Infineon Technologies AG

Investor Presentation • Jun 3, 2008

IFX Day 2008 Munich, June 3rd, 2008

COM

Prof. Dr. Hermann Eul

Member of the Management Board President of Business Group Communication Solutions

Disclaimer

This presentation was prepared as of June 02, 2008 and is current only as of that date.

This presentation includes forward-looking statements about the future of Infineon's business and the industry in which it operates. These include statements relating to future developments in the world semiconductor market, including Infineon's future growth, the benefits of research and development alliances and activities, Infineon's planned levels of future investment in the expansion and modernization of its production capacity, the introduction of new technology at its facilities, the continuing transitioning of its production processes to smaller structure sizes, cost savings related to such transitioning and other initiatives, Infineon's successful development of technology based on industry standards, Infineon's ability to offer commercially viable products based on its technology, Infineon's ability to achieve its cost savings and growth targets, and any potential disposal of Infineon's interest in Qimonda.

These forward-looking statements are subject to a number of uncertainties, including trends in demand and prices for semiconductors generally and for Infineon's products in particular, the success of Infineon's development efforts, both alone and with partners, the success of Infineon's efforts to introduce new production processes, the actions of competitors, the availability of funds for planned expansion efforts, and the outcome of antitrust investigations and litigation matters, the success of any corporate activities we may undertake with respect to our interest in Qimonda, as well as the other factors mentioned in this presentation and those described in the "Risk Factors" section of the annual report of Infineon on Form 20-F filed with the U.S. Securities and Exchange Commission on December 7th, 2007 or contained in the company's quarterly reports. As a result, Infineon's actual results could differ materially from those contained in these forwardlooking statements. You are cautioned not to place undue reliance on these forward-looking statements.

Infineon does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

Agenda

• Wireless
• Wireline
• Outlook

We have the right products

We have the right customers

Ramp-up of platforms continues

Realize revenue potential

Cost down by "IFX 10-Plus"

Communication SolutionsRevenue Split and Areas of Activities

IFX Day, June 3, 2008 Copyright © Infineon Technologies 2008. All rights reserved. COM, Page 5

Agenda

Wireless

• Wireline
• Outlook

Infineon Achieved No. 3 Position in theWireless ASSP Market

• Share of ASSP market is expected to grow as established OEMs expand use of ASSPs and network operators, and new players edge into the market with their own mobile phones requiring platform solutions
• Infineon has a leading position in the wireless ASSP market
• Key growth drivers for Infineon:
• Ramp-up of single-chip, EDGE and 3G platform solutions
• Acquisition of LSI MPG (Mobility Products Group)

Source: iSuppli Q2 2008, Wireless Communications: MCU, DSP ASSP, Logic ASSP, Analog ASSP

RF/mixed-signal integration into baseband

• Shipped > 50 million X-GOLD™101 (E-GOLDvoice) in the first year of volume production
• World's first to ship EDGE single-chip in volumes

Mobile phone platform solutions

Our Core Strength in Wireless

• Complete HW/SW platform solutions from GSM to HSDPA in volume production
• Strong system and software competence

RF CMOS transceivers

• Complete portfolio from GPRS to HSxPA, LTE and WiMax RF transceivers
• Shipped 1 billion RF transceivers by Nov. 2007

Infineon Serves the Top 5 Mobile Phone OEMs

) 1 / O E M M k h t a r e s a r e		I F X l f t p a o r m s	I F X R F i t r a n s c e v e r
k i N o a	% 4 1 0	D i i i h i l t " e s g n w n w s n g e T M h i l f X M M t 1 0 1 0 c p p a o r m ( d f Q 4 t e x p e c r a m p e n o ) F Y 0 8	M j R F l i " a o r s u p p e r	9
S a m s u n g	1 6 4 %	j l i f M " a o r s u p p e r o / G S M G P R S d E D G E a n l f t p a o r m s H S D P A i " r a m p n g	S l i f E D G E R F d " u p p e r o a n 3 G R F	9
M l t o o r o a	% 9 7		C i d d l t t " u s o m z e e v e o p m e n ( ) f 3 G H S P A R F o x i b d t r a n s c e v e r a s e o n S M A R T i U E	9
L G E l i t e c r o n c s	% 8 7	G M j l i f S M " a o r s u p p e r o i l h i d E D G E s n g e -c p a n l f t p a o r m s G i l h i i E D E " s n g e -c p r a m p n g	M j l i f E D G E " a o r s p p e r o u ( h h R F t I F X r o u g ) l f t p a o r m s	9
S o n y i E r c s s o n	7 9 %		T M S l i f S M A R T i 3 G " u p p e r o l d b E i t s e e c e y r c s s o n ( ) M b i l P l f E M P t o e a o r m s	9

1) Source: Q1 CY08 market shares from Strategy Analytics, April 2008

IFX Day, June 3, 2008 Copyright © Infineon Technologies 2008. All rights reserved. COM, Page 9

Single-chip solutions migrating from ULC to feature phones

Single-chip phone 2007 Single-chip phone 2009

Voice & SMS BW/Colour display Polyphonic ringtones

Vodafone 125/225 based on X-GOLD™101 (E-GOLDvoice)

• Bring mobile internet to emerging markets
• Provide education and entertainment with the mobile phone (FM radio, MP3)

3G/3.5G is key growth driver

	C G A R ( ) 2 0 0 7- 2 0 1 1
W C D M A / H S P A x	1 7 %
/ / G S M G P R S E D G E	4 % -
O h t e r	0 %
l T t o a	% 5

Source: Forward Concepts, June 2007

IFX Day, June 3, 2008 Copyright © Infineon Technologies 2008. All rights reserved. COM, Page 10

Building on Our Strengths in System-on-Chip (SoC) Solutions

What Does System-on-Chip Mean? X-GOLD™101 (E-GOLDvoice) in 130-nm Technology

Infineon Has a Broad Customer Base for GSM/GPRS and EDGE Platforms

IFX Day, June 3, 2008 Copyright © Infineon Technologies 2008. All rights reserved. COM, Page 13

System and software competence

Leading customer base

Leverage HSDPA footprint into HSUPA

Infineon Offers Complete HW/SW System Solutions for HSDPA Mobile Phones

Integrated HW and SW, system design, IOT and GCF testing

HW Components SW Components

HSDPA/EDGE baseband

Connectivity/Location

P l S k t t r o o c o a c 2 G G S M G P R S E D G E – , , 3. 5 G U M T S H S D P A – , i 3 G P P R 5 l t c o m p a n
C P G F r e - A d i t t t t o m a e e s n g u : 2 4 h d o u r s a a y d k 7 a y s a w e e
P I O T r e - W i h l l j t a m a o r f i d t t n r a s r u c u r e v e n o r s

HSDPA mobile phone platform XMMTM6080

IOT = inter-operability test GCF = global certification forum

Ownership of each platform component simplifies completing lab tests, field tests, and operator approvals, significantly accelerating phone projects

(LNAs, …)

Discretes

TV RF/BB

BluetoothTM

BAW filter

RF

HSDPA/EDGE RF

PMU and analog

Baseband

Silicon Discretes

A-GPS

DVB–H

Infineon Ramps its HSDPA Platform at Samsung and Another Customer in Q2 CY08

HSDPA platform customer success

Samsung:

1

• Infineon is 2nd supplier to ramp HSDPA platform at Samsung
• Selected for a new family of HSDPA/EDGE phones
• First models are SGH-L770 and SGH-i200

HSDPA platform ramping at another customer in Q2 CY082

DW at another customer ramping end of CY08 3

Leverage Success in HSDPA into HSUPA

HSUPA highlights:

• Enables customers to reuse HW and SW development
• Full system solution incl. protocol stack
• Small footprint through 2-chip modem solution
• Single-die 65 nm HSUPA/EDGE baseband and PMU
• Single-die HSUPA/EDGE RF transceiver
• Supports state-of-theart video and audio features

XMM™6160

HSUPA

SMARTiUE

XMM™61xx

HSUPA65nmARM11

XMM™6180

XMM™6170

Comprehensive RF Product Portfolio to Benefit from Strong Growth in 3G/4G and EDGE

RF highlights:

• 15 years of cellular RF design competence
• Shipped 1 bn RF transceivers by Nov. 2007
• First-to-market RF CMOS track record:
• 1st in GPRS
• 1st in EDGE
• 1st in WCDMA
• 1st in WEDGE
• 1st in DigRF HEDGE

Major design wins in EDGE and HSxPA RF ramping in 2008/2009

In RF, Infineon Has Business or Design Wins With All Tier 1 OEMs

"Barracuda"

J700

K850

IFX Day, June 3, 2008 Copyright © Infineon Technologies 2008. All rights reserved. COM, Page 19

SGH-L770

PC300 PC Card

ShineKE970

Venus KF600

Panasonic820P

Agenda

Wireless

• Wireline
• Outlook

Consolidating the Wireline Market

Revenue development of Infineon's Wireline business

Infineon - Wireline business (excl. DECT)

• Business grew above market average
• Further improving our market share
• Major contribution coming from DSL, overcompensating other declining traditional businesses
• TI DSL CPE acquisition was a major step to move the market consolidation forward

Our Core Strength in Wireline

Comprehensive product portfolio

Leading-edge solutions for all applications connected to twisted pair, e.g. ADSL2+, SHDSL, VDSL2, VoIP, DECT including all mixed-signal line interfaces (Line Drivers, SLICs, PA..)

Large deployment base at major carriers worldwide

• Serving more than 150 customers
• Strategic relationship with all major players

Strong engagement in standards bodies and

Accepted technology partner for major carriers

Strong world wide support infrastructure

Strong wireline IPR portfolio

for carrier support

Key Growth Drivers and Innovations

IPTV, VoIP, CAT-Iq

• IPTV deployment has started at many carriers and will facilitate the migration from ADSL2+ to VDSL2
• The new "wideband" DECT Standard CAT-Iq is a perfect extension for VoIP in DSL gateways

Migration to IP-based networks, NGNs

• Major carriers are in advanced planning stage to start the migration to DSL/VoIP based NGNs
• Our unique integrated DSL-VoIP solutions including sophisticated line testing are widely designed in

HomeGrid

• A solid and reliable high-speed Home Networking solution is still missing
• Intel, TI, Panasonic and Infineon have jointly founded the HomeGrid™Forum to push a new related G.HN standard.

Agenda

• Wireless
• Wireline
• Outlook

Guidance for FY08; Outlook for FY2009

COM Guidance Q3 FY08

• Q3 revenues to be about flat from the previous quarter; revised revenue outlook in combination with customizationexpenses associated with the ramp of new platforms should lead to a decline in EBIT excluding net gains and charges from Q2.
• Q4 revenues and EBIT excluding net gains and charges to improve compared to Q3.

COM Outlook FY 2009

FY 2009: Revenue shoul d grow from FY08 levels; cost savings to come from program "IFX10-Plus"

IFX Day, June 3, 2008 Copyright © Infineon Technologies 2008. All rights reserved. COM, Page 26