Infineon Technologies AG

Investor Presentation • May 30, 2005

Company Information

May 2005

Page 1

Table of contents

Market / Company overview Market / Company overview

Business development 2nd quarter fiscal year 2005 Business development 2nd quarter fiscal year 2005

Business groups Business groups

General company information General company information

Infineon Company Information May 2005 Page 2

May 2005

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Semiconductor market development and forecasts

Infineon Company Information May 2005 Page 4

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Source: WSTS for historical data

* As of April 20th, 2005

** incl. Update 4Q CY2004

Company

Information

May 2005

Page 5

Worldwide semiconductor ranking 2004 and 2003

Source: iSuppli, March 2005

Company

Information

May 2005

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Ranking Americas*

Source: iSuppli, March 2005

Company

Information

May 2005

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Ranking Europe

Source: iSuppli, March 2005

Company

Information

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Ranking Asia

Source: iSuppli, March 2005

Company

Information

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Ranking in all targeted applications

* Application-specific semiconductor Source: Gartner Dataquest (March 2005); iSuppli (March 2005)

Company Overview Company Overview

Business development 2nd quarter fiscal year 2005 Business development 2nd quarter fiscal year 2005

Business groups Business groups

General company information General company information

Infineon at a glance

• Infineon – the No. 4 semiconductor company worldwide
• Revenues of Euro 7.2 billion in the fiscal year 2004; revenues growth of 17% year-on-year
• In second quarter revenues were Euro 1.61 billion, down 12% sequentially
• Approx. 36,000 employees (incl. 7,300 R&D staff) as of March 31, 2005
• Strong technology portfolio with about 41,000 patents and applications; more than 35 major R&D locations worldwide
• Most advanced fab cluster in 300mm production

Infineon Company Information May 2005 Page 11

Focus on communication, automotive and memory products

Company

Information

May 2005

Page 12

Infineon – Market-oriented business structure

Applications

Business Groups

Automotive, Industrial & Multimarket

Car Electronics (powertrain, body & convenience, safety management, infotainment), Power Conversion (power supplies, drives), Chipcard & Security (communications, payment, identification, entertainment)

COM COM

Communication

MPMP

Memory Products

Mobile Solutions, Cellular Base Stations, Broadband and Carrier Access, Metro Ethernet Access, Local / Personal area wireless, GPS, CPE, Tuner

PC and notebooks, PC-upgrades, workstations, infrastructure (servers and networking), PDA's, SMART phones, computer peripherals, Removable-Solid-State-Memories (Flash-Cards)

Infineon's technology competence

Synergy between ecological responsibility and economic success

EN ISO 14001 multi-site certification

• Efficient resources management in terms of optimized consumption, recovery, recycle and re-use
  • Intelligent waste management and emission reduction
    • Voluntary commitment to reduce green-house gas emissions on global scale
      • Environmental commitments covering development and life-cycle considerations
      • Environmental requirements as part of supply chain management
      • High safety and health standards

For Infineon environmental responsibility means more than just the fulfillment of legal requirements For Infineon environmental responsibility means more than just the fulfillment of legal requirements

Green products

• IFX is running the project "Green Products" since 1998 according to the EU directives.
  • More than 50% of the total volume in pieces is already converted to "Green".
  • The main conversion is in 2004 / 2005.
  • Information about project, technology and conversion roadmaps are available on the homepage: http://www.infineon.com/greenproduct/index.htm

Copyright © Infineon Technologies 2005. All rights reserved.

Integrated business continuity, disaster recovery and security at Infineon

Copyright © Infineon Technologies 2005. All rights reserved.

Market / Company overview Market / Company overview

Business development 2nd quarter fiscal year 2005 Business development 2nd quarter fiscal year 2005

Business groups Business groups

General company information General company information

Information

Business Development in Q2 FY 2005

• Q2 revenues were Euro 1.61 bn, down 12% sequentially. Excluding license income of Euro 118 m realized in Q1 from the settlement with ProMOS, revenues declined 5% sequentially, reflecting reduced revenues of the Communication and Memory Products segments.
• Net loss in Q2 was Euro 114 m, down from net income of Euro 142 m in Q1.
• Second quarter EBIT decreased to negative Euro 117 m from positive Euro 211 m in the prior quarter. EBIT was negatively impacted by a net aggregate charge of Euro 74 m resulting primarily from the reorganization measures in the Communication segment.
• Total revenues for the first half of financial year 2005 were Euro 3.42 bn, up 4% from Euro 3.29 bn in the same period last year.
• Net income for the first half of the 2005 financial year amounted to Euro 28 m, compared to Euro 73 m in the prior year.
• EBIT in the first half of financial year 2005 was Euro 94 m, a decrease from Euro 141 m in the same period last year.

