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AOSL Investor PresentationSidoti & Co. Spring 2018 Conference

March 29, 2018

Safe Harbor StatementThis presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward looking statements include, without limitation, statements relating to projected amount of revenues, gross margin, operating income, statements regarding market segments, diversification of products and new customers; the expected trend on revenue and sales for each segment of our serviceable market; the progress of construction of manufacturing facility in our joint venture with Chongqing funds; our ability and strategy to develop new products, expand our sales, revenue and profitability; expectation with respect to our license agreement with STMicroelectronics; our ability to manage supply constraints and the expectation with respect to capacity limitation; the execution of our business plan; and other information regarding the future development of our business. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in this presentation. These factors include, but are not limited to, the decline of the PC industry and our ability to respond to such decline; difficulties and challenges in executing our diversification strategy into different market segments; our ability to introduce or develop new and enhanced products that achieve market acceptance; the actual product performance in volume production, our ability to achieve design wins, the general business and economic conditions, the state of semiconductor industry and seasonality of our markets, our ability to maintain factory utilization at a desirable level, our ability to successfully develop and operate the joint venture in China, and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2017 filed by AOS on September 5, 2017. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and AOS undertakes no duty to update such information, except as required under applicable law.

AOS Confidential 2

Dollars in millions. Source: Gartner.

AOSL Story: Next Phase of Growth

Strengthened core business; continuous growth in revenue and profits

New growth driver; digital power opens up $400 million SAM into advanced computing

Chongqing JV in pre-production; will help address capacity constraints starting 2019

Prudent capital management, share repurchase program

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Reigniting Growth

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Revenues in $ Million

Unaudited

$1$12

$47

$98

$154

$202

$274

$185

$302

$361$342 $337

$318$328 $336

$383

$209

FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18Q1~Q2

Quarterly Revenue & Gross Margin

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$77M$81M $81M $80M $83M

$91M$97M $95M $93M

$98M$105M $104M

16.6%17.6% 18.5% 18.8%

19.7%

21.3%22.5% 23.3% 24.3%

25.6%26.3%

27.0%

10%

20%

$0M

$20M

$40M

$60M

$80M

$100M

$120M

Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17

Revenue Gross Margin %

0.32

Dec Q 2016 Dec Q 2017

Non-GAAP EPS ($)*

Healthy Growth Momentum

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23.5

27.4

Dec Q 2016 Dec Q 2017

Adjusted Gross Margin (%) *

+390 bps

* Adjusted Gross Margin excludes share-based compensation expenses.Non-GAAP EPS excludes share-based compensation expenses and tax benefit in Dec Q 2017.

0.18

94.7103.9

Dec Q 2016 Dec Q 2017

Revenue ($m)

+10%

+0.14

New Growth Drivers: Advanced Computing

PC 300MU

TV 200MU

Mobile 1.4BU

Advanced Computing >11MU Server

• Digital Power Controller • Total Power Solution

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AOSL

• Highly efficient discrete and PIC

• Differentiated packaging capability

• Strong customer relationship

STMicro IP

• Digital power multiphase controller

• Optimal performance and programmability

• Ease-of-use

Advanced PIC

• Total power solution to customers

• Diversify into new markets and customer base

• Shift to higher value products

Acquired IP Enables Advanced Computing

License Agreement with STMicroelectronics enables Digital Power Controller Products and New Markets

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Notebook PC

Desktop PC

Graphic Cards

Servers

Focused Market Segments

Computing

UHD TVs

Set Top Boxes

Gaming

White Goods

Consumer

Battery Packs

Smart Phones

Infrastructure

Networking

Communications

Quick Charger

Motion Control

Power tool

Welding

Power Supply/Industrial

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Computing : 43% (Q2 FY2018)

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AOS Advantage Strategy New LV platform, cost-performance Power IC with high efficiency

Market Leader in Discrete MOSFET PC Power

Grow market share Expand BOM content

74%

76%

78%

80%

82%

84%

86%

88%

90%

92%

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

Effi

cien

cy (

%)

Output Current (A)

Efficiency Comparison of AOZ5038 and CompetitorVIN=19V, VOUT=1V, FSW=300KHz

AOZ5038QI

Competitor

Efficiency Comparison of AOE6930 and CompetitorVIN = 19V, VOUT=0.9V, FSW=600KHz

Consumer: 20% (Q2 FY2018)

