Silicon Labs Investor Presentation NOVEMBER 4, 2025 1 ©Silicon Labs Inc. All rights reserved. Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements based on Silicon Labs' current expectations. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assu ...

Revenue Performance - Revenue for Q3 2025 was $206 million, representing a 24% increase year-over-year from $166.4 million[4] - Industrial & Commercial revenue was $118 million, up 22% year-over-year, while Home & Life revenue was $88 million, up 26% year-over-year[4] - For Q4 2025, the company expects revenue to be between $200 million and $215 million[6] Profitability and Earnings - GAAP gross margin was 57.8%, with non-GAAP gross margin slightly higher at 58.0%[4] - The company reported a GAAP operating loss of $12 million and a non-GAAP operating income of $11 million[4] - GAAP diluted earnings per share are projected to be between $(0.22) and $0.08, while non-GAAP diluted earnings per share are expected to be between $0.40 and $0.70[9] Operating Expenses - GAAP operating expenses for Q4 2025 are estimated to be approximately $134 million to $136 million, while non-GAAP operating expenses are expected to be around $110 million to $112 million[9] - The company reported stock-based compensation expense of $59,645 thousand, up from $45,358 thousand, indicating a rise of 31.5%[25] Strategic Initiatives - The company announced an expansion of its strategic partnership with Global Foundries to enhance U.S.-based semiconductor manufacturing[4] - The launch of the Simplicity Platform aims to accelerate development for embedded IoT systems with AI augmentation[4] - The company hosted the 6th annual Works With developer conference series, focusing on emerging trends in wireless connectivity and AI in IoT[4] Balance Sheet and Cash Flow - Total assets increased to $1,253,067 thousand as of October 4, 2025, up from $1,222,674 thousand on December 28, 2024, representing a growth of 2.5%[23] - Current assets rose to $652,559 thousand, compared to $602,033 thousand, marking an increase of 8.4%[23] - Net cash provided by operating activities was $87,358 thousand, a significant recovery from a cash used of $24,039 thousand in the previous year[25] - Cash and cash equivalents at the end of the period reached $341,403 thousand, up from $303,082 thousand, reflecting an increase of 12.6%[25] Liabilities and Equity - Total liabilities increased to $182,354 thousand from $142,653 thousand, indicating a rise of 27.8%[23] - Stockholders' equity decreased slightly to $1,070,713 thousand from $1,080,021 thousand, a decline of 0.4%[23] Accounts Receivable and Inventory - Accounts receivable increased to $67,308 thousand from $54,479 thousand, representing a growth of 23.5%[23] - Inventories decreased to $82,190 thousand from $105,639 thousand, a reduction of 22.2%[23]

Core Insights - Silicon Labs reported sequential and year-over-year growth in sales and profitability for Q3 2025, driven by strong execution across its business [2][7] - The company is focused on supporting new customer ramps, maintaining operational discipline, and driving continued earnings growth [2] Financial Highlights - Q3 2025 revenue was $206 million, with Industrial & Commercial revenue at $118 million (up 22% year-over-year) and Home & Life revenue at $88 million (up 26% year-over-year) [7] - GAAP gross margin was 57.8%, while non-GAAP gross margin was 58.0% [7] - GAAP operating loss was $12 million, with a GAAP diluted loss per share of $(0.30) [7] - Non-GAAP operating income was $11 million, with a non-GAAP diluted earnings per share of $0.32 [7] Business Outlook - The company expects Q4 2025 revenue to be between $200 million to $215 million [4] - Projected GAAP gross margin for Q4 is between 62% to 64%, with GAAP operating expenses estimated at approximately $134 million to $136 million [7] - Non-GAAP diluted earnings per share for Q4 is expected to be between $0.40 to $0.70 [7] Strategic Developments - Silicon Labs announced an expansion of its strategic partnership with GlobalFoundries to advance next-generation, energy-efficient wireless technologies [7] - The launch of the Simplicity Platform, a suite of software tools with AI augmentation, aims to enhance the development speed for embedded IoT systems [7] - The company hosted the 6th annual Works With developer conference series, focusing on emerging trends in wireless connectivity and AI in IoT [7]