• Infineon announced ground breaking at its new front-end production plant in Kulim, Malaysia. The fab will primarily produce power semiconductors used in automotive and industrial power applications. Infineon announced ground breaking at its new front-end production plant in Kulim, Malaysia. The fab will primarily produce power semiconductors used in automotive and industrial power applications.
• Infineon expanded its CoolMOS™ product portfolio with a new series of high-performance power transistors. These are designed for power supplies used in computer servers and other high-power-density applications such as telecom equipment and flat-panel displays. Infineon expanded its CoolMOS™ product portfolio with a new series of high-performance power transistors. These are designed for power supplies used in computer servers and other high-power-density applications such as telecom equipment and flat-panel displays.
• Together with Giesecke & Devrient, a new production methodology called "Flip Chip On Substrate" (FCOS) for chip-card IC packages was introduced which increase IC packages' robustness. Together with Giesecke & Devrient, a new production methodology called "Flip Chip On Substrate" (FCOS) for chip-card IC packages was introduced which increase IC packages' robustness.
• Infineon further expanded its microcontroller product offering, including two 32-bit microcontrollers based on the TriCore™ architecture, and a family of application-specific 16-bit microcontrollers that enables cost savings of up to 30% compared to available alternatives. Infineon further expanded its microcontroller product offering, including two 32-bit microcontrollers based on the TriCore™ architecture, and a family of application-specific 16-bit microcontrollers that enables cost savings of up to 30% compared to available alternatives.

• Call-on-air with world's first single chip GSM/GPRS Baseband/Quadband RF transceiver device E-GOLDradio at 3 GSM Cannes attracting customers Call-on-air with world's first single chip GSM/GPRS Baseband/Quadband RF transceiver device E-GOLDradio at 3 GSM Cannes attracting customers
• Infineon, Samsung Electronics, Trolltech and Emuzed announced the world's first UMTS/EDGE-smartphone reference design based on Linux operating system Infineon, Samsung Electronics, Trolltech and Emuzed announced the world's first UMTS/EDGE-smartphone reference design based on Linux operating system
• IFX announced SMARTi PM; a single-chip CMOS-RF-Transceiver for GSM-, GPRSand EDGE mobile phones, saving 50% board space and 30% component cost IFX announced SMARTi PM; a single-chip CMOS-RF-Transceiver for GSM-, GPRSand EDGE mobile phones, saving 50% board space and 30% component cost
• Design Win claimed for RF Power Transistors PTFA191001E & PTF180301E at Ericsson Cingular project Design Win claimed for RF Power Transistors PTFA191001E & PTF180301E at Ericsson Cingular project
• Market introduction of ADSL2+ Central Office Chip GEMINAX Pro sets New Standards for Power Consumption and System Costs reducing system cost by 30% Consisting of a 16-channel ADSL2+ Digital Front End (DFE) and a 4-channel Analog Front End (AFE), with integrated low-power Class D line drivers, the GEMINAX PRO chipset reduces power dissipation, footprint and overall system costs by up to 30 percent, in comparison to other chipsets currently available Market introduction of ADSL2+ Central Office Chip GEMINAX Pro sets New Standards for Power Consumption and System Costs reducing system cost by 30% Consisting of a 16-channel ADSL2+ Digital Front End (DFE) and a 4-channel Analog Front End (AFE), with integrated low-power Class D line drivers, the GEMINAX PRO chipset reduces power dissipation, footprint and overall system costs by up to 30 percent, in comparison to other chipsets currently available

Infineon Company Information May 2005 Page 20

Several Design-wins with Amazon-M IFX's integrated ADSL2/2+ transceiver for CPE applications Several Design-wins with Amazon-M IFX's integrated ADSL2/2+ transceiver for CPE applications

• The segment is on track with the introduction of its 90-nanometer DRAM trench technology on 300-millimeter wafers, and expects production to start ramping up by mid-2005. The segment is on track with the introduction of its 90-nanometer DRAM trench technology on 300-millimeter wafers, and expects production to start ramping up by mid-2005.
• In the second quarter of fiscal year 2005, Infineon further increased the proportion of higher-density products in its portfolio, and introduced additional leading-edge products. It also started sampling of the 512- Megabit GDDR3 Graphics RAMs. In the second quarter of fiscal year 2005, Infineon further increased the proportion of higher-density products in its portfolio, and introduced additional leading-edge products. It also started sampling of the 512- Megabit GDDR3 Graphics RAMs.
• As an industry first, Infineon introduced 4-Gigabyte DDR2 modules based on Dual-Die technology for server applications. This technology makes it possible to stack two identical dies in one package, doubling the density without significantly increasing package dimensions. This is crucial for certain applications such as servers and notebooks where footprint and airflow are decisive factors. As an industry first, Infineon introduced 4-Gigabyte DDR2 modules based on Dual-Die technology for server applications. This technology makes it possible to stack two identical dies in one package, doubling the density without significantly increasing package dimensions. This is crucial for certain applications such as servers and notebooks where footprint and airflow are decisive factors.

