International Rectifier GaNpowIR™ February 23, 2010 Oleg Khaykin President and Chief Executive Officer Tim McDonald Vice President, Emerging Technology Group Tim Phillips Vice President and GM, Enterprise Power Business Unit Statement of Caution Under the Private Securities Litigation Reform Act of 1995 This Investor Presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts, (b) predict or forecast future events or results, or (c) embody assumptions that may prove to have been inaccurate. These forward-looking statements involve risks, uncertainties and assumptions. When we use words such as “believe,” “expect,” “anticipate” or similar expressions, we are making forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give readers any assurance that such expectations will prove correct. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond our control. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the factors discussed in the sections entitled “Risk Factors” and entitled “Critical Accounting Policies and Estimates” within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our filings with the Securities and Exchange Commission, including our most recent reports on Form 10-K and 10Q. All forward-looking statements attributable to the Company are expressly qualified in their entirety by the factors that may cause actual results to differ materially from anticipated results. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinion only as of the date hereof. We undertake no duty or obligation to revise these forward-looking statements. Readers should carefully review the risk factors described in this document as well as in other documents we file from time to time with the Securities and Exchange Commission. 2 GaNpowIR™ – An Introduction 1. What is GaN? 2. The opportunity for GaN 3. Market drivers for adoption 4. GaN’s advantage vs. Si 5. First product: IP2010, IP2011 6. End market segments and applications overview 7. Product technology roadmap 3 Pioneering New Breakthrough GaN Technology Enabling Rapid Commercialization of Switch Mode Power Supply Enabling higher levels of integration for dense and efficient power conversion 4 What is GaNpowIR™ Basic HEMT* Device Structure *High Electron Mobility Transistor 5 GaN Landscape LED Primarily GaN/ Sapphire RF Electronics Primarily GaN/ Sapphire GaN/ SiC Small Start-ups Power Electronics GaN/ Si Small Start-ups Source: International Rectifier 6 GaN for Power vs RF and LED LED GaN RF GaN Power GaN • Primarily GaN on Sapphire substrate • Specialized processes on 2” to 4” wafers • Small dies • • • • Primarily GaN on Sapphire and GaN on Silicon Carbide substrates • • • • GaN on Silicon High frequencies (GHz) Small dies sizes, not as cost and volume sensitive Specialized processes on 2” to 4” wafers Less than 100MHz frequencies Larger die size, cost sensitive Larger wafer diameters (6” to 8”), lower material costs, CMOS compatible 7 IMS Research Power Transistor Forecast Projected CAGRs 2010F – 2013F Power MOSFETs IGBTs 6.6% 11.4% Source: IMS Research, July 2009, Excludes Bipolar Transistors 8 GaN Value Proposition FOM = efficiency x density cost 9 Illustration of GaN Economics In 3-5 years, potential 1-2% of total addressable market (TAM) could adopt GaN technologies High Performance Higher Volume Lower Cost High Performance Higher Growth Medium Cost High Performance Higher Cost Lower Volume 10 Production Readiness Cost Performance • Superior performance at similar cost to silicon • Low substrate cost • Manufacturing scale leverages IR silicon expertise Economies of Scale • Substrate, epi manufacturing • Device manufacturing and assembly and test Process Maturity and Stability • CMOS derivative proprietary to IR • Compatible with existing low cost processes • Relatively low additional capital intensity Quality • Millions of device hours of reliability • Yield 11 International Rectifier Tim McDonald Vice President, Emerging Technology Group February 23, 2010 Release of GaNpowIR™: What does it mean? Most