
What It Takes from Raw NAND to Retail

NAND Buying
Controller R&D Power
Partnership Market
with NAND Makers Expertise Awareness
Product Level
Production
Skill & Capacity Somebody Design
(ID, Housing)
Who can deliver all?
System Level
New Product
Design
Wafer Level Innovation
NO OWN Packaging & Testing
BRAND

CONFIDENTIAL
Product Overview

USB SD/MMC CF/PATA SATA

PCIe Reader Embedded Smartcard

microSD

„ Phison designs controllers for all NAND Flash applications

CONFIDENTIAL
USB Drive & Memory Card

Controllers & Applications

USB Flash Drive Controllers

PS2251-37 PS2251-01
0.11u,
0.11u, QFP-
QFP-48/64
0.162u, QFP-
QFP-48, Mask ROM
Program RAM
Single Channel
(F/W Upgradeable)
Cost-
Cost-Down of PS2251-
PS2251-32
USB 3.0: 4.8 Gb/s I/F
MP Now
PS2251-39 12/16/24 Bit BCH ECC
0.11u,
0.11u, QFP-
QFP-48 ES Q4
PS2251-32 Mask ROM
0.162u, QFP-
QFP-48/64, QFN-
QFN-46 Single Channel
Mask ROM Cost-
Cost-Down of PS2233
Cost-
Cost-Down of PS2231 PS2251-33 12/16/24 Bit BCH ECC
MP Now 0.162u, QFP-
QFP-48/64 Supported NAND:
Program RAM 50+/40+/30+nm
8KB/Page
PS2231 (F/W Upgradeable)
12/16/24 Bit BCH ECC 3 Bit Per Cell
0.162u, QFP-
QFP-64 ES Now
Supported NAND:
Program RAM MP Feb/E
50+/40+/30+nm
(F/W Upgradeable)
8KB/Page
6/12 Bit BCH ECC
3 Bit Per Cell
Supported NAND:
MP Now
50+nm, 4KB/Page
SLC: 32/26 MB/s
MLC: 31/17 MB/s
MP Now

2009
Q4 Q1 Q3 Q4

CONFIDENTIAL
USB Security Controllers

PS2251-38
0.13u,
0.13u, QFP-
QFP-48/64
Program RAM
(F/W Upgradeable)
PS2251-63 OTP for Security Key
ISO 7816 Smart Card I/F
0.162u, QFP-
QFP-48/64
12/16/24 Bit BCH ECC
Program RAM
Supported NAND:
(F/W Upgradeable)
PS2231 On-
On-the-
the-Fly Data Encryption
50+/40+/30+nm, 8KB/Page
3 Bit Per Cell
0.162u, QFP-
QFP-64 AES 256 Bit
ES Jan/B
Program RAM FIPS 140-
140-2 Level 2 Compliant
MP Mar/B
(F/W Upgradeable) 12/16/24 Bit BCH ECC
On-
On-the-
the-Fly Data Encryption Supported NAND:
512 Bit RSA Authentication 50+/40+/30+nm, 8KB/Page
AES Hardware Encryption 3 Bit Per Cell
6/12 Bit BCH ECC ES Jan/B
Supported NAND: MP Feb/M
50+nm, 4KB/Page
SLC: 32/26 MB/s
MLC: 31/17 MB/s
MP Now

2009
Q4 Q1 Q2

CONFIDENTIAL
Phison USB – World No. 1
USB Flash Controller Market Share – 2007
(Revenue in Millions of Dollars)

Rank Suppliers 2007 MS 2007 Revenue

1 Phison 35.4% $32.3
2 Silicon Motion 23.2% $21.1
3 SanDisk 15.0% $13.6
4 Skymedi 9.0% $8.2
5 Sony 7.4% $6.7
6 Alcor Micro 3.2% $2.9
7 Toshiba 3.1% $2.8
8 Others 3.7% $3.4
Total 100% $91.1