Business Development Infineon, Comparison Q1 FY 2005 vs. Q2 FY 2005, 1st HY 2004 vs. 1st HY 2005

( d i U S G A A P t a c c o r n g o ) i E U R n m	Q 1 0 4 / 0 5	Q 2 0 4 / 0 5	C h C h a n g e a n g e	H Y 1 t s 0 3 / 0 4	H Y 1 t s 0 4 / 0 5	C h C h a n g e a n g e
N l t e s a e s G h ( % ) t r o w	1, 8 1 6	1, 6 0 6 ( 1 2 )	( 2 1 0 )	3 2 9 4 ,	3 4 2 2 , 4	1 2 8
E B I T	2 1 1	( ) 1 1 7	( ) 3 2 8	1 4 1	9 4	( ) 4 7
N i / ( l ) t e n c o m e o s s	1 4 2	( ) 1 1 4	( ) 2 5 6	7 3	2 8	( ) 4 5
E i / ( l ) a r n n g s o s s h ( E U R ) p e r s a r e	0 1 9	( 0 1 5 )	( 0 3 4 )	0 1 0	0 0 4	( 0 0 6 )

Revenue performance and EBIT development (1 of 2)

	R d E B I T R d E B I T e e n e a n v u e v e n u e a n
( d i U S G A A P t a c c o r n g o ) [ E U R ] m	Q / 2 0 3 0 4	Q 3 0 3 / 0 4	Q 4 0 3 / 0 4	Q 1 0 4 / 0 5	Q / 5 2 0 4 0
A i t t o m o e u v , I d i l & t n s r a u M l i k t t m a r e u R e e n e s v u E B I T	6 0 6 4 9	6 6 9 4 7	0 8 7 9 0	6 3 1 4 8	6 3 4 3 6
C i i t o m m n c a o n u R e v e n u e s E B I T	3 9 0 1 5	4 1 9 2	4 6 6 ( ) 7 3	4 1 4 ( ) 1 9	3 3 2 ( ) 1 4 2
M P d t e m o r y r o u c s R e e n e s v u E B I T	6 6 5 1 3	8 1 1 ( ) 0 5	8 0 7 1 4 9	7 6 6 1 9 6	6 3 3 1 7

Infineon Company Information May 2005 Page 23

Prior period segment results are reclassified to be consistent with the current period presentation and organizational structure.

Revenue performance and EBIT development (2 of 2)

	R d E B I T R d E B I T e e n e a n v u e e n e a n v u
( d i U S G A A P t a c c o r n g o ) [ E U R ] m	Q / 2 0 3 0 4	/ Q 3 0 3 0 4	/ Q 4 0 3 0 4	/ Q 1 0 4 0 5	Q / 5 2 0 4 0
O h t e r s R e e n e s v u E B I T	3 ( ) 2 1	1 ( ) 9	3 ( ) 3 5	3 ( ) 2	4 1 1
C & t o r p o r a e R i l i i t e c o n c a o n R e e n e s v u E B I T	7 1 5	8 ( ) 1 5	9 ( ) 1 8	2 ( ) 1 2	3 ( ) 3 9

Infineon Company Information May 2005 Page 24

Prior period segment results are reclassified to be consistent with the current period presentation and organizational structure.

Infineon Company Information May 2005 Page 25

* Includes Corporate & Reconciliation and Other Operating Segments (according to US GAAP)

Sales by region, 1st quarter FY 2005 and 2nd quarter FY 2005

Infineon Company Information May 2005 Page 26

(1) Excluding Germany (according to US GAAP)

Sales by segments, 1st HY 2004 and 1st HY 2005

Infineon Company Information May 2005 Page 27

* Includes Corporate & Reconciliation and Other Operating Segments

(according to US GAAP)

Sales by region, 1st HY 2004 and 1st HY 2005

Infineon Company Information May 2005 Page 28

(1) Excluding Germany (according to US GAAP)