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Strong Position with Leading TV OEM

New Market: Home Appliance

High Efficiency solutions for chipset power and for TV backlighting

Geographic diversification of TV customer base

Higher BOM content with 4K TV and Smart TV trend

SAM expansion into home appliance markets with IGBT products

EzBuck Leading Light Load Efficiency and Thermal Performance

AOS Advantage Strategy

Power Supply/Industrial: 20% (Q2 FY2018)

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AOS Advantage Strategy

High efficiency High Voltage αMOS5 solutions

Total MOSFET Solutions for High Efficiency Power Supplies and Motors

Expand SAM with new high voltage and quick charging solutions

Broaden customer base in power tools and motion control

Better efficiency and lower thermals

Arc WeldersQuick Chargers

AC/DC Adapter

90.0%

91.8%

93.2%93.5%

90.2%

91.9%93.2%93.6%

700525350175Output (W)

Server Power SupplyThermal Performance

Comp A aMOS5 87.5 ℃ 90.3 ℃

Power Tools

Communications: 14% (Q2 FY2018)

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Small size with better protection LV MOSFETs

Leading efficiency MV MOSFETs

Advanced small package solutions in smart phone battery management

Further penetration into telecom networking and surge protection applications

AOS Advantage Strategy

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Mobile Phones and Battery Packs

Networking Power and Equipment

SAM Expansion with Diversified Products

0.48mm

Competitor CSP(with solder balls)

0.3mm

AlphaDFN(no solder balls needed)

Chip Scale Package Thickness

AOS MOSFETs 73⁰CCompetitor MOSFETs 85⁰C

Thermal Measurement on 1/8 Brick Datacom Power Supply

JV Helps Address Capacity Constraints

AOS Confidential ı

Improvement in capacity and CapEx Better access to diverse customers in China $130 million cash contributed as of 9/30/2017 Trial production scheduled to start in mid CY2018

Chongqing JV ($330mil)

Assembly/Packaging 12” Wafer Fab

JV AgreementSigned

ConstructionCommenced

2017⏏

2018⏏

2019⏏

AOS (51%)$10 million cashExisting equipmentCertain manufacturing IPs

Chongqing (49%)$162 million cash

contribution

Target Model

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Revenue

Gross Margin

Operating Expense *

Near/Mid Term

High single digit % growth

Mid 20%

~22%

Long Term

~$600 mil

>30%

~20%

* Non-GAAP measures exclude share-based compensation expenses and CQJV pre-production costs.

Healthy Operating Cash Flow

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($Millions)

($1)

$38 $38

$13

($5) ($3) ($8) ($3)

$14$12M

$23

$30 $30$33

$28

$38

$28

$40$43

$22M

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Q1~Q2

Net Income Operating Cash Flow

Dollars in millions. Source: Gartner.

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Strong Balance Sheet Strong cash balance with no debt as of 12/31/2017 Support organic growth

• Gradually alleviate supply constraint starting from June quarter 2018• Invest in digital power controller product line• Support JV production ramp

$30 million share repurchase program authorized in Sept 2017• Completed $30 million Dutch tender offer in July 2015

($Millions, except for ratios)

FY2016 FY2017 FY2018 Q2 Ratios

Net Cash $87.8 $115.7 $146.2 $5.84 / ShareIncluding cash from

Chongqing JV 0 $6.1 $57.1

Trade Receivable $26.6 $28.4 $24.3 33 days DSO

Inventory $68.8 $76.3 $85.7 98 days in INV

Total Equity $242.1 $298.5 $393.1 $15.70 BV / Share

Dollars in millions. Source: Gartner.

AOSL Story: Next Phase of Growth

Strengthened core business; continuous growth in revenue and profits

New growth driver; digital power opens up $400 million SAM into advanced computing

Chongqing JV in pre-production; will help address capacity constraints starting 2019

Prudent capital management, share repurchase program

AOS Confidential 18

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World Class OEMs / ODMs

Strategic Customer Relationships

AOS Confidential

3/29/2018 20

Key Distributors

(a member of)

Taiwan

South KoreaJapanChina

Europe

United States