* Source: iSuppli Corp. | May 2008

CONFIDENTIAL
SD Controllers

PS8009
0.11u
eSD 2.1
PS8007 Cost-
Cost-Down of PS8006
0.11u ES Apr/M
Single Channel MP Jun/E
PS8006 Cost-
Cost-Down of PS8006
DG2685 0.162u, LGA-
LGA-51
ES Jan/E
0.162u MP Mar/E
Program RAM
Single Channel (F/W Upgradeable)
Cost-
Cost-Down of PS8005 SD 2.0 (SDHC) Class 6
MP Now 12/16/24 Bit BCH ECC
Supported NAND:
50+/40+/30+nm
PS8005 8KB/Page
0.162u, LGA-
LGA-51 3 Bit Per Cell
Program RAM MP Now
(F/W Upgradeable)
SD 2.0 (SDHC) Class 6
6/12 Bit BCH ECC
Supported NAND:
50+nm, 4KB/Page
MP Now
2009
Q4 Q1 Q2 Q3

CONFIDENTIAL
Excellent Card-Host Compatibility

„ Phison SD solution: 2110 hosts passed (list updated weekly)

CONFIDENTIAL
eMMC Controllers

PS8200
0.11u
Program RAM
(F/W Upgradeable)
eMMC/JEDEC
eMMC/JEDEC 4.4 (DDR I/F)
PS8009 12/16/24 Bit BCH ECC
0.11u ES May/E
eMMC/JEDEC
eMMC/JEDEC 4.3 MP Aug/E
Cost-
Cost-Down of PS8006
PS8006 ES Apr/M
MP Jun/E
0.162u, LGA-
LGA-51
Program RAM
(F/W Upgradeable)
SD 2.0 (SDHC) Class 6
eMMC/JEDEC
eMMC/JEDEC 4.3
12/16/24 Bit BCH ECC
Supported NAND:
50+/40+/30+nm
8KB/Page
DG2682 3 Bit Per Cell
0.162u MP Now
eMMC/JEDEC
eMMC/JEDEC 4.3
MP Now

2009
Q4 Q1 Q2 Q3

CONFIDENTIAL
Smart microSD Card

V Same form factor and

Interface as microSD
V Specially designed
controller inside
V Combination of proven
Flash I/F
NAND storage and Nand Flash
Security technology Phison
ISO7816 controller
V Products are already Smartcard Chip

in mass production
and shipment

CONFIDENTIAL
Smart microSD Business

Telecom Transportation Healthcare Mobile Payment Mobile TV

Services Provider
Existing
Business

Secure Services Provider

New Business
Smartcard IC supplier

CONFIDENTIAL
SSD Controller & Solutions

PS3016 Series
Embedded Storage for System Products
„ NAND becoming mainstream storage
- PC, Laptop, Low-cost PC, UMPC, MID
- Industrial PC
- Cellular, GPS, PDA, Audio/Multimedia player

„ Embedded NAND opportunities via

different interfaces to host processor
- SD/MMC
- IDE/PATA
- LBA: Raw NAND
- SATA
- PCI Express

„ Phison has a complete lineup of

controllers for various host-to-NAND
interfaces
- Each controller supports all types of NAND

„ Ease NAND Flash design-in effort for

system makers

CONFIDENTIAL
IDE/Parallel ATA/CF Controllers

PS3016-P8
0.11u, QFP-
QFP-128
PS3016-P7 Program RAM
0.162u, QFP-
QFP-128 (F/W Upgradeable)
Program RAM Cost-
Cost-Down of P7
(F/W Upgradeable) ES May/B
Ultra DMA Mode 6 MP Jul/E
CF 4.1
PS3016-P6 28/32/48 Bit BCH ECC
0.162u, QFP-
QFP-100 Supported NAND:
Program RAM 50+/40+/30+nm
(F/W Upgradeable) 8KB/Page
Ultra DMA Mode 6 3 Bit Per Cell
CF 3.0 4-Channel Operation
6/12 Bit BCH ECC MLC: 72/42 MB/s
Supported NAND: ES Now
50+nm, 4KB/Page MP Jan/M
Low-Cost PC SSD MP Now
Module with P6
2009
Q1 Q2 Q3

