Provide high-speed Network Processors (NPUs)

The Network Processor (NPU) Vision PC NP (Network Platform) NPU CPU Network Processor (NPU) is a programmable chip, designed specifically to process packets (data, voice and video) and be used in networking products such as switches and routers. Like Pentium in PCs, Network Processors will eventually be found in all networking products. Furthermore, such products can be based on standard Network Platforms (NPs). EMS (Electronic Manufacturing Services) companies will build and sell the NPs to systems vendors which will add their SW and sell it to their customers. Network Processors (NPU’s) are processors that were designed specifically for networking products Just as Pentium processors are at the core of PC’s, NPU’s will eventually be found in all types of communication equipment, replacing ASICs that are currently used. ASICs are chips that each system vendor builds in-house, tailored to the specific product being designed. ASICs require long design cycles and cannot be modified to adapt for changing technologies and markets, generally requiring a different ASIC to be developed for each new product or application. NPUs are programmable chips and therefore can be adjusted to include new features and applications to be used across multiple product lines. Network Processor based products include all types of communication equipment. Products that basically form the networking infrastructure.

ASIC NPU NPUs vs. ASICs Networking Products Before NPUs became available networking products were built from ASICs (Application Specific Integrated Circuits). With the right price and features NPUs will replace ASICs over time. ASICs are fixed function chips that require very long design cycles and cannot be redesigned quickly enough to keep up with Internet dynamics, such as QoS in carrier class Ethernet. NPUs can be easily programmed to support all Internet requirements, including QoS in carrier class Ethernet products. Network Processors (NPU’s) are processors that were designed specifically for networking products Just as Pentium processors are at the core of PC’s, NPU’s will eventually be found in all types of communication equipment, replacing ASICs that are currently used. ASICs are chips that each system vendor builds in-house, tailored to the specific product being designed. ASICs require long design cycles and cannot be modified to adapt for changing technologies and markets, generally requiring a different ASIC to be developed for each new product or application. NPUs are programmable chips and therefore can be adjusted to include new features and applications to be used across multiple product lines. Network Processor based products include all types of communication equipment. Products that basically form the networking infrastructure.

Services Cards vs. Line Cards NPU Line Cards ASICs Whereas the inflexible ASICs are located in cost-sensitive Gigabit Ethernet line cards – usually ten per box. Can NPUs become more affordable and make the transition into line cards to provide flexibility at the port level? NPUs NPUs are generally more expensive and today are used mostly in services cards – usually one card per box – to provide flexibility and add new features.

logic logic Can NPUs be Affordable? logic Advanced silicon process technology reduces the gate size But the size of analog I/O pads stays almost unchanged 180nm 150nm 130nm 90nm EZchip die size driven by logic “Core Limited” EZchip die size driven by pads “Pad Limited” logic logic logic logic Network Processors (NPU’s) are processors that were designed specifically for networking products Just as Pentium processors are at the core of PC’s, NPU’s will eventually be found in all types of communication equipment, replacing ASICs that are currently used. ASICs are chips that each system vendor builds in-house, tailored to the specific product being designed. ASICs require long design cycles and cannot be modified to adapt for changing technologies and markets, generally requiring a different ASIC to be developed for each new product or application. NPUs are programmable chips and therefore can be adjusted to include new features and applications to be used across multiple product lines. Network Processor based products include all types of communication equipment. Products that basically form the networking infrastructure. At 130nm and below EZchip NPUs, like ASICs, are becoming pad-limited with similar die sizes and costs

EZchip Wins Through Integration NP-2 NP-2 @ 130nm is EZchip’s first step in replacing ASICs on line cards with unlimited flexibility at ASIC cost, targeting carrier products Line Card NP-3 NP-3 @ 90nm is a complete line card on a chip that will further reduce the cost of carrier class products and with the price points to replace ASICs in core enterprise products as well NP-1 NPU Optics Ethernet Phys Ethernet MACs Traffic Managers Fabric Interface Search Engines

What the Experts Say: Linley Gwennap Linley Gwennap and Bob Wheeler A Guide to Network Processors, November 2004 “Startup EZchip has established itself as the leading vendor of 10Gbps NPUs, focusing on metro and high-end enterprise applications……... We expect 10Gbps NPUs to comprise 30% of 2007 NPU revenue, and EZchip could capture half of this revenue.” Linley Gwennap Light Reading, August 2005 “Intel and AMCC are studiously ignoring that high-end market and letting EZchip run away with it”

What the Experts Say: George Gilder “EZchip is no longer a venture investment; it is a rip roaring winner, my best pick since Qualcomm.” “In the world of network processors, EZchip Inside may soon become as ubiquitous as Intel Inside has become in the microprocessor world.” George Gilder Gilder Technology Report October 2004 “Show me the Money.” George Gilder Gilder Technology Report August 2005

EZchip’s Background Information EZchip founded in 1999 as a LanOptics (LNOP) spin-off 60% held by LanOptics; LanOptics only asset EZchip is practically a publicly traded company Head count – 80; 60 in R&D EZchip raised over $60M; last $10M closed in July 2005 LanOptics, Goldman Sachs, JK&B, Star and Blue Run Products NP-1 – Sampled in April 2002 as a proof of concept NP-1c – Commercial shipments started in December 2003 NP-2 – Sampled in 6/05, production expected in Q1/06 Customers as of August 2005 Over 60 active design wins; many large systems vendors

EZchip’s Active Design Wins

Summary NP-1 established EZchip as the high-speed NPU leader Targeting services cards, usually one per box At <130nm EZchip NPUs and ASICs have similar cost structure But NPUs are flexible and ASICs are not NP-2@130nm: First step in replacing ASICs on line cards Targeting line cards in carrier products, usually 10 per box NP-3@90nm: A complete line card on a chip Adding core enterprise line cards Focus on building our customer base The large players are Cisco, Huawei, Juniper, Nortel and Alcatel. Three of the five are already NP-2 customers

System design can be hard or EZ