Outlook Q3 FY 2005

• Infineon anticipates no major improvement in demand in the Q3 FY 2005. Continued pricing pressure expected, especially for chip-card ICs, memory, and mobile phone products. However, growth in shipments, primarily in Memory Products, should partially offset the impact of pricing pressure on revenues and operating results. Results of operations expected to be negatively affected by further charges related to the planned phase-out of production at Munich Perlach.
• In automotive business further growth expected in Q3 FY 2005. But continuing pricing pressure anticipated in its industrial business, therefore expecting earnings to decrease slightly in the upcoming quarter. In its security and chip-card business, Infineon anticipates continued weakness, in line with the worldwide chip-card market. All in all, the company expects revenues and earnings of the segment to remain stable.
• Revenues of Communication segment expected to remain flat or to decrease slightly compared to previous quarter, mainly due to continued weak demand from some customers for mobile phone components. Significant negative EBIT results expected for the Q3 FY 2005. However, Infineon expects its recently initiated efficiency programs to start impacting financial results positively in Q3. Accordingly, the company expects the segment's losses to decrease compared to the second quarter of the financial year.
• For memory products segment, Infineon expects an increase in system memory loads and worldwide demand for memories due to the price reductions for DRAMs in the second quarter of financial year 2005. The company's bit shipments are expected to increase at a rate above market growth based on growing capacities at joint venture and foundry partners. The company will continue to focus on the expansion of its product portfolio with higher margin products as these are less exposed to price fluctuations.

Relative performance of IFX stock since the beginning of fiscal year 2003

ST Microelectronics

Company Information May 2005 Page 30

Infineon

Infineon Company Information May 2005 Page 31

General company information General company information

Market / Company overview Market / Company overview

Business groups Business groups

Business development 2nd quarter fiscal year 2005 Business development 2nd quarter fiscal year 2005

Infineon – Business groups

AIMAIM

Automotive, Industrial & Multimarket

Communication

MPMP

Memory Products

AIM business focus

Automotive

Complete product coverage: Sensors, microcontrollers, power ICs, Plastic Optical Fiber

Over 35 years of experience in automotive electronics

Industrial

• Broad spectrum of power semiconductor technologies for all kinds of voltages
• Application-specific reference designs
  • Technology leadership enabling system miniaturization and high-efficiency performance

Multimarket

• Strong channel partners
• Competitive and established standard products
• ASIC and design solutions
  • Leading position in siliconbased security - Trusted Platform Module (TPM)
• Global presence based on strong customer relationship
• Profound application know-how
• Cost-effective and highquality manufacturing

Automotive Semiconductor Solutions AIMCombining sensing, computing and actuating

	S A C t t t S A C c t u a t e e n s e o m p e u t c a e e n s e u o m p u e
P i t P i o e r r a n w t o w e r r a n D i l E i M t. e s e n g n e g m - G l i E i M t. a s o n e n g n e g m - i i C T l t r a n s m s s o n o n r o - S / A l t t t t a r e r e r n a o r -	S P S b i C M O F E T 1 6 t s r e s s u r e e n s o r s µ " " " ® I G B T H l l S 3 2 b i T i C t s " a e n s o r s r o r e " " R l t e g a o r s ( C S ) u D P " µ + T i r a n s c e v e r s " S P t m a r o w e r " S I C t s e m s y "
S f M t t S f M a e a n a g e m e n t y t a e y a n a g e m e n A B S / T i C l t t r a c o n o n r o - S i u s p e n s o n - A i b R i S t t t r a g e s r a n y s e m s + - S P i t o e r e e r n g w - T i P M i i t r e r e s s u r e o n o r n g -	D i d o e s " S C P 8 b i t r e s s r e e n s o r s s u µ " " i T t r a n s s o r s " S i C H l l 1 6 b t a e n s o r s µ s " " S M O F E T s " ® R F I C 3 2 b i T i C t s r o r e R l " " t e g u a o r s " ( C D S P ) T i µ + r a n s c e e r s v " S P t m a r o w e r " S I C t y s e m s "
B d & C i C i B d & o y o n v e n e n c e o y o n v e n e n c e L i h C l t t g o n r o - H i V i l i t t t e a n g, e n a o n, - A i C d i i t r o n o n D & S t o o r e a - S i B T l t t t m a r a e r y e r m n a -	D i d o e s " S C H l l 8 b i t a e n s o r s s µ " " i T t r a n s s o r s " S i C T 1 6 b t e m p. e n s o r s µ s " " S M O F E T s " R F I C s " R l t e g u a o r s " T i r a n s c e e r s v " S P t m a r o w e r "
f i I t t I f i n o t a n m e n t n o a n m e n T l i t e e m a c s - N i i t a v g a o n - M l i d i t u m e a - C A d i a r o u -	S / S M i l l W i d R ( G M G P R ) d t c r o c o n r o e r s, e a n g e a n S ( ) h R B l h, W L A N i i t t t t o r a n g e u e o o c o m m u n c a o n l i G P S H i h F I C t s o u o n s, g r e q u e n c y s, , C A N / M O S T T i P l i O i l F i b t t r a n s c e e r s, a s c p c a r e s, v

Copyright © Infineon Technologies 2005. All rights reserved.

