Inphi Moves Big Data Faster
Inphi Corporate Update
May 2, 2017
Safe Harbor Summary
This presentation is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not
constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful. The notes and
the shares of Inphi Corporation common stock issuable upon conversion of the notes, if any, will not be registered under
the Securities Act of 1933, as amended (the “Act”) or any state securities laws, and unless so registered, may not be
offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and
applicable state laws. Any purchaser of such securities will be deemed to have made certain representations and
acknowledgments, including, without limitation, that the purchaser is a “qualified institutional buyer” as defined in Rule
144A under the Act.
This presentation includes forward-looking statements relating to matters that are not historical facts, including, without
limitation, statements regarding the expected terms of the notes, the timing and expected use of the net proceeds of the
proposed offering, Inphi’s short and long term growth strategies, trends in IP traffic and technology adoption, the future
sizes and anticipated growth of the networking infrastructure, cloud computing and data center markets, and the scaling of
memory capacity with CPU cores. In some cases, such forward-looking statements are identified by words such as
“anticipate,” “believe,” “plan,” “estimate,” “expect,” “strive,” “future,” “intend” and similar expressions. Although Inphi’s
management believes that the expectations reflected in the forward-looking statements are reasonable, such statements
involve known and unknown risks, uncertainties and other factors that may cause Inphi’s actual results to be different from
any future results expressed or implied by these statements, including the risks and uncertainties described in the
preliminary offering memorandum relating to the proposed offering report, and other filings with the U.S. Securities and
Exchange Commission made from time to time. We caution you that no forward-looking statement is a guarantee of future
performance, and you should not place undue reliance on these forward-looking statements which reflect the view of
Inphi’s management only as of the date of this presentation. We assume no obligation to, and expressly disclaim any
obligation to, update any forward-looking statements contained in this presentation as a result of new information or future
events or developments.
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP
financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in
accordance with U.S. GAAP. See the Appendix for a reconciliation between each non-GAAP measure and the most
comparable U.S. GAAP measure.
Inphi Proprietary
2
Inphi Leads in Optical and Networking Physical Layer
Non-GAAP Revenue ($M)*
Focus on high-speed data movement interconnects
$266
$193
Serve cloud, enterprise and service provider markets
$100
Differentiate with broadband linear amplification and higher
modulation opto-electronic solutions
$35
$43
2012
2013
2014
$94
2015
2016 Q1'17
Non-GAAP EPS
Core competence in high-speed analog, DSP and optics
$1.51
539 patents: high-speed analog and package design
$0.93
$0.44
$0.30
Invest for growth with 75% engineering
2014
2015
2016
Q1'17
Notes: Company data per human resources & legal reports 3/2017 and finance reports 5/2/2017
*Pro-forma, Non-GAAP revenue adjusted for continued operations of the sale of the memory business
Inphi Proprietary
3
Inphi Global Locations Support Customers and Attract Talent
Worldwide Offices in North America, Asia-Pacific, Europe
Inphi HQ:
Santa Clara, CA
Design Centers
Sales & Support
Operations
USA: Irvine, Santa Clara,
Westlake Village
Canada: Ottawa, Vancouver
Argentina: Cordoba
United Kingdom: Northampton
Europe: Hanover
Asia-Pacific: Singapore
USA: Austin, Chicago, Folsom,
Kansas City, Raleigh
Santa Clara, Westlake Village
Europe: Milan, Munich
Asia-Pacific: Beijing, Hsin-Chu,
Shanghai, Shenzhen, Wuhan, Tokyo
USA: Santa Clara,
Westlake Village
Inphi Proprietary
Asia-Pacific: Malaysia,
Singapore, Taiwan
4
Data and Traffic Are Growing Exponentially
Trends, Dec. 2015
IoT
Cloud Services
▲44%
Cisco Global
Cloud Index
▲107%
Cisco IoT
White Paper
Data and Traffic
Explosion
Video
▲33%
Smartphone Users