Core Insights - GlobalFoundries (GFS.US) and Silicon Labs (SLAB.US) announced an expansion of their strategic partnership to advance the development of next-generation energy-efficient wireless technologies [1] - The collaboration will utilize Silicon Labs' wireless system-on-chip technology on GlobalFoundries' new 40nm ultra-low power platform [1] - The partnership aims to accelerate the research and production of high-performance wireless solutions at GlobalFoundries' advanced wafer fabrication facility in Malta, New York [1] Company Developments - The research and development work has already commenced, with plans to gradually increase production capacity over the coming years [1] - Silicon Labs' CEO Matt Johnson expressed enthusiasm about deepening the collaboration with GlobalFoundries to foster innovation in wireless connectivity within the U.S. [1] - The partnership reflects a shared commitment to innovation and U.S. manufacturing leadership, addressing the growing demand for Silicon Labs' Series 2 products while enhancing global supply chain resilience [1]

Core Insights - GlobalFoundries and Silicon Labs have expanded their strategic partnership to enhance the development of energy-efficient wireless technologies and bolster U.S.-based semiconductor manufacturing [1][4] - This collaboration introduces a new process technology in the U.S. aimed at accelerating the production of high-performance wireless solutions at GlobalFoundries' facility in Malta, New York [2][4] Company Developments - Silicon Labs' wireless system-on-chips (SoCs) will be produced on GlobalFoundries' new 40nm Ultra Low Power platform, which features embedded SuperFlash technology, making it suitable for IoT applications requiring energy efficiency and data security [3][4] - The partnership aims to meet the rising demand for advanced wireless connectivity in consumer and industrial IoT applications, reflecting both companies' commitment to U.S. semiconductor leadership and supply chain resilience [4][5] Market Context - The collaboration is positioned to address the growing need for secure and reliable wireless connectivity in smart consumer and industrial devices, highlighting the importance of onshore semiconductor manufacturing [4][5] - Development is currently underway, with production expected to ramp up over the next several years [5]

Core Insights - GlobalFoundries and Silicon Labs have expanded their strategic partnership to enhance the development of energy-efficient wireless technologies and bolster U.S.-based semiconductor manufacturing [1][4] - This collaboration introduces a new process technology in the U.S. aimed at accelerating the production of high-performance wireless solutions at GlobalFoundries' facility in Malta, New York [2][4] Company Developments - Silicon Labs' wireless system-on-chips (SoCs) will be produced on GlobalFoundries' new 40nm Ultra Low Power platform, which features embedded SuperFlash technology, making it suitable for IoT applications requiring energy efficiency and data security [3][4] - The partnership aims to meet the rising demand for advanced wireless connectivity in consumer and industrial IoT applications, reflecting both companies' commitment to U.S. semiconductor leadership and supply chain resilience [4] Production Timeline - Development is currently underway, with production expected to ramp up over the next several years [5]

Core Insights - Silicon Labs has launched the Simplicity Ecosystem, a suite of modular software tools aimed at transforming embedded IoT development with planned AI integration [1][3][10] - The Simplicity AI SDK, set to be released in 2026, will enable developers to interact with their code using AI-powered features [2][9] Product Features - The Simplicity Ecosystem includes tools such as Simplicity Installer, Device Manager, Simplicity Commander, Network Analyzer, and Energy Profiler, all designed to enhance productivity and simplify workflows [4][5] - The ecosystem supports major IoT standards including Bluetooth LE, Zigbee, Thread, Matter, Wi-Fi, Wi-SUN, and Z-Wave, ensuring compatibility with Silicon Labs Series 2 and Series 3 devices [3][4] Developer Experience - The Simplicity AI SDK will provide context-aware support, allowing AI agents to assist developers throughout the IoT development lifecycle, from project setup to debugging [6][8] - The initial release will integrate with VS Code, enabling real-time interaction where developers can "chat with their code" to receive explanations, trace errors, and suggest improvements [7][9] Future Developments - The roadmap for the Simplicity AI SDK includes adaptive debugging, optimization, and application generation capabilities, enhancing the overall development experience [8][9] - Public access to the Simplicity AI SDK is planned for 2026, with opportunities for developer feedback and beta testing [9][10]