Multimedia Cards, Power ICs, Security ICs

AIM

Infineon Company Information May 2005 Page 34

-

• Dashboard

-

Advanced sensors, controllers and RF ICs for Tire Pressure Monitoring Systems (TPMS)

Infineon utilizes its combined wireless TPMS Moduleand automotive know-how to build a leading position in Tire Pressure Monitoring Systems

Key solutions include:

• • Leading edge Pressure, temperature and rotational sensors
• • High-performance microcontrollers
• -Broad range of transmitter, receiver and transceiver ICs

Our core competencies in sensors:

• • Advanced signal processing
• -Strong technical support expertise

Key sensor trends:

• -Further integration of functionality through advanced signal processing
• • Increased robustness
• Standardized signal transmission concepts

Copyright © Infineon Technologies 2005. All rights reserved.

Power semiconductors, power modules and microcontrollers for the whole energy supply chain

Power Distribution

Key Products:

• Thyristors and diodes
• IGBT- and bipolar modules
• 8- and 16-bit microcontrollers
• 32-bit TriCore®

microcontrollers (incl. DSP)

Energy Treatment

Key Products:

• Thyristors and diodes
• IGBT- and bipolar modules

Power Management (Supplies and Drives)

Key Products:

• Discrete Power
• Power Control ICs
• 8- and 16-bit microcontrollers
• 32-bit TriCore® microcontrollers (incl. DSP)

Infineon Company Information May 2005 Page 36

AIMAIM

Power Conversion Applications and Products

	D i t D i s c r e t e s c r e e P P o w e r o e r w	P I C P I C o e r s w o e r s w	M i i M c r o c r o - - l l t l l c o n t r o e r s c o n r o e r s
S P l i P S l i o e r p p e s w u o e r p p e s w u A C / D C - D C / D C -	C l M O S T M o o " T M ( S C h i ! i t n q " S h k D i d ) t t c o y o e H i h d I G B T g s p e e " ® S O i M O t p "	P W M & P F C I C s " T M C S l E T o o " I d S i h t t t n e g r a e w c " G D i t a e r v e r "	8 b i C t s µ " C 1 6 b i t s µ " ® b i T i C 3 2 t r o r e " ( C D S P ) µ +
D i i D r v e s r v e s C o n s u m e r - D i r v e s G l P e n e r a r p o s e u - D i r e s v	T M C E m o n " T h S t r e n c o p " I G B T F I G B T t a s "	C P W M & P F " I C s	i C 8 b t µ s " b i C 1 6 t µ s " ® 3 2 b i T i C t r o r e " ( C S ) D P µ +

Infineon Company Information May 2005 Page 37

AIMAIM

Power conversion with smart semiconductor solutions for saving resources

• thinQ!TM Silicon Carbide Schottky diode in 300 & 600V for fastest switching
• CoolMOSTM high voltage super-junction MOSFET for superior power handling capability
• OptiMOSTM P-channel MOSFETs for battery- and power-management
• OptiMOSTM 2 power MOSFETs in highperformance packages for optimal priceperformance-ratio
• CoolSETTM for standby supply
• CoreControlTM PWM controllers and gate drivers for core and peripheral supplies
• PWM / PFC ICs for high efficiency

Infineon Company Information May 2005 Page 38

AIMAIM

Chip Card and Security applications Infineon is well-positioned to serve the key growth markets AIMAIM

Copyright © Infineon Technologies 2005. All rights reserved.

Challenges and developments in the banking market Chip Card Security expands the value chain for banks

Substitution of Magstripe Banking cards Substitution of Magstripe Banking cards

Minimum requirement of EMV mandate by VISA and MastercardMinimum requirement of EMV mandate by VISA and Mastercard

More Added Value for Banks and Customers More Added Value for Banks and Customers

Contactless interface for comfort / public transportation EMV DDA, loyalty applications, e-purse, etc. Contactless interface for comfort / public transportation EMV DDA, loyalty applications, e-purse, etc.

Banks will be the Trust Centers of Tomorrow Banks will be the Trust Centers of Tomorrow

AIMAIM

Secure Home Banking PKI / digital signature enabled by the Bank (e.g. as Job Card, Health Care Card, Citizen Card, etc.)Secure Home Banking PKI / digital signature enabled by the Bank (e.g. as Job Card, Health Care Card, Citizen Card, etc.)

