Deutsche Bank German Corporate Conference

Slide - 1 -

1 June 2006

Dr. Wolfgang Ziebart President and CEO

Disclaimer

Please note that while you are reviewing this information, this presentation was created as of the date listed, and reflected management views as of that date.

This presentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

Such risks and uncertainties include, but are not limited to the Risk Factors noted in the Company's Earnings Releases and the Company's filings with the Securities and Exchange Commission.

Financials and Outlook Financials and Outlook

AIM Review AIM Review

COM Review COM Review

Qimonda Review Qimonda Review

Results Overview

[ E U R ] m	Q 2 F Y 0 6 Q 2 F Y 0 6	Q 1 F Y 0 6 Q 1 F Y 0 6	Q 2 F Y 0 5 Q 2 F Y 0 5
N l t e s a e s	1 9 9 3	1 6 4 7 ,	1 6 0 6
G i r o s s m a r g n	% 2 6	% 1 9	2 7 %
R & D e x p e n s e s i % f l n o s a e s	3 0 6 1 5 %	3 1 1 1 9 %	3 5 5 2 2 %
S G & A e x p e n s e s i % f l n o s a e s	1 9 7 9 %	1 3 7 1 0 %	1 6 4 1 0 %
E B I T	2 8	( ) 1 2 2	( ) 1 1 7
E B I T l d i f f ís e x c u n g o n e -o % f i l n o s a e s	2 8 % 1	( 1 2 2 ) ( % ) 7	( 4 4 ) ( 3 % )

Deutsche Bank German Corporate Conference 1 June 2006 Slide-5-

Infineon Business Group Q3 FY06 Outlook

AIMAIM! AIM revenues to remain broadly unchanged qoq with automotive and industrial flat and an expected normalization in chipcard sales from very high Q2 FY06 levels.
- ! AIM EBIT to be driven by top line prior to inclusion of certain corporate overhead expenses that will remain with logic segments after Qimonda carve-out.

COM COM

!COM revenues to decline qoq due to loss of Fiber Optics revenue as a result of divestiture and due to normalization of sales levels in broadband access.
! COM EBIT to be driven by top line prior to inclusion of certain corporate overhead expenses that will remain with logic segments after Qimonda carve-out.

! Bit production expected to grow approximately 10% quarter over quarter.
- !EBIT to be influenced by benefit from certain corporate overhead expenses that will remain with logic segments after Qimonda carve-out, offset in part by build of Qimonda proprietary corporate infrastructure.

Deutsche Bank German Corporate Conference 1 June 2006 Slide - 6 -

Deutsche Bank German Corporate Conference 1 June 2006 Slide - 7 -

Business Group Automotive, Industrial & Multimarket Q2 FY06 Update

! Revenue +12% qoq. Main drivers: power semiconductors for consumer applications, ICs for computer peripherals and strong demand and improved product mix in chipcard.

!EBIT driven by top-line; significant reduction in chipcard losses. 10% margin despite ongoing expenses for Perlach and Kulim fabs.

Deutsche Bank German Corporate Conference 1 June 2006 Slide-8-

Automotive Semiconductor Market Projected to Grow at Healthy Pace

Source: Strategy Analytics 9/2003

Deutsche Bank German Corporate Conference 1 June 2006 Slide - 9 -

Infineon Offers Full Spectrum of Semiconductor Technologies Required in Automotive

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Infineon Automotive ranks No. 2 worldwide Continuously outperforming the market

**Infineon Automotive 2005* No. 3 US No. 2 World No. 1 Europe Infineon Automotive 2005* Automotive 2005* No. 3 US No. 2 World No. 1 Europe**

Market: 16.301 M US\$ ** CAGR: 7,8% (2004-09) **

Continuous Continuous Continuous Outperformance Outperformance Outperformance

! Strong European market development compared to rest of world
! Strengthened regional business in NAFTA/Japan
! Improved relationships to major automotive system vendors

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Strong market position in Europe secures technological leadershi Strong market position Europe secures technological leadershi Strong market position in Europe secures technological leadershipp