Summary of Semiconductor Industry Conference Call Industry Overview - The conference call focused on the North American semiconductor industry, particularly the upcoming SEMICON West event and August Semiconductor Industry Association (SIA) data [1][2][3]. Key Insights - **SEMICON West Expectations**: The event is not expected to be a significant catalyst for the semiconductor sector. It is primarily a technology showcase rather than a financial event, limiting discussions on customer equipment orders and 2026 expectations [2][3]. - **Memory Market Outlook**: - The company is bullish on memory wafer fabrication equipment (WFE) with a projected growth of 22% year-over-year into 2026. This is supported by strong memory pricing, which is anticipated to lead to increased capital expenditures in memory [2][14]. - DRAM and NAND markets are expected to see a reacceleration in capital expenditures in the second half of the year, with significant equipment shipments anticipated in 2026 [2][13]. SIA Data Highlights - **August Performance**: - SIA data showed semiconductor sales increased by 11.3% month-over-month, surpassing the estimate of 4.5% and the 10-year average of 7.9%. Year-over-year growth accelerated from 20.6% to 21.7% [8][10]. - Memory sales were particularly strong, with DRAM sales up 45.4% month-over-month, exceeding the estimate of 30.3% [16]. - NAND sales also performed well, increasing by 39.0% month-over-month, compared to an estimate of 36.1% [16]. Geographic Trends - **Sales by Region**: - Asia Pacific saw the highest growth at 53.5%, followed by The Americas at 15.7%, China at 15.1%, and Europe at 2.5%. Japan experienced a decline of 9.1% [8]. Pricing Dynamics - **Memory Pricing**: - DRAM prices per gigabit increased by 1.2% to $0.4610, reflecting a year-over-year increase of 14.4%. NAND prices per gigabit decreased by 5.3% to $0.0085, with a year-over-year decline of 22.9% [21][24]. Future Projections - **Forecast Adjustments**: - The forecast for 2025 revenue growth was raised from 17.7% to 22.2%, and the 2026 forecast was adjusted to 15.1% ($887 billion) from 10.6% ($821 billion), primarily due to memory pricing trends [14]. - A new cycle for memory is anticipated to begin in 2026, driven by current market dynamics [13][14]. Risks and Considerations - **Geopolitical Factors**: Recent policy disruptions, including anti-dumping investigations and new regulations affecting equipment suppliers, may pose risks to the semiconductor sector. However, the near-term outlook remains optimistic for memory companies and AI beneficiaries [18]. Conclusion - The semiconductor industry is experiencing robust growth, particularly in the memory segment, with positive trends expected to continue into 2026. However, external factors such as geopolitical tensions and market dynamics will need to be monitored closely.

Core Points - Silicon Labs plans to release its third quarter 2025 financial results on November 4, 2025 [1] - An earnings conference call will take place at 7:30 a.m. Central Time following the results release [1] - The call will be streamed on the company's Investor Relations website [1] Company Overview - Silicon Labs is a leading innovator in low-power connectivity, focusing on embedded technology that connects devices [3] - The company provides solutions, support, and ecosystems for advanced edge connectivity applications [3] - Headquartered in Austin, Texas, Silicon Labs operates in over 16 countries and serves markets such as smart home, industrial IoT, and smart cities [3]

Core Insights - Silicon Labs has launched its new Series 3 platform, featuring the SiMG301 and SiBG301 SoCs, designed for compute-intensive IoT applications, marking a significant advancement in low-power wireless technology [1][2][3] Product Features - The Series 3 platform is built on a 22 nm process and introduces a multicore architecture that separates application, wireless, and security workloads, providing enhanced performance for emerging use cases [5] - The SiMG301 and SiBG301 SoCs offer up to 4 MB Flash and 512 kB RAM, along with features like the PIXELRZ single wire communication interface for LED control, aimed at simplifying designs and reducing costs in smart lighting applications [5][8] Security Enhancements - The Series 3 platform includes the world's first PSA Level 4 security certification, providing robust protection against advanced physical attacks, thus enhancing the security framework for IoT devices [10][11] - The Series 3 Secure Vault incorporates a hardened root of trust and secure OTA update support, helping developers comply with emerging regulations such as the EU's RED and CRA [12] Market Positioning - The SiMG301 is among the first devices to achieve the Connectivity Standards Alliance's Matter Compliant Platform Certification, allowing device makers to expedite the development of Matter-certified products [6][9] - By leveraging a certified platform, manufacturers can significantly reduce testing requirements for end-product certification, thereby shortening development cycles and lowering costs [7] Availability and Support - The SiMG301 and SiBG301 are now available from Silicon Labs and authorized distributors, with resources such as evaluation kits and certification checklists provided to assist developers in product development [13]