Wireline Communications – Supplying solutions to the "net"

Access networks

Driving the transition from ATM to IP in

Information

May 2005

Page 42

Wireline Communications – Focus areas

Access Access

Leading market position in Standard Telecom infrastructure*: No. 1 in T/E carrier, No. 1 in Analog Linecards Leading market position in Standard Telecom infrastructure*: No. 1 in T/E carrier, No. 1 in Analog Linecards

• Complete xDSL CO/CPE portfolio: Complete xDSL CO/CPE portfolio:
  • • Leading position in SHDSL and VDSL - Leading position in SHDSL and VDSL
  • • Aggressively gaining market share in ADSL/2/+ - Aggressively gaining market share in ADSL/2/+
• First Integrated Voice Data solution, fully integrated splitter and VoIP option First Integrated Voice Data solution, fully integrated splitter and VoIP option
• Significant deployment of IFX based ADSL2+ DSLAMs and early availability of an ADSL2+ modem chipset Significant deployment of IFX based ADSL2+ DSLAMs and early availability of an ADSL2+ modem chipset

* Gartner, June 2004

CPE (Customer Premise Equipment) CPE (Customer Premise Equipment)

Entry in the Digital Home market by combining IFX DSL and packetized Voice solutions with ADMteks strong Home Router technology and market position Entry in the Digital Home market by combining IFX DSL and packetized Voice solutions with ADMteks strong Home Router technology and market position

Optical Networking Optical Networking

Focus on Metro Enterprise Access Focus on Metro Enterprise Access

Early market lead in EoS (Ethernet over Sonet) Early market lead in EoS (Ethernet over Sonet)

Wireless Communications – Focus areas

Cellular Systems

• Among top-3 suppliers for GSM ICs
• Secure and extend market leadership for cellular RF engines
• Achieve best in class cost position by RF CMOS
• Offering complete system kits for worldwide 2 / 2,5 / 3G standards

Wireless Infrastructure

• Product offerings for radio base stations including RF modules, RF ICs and RF Power Transistors & modules
• No. 2 in high-power RF transistors
• State of the art RF power LDMOS technology and thermally enhanced packaging

Wireless Communications – Focus Areas

Short Range Wireless

• Leading position in DECT/WDTC. Developing new CMOS single chip
• Strong position in Bluetooth with new Enhanced Data Rate solution
• "Hammerhead": first CMOS single chip A-GPS solution in cooperation with Global Locate
• Developing low power W-LAN solution for mobile applications

Tuner Systems

• Leader in the terrestrial market segment with the digital Tuner "TUA6034"
• Focus on the portable and mobile segments with new low power digital tuners for Laptop / PC and Mobile Phone applications with TUA6041 (alignment free) and TUA6045
• Continue to supply and service the analog tuner market segment

Kids:

Internet One Box Handles Everything! Residential Entertainment: "Family watches Videos" "Fun and Homework"Home Office: "Mother is doing home-banking"Access solutions for future family communications portalCommunication ProcessorBroadband DSL Switching Voice Processing WLAN Security ....Communication ProcessorBroadband DSL Switching Voice Processing WLAN Security ....

Gateway

Infineon CompanyInformation May 2005 Page 45

Infineon's access solutions for power communication networks worldwide

Infineon Company Information May 2005 Page 46

Copyright © Infineon Technologies 2005. All rights reserved.

COM COM

Successful integration of RF CMOS into the baseband: Sampling RF/baseband SoC for GSM/GPRS

Infineon's single-chip demo-phone at 3GSM '05 Infineon's single-chip demo-phone at 3GSM '05

Integrates:

• RF transceiver SMARTi SD2
• Baseband E-GOLDlite

Advantage over two-chip solution:

COM COM

• 30% less board space
• 30% lower bill of material

Supports:

• Up to GPRS class 12
• 1.3 Megapixel Camera
• Dual color display
• Polyphonic ringer
• MP3 playback

Worldwide DRAM revenue ranking 2004 and 2003

Infineon Company Information May 2005 Page 48

Source: iSuppli, March 2005

Company

Information

May 2005

Page 49

The market place – New memory applications

Copyright © Infineon Technologies 2005. All rights reserved.

MPMP

MP – Strengths

Technology leadership

• More than 80% of capacities converted to 110nm technology
• 512M DDR based on 90nm technology validated by Intel
• First product prototype on 70nm technology

Manufacturing leadership

• Most advanced global fab cluster
• Leader in manufacturing on cost efficient 300mm wafers

Strong technology and manufacturing alliances

• Joint technology development to improve economies of scale
• Improve market position with reduced capital requirements
• Flexible capacity increase through foundries

Expanding product portfolio

• Expanding module portfolio for mobile PCs and infrastructure
• Increasing focus on consumer and specialty DRAMs
• Including expanded portfolio for NAND-compatible Flash

Copyright © Infineon Technologies 2005. All rights reserved.

