Advantest : Script

Advantest Corporation

IR Technical Briefing

December 7, 2022

Cautionary Statement with Respect to Forward-Looking Statements

• This presentation contains "forward-looking statements" that are based on Advantest's current expectations, estimates and projections. These statements include, among other things, the discussion of Advantest's business strategy, outlook and expectations as to market and business developments, production and capacity plans. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "intend," "project," "should" and similar expressions. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause Advantest's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements.

※The content of this script may not necessarily correspond to the presentation.

IR Technical Briefing

Presentation Materials

IR Department Manager Yoshitake Kobayashi

Welcome to Advantest Corporation's IR technical briefing. Thank you all for taking the time to be here. I'm Yoshitake Kobayashi, from the IR Department of the Corporate Planning Group, and I'll be your moderator today.

Our technical briefings are designed as deep dives into the technological and performance evolution of the semiconductors that we test, which affects demand for our products as much as growth in semiconductor production volumes. Exploring these connections can yield important insights about the market. Today, we'll focus on high-end SoC devices and test technology. Let me introduce today's presenters.

First, Koichi Tsukui, Director and Executive Officer, CTO (Chief Technology Officer), and leader of our ATE Business Group.

Mr. Tsukui was involved in the development of measuring instruments, and later served as a sales representative in Japan and overseas, as well as general manager of the president's office. Currently, as the leader of the ATE business group, he directs the whole Group's tester business, from research and development to customer support.

Next, Ralf Stoffels, a Senior Vice President at Advantest Europe, who is in charge of V93000 marketing within the SoC Test Business Unit.

Mr. Stoffels got his start in the semiconductor test business at HP in 1994, and has been involved with the V93000 from its initial ramp. He has held various leadership positions in marketing, and today he has world-wide responsibility for the V93000 platform as a Senior Vice President of Marketing at Advantest.

Today, Koichi and Ralf will give a presentation titled "Test Needs and Solutions in the High- End SoC Semiconductor Market." After that, we will take your questions. Go ahead, Koichi.

P3 Agenda

Koichi Tsukui

Good morning / afternoon. My name is Koichi Tsukui and I'm the CTO of Advantest. Thank

you very much for taking the time to attend our technical briefing today.

I will explain how the SoC test business has changed and how our R&D management is

responding to these changes. And I will explain "Our Dynamic SoC test business" and how I have been working on R&D management. After that, Mr. Ralf Stoffels, Senior VP of Marketing for the V93000, will speak about the market environment for SoC semiconductors, future test needs related to high performance computing (HPC), which will drive the SoC test market in the future, and the solutions we provide.

P4 Our Dynamic SoC Test Business

Let's start with a look at the SoC test business environment.

P5 Semiconductors Support Changing Lifestyles

Semiconductors support global safety, security, and comfort. The use of semiconductors is expanding, and technological progress is making our lives more convenient and comfortable. Amid these changes, semiconductors are being used in more applications, and the demand for semiconductor test is increasing as the technology evolves.

Looking at the direction of technological evolution, in addition to the trend toward miniaturization of advanced-process devices, there is a trend called 2.5D/3D Scaling, intended to boost energy efficiency through improvements in circuit integration. All these changes in various semiconductor technologies, which we call "waves," accelerate the difficulty and complexity of test. Next, I will explain the R&D management for capturing these "waves".

P6 R&D Management Initiatives from FY2018

We maintain a high level of R&D investment as a driving force for value creation and social contribution. During the period of our second mid-term management plan, from FY2021 to FY2023, we plan to invest a total of 170 billion Japanese yen in R&D, an increase of 50 billion Japanese yen from the previous mid-term plan period. I'll briefly introduce our R&D management efforts since FY2018, when we launched our first mid-term management plan.

First, we've promoted R&D based on a long-term roadmap that takes its shape from semiconductor technology trends. We are striving to expand our platform strategy to a wider variety of customers and applications.

Secondly, we provide integrated test solutions. We are expanding our business domains from semiconductor mass production test to the design and evaluation and system level test processes, which are adjacent markets. We are also working to strengthen our test interface business.