Phison PATA solution has design wins in many Tier 1 system

maker products: Laptop, low-cost PC, UMPC, MID

CONFIDENTIAL
SATA Controllers

PS3016-S5
0.13u
PS3016-S3 Program RAM
90nm (F/W Upgradeable)
Program RAM Cost-
Cost-Down of S3
(F/W Upgradeable) ES Aug/E
SATA I/II I/F Support MP Oct/E
SATA 2.5 Compliant
SATA PHY Embedded
PS3102 32 Bit ARC CPU
DRAM Cache (DDR)
0.18u, QFP-
QFP-128
28/32/48 Bit BCH ECC
Program RAM
Supported NAND:
(F/W Upgradeable)
SATA I/II I/F Support 2.5’’ SATA SSD ONFI 2.0 High Speed
Toggle NAND
SATA 2.5 Compliant
50+/40+/30+nm
SATA PHY Embedded
8KB/Page
6/12 Bit BCH ECC
3 Bit Per Cell
Supported NAND:
8-Channel Operation SATA Flash Module
50+nm, 4KB/Page
MLC: 220/140 MB/s
4-Channel Operation
ES Mar/M
MP Now
MP May/E

2008 * HD Bench Data 2009

Q3 Q4 Q1 Q2

CONFIDENTIAL
PCI Express Controller
PS3016-E2
0.11u
Program RAM
(F/W Upgradeable)
PS5000 PCI Express 1.1
0.18u, BGA- Traffic Based Flow Control
BGA-256
Program RAM Leverage Existing PATA Driver
(F/W Upgradeable) Hardware Based PATA DMA
PCI Express 1.1 32 Bit ARC CPU
Traffic Based Flow Control DRAM Cache (DDR2)
Leverage Existing PATA Driver 28/32/48 Bit BCH ECC
Hardware Based PATA DMA Supported NAND:
12/16/24 Bit BCH ECC ONFI 2.0 High Speed
Supported NAND: Toggle NAND
50+/40+/30+nm 50+/40+/30+nm
8KB/Page 8KB/Page
3 Bit Per Cell 3 Bit Per Cell
4-Channel Operation 8-Channel Operation
ES Now MLC: 220/140 MB/s
MP Feb/B ES Aug/B
MP Oct/E

Phison owns key patents on storage device with PCIe Interface

US Patents: 7356637, 7225289; Taiwan: I267746
2009
Q1 Q2 Q3 Q4

CONFIDENTIAL
Industrial Design Innovation
Phison Design Team

„ The team handles over 40 cases per year

„ We provide integrated services and total solution –

From ID, mechanical, mold design to mass production

CONFIDENTIAL
How We Work

In each phase, engineering teams work together to ensure design and production quality

CONFIDENTIAL
Why Phison?
Leader in NAND Flash Controller Technology

„ NAND Flash: The fastest-growing semiconductor market

in history

„ Phison is no regular controller design house

- Vertical integration for one-stop service
- Partnering Aptos to deliver exciting turnkey products
- Better understanding of market

„ Much more than a memory module company

- Create fascinating applications based on controller technology
- Direct engineering collaboration with NAND companies
- Strong R&D support to penetrate specialized markets

„ Market can’t wait….

Phison technology enables NAND Flash and bring the best

products to the market

CONFIDENTIAL
SWOT analysis – Phison
‧ 同時掌握 Controller 和終端產品 ‧ 沒有品牌，產品單價較低
（含封裝）技術，容易開發各種差 ‧ 需要較多資金以購買 NAND Flash
異化的產品，提高單價
‧ 同時是 NAND Flash 廠商的客户和

關係
S
供應商，容易與之建立密切的夥伴

‧ 全球所有 NAND Flash 品牌產品供

應商都是客户/潛在客户
‧ 容易取得最新 NAND Flash 規格
W
‧ 只要能及早開發對應之 ‧ 新的非揮發性記憶體，排除
Controller，就能搶先利用新一代 Controller 的需求
NAND Flash 賺取高利潤 ‧ 專利干擾
‧ MLC NAND Flash 已成主流，各種

Controller
O
嵌入式應用都必需依賴各式的

‧ 愈來愈多品牌廠商以直接購買成品
降低後勤成本
T
‧ 新的整合型 NAND Flash 需求

CONFIDENTIAL