DRAM technology roadmap

DRAM fab cluster

Infineon Company Information May 2005 Page 52

Leader in 300mm DRAM manufacturing

2004 Annual 12-inch Wafer Production Market Shares

The new organization of Memory Products: Focus on applications and market segments

s s s s s e s e t t n n i i n i n i s s U U u u B B	C i t C i t o m p u n g o m p u n g	i G h G h i r a p c s r a p c s	C & C & o n s u m e r o n s m e r u M b i l M b i l o e o e		F l h F l h a s a s
n ) o n o i t i a t c c e i l l p e p S A (	D k P C t e s o p " C N b k P t o e o o " S e r e r " v W k i t t " o r s a o n S t o r a g e " N k i t " e w o r n g	G h i r a p c s " G a m e " C l o n s o e G a m e " H d h l d a n e s	M b i l P h o e o n e s " S T B t- " e o p o x - D V D P l a y e r s " & R d e c o r e r s S C D " M P P l 3 " a y e r s C N i i t a r a v g a o n " P D A " D i i l T V t " g a P i h l e r p e r a s "	D k P C t e s o p " C N b k P t o e o o " W k i t t o r s a o n "	M b i l P h o e o n e s " S C D " M P 3 P l a e r s " y U S B D i " r v e P D A " F l h d a s c a r s "
s r e v i r D	R l t e p a c e m e n P f e r o r m a n c e I t t n e r n e I f t t n r a s r u c u r e B d i d h t a n w D W h t a a a r e o s e u	P f e r o r m a n c e D i i l L i f l t t g a e s e y 3 D i t p c u r e N e w g a m e s	M b i l i t o y D i i l L i f l t t g a e s e y L P o o e r w w - I f M t. n o g m C t t o n e n D l d o n o a w	P f e r o r m a n c e E i m e r g n g k t m a r e s W h i b t e o x e s	D S t t a a o r a g e D i i l L i f l t t g a e s e y M b i l i t o y

Infineon Company Information May 2005 Page 54

Copyright © Infineon Technologies 2005. All rights reserved.

MPMP

Applications Applications

Product Features Product Features

• Interfaces: SDR, DDR, DDR2

• Densities: 128Mb – 1Gb

• Organizations: x4, x8, x16

• Packages: TSOP, FBGA
• Speeds: PC133 – DDR2-533

MPMP

High-End Workstation Server

• Interfaces: SDR, DDR, DDR2
• Formfactors: Unbuffered, SO-DIMM, MicroDIMM
• Densities: 128MB – 2GB
• Speeds: PC2100 – PC2-4200
• Interfaces: SDR, DDR, DDR2
• Formfactors: Registered, FB-DIMM
• Densities: 128MB – 4GB
• Speeds: PC2100 – PC2-4200

Copyright © Infineon Technologies 2005. All rights reserved.

Graphics portfolio

H i h d g s p e e :
M H 5 0 0 8 0 0 z – H i h b d i d h 3 2 t g a n w x : L i t t o w o p e r a n g c u r r e n	G 1 2 M & 2 6 M D D R 3 5 5
A d d d v a n c e s p e e : 3 0 0 0 0 M H 5 z – G F B A k p a c a g e B d i d h 1 6 t a n w : x O i l V V 1 8 2 0 t t p e r a n g o a g e v -	M D D R ( M ) 2 6 2 1 2 5 5 +
M i d t a n s r e a m s p e e : M H 2 0 0 3 0 0 z – T S O P k p a c a g e B d i d h 1 6 t a n w : x
	O i l 2 V 5 t t p e r a n g o a g e v

Consumer portfolio

Applications Applications Digital TV Set-Top Boxes DVD Player/ RecorderDigital Still Camera (DSC) Printer

MPMP

Company

Information

May 2005

Page 58

Mobile portfolio

MPMP

Flash product portfolio

Flash Cards Flash Cards

• High volume growth segment
• Initial Products: SD-Card and MultiMediaCard

Flash Components Flash Components

NAND-compatible 512Mbit Flash in a TSOP-package

MPMP

Applications & Market Applications & Market

• Address Whitebox PC market through distribution partners
• Large share and strong growth potentials of Whitebox market especially in emerging economies such as Eastern Europe, Latin America and South East Asia

Infineon Company Information May 2005 Page 60

Product Features Product Features

• Desktop PC
  • • DDR unbuffered DIMMs
  • • DDR2 unbuffered DIMMs

• Notebook PC
  • • DDR SO-DIMMs
  • • DDR2 SO-DIMMs

Market / Company overview Market / Company overview

Business development 2nd quarter fiscal year 2005 Business development 2nd quarter fiscal year 2005

General company information General company information

Business groups

Business groups

Copyright ©Infineon Technologies2005. Allrights reserved.