simply: IR can begin developing commercialized GaN based products with revolutionary performance in efficiency, density and cost. 13 IMS Research Standard MOSFET TAM: By Voltage Source: IMS Research July 2009 14 Requirements to Commercialize GaN Cost: • Performance / Cost competitive: Epi + substrate < $3/ cm2 • High yields >80% for 10mm2 • Low wafer processing costs: utilize CMOS compatible, high volume line Performance: • 2 DEG mobility > 1800 cm2/Vs • Leak < 1 µA / mm , Ion / Ioff > 107 • Crack free epi with low active defect density Manufacturability/Reliability/Quality: • Ron, RQ, Isat, Vp, Ileak are stable in operation • Large diameter epi with < 50 µm bow • High volume ( > 10 k wafers/ wk) Si wafer fab compatible • Supply needed: >106 150 mm wafer equivalents at current industry utilization rates to achieve 10% penetration of total market 15 Dramatic Improvements in Power Device FOM Comparison of Ron for Si, SiC, and GaN 4H-SiC Limit Measured data Ecrit : Si = 20 V/μm , GaN = 300 V/ μm Ref: N. Ikeda et.al. ISPSD 2008 p.289 16 Potential Market Drivers: Si vs GaN FOM = efficiency x density cost 17 Problem: Shrinking Form Factor Contribution of AreaPower increasing Apple MacBook Air Teardown Power delivery occupies a significant portion of the motherboard - 40% • Less room for feature added components 18 GaN POL Converter vs. Si Si POL Solution IR GaNpowIR™ Gen 1.1 15 mm x 15 mm 7 mm x 9 mm…. 70 +% Smaller 1MHz, 10A 5MHz, 10A Output Inductor Integrated with Power Stage 19 IP2010/2011 Enable Solution Shrink • Peak efficiency >90% at 1.2 MHz • Full load efficiency >88% • Frequency triples compared to conventional Si solution • GaNpowIR™ enables 55%-65% shrink in footprint 20 iP2010: Benchmark Efficiency @600kHz Vin = 12V, Vo=1.2V 94% 93% IP2010 92% 91% Competitor B Efficiency (%) 90% 89% 88% 4.5% increase in efficiency Competitor A 87% 86% 85% 84% 83% 0 5 10 15 20 25 30 Output Current, Iout (A) 21 R X Qg Figure of Merit (mOhm-nC) Possible GaN LV FOM Projection vs. Time 50 45 Next Si 40 GaN Gen 1.1 35 30 25 GaN Gen 2.0 20 15 GaN Gen 2.1 10 5 0 2008 2009 2009 2010 2011 2012 2013 2014 22 Possible 150V GaN FOM Projection vs. Si Rds-on in 5 x 6 mm Package (150V Normally off with free wheeling diode) 16 Best Si 14 Seven Fold Reduction In Rdson in 5 x 6 mm Package vs Si 12 Milliohm 10 MV GaN Gen 1.1 8 MV GaN Gen 1.2 6 MV GaN Gen 1.3 MV GaN Gen 2 4 2 0 2009 2010 2011 2012 2014 23 IR HV Reverse Blocking Characteristics ( Wg=100 mm, Lg=2um) Idrain (A/mm) 1.2E-06 1.0E-06 8.0E-07 6.0E-07 4.0E-07 2.0E-07 0.0E+00 0 100 200 300 400 500 600 700 800 900 1000 Vdrain (V) 24 Product/Technology Roadmap • Low Voltage • IP2010 Release – February 2010 • IP2011 Release – Mid 2010 (estimated) • Mid Voltage • Sample and Release 150V devices – end of 2010 (estimated) • High Voltage • Sample and Release 600V devices – 2011 (estimated) 25 International Rectifier Tim Phillips Vice President and GM, Enterprise Power Business Unit February 23, 2010 Setting Efficiency Benchmarks in Target Applications Servers Servers & & Storage Storage Netcom Laptops Laptops Consumer DigitalBroadband TV’s Gamestations Gamestations Gaming PC’s 27 EPBU Advantage Complete System Solution Tailored to Customer’s Requirements with our Top-Rated Design Services • Benchmark Efficiency • Top Density • Best Value 8 2.5 34 29 27 24.5 20 19 11 Q4 FY08 Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Quarterly Revenue ($M) 28 Broad Power Portfolio Discrete Products Power Management Requirements High Performance Analog ICs DirectFET® Power Monitoring Multiphase Controllers Processor Power ✔ ✔ ✔ Memory Power ✔ ✔ ✔ Point-of-Load ✔ ✔ Chip Set Power ✔ ✔ ✔ SupIRBuck™ Voltage Regulators iPOWIR ® and GaNpowIR ® Power Stages ✔ ✔ ✔ ✔ ✔ ✔ ✔ 29 Expanding Market Share in Servers (1) Intel “Thurley” – Based Server Platform (VR11.1) • Launched in March 2009 • IR’s leading efficiency solutions helping drive significant energy savings in the new VR11.1 platform • Large IR content increase from VR11.0 to VR11.1 – up to 60% more