In October 2011, Avnet Electronics Marketing and ARM launched the Embedded Software Store at ARM TechCon 2011. This partnership

1. Chip Design
Staying Ahead of the
Technology Curve
Harley Feldberg,
President, Avnet Electronics Marketing

2. Importance of Technology
Technology is important to the world…
…Distribution is important to technology

3. Distribution…In the Center of Technology
Distribution manages the complexity of the technology supply
chain delivering value to suppliers and customers.
Semiconductor
Interconnect
Passive Original
Electronics EMS / ODM Equipment
Electro- Marketing Manufacturers
mechanical
Manufacturers
Software
Vendors

4. Mass Market Size
EM Total Available Market
400
$360B 2011
$326B 10%
350
$304B 8%
Total $289B
$289B
$277B 4% 5% 8% EMEA
300
23% 15%
6%
250 $225B 6%
-14% 20% 8%
Asia
($ billions)
200 Pacific
-18% Americas 55%
150 16%
11%
5% 8%
100 25% 3%
-12%
50 Japan
14%
0
2009 2010 2011 2012 2013 2014
Semiconductors w/o MPUs, DRAMs, or Flash Interconnect, Passives & Electromechanical
Note: Percentages represent sequential growth rates Sources: Bishop, Electronics Outlook, Fleck, Gartner, iSuppli, Paumanok, (Rev: 10/7/11)
Distribution Mass Market is ~ 25% of the TAM and 90+ % of the customers

5. Must Be Present Globally
Semiconductor Design TAM by Region Semiconductor Consumption by Region
2010 2010
Japan Japan Americas
19.5% Americas 15.6%
31.0% 18.0%
EMEA
Asia Asia 12.8%
Pacific EMEA Pacific
34.8% 14.8% 53.6%
Sources: Avnet BIO, Gartner, SIA
The winning formula for components distribution
requires strength in both

6. Addressing The Market Needs
Reaching 100,000+ customers…
Supplier System Market
Collaboration Level Solutions Expansion
Customer Global Global
Development Execution Logistics

7. The Demand Creation Opportunity
Resources
1000 Field Application
Engineers
Producing a
Reach Combined
Providing more than 30,000
customers with annual
$3.4 Billion
in annual semi
design support revenue
Results
Acquiring more than 45,000
design-wins annually
Avnet Data: As of August 2011

8. Distribution’s Role is Changing
 Greater system complexity is especially challenging
for mass market customers
 Higher levels of integration
 Software is more of the solution
 Proliferation of semiconductor content
 Global supply chain solutions
 The role of distribution has evolved to that of a
“trusted advisor” on design chain and supply chain
solutions

9. Chip Design
The Avnet and ARM Partnership

10. Mass Market Applications
Largest & Fastest Growing Applications for Served Semi TAM
(Excludes DRAM, Flash & MPU)
LCD TV
$12,000
Data Processing $10,000
Medical
Barebones Electronics Power
Wired Comm
2011 Revenue
Deskbound Train
$8,000 PCs
Other
Wireless Comm Consumer
Military &
Civil Aero Bldg & Home
Consumer $6,000
Digital Still Control
Cameras
Video Game
Inf otainment
Automotive Consoles
Mobile Home Audio
Comm
Industrial $4,000 Inf ra Consumer
Appliances
Other Wireless Comm LAN Swicthes Test &
& Hubs Measurement
$2,000
-3% -1% 1% 3% 5% 7% 9% 11%
2011-2014
3-year CAGR Source: IHS-iSuppli 9/15/11
• Mass Market consists of many different applications
• Trend for consumer feature sets are starting to enter the mass market space

11. Micro-components Remain Important
2011 WW Semiconductor Consumption
by Industrial Application & Device Type
2011 Medical Electronics 2011 Military & Civil Aerospace 2011 Building & Home Control
($ millions) ($ millions) ($ millions)
0 500 1,000 1,500 2,000 2,500 3,000 0 500 1,000 1,500 0 500 1,000 1,500
Memory Memory Memory
Micro- Micro- Micro-
component component component
General General
Purpose General Purpose
Purpose Logic
Logic Logic
ASIC & ASSP ASIC & ASSP ASIC & ASSP
Analog Analog Analog
Discretes Discretes Discretes
Optical Semi Optical Semi Optical Semi
Sensors & Sensors &
Actuators Sensors &
Actuators Actuators
2011 Test & Measurement 2011 Automation 2011 Energy Generation & Distribution
($ millions) ($ millions) ($ millions)
0 500 1,000 1,500 0 200 400 600 800 1,000 1,200 0 100 200 300 400
Memory Memory Memory
Micro- Micro- Micro-
component component component
General General General
Purpose Purpose Purpose
Logic Logic Logic
ASIC & ASSP ASIC & ASSP ASIC & ASSP
Analog Analog Analog
Discretes Discretes Discretes
Optical Semi Optical Semi Optical Semi
Sensors & Sensors & Sensors &
Actuators Actuators Actuators
Source: iSuppli 9/15/11 (AMFT - Consumption Database)

12. ARM Architecture Becoming a Leader
Survey Question:
Source: EETimes 2011 Embedded Market Study

13. Why The Partnership Works
Customers
Partial Vendor Listing From Connected Community
Actel, Altera, Analog Devices, Atmel, Avago, Broadcom, Cavium, Cirrus Logic,
Conexant, Cypress, Energy Micro, Freescale, Fujtisu, Infineon, Intel, IBM, Marvell,
Micrel, Microsoft, Microsemi, Mindspeed, NEC, NXP, Oki, Spansion, ST, Texas
Instruments, Toshiba, Zilog, Xilinx
Suppliers
Sales &
Design Customer Design Web
Technical
Tools Education Centers Solutions
Resources
Global Logistic, Supply Chain, & Value Added Services

14. Collaborating With Our Mutual Partners

15. The Next Step Develops
Education & Awareness
10,000 registrants with 7,000 engineers trained
+64% active with a new project or product re-design
Top 8 market segments identified by registrants
 RF / Wireless Communications
 Industrial & Manufacturing Control Top Self Identified
 Computer Hardware Job Function:
 Medical/Dental
 Military/Aerospace
Software
 Network Connectivity Engineer
 Automotive
 Multimedia Systems

16. Software, A New Opportunity
 Silicon is differentiated by software
 Who writes the software?
 Large OEM customer: Large software staff
 Mass Market customer:
 Small engineering team
 May not be global
 Make vs. buy decision
What is the answer?

17. A New Marketplace
A marketplace, developed by Avnet and ARM, to drive
innovation in embedded software enabling complete
silicon solutions.
Visit us at:
www.embeddedsoftwarestore.com

18. Thank You