Company

Information

May 2005

Page 62

Infineon organization

This chart does not represent the legally binding structure. It can be subject to changes based on the decision of the Management.

Company

Information

May 2005

Page 63

Infineon has 36,044 employees worldwide*

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rights reserved.

Continuous investment in R&D

Infineon – R&D network in Europe

Infineon Company Information May 2005 Page 65

Company

Information

May 2005

Page 66

Infineon – Worldwide R&D network (excluding Europe)

Company

Information

May 2005

Page 67

World-class manufacturing sites on 3 continents

Company

Information

May 2005

Page 68

Infineon production sites

Company

Information

May 2005

Page 69

Infineon sales offices in Europe

Company

Information

May 2005

Page 70

Infineon sales offices worldwide (excluding Europe)

Company

Information

May 2005

Page 71

Infineon's principal subsidiaries

Company

Information

May 2005

Page 72

Infineon representative offices worldwide

examples; more than 50 representative offices in the US

Infineon – partner of the worldwide electronics industry

Infineon Company Information May 2005 Page 73

	C M i t a n u s o m e r s
i A t t u o m o v e , I d i l t n u s r a & M l i k t t u m a r e	A l i G l M l t t o o r o a " u o v " e m p u s " G O b h A l i k & t t a o e s e e " e r u r " x " C d B h D i t a r o s c e v r e n " S C i A S H l l t t s e m s " o n " e a y S D l h i J C A E i e m e n s " e p " " T R W D l K l t t e a o s a " " " V i D L t e n s o e a r " s e o n " "	M i h l a n c a n n e " t p a r n e r s : A A t, r r o w v n e , F j i t u s u D i e v c e s, S i l i c o n
C i i t o m m u n c a o n	A l l K k S i t " c a e " o n a " e m e n s S D B T l L E i t e u c e n o n y r c s s o n " " " - E i M h i V h t t t r c s s o n a s s a e c " " u " F j i N E C Z T E t s " u u " " H i N k i " u a w e " o a	A l i i t p p c a o n s E l i t e c r o n c " M f a n u a c i t u r n g S i e r c e s v :
M P d t e m o r r o c s y u	A H P N E C " c e r " " C i I B M S " s c o " " o n y D l l K i S t " e " n g s o n " u n F j i L t " u s u " e n o v o S i e m e n s	C l i t e e s c a , F l i t e x r o n c s, F o x c o n n , J b i l, a S i S C I a n m n a - S l t o e c r o n

All company names are registered trademarks.

Expanding global network: Selected partnerships*

T h l T h l e c n o o g y e c n o o g y D l t D l t e v e o p m e n e v e o p m e n	C h i & C h i & p p - - S f t S f t o w a r e o w a r e D l t D l t e v e o p m e n e e o p m e n v	M f i t M f i t a n u a c u r n g a n u a c u r n g	S t S t y s e m y s e m I i & t t I i & t t n e g r a o n n e g r a o n S l i t S l i t o u o n s o o n s u
C A M T A M T C " " ( h i h t t t ( h i h o g e e r t t w t o g e e r w ) A M D & D P t ) A M D & D P u o n t u o n N N a n y a " a n y a " I B M I B M " " C h d t C h d t a r e r e " a r e r e " S S a m s u n g " a m s u n g "	S C t S C t a r o r e " a r o r e " ( h i h t t t ( h i h o g e e r t t w t o g e e r w A & A & g e r e g e r e M l ) t ) M o o r o l a t o o r o a I D i i l t t I D i i l t t n e r g a " n e r g a " E d E d m e " u z m e u z "	S C M I S M I C " " W i b d i W b d n o n " n o n " I t I t n o e r a " n o e r a " ( h i h t t t ( h i h t o g e t e r w t o g e e r w N ) ) N a n a y a n y a A l i t A l i t s " s " ( h i h t t t ( h i h o g e e r t t w t o g e e r w ) I B M I B M )	S A P S A P " " H i i H a e " u w a e u w " B d B d r o a c o m " r o a c o m " R i h k t t R i h k t t c e " c e "

Infineon Company Information May 2005 Page 74

* some of almost 40 Infineon alliances as per September 2004

Company

Information

May 2005

Page 75

Never stop thinking.

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Infineon Technologies

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rights reserved.