devices Example: Front of 2P Nehalem Platform Server board based off of Intel VR11.1 architecture powered by 77 IR devices (front and back) • Up to 86 IR devices (45 ICs, 41 FETs) • 18 rails powered 30 Expanding Market Share in Servers (2) Intel “Thurley” – Based Server Platform (VR11.1) • Launched in March 2009 • IR’s leading efficiency solutions helping drive significant energy savings in the new VR11.1 platform • Large IR content increase from VR11.0 to VR11.1 – up to 60% more devices • Up to 86 IR devices (45 ICs, 41 FETs) • 18 rails powered Example: Back of 2P Nehalem Platform Server board based off of Intel VR11.1 architecture powered by 77 IR devices (front and back) 31 EPBU Outgrows the Competition EPBU +75% Y/Y Volterra +56% Y/Y 32 GaN Power Stage Family Features Pin-compatible power stage device family • iP2010: 30A, 3MHz max • iP2011: 20A, 5MHz max Key Features • World’s best Power stage efficiency • Operation up to 5MHz • Industry-standard TTL Enable and PWM inputs • Suitable for single phase and multiphase applications, analog or digital power • Input voltage range of 7V to 13.2V • Output voltage range of 0.6V to 5.5V • Ultra fast PowIRtuneTM gate driver IC • Small, wireless LGA Package (7.7 x 6.5 x 1.7mm) 33 GaN Power Stage System Benefits Best in class efficiency over entire load range • Greater than 93% peak efficiency at 600kHz and 91% at 1.2MHz • 4.5% to 7% efficiency improvement vs. industry’s best integrated power stage devices • Energy savings with simplest thermal management Common footprint for 20A and 30A devices • Provides flexibility for meeting different customer requirements in terms of current level, performance and cost Integrated Ultra-fast PowIRtuneTM Driver IC • Lowest switching times for breakthrough high frequency performance Higher switching frequencies • Up to 40% board space reduction by doubling the switching frequency from 400kHz to 800kHz • Industry’s only high current Power Stage family capable of efficient multi-MHz operation 34 iP2010 vs. Industry’s Best DrMOS Devices Vin=12V, Vout=1.2V, fsw=600kHz, L=200nH (0.35m, Airflow=200LFM 94% 93% 93% Peak Efficiency 92% 91% Competitor A Efficiency 90% iP2010 89% 88% 4.5% to 7% Efficiency Improvement To Comp Competitor B 87% 86% 85% 84% 83% 0 5 10 15 20 25 30 Current (A) Benchmark Efficiency for Energy Savings and Thermal Improvement 35 Power Density Improvement iP2010-based 30A solution board space savings Comparison • Discrete and DrMOS solutions operating at fs = 400kHz • iP2010 solution operating at fs = 800kHz Discrete P-Ch 3x3 Driver 4x4 > 40% Size Reduction GaNPowIR 4x5 NVG 3x3 DrMOS DrMOS 6x6 5x6 iP2010 7.7 x 6.5 325nH Inductor 325nH Inductor 11 x 11 15 x 33 mm 495mm2 110nH Inductor 7x7 > 35% Size Reduction 11 x 11 9 x 27 - 31 mm 15 x 30 mm 280mm2 max 450mm2 36 LV GaNpowIR™: The Volume Progression Computing Servers and Storage Netcom 37 IR is in the Right Market with Right Technology Market driver is clear and compelling: • Energy saving power management is the value proposition Market is growing • Servers and storage, netcom and computing applications are driving rapid • upgrades for performance improvements and cost savings Market is shifting to higher performance power products EPBU has industry leading products and technology • New Integrated Products and GaN EPBU is well aligned with industry leaders • HP, IBM, Cisco and Apple EPBU is well positioned for growth 38 International Rectifier Oleg Khaykin President and Chief Executive Officer February 23, 2010 Technology Leadership Through GaN GaNpowIR™ • Much higher performance than standard silicon • Result of 6+ years of R&D • Significant and well protected IP portfolio • Designed for manufacturability • Engagements with tier one customers as early adopters GaN Product Technology Roadmap • Low Voltage • IP2010 Release – February 2010 • IP2011 Release – Mid 2010 (estimated) • Mid Voltage • Sample and Release 150V devices – end of 2010 (estimated) • High Voltage • Sample and Release 600V devices – 2011 (estimated) 40