▲ 23%
Cisco Visual
Networking Index
Nokono
Social
Big Data
▲23%
IDC
▲12%
e-Commerce
▲10%
eMarketer
IDC
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Notes
1. Smartphone users as of 2015
2. CAGR calculated from 2014 – 2019, for sources refer the references section
3. Social Media users CAGR 2010-2020 estimate
5
New Trends Fuel Further Data and Traffic Growth
New End User Trends, Oct. 2016
Secure Cloud
Autonomous Vehicles
Data and Traffic
Explosion
5G Wireless
New Media
Chatbots
Mixed, Virtual,
Augmented Reality
Artificial Intelligence
Inphi Proprietary
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Inphi Solves Data Movement Between & Inside Data Centers
“The Data Center is the Computer™”
Inside DC
500m-2km
Cloud Hardware
and SoftwareNetwork
Layer
Aggregation
“The Cloud is the Network™”
Connecting
Data Centers
DCI Long Haul >600km
DCI Metro 100km-600km
DCI Edge 2km-100km
Cloud Hardware
and SoftwareNetwork
Layer
Aggregation
“The Data Center is the Computer™”
Inphi Proprietary
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Inphi Leads in Data Movement Interconnects
Data Manipulation
Data Movement
Processor, GPU, NIC, Switch
Optical, Networking
Digital
Analog, Mixed Signal, DSP
Inphi Proprietary
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Inphi Leads in Data Movement Interconnects
Long Haul / Metro
Data Movement Around the Globe
Optical
Amplifier
Optical
Driver
Coherent
DSP
Between Data Centers
Data Movement Between Data Centers
Silicon
Photonics
DWDM
Optical Module
Reference Design
Inphi Proprietary
Inside Data Centers
Data Movement Inside Data Centers
CDR/PHY
Gearbox
PAM
9
Large Total Addressable Market (TAM)
Long Haul / Metro
Between Data Centers
Inside Data Centers
90 Million 10G/40G/100G Ports
Service Providers
Data Centers
Cloud
Enterprise
$3 Billion Interconnect TAM in 2019
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Note: 2016 data from Cignal AI, Crehan Research, LightCounting,
HIS and Inphi Estimates
10
Provide Complete Component Solution for Optical Platform
Long Haul / Metro
Data Center
Partner Optics
Partner
Optics
SiPho
TiA
TiA
Driver
Driver
High Performance
Coherent DSP
Low Power PAM DSP
Inphi
*
Inphi Proprietary
Partners
11
Building an “Annuity” Infrastructure Business
Transimpedence Amplifier (TiA)
Optical PHY: Gearbox, CDR, PAM
Driver
ColorZ
Coherent DSP
2013
2014
2015
2016
Inphi Proprietary
2017
2018
2019
12
Data Movement Interconnect Market Has Multiple Growth Vectors Ahead
China
Telecom Operator
North America
Telecom Operator
Cloud,
MSDCs
Enterprise
Data Centers
2016
National
Backbone,
100G Client CFP
100G Long Haul,
100G Client CFP2
100G
Inside DC
2017
Provincial
Tier 2/3 Cities,
100G Client CFP2
200G Metro
ColorZ, 100G
Between DC
40G
2018
200G Metro,
5G Wireless
400G
LH/Metro/Client
200/400G,
Inside, Between DC
100G
Inphi Proprietary
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Deliver Consistent Revenue Growth
Non-GAAP Revenue $M
$300
$266
$250
$193
$200
$150
$100
$94
$100
$50
$35
$43
$0
2012
2013
2014
2015
2016
Q1'17
*Pro forma. Non-GAAP revenue adjusted for discontinued operations of the sale of the Memory Business
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Consistent and Growing Profitability
Non-GAAP
Operating Margin
EPS
$1.51
27.1%
23.1%
22.4%
$0.93
9.0%
$0.44
$0.30
2014
2015
2016
Q1'17
2014
2015
2016
Q1'17
*Pro forma. Non-GAAP, adjusted for discontinued operations of the sale of the Memory Business
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Inphi Strong Leadership from Comms/Optical
Ford Tamer
President and CEO
John Edmunds
SVP, CFO
Loi Nguyen
Founder, SVP, Optical Interconnect
Oscar Agazzi
VP Engineering, Coherent DSP
Sudeep Bhoja
CTO, Networking Interconnect
Radha Nagarajan
CTO, Optical Interconnect
Charlie Roach
SVP, Worldwide Sales
Siddharth Sheth
SVP, Networking Interconnect
Ron Torten
SVP, Operations and IT
Lawrence Tse
SVP, Engineering
Nariman Yousefi
SVP, Coherent DSP
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Inphi Recognized for Excellence
Cisco
Huawei
FiberHome
Sumitomo
New Emerging
Technology Supplier
Best Quality
Company
Core Partner
Awards of Excellence
2015
2015
2013
2015
Sumitomo Electronics
Device Innovation (SEDI)
2015
Best Partner
Awards
2013-2015
LightWave
NeoPhotonics
Supplier of the Year
2015