Sources: * Strategy Analytics 2006/05, **Strategy Analytics 2005/10

Infineon Capabilities in Industrial Power

		A l i i t A l i t i p p c a o n s p p c a o n s	G h D i t G t h D i r o r e r w v r o w r v e r
	P P o e r w o w e r M t M t a n a g e m e n a n a g e m e n	l i d l i d p o w e r s u p p e s a n ! p o e r s p p e s a n ! w u l l f t t f l t l t o a g e r e g a o r s o r v u v o a g e r e g u a o r s o r P C D V D f l t C f P D V D l t a s c r e e n a s c r e e n , , , , , ,	f f i i f f i i ! e n e r g y e c e n c y e n e r g e c e n c ! y y i i t t t i t t t i e n r o n m e n p r o e c o n ! v e n v r o n m e n p r o e c o n ! l t t l n a r a r e s o r c e s ! u u n a u r a r e s o u r c e s !
	P P o e r w o w e r C i C i o n e r s o n v o n v e r s o n	i t t i r a n s ! ! r a n s d i i b i t t d i t i b t i p o e r s r o n ! w u p o w e r s r u o n !	i i i i ! n c r e a s n g e n e r g y n c r e a s n g e n e r g ! y t i t i c o n s u m p o n c o n s u m p o n h i A P A C t C t h i A P A g r o n ! w g r o w n !
	I d t i l I d i l t n u s r a n s r a u D i D i r v e s r e s v	d i d i ! c o n s u m e r r v e s c o n s m e r r e s ! u v l- d i l- d i ! g e n e r a p u r p o s e r v e s g e n e r a p r p o s e r e s ! u v	i d t i k i i d i k i t n u c v e c o o n g ! ! n u c v e c o o n g i d / l / i d l w n s o a r e n e r g y ! ! w n s o a r e n e r g y i d i t t t i d t t t i n s r a o m a o n ! u y u n u s r y a u o m a o n !
De tsc he Ba k Ge n rm an u Co Co fer te rp ora n en ce 1 Ju 2 0 0 6 ne S l i de 1 2 - -	O h t O h t e r s e r s	l i h t i d l l i h i d l t g n g a n a m p ! ! g n g a n a m p b l l t b l l t a a s a a s d i l d i l m e c a ! ! m e c a	i f l t i a g n g o p o p u a o n ! i i h l t h n c r e a s n g e a c a r e ! d i s p e n n g

Key Innovation: Induction Cooking with Reverse Conducting IGBT

!IGBT's based on Infineon TrenchStopTM technology with integrated backside diode lead to highest efficiency in induction applications. !600 / 900 / 1200V families cover all used line voltages in the world. !Market leader in the big market for 1-plate induction heating. !IGBT's based on Infineon TrenchStopTM technology with integrated backside diode lead to highest efficiency in induction applications. !600 / 900 / 1200V families cover all used line voltages in the world. !Market leader in the big market for 1-plate induction heating.

Deutsche Bank German Corporate Conference 1 June 2006 Slide - 13 -

Infineon Strengthened Market Leadership in Power Semis

Power Semiconductor Market Power Semiconductor Market

2 0 0 3 R k a n	2 0 0 4 R a	C k N n o m p a n y a m e	2 0 0 3	2 0 0 4	C h a n g e
1	1	I f i n n e o n	8 1 %	8 4 %	0 3 %
2	2	I R	8 0 %	7 8 %	0 2 % -
4	3	F i h i l d a r c	7 6 %	7 7 %	0 1 %
3	4	S T M	6 7 %	7 2 %	0 5 %
5	5	T h i b o s a	% 7 4	% 6 7	% 0 7 -
6	6	V i h s a y	8 % 5	9 % 5	0 1 %
7	7	M i t b i h i s u s	5 1 %	5 4 %	0 3 %
9	8	F j i E l t i u e c r c	% 4 5	% 4 7	0 2 %
8	8 =	R e n e s a s	4 7 %	4 7 %	0 0 %
1 0	1 0	O N	% 3 9	% 4 1	% 0 2

