Welcome to the 2008 Passive Market Outlook Thank you for joining us! Listen in as Dennis Zogbi and experts from KEMET, Littelfuse, and Vishay provide a detailed market overview of the passive industry. Sit back, relax and learn what to look for in 2008!

TTI Marketing Outlook Webcast Capacitors March 2008

Capacitor Overview Industry Trends Consumption Price Lead Time Material Trends Supply Chain Technology Trends Drivers

Industry Trends

Consumption

Price

Lead Time

Material Trends

Supply Chain

Technology

Trends

Drivers

Industry Trends Consumption, Price, Lead Time

Global Semiconductor Industry Source: Henderson Electronic Market Forecast (February 2008)

Global Capacitor Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data

Global MLCC Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data

Global Tantalum Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data

Global Aluminum Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data

Global Paper & Film Units to IC Units Ratio Source: Based on World Capacitor and World Semiconductor data

Global MLCC Capacitor Industry Shipments Source: Based on World Cap data 3 yr. CAGR ’05 to ’07: 17.6% 5 yr. CAGR ’03 to ’07: 21.6% 10 yr. CAGR ’98 to ’07: 19.4% 3 yr. CAGR ’05 to ’07: 18.1% 5 yr. CAGR ’03 to ’07: 8.5% 10 yr. CAGR ’98 to ’07: 8.3%

Global Tantalum Capacitor Industry Shipments 3 yr. CAGR ’05 to ’07: 1.6% 5 yr. CAGR ’03 to ’07: 4.4% 10 yr. CAGR ’98 to ’07: 3.4% 3 yr. CAGR ’05 to ’07: -0.6% 5 yr. CAGR ’03 to ’07: -2.2% 10 yr. CAGR ’98 to ’07: 0.1% Source: Based on World Cap data

Global Aluminum Capacitor Industry Shipments 3 yr. CAGR ’05 to ’07: -0.9% 5 yr. CAGR ’03 to ’07: 2.7% 10 yr. CAGR ’98 to ’07: 2.8% 3 yr. CAGR ’05 to ’07: 9.1% 5 yr. CAGR ’03 to ’07: -0.5% 10 yr. CAGR ’98 to ’07: 0.2% Source: Based on World Cap data

Global Paper and Film Capacitor Industry Shipments 3 yr. CAGR ’05 to ’07: -2.6% 5 yr. CAGR ’03 to ’07: -1.6% 10 yr. CAGR ’98 to ’07: -1.6% 3 yr. CAGR ’05 to ’07: 6.9% 5 yr. CAGR ’03 to ’07: -6.6% 10 yr. CAGR ’98 to ’07: -5.0% Source: Based on World Cap data

Global MLCC Capacitor Industry ASP Source: Based on World Cap data 3-year avg. decline - 9.3%

Global Tantalum Capacitor Industry ASP Source: Based on World Cap data 3-year avg. decline - 4.9%

Global Aluminum Capacitor Industry ASP Source: Based on World Cap data 3-year avg. decline - 3.4%

Global Paper & Film Capacitor Industry ASP Source: Based on World Cap data 3-year avg. decline - 4.8%

U.S. Passive Component Industry Source: Henderson Electronic Market Forecast (February 2008)

Passive Component Lead Times Source: www.TTI.com 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Ceramic Capacitors Film Capacitors Tantalum Capacitors Resistors Aluminum Electrolytic Capacitors Connectors Mica Capacitors

Material Trends Supply Chain

Supply Chain Issues Tantalum Raw Material √ Powder Processing Capacity √ Lead-Frame Material √ Epoxy √ Ceramic Barium Titanate √ Metals, Nickel Powder ? Carrier Film √ Aluminum Raw Material √ Energy ?

Tantalum

Raw Material √

Powder Processing Capacity √

Lead-Frame Material √

Epoxy √

Ceramic

Barium Titanate √

Metals, Nickel Powder ?

Carrier Film √

Aluminum

Raw Material √

Energy ?

Technology Trends and Drivers

Technology Trends Mobility & Connectivity Smaller, More Portable Products Wireless Applications Reduced Operating Voltages Increased Frequencies Converged Functionalities Working Environments Higher Temperatures Reduced Number of Circuit Connections Increased Reliability Demands Failure Mode Concerns Environmental Issues Declining TCO Lower System Costs

Mobility & Connectivity

Smaller, More Portable Products

Wireless

Applications

Reduced Operating Voltages

Increased Frequencies

Converged Functionalities

Working Environments

Higher Temperatures

Reduced Number of Circuit Connections

Increased Reliability Demands

Failure Mode Concerns

Environmental Issues

Declining TCO

Lower System Costs

Technology Drivers Increased Volumetric Efficiency Capacitance Extension Miniaturization & Modularization Lower Parasitics (ESR/ESL) Improved performance Fewer discretes Embedded discretes Alternative Materials Cost Reduction All This Without Compromising: Reliability Robustness

Increased Volumetric Efficiency

Capacitance Extension

Miniaturization & Modularization

Lower Parasitics (ESR/ESL)

Improved performance

Fewer discretes

Embedded discretes

Alternative Materials

Cost Reduction

All This Without Compromising:

Reliability

Robustness

TTI Marketing Outlook Webcast Capacitors March 2008

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