Innovation Awards
2017
2017
2016
400GbE PAM 4
Platform
ColorZ
PAM4
ECN
GSA
Impact Awards
Needham
Favorite
Semiconductor
Company
2015
2014
2016
Quad
Linear
Driver
PAM4
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Deloitte
Fast 500
Technology
Company
2016
17
Innovation Drives Customer Success
2017
64G Coherent Driver
+
28G EML Linear Driver
+
TM
Polaris Platform
(16nm PAM DSP / Driver / TiA)
+
Low power Coherent DSP for
Metro and Long Haul
2012
2001
40G Differential Drive
Modulator Driver
+
40G TIA
28G CMOS SERDES
+
32G Linear
Modulator Driver
2014
45G Linear
Modulator Driver
+
45G Coherent TIA
+
PAM
2016
ColorZ for 80km DWDM
+
SiPho Platform for
100G Data Center
+
Smallest
Shipped 1M 100G
Form Factor
Coherent Amplifiers
+
& Drivers
SMT Linear Driver
+
+
64G Coherent TIA
PAM 4
+
Lowest Power CDR
+
400G CFP8 Platform
(28nm PAM DSP / Driver / TIA)
2015
2009
28G Coherent TIA
+
28 Gbps Differential
Modulator Driver
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Long Haul / Metro:
The Cloud is the NetworkTM
100G/200G Adoption is Accelerating in Long Haul & Metro
823
646
484
41% CAGR 2014-2020
352
254
167
103
100G & 200G Long Haul & Metro Coherent Ports (KU Ports)
December 2016
2014
2015
2016
2017
2018
2019
2020
Source: IHS (Infonetics) and Company Estimates, December 2016
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Inphi Leads Transition from Limiting to Linear
10G
TIA
Driver
40G
100G
200G
400G
1T
Linear
Limiting
Linear
Limiting
100%
Estimated market share of
Linear Drivers for 100G – 1T
80%
60%
Prior Estimate
July 2015
40%
20%
0%
2012
Limiting
2013
2014
2015
Inphi Proprietary
2016
2017
2018
21
Industry Leading Linear Coherent Solutions
100G/200G
400G
 4 Top 4 Tier 1
32GBaud Linear Driver
45GBaud Linear Driver
OEMs use Inphi
linear amplifiers
 3 out of 4 Tier 1
OEMs use Inphi
linear drivers
 Inphi is first to
market with next
generation linear
amplifier and driver
solutions
32GBaud Linear Amplifier
Next-Gen 45GBaud Linear Amplifier
Inphi Proprietary
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2.7M Coherent Units Shipped > All Competitors Combined
Cumulative Shipments (M Units)
3.0
Industry Smallest SMT
100G Linear Driver
Industry First 100G
Linear Driver
2.0
Industry First 100G
Linear Amplifier
1.0
0.0
2010
2011
2012
2013
Inphi Proprietary
2014
2015
2016
23
Growing Optical Interconnects Between Data Centers
Ports grow 30%
Enter Metro
Take share with Linear
Ramp new 45 Gbaud products
Grow with both module and line card customers
Support partner products: SiPho, CFP DCO, CFP2 ACO
Ramp new modulations: 8QAM and 16QAM
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Between Data Centers:
Coherent DSP Solutions
Complete Platform to Enable Customer Success
Best Quality
Low Power
High Performance
Fast Time-to-market
Optical Platform
Coherent DSP
SiPho
or
Partner Optics
Optical PHY
Driver
TiA
Competitive Cost
Long Reach
Dedicated Customer Support
Inphi Proprietary
Note:
1. Wireless subscriptions and social media users are as of 2015
2. CAGR calculated from 2014 – 2019, for sources refer the
references section
26
Coherent DSP Group
 Leading merchant coherent DSP for data center,
metro, long haul optical communication
 First to deliver 28nm 200Gbps QAM16
 Strong 16nm and 7nm roadmaps to low power,
high bandwidth solutions
 Design wins and shipping to Tier 1 customers worldwide
Inphi Proprietary
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Inphi Supports Discrete, DCO and ACO Customers
Line Card - Discrete
DCO modules
Modulator
Modulator
DSP
Driver
Driver
Laser
Laser
TIA
DSP
Hybrid
Optics
TIA
Driver
Driver
DSP
Hybrid
Optics
DSP
Hybrid
Optics
Laser
Modulator
Driver
Laser
TIA
Hybrid
Optics
TIA
Driver
Laser
TIA
Modulator
Modulator
Modulator
DSP
ACO modules
DSP
Hybrid
Optics
Laser
TIA
Hybrid
Optics
 New coherent DSP complements Inphi TiA and Driver
 Inphi remains committed to all its customers’ success,
for discrete line cards, and DCO/ACO modules
Inphi Proprietary
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Inphi Has Full End-to-End Capability for Customer Success:
High-Speed Analog, DSP, Layout, Firmware, Software
Architecture, IP
& Chip Design
 State of the art analog
 Innovative DSP/FEC
technology
System Support
 Firmware/Software
 Quality evaluation
Manufacturing
 Direct relationship with
fab, assembly, test