Deutsche Bank German Corporate Conference 1 June 2006 Slide - 14 -

Sources: (top) iSuppli, August 2005; (bottom) IMS Research, August 2005

Chip Card and Security Applications

Deutsche Bank GermanCorporate Conference 1 June 2006 Slide-15-

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Business Group Communication Solutions Q2 FY06 Update

! COM revenue declined qoq despite strong broadband access sales (espec. VDSL2) due to seasonality and lower baseband demand.
!COM EBIT was lower qoq due to top line development in spite of further improvement in profitability in broadband access.

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(1) Excl. acquisition related expenses and net charges resulting primarily from reorganization measures.

Design Win at Deutsche Telekom for ADSL2+ and VDSL2 Rollout

Deutsche Bank German Corporate Conference 1 June 2006 Slide - 18 -

Expanding RF Customer Base Through RF CMOS Leadership

!No. 1 in RF with approximately 200 million RF chips sold in CY05 !No. 1 in RF with approximately 200 million RF chips sold in CY05
! Design-win for EDGE (SMARTi PM) at Samsung; ramp-up in FQ3.!Design-win for EDGE (SMARTi PM) at Samsung; ramp-up in FQ3.
!Two further design-wins for other RF transceivers at two other major customers. !Two further design-wins for other RF transceivers at two other major customers.

SMARTi

SMARTi 3GE HSDPA / WCDMA / EDGE SMARTi 3GE HSDPA / WCDMA / EDGE

World's first CMOS onechip 6-band WCDMA and 4-band EDGE transceiver World's first CMOS onechip 6-band WCDMA and 4-band EDGE transceiver

HSDPA / WCDMA

World's first CMOS single-chip 6-band transceiver World's first CMOS single-chip 6-band transceiver

World's first CMOS EDGE single-chip transceiver World's first CMOS EDGE single-chip transceiver

SMARTi

EDGE

Deutsche Bank German Corporate Conference 1 June 2006 Slide - 19 -

Competitive Mobile Platform Offering Driving Design Wins

C t u s o m e r	P l f t a o r m	R a m p -u p	S i f i i t p e z c a o n
O E M	G S M U L C	N ! o w	B B R F E G O L D d i + : r a o -
O D M	G S C M U L	C 2 H Y 0 6	G O B B R F E L D d i + r a o : -
O D M	G S M U L C	2 H C Y 0 6	B B R F E G O L D d i + : r a o -
Q B e n	G S M / G P R S E t h n r p o n e y	2 H C Y 0 6	B B R F E G O L D d i + : r a o - B l M U i l ( 2 0 E D R ) + u e o o n n v e r s a
B Q e n	E D G E M l i d i t u m e a	C 2 H Y 0 6	B B S G O L D 2 R F S M A R T i P M : ; : -
O E M	2 E D G E x M l t i d i m e a u	2 H C Y 0 6	S G O S B B L D 2 R F M A R T i P M : : - , ( ) B l M U i l 2 0 E D R + e o o n n e r s a u v
O E M	E D G E M l t i d i m e a u	1 H C Y 0 7	S G O S B B L D 2 R F M A R T i P M : ; : - ( ) B l M U i l 2 0 E D R + u e o o n n v e r s a
P i a n a s o n c	3 G M l i d i t u m e a	2 C 0 6 H Y	B B S G O L D 2 + : c o- p r o c. - S S 3 G R F M A R T i P M M A R T i + : ( ) B l M U i l 2 0 E D R e o o n n e r s a u v

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Deutsche Bank German Corporate Conference 1 June 2006 Slide - 21 -

Q2 FY06 Update

!Strong top line growth to second highest quarterly level since foundation of Infineon.
! Significant shipment growth. DDR2 price recovery coupled with higher specialty share also led to slight ASP increase.
! Back to positive EBIT thanks to shipment and ASP increase and fully loaded cost reduction. Inventory range 2-6 weeks, down 2 weeks.

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