PEREGRINE SEMICONDUCTOR CORP (PSMI) IPO

We estimate that our net proceeds from the sale of the common stock that we 
are offering will be approximately $68.5 million, after deducting 
underwriting discounts and commissions and estimated offering expenses 
payable by us. If the underwriters’ option to purchase additional shares in 
this offering is exercised in full, we estimate that our net proceeds will 
be approximately $79.2 million. We will not receive any proceeds from the 
sale of shares of common stock by the selling stockholders. In connection 
with our initial public offering, eight employees are exercising options 
and selling a total of 159,220 shares issued upon exercise of these options. 
All of the options that are being exercised would otherwise expire during 
the 180-day lock-up period, when the holders would not be able to sell the 
shares, and therefore these holders are exercising these options and we are 
allowing them to sell these shares in our initial public offering. 

We intend to use the net proceeds to us from this offering for working 
capital and other general corporate purposes. While we have not allocated 
the net proceeds of this offering to specified general corporate purposes, 
we may utilize such proceeds by allocating them amongst the following 
categories: finance our growth; develop new products; assert and defend our 
intellectual property rights; and fund capital expenditures. In addition, 
we may choose to repay our loan facility with Silicon Valley Bank or expand 
our current business through acquisitions of other businesses, products, or 
technologies. However, we do not have agreements or commitments for any 
specific acquisitions at this time. Our loan facility with Silicon Valley 
Bank provides us with a revolving line of credit and also an equipment line. 
The revolving line of credit has a maturity date of December 30, 2014, and 
carries an annual interest rate equal to the prime rate plus 0.50%, subject 
to an interest rate floor of 3.75% and an interest rate ceiling of 7.50%. 
The equipment line is available until December 31, 2012 and has a maturity 
date of 36 months from the date of each draw. The equipment line carries an 
annual interest rate equal to 4.75%. 

The expected use of net proceeds of this offering represents our current 
intentions based upon our present plans and business conditions. The amounts 
we actually expend in these areas may vary significantly from our current 
intentions and will depend upon a number of factors, including future sales 
growth, success of our engineering efforts, cash generated from future 
operations, if any, and actual expenses to operate our business. As of the 
date of this prospectus, we cannot specify with certainty all of the 
particular uses for the net proceeds to be received upon the closing of 
this offering. Accordingly, our management will have broad discretion in 
the application of the net proceeds, and investors will be relying on the 
judgment of our management regarding the application of the net proceeds 
of this offering. 

Pending use of proceeds from this offering, we intend to invest the proceeds 
in a variety of capital preservation investments, including short-term, 
investment-grade, interest-bearing instruments.

The design, development, marketing and sale of high performance RFICs to the 
aerospace and defense, broadband, industrial, mobile wireless device, test 
and measurement equipment, and wireless infrastructure markets are intensely 
competitive and characterized by rapid technological change, evolving 
standards, varying product life cycles, and pricing pressures. We expect 
competition to intensify as competitors expand their product offerings and 
as new competitors enter the market. We believe that high performance RFIC 
providers compete principally on product capabilities, levels of integration, 
innovation, reliability, price, time-to-market, overall system cost, 
intellectual property, customer support, reliability of supply, and 
reputation. We believe we compete favorably with respect to these 
factors. 

We compete with a number of large domestic and international suppliers of 
RFICs in our target markets. We currently compete in the mobile wireless 
device and wireless infrastructure markets with Avago, Hittite, M/A-COM, 
NEC, Renesas, RFMD, Skyworks, Sony, Texas Instruments, Toshiba, TriQuint 
Semiconductor, and others. In the broadband, test and measurement equipment, 
and industrial markets, we principally compete with Hittite, Intersil, 
M/A-COM, Renesas, Skyworks, and others. Our principal competitors in the 
aerospace and defense markets include Analog Devices, Hittite, M/A-COM, 
and others. We also expect that in the future we may face competition from 
suppliers of RFICs based on new or emerging technologies. 

Although we have a long operating history, many of our current and potential 
competitors may have better name recognition, access to a larger customer 
base and significantly greater financial, sales and marketing, manufacturing, 
distribution, technical, and other resources than us. As a result, those 
companies may be able to respond more quickly to changing customer demands 
or devote greater resources to the development, promotion, and sale of their 
RFICs than we can.