partners
boards
 World Class IC / backend  Advanced Optical lab
Inphi Proprietary
 In house production test
capability
29
Between Data Centers:
DCI Edge Solutions
100G Adoption Ramping Between Data Centers
332
DCI Edge
100G
207
124
73
1
10
2014
2015
January 2017
26
2016
100G DCI Edge Port Forecast (KU Ports)
2017
2018
2019
2020
Source: Cignal AI, January 2017
Inphi Proprietary
31
ColorZTM Delivers 100G QSFP28 for 80km Data Center Interconnect
“The Data Center is the Computer™”
Cloud Hardware
and
SoftwareNetwork
Layer
Aggregation
“The Cloud is the Network™”
100Gb/s
80km
4.5W
Connecting
Data Centers
Cloud Hardware
and
SoftwareNetwork
Layer
Aggregation
“The Data Center is the Computer™”
Inphi Proprietary
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Metro Data Center Interconnect (DCI) Gap
No Cost Effective 100Gb/s
DWDM Solutions Today
Standards
Point to Point Links
ROADM Networks
10G
DWDM
SFP+
IEEE 802.3ba /
CR4,SR4, LR4
100G
0
2
10
100
OIF / Coherent
QPSK/16-QAM
OIF / Coherent QPSK/8QAM
100G/200G
DWDM
100G/200G/400G
DWDM
600
Distance (km)
10,000
80km
40x
40x
4Tb/s
100G Switch
100G Switch
ColorZ delivers a cost effective approach to resolve these DCI bottlenecks
Inphi Proprietary
33
ColorZ Delivers Complete Solution for Time-to-Market
Linear
TiA,
Driver
SiPho
Optics
100G,
QSFP28,
80km
Validated
Design
Lower
Power
PAM:
DSP,
ADC
Lower
Cost
Inphi Proprietary
100G
Speed
34
ColorZ Moves the Library of Congress in <1 Second
10 Terabytes of data moved at 100 Terabits per second
Inphi Proprietary
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ColorZ Platform Enables Virtual Mega-Cloud in 2H’16
 Offers compelling value proposition in terms of power,
faceplate density, and cost per bit for 80km reach
 Provides a cost effective upgrade path from 10G DWDM in
SFP+ to 100G DWDM in QSFP28
 Complements coherent technology for end-to-end 100G
DWDM connectivity for Inter-DCI for Cloud customers
 Expands market opportunity for the optical industry and
Inphi, with strong benefits for cloud customers
 Industry firsts 100G PAM Silicon Photonics, 80 km PAM4
ASIC, and DWDM Reference Design for QSFP28
Inphi Proprietary
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Inside Data Centers:
The Data Center is the ComputerTM
“Fiber PHY” Growing Rapidly in Data Center, SMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
Inphi Proprietary
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“Fiber PHY” Growing Rapidly in Data Center, SMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
Inphi Proprietary
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“Fiber PHY” Growing Rapidly in Data Center, MMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
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Data Center Transition to Fiber, DAC PHYs
1G
10G
25G
40G
50G
100G
400G
Fiber / DAC
BASE-T
100%
Estimated Capture Rate by Fiber/DAC
into BASE-T PHY Share
BASE-T PHY
0%
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Inphi Estimates, Crehan Research, 2016
Inphi Proprietary
41
Distances, Speeds Drive Optics/Electrical Transition
Mega Data Center
500m-2km
distances
Source:
Corning
Longer Distances = Single Mode Fiber
Cost Effective DSP-based PAM Optical Interconnects
Inphi Proprietary
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Industry Leading NRZ and PAM Optical PHY Solutions
Enterprise
Server Line
Card
Service Provider
CFP
CFP2/8
Data Center
QSFP
SFP
OSFP and
QSFP-DD
nx10G PHY
100G Gearbox
nx25G CDR
nx50G PAM
nx100G PAM
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43
Roadmap to Lower Cost, Higher Density
Router
N x 100G
QSFP Inflection
2012
CFP 12W-24W
2014
CFP2 12W-14W
2015 onwards
QSFP 3.5W
Switch
2008
SFP 10G 1.5W
2015 onwards
SFP 1.5W
25/50G
SFP Inflection
Server
Enterprise Server
SOC Inflection
2015
N x 10G SFP
2012
N x 10G SFP
Higher Density
Lower Power
Inphi Proprietary
Lower Cost
44
Growing Networking Interconnects
Inside Data Centers and for Service Providers
Ports grow 35% for 10G/40G, 300% for 100G
Ramp 10G/40G in servers with Broadwell & Skylake generation
Accelerate 100G ramp with CFP and CFP2
Grow 100G NRZ CDR/TiA/Driver for QSFP28
Ramp PAM for 40/100G first, 50/200/400G next
Address both single- and multi-mode fiber
Partner with VCSEL, DML, EML and SiPho optics
Inphi Proprietary
45
Thank You