Third, we are seeking to develop a test business that utilizes the cloud, software, and data

analytics. We have launched Advantest Cloud Solutions, a cloud service, and are working on commercialization with advanced semiconductor companies and partner companies that develop and provide solutions.

In addition to these three initiatives, we collaborate with leading customers and participate in industry consortia, and work to solve customer problems.

P7 More R&D Synergies

Next, I would like to introduce our R&D network. Our main R&D bases are located in

Boeblingen, Germany, and Gunma Prefecture, Japan. About 30% of Advantest's total 6,500 employees are in R&D. Boeblingen mainly develops the V93000, and Gunma develops the T2000 and memory testers.

Previously, V93000 R&D and T2000 and memory tester R&D were separated, but in FY2018, we integrated them into a single organization, and global personnel rotations were implemented to speed up information sharing and development efficiency. I'm here in Boeblingen today, and we have about 600 employees here.

P8 Today's Focus : High-End SoC Test

Whilst various "waves" of technological evolution in our business environment, today's focus is high-end SoC test. HPC devices, a market growing year by year, represent only a small fraction of all semiconductors, but their test intensity is much higher than other devices. Test technology requires not only measurement accuracy, but also technology such as thermal and power control. In response to these needs, in addition to our SoC tester platforms, we have strengthened our test interface and system level test with integrated solutions.

Ralf will now introduce our V93000 test solutions.

P9 High Performance Computing (HPC) is the major driver of SoC Test

Ralf Stoffels

Good afternoon, this is Ralf Stoffels and I will introduce our strategy and market performance in the area of HPC, which is one of the major drivers for SoC test and in that way very important for our corporate strategies.

P10 Era of High-Performance Compute - Exascale Computing

Let's take a look at the overall market. I have chosen a historical view here starting from the 1980s and it shows semiconductor revenue growth over that long period and in a very simplified way it connects the major growth waves with the technology which was introduced in each era. And when you look at the early dark blue phase it was the era of PC and internet, that drove the

first big growth of consumer computation, and then came the era of mobility which added a lot of capacity and equipment for the next big wave driven by mobile phone and mobile internet applications.

And I think we can clearly see what the next wave in this greenish color is going to be driven by. It is the era of HPC and the era of AI. And you can see clearly that the speed of innovation and growth have increased over time because each of those segments, of those technologies, have made it even more into the lives of everyday people, so while the era of PC was driven by commercial applications, only one family per PC, the era of mobility was driven by one phone per person, so the quantity went up significantly, so the coming era is even further driven by proliferation in almost every aspect of life and industry.

And you will later on see that there are other drivers as well, not just the volume, which drive the growth of that market.

P11 Advantest V93000 led the way towards EXA Scale Computing

And this is also a history of our own product line, and I'm just showing here the history of the V93000, the test system for SoCs, which actually got started with the era of the PC. So the V93000 was introduced in 1999, with the first generation we called Pin Scale, and this actually enabled us to serve the test requirements of the PC and the internet connected devices, and then as the next generation of devices came up, big SoCs driven by mobility, smartphones, we actually introduced Smart Scale, so like the smartphone, we actually addressed this with the Smart Scale generation. And that generation of the V93000 tester platform actually drove tremendous growth in the industry and of the product.

And just a bit more than a year ago we introduced EXA Scale. The EXA Scale generation adds the capabilities which are required to test the new upcoming supercomputers and AI engines. And most of my presentation here will deal with the challenges and the upcoming opportunities which this gives us by our position in the market.

And one of the reasons why we had such a successful growth of our platform was the ability to offer a compatible and upgradeable system and a path for our customers to go from one innovation to the next without having to change the essentials of the test programs and the investments they have made in the ATE(Automated Test Equipment). So we could always move our customers with very little effort from one generation to the next of their technology and from one generation to the next of our tester. And this is also the case for our new EXA Scale generation which seamlessly fits into that platform family. It was not only the compatibility but also the innovations we have driven during that time. So that brought us as shown here to 10K systems. That is just an estimation so of course it continues growing. We have probably already beyond that number.