Infineon Technologies AG — Investor Presentation 2011

Jul 30, 2011

Company Presentation July 28, 2011

Global semiconductor market development

Copyright © Infineon Technologies 2011. All rights reserved. Page 4 Source: WSTS for historical data. Forecast: of Gartner, iSuppli, IC Insights, VLSI, WSTS; market growth rates year-on-year; last forecast update 18 July 2011 07/28/2010

Infineon Holds Top Positions in All Target Markets

Infineon at a Glance

The Company

• Infineon provides semiconductor and system solutions, focusing on three central needs of our modern society: Energy Efficiency, Mobility and Security
• Revenue in FY 2010*: 3.295 billion EUR
• 25,149 employees worldwide (as of July 2011)
• Strong technology portfolio with about 15,400 patents and patent applications (as of Feb. 2011)
• More than 20 R&D locations
• Germany's largest and Europe's second largest semiconductor company

*Note: Figures according to IFRS with Wireline and Wireless as discontinued operations; as of September 30, 2010

Infineon Group Results for FY 2010 vs FY 2009

Revenues Net Result +51%		in € million	2009	2010
3,295		Revenues	2,184	3,295
2,184	660	Segment Result	-140	475
		SR Margin	-6.4%	14.4%
FY09 FY10	-674 FY09 FY10	Net Result	-674	660

Free Cash Flow	274	573
Investments PPE	96	292
Net Cash	657	1,331
Market capitalization	~4,200	~5,522

Copyright © Infineon Technologies 2011. All rights reserved. Page 7 Note: Figures according to IFRS with Wireline and Wireless as discontinued operations 07/28/2010

Infineon Group Results for Q3 FY11 vs Q2 FY11 Segment Result Revenues Net cash Net result Free Cash Flow Gross Cash Position 13 2,691 2,335 Note: Figures according to IFRS with Wireline and Wireless as discontinued operations in € million Revenues Net Result 190 994 572 1,043 +5% Q2 FY11 Q3 FY11 SR Margin Q2 11 994 202 20% 572* Q3 11 1,043 212 20% 190 -8 2,585 2,246

*: Including sale of Wireless to Intel

Copyright © Infineon Technologies 2011. All rights reserved. 07/28/2010 Page 8

Infineon Group Results for Q3 FY11 vs Q3 FY10 Segment Result Revenues Net cash Net result Free Cash Flow Gross Cash Position Note: Figures according to IFRS with Wireline and Wireless as discontinued operations in € million Revenues Net Result 190 885 126 1,043 +18% Q3 FY10 Q3 FY11 SR Margin Q3 10 885 138 16% 126 Q3 11 1,043 212 20% 190 173 1,514 1,108 -8 2,585 2,246

Copyright © Infineon Technologies 2011. All rights reserved. Page 9 07/28/2010

Infineon Segment Results Q2 FY11 and Q3 FY11
Segment Result*	(SR) in € million		SR Margin
	Q2 2011	74	19%
ATV	Q3 2011	80	20%
	Q2 2011	108	25%
IMM	Q3 2011	116	25%
CCS	Q2 2011	14	13%
	Q3 2011	14	13%
*: Total Segment Result (Q2 FY11: 202 Mio	€; Q3 FY11: 212 Mio	€) includes Other Operating Segment (Q2 FY11	€ 7 m, Q3 FY11 € 3
m), Corporate & Eliminations (Q2 FY11	€ -1 m, Q3 FY11 € -1 m).
07/28/2010	Copyright © Infineon Technologies 2011. All rights reserved. Page 11

The Infineon Compass Guides us on Our Way

Our Purpose

We are the semiconductor innovation leader for energy efficiency, mobility and security. Our solutions help modern society to grow while preserving our environment.

Our Way

Our people are the foundation of Infineon's unique competitive advantages, strong financial results and high performance. We deliver the best to our customers, employees and shareholders - anywhere, anytime.

Our Values

Four core values are the driving force behind our day-to-day execution: we commit – we innovate – we partner – we perform.

Paving the Way for a High Performance Company

• Successful restructuring by IFX10+
• Consequent cost reduction
• Efficiency increase
• Successful refinancing in 2009
• Repurchase and redemptions of convertible and exchangeable bonds in 2009 (total: € 367 m nominal)
• New convertible bond issued 2014, gross proceeds of about € 182 m
• € 674 m capital increase, 100% subscribed
• Strict working capital management, capex discipline
• Consequent adoption of the Infineon portfolio for all target markets
• World leading in ATV, IMM and CCS
• Selling WLC to Golden Gate Capital
• Selling WLS to Intel
• Focus on the three major challenges of today's society:
  • ¬ Energy Efficiency
  • ¬ Mobility
  • ¬ Security

We Focus on Our Target Markets

Focus Areas

• Energy Efficiency
• Mobility
• Security

Core Competencies

Analog/Mixed Signal

Power

• Embedded Control
• Manufacturing Competence

Our Target Markets

• Automotive
• Industrial Electronics
• Chip Card & Security

We focus on three areas with highly attractive future perspectives

Automotive

Industrial & Multimarket

Chip Card & Security

Introducing the new focus area "Mobility" reflects:

• Our leadership position in Automotive
• Rising importance of new mobility concepts (e.g. electro mobility) and
• Innovative public transportation solutions for traction & electronic tickets

Copyright © Infineon Technologies 2010. All rights reserved. Page 18

Energy Efficiency

Key trends

• Soaring total energy demand across the globe amid dwindling fossil energy resources
• Strong CO² policies to achieve climate goals
• Tapping renewable energies as sustainable energy sources
• Electrification of the drivetrain of commercial and passenger vehicles

Our contribution

• Infineon delivers semiconductor innovations playing a valuable role in minimizing power loss and maximizing power savings along the entire energy supply chain, extending from generation through distribution to actual consumption.
• Our products are the basis for intelligent and optimal use of energy resources in industrial, computing and consumer applications, and in cars.

Mobility

Key trends

• Rigid CO² regulations and rising oil price
• Increasing rules on safety, focusing on preventive measures
• Rising new requirements in cars for emerging markets
• Urbanization, globalization and demographic change
• Strong investments in local and long distance public transportation systems

Our contribution

• Leading semiconductor solutions contributing to a more sustainable mobility in terms of reduced fuel consumption/emissions, improved safety and affordability.
• As an innovation driver and supplier of key components for electric and hybrid vehicles, Infineon will actively help to shape the paradigm shift towards electro mobility on the road.
• Innovative public transportation solutions for traction and electronic tickets.

Security

Key trends

• Requirements for secure systems are visible in all areas of life
• Secure communication everywhere utilizing mobile phone and internet
• Move to electronic identification of documents and products
• Contactless cards for payment and electronic tickets
• Increased electronics in cars, calling for secure data handling

Our contribution

• Tailored security according to system requirements, enabling the implementation of transparent security in everyday systems
• Leverage our worldwide leadership in security know-how for smart cards in automotive and industrial applications increasingly demanding security
• Combining both hardware security and cryptography, our products build the basis for privacy and security while maintaining personal freedom and facilitating extended communication capabilities

Table of Contents
3rd  Market and Business Development Quarter Fiscal	Year 2011
 Business Focus
 Divisions, Products and Technology
General Company Information 

Infineon – Market-Oriented Business Structure

Divisions Core Applications

Powertrain (engine and transmission control); Hybrid and electric cars; Car body and comfort electronics (steering, suspension, lights, air conditioning, sunroof, power windows, windshield wipers, central body control units, door electronics); Safety (ABS, airbags, ESP).

Automotive

Industrial & Multimarket

Electric drive control for industrial applications & home appliances, traction for railway and trains, modules for renewable energy generation, transmission & conversion, semiconductor components for light management systems & low-energy lamps, power supplies for servers, PCs, notebooks, game consoles, entertainment electronics; customized components for PC peripherals (e.g. mouse), game consoles & medical engineering applications; RF and protection devices for communication (e.g. GPS, UMTS, WLAN, digital TV) and tuner systems, silicon MEMS microphones; power transistors for amplifiers in cellular base stations.

Chip Card & Security

SIM card for mobile phones; payment systems; electronic passports, ID cards, healthcare cards and driver's licenses; personal identification; object identification; Pay TV;

platform security for computers and networks;

authentication and system integrity e.g. in game consoles, printers, industrial controller.

Customers

New Era: Multiple Factors Driving Demand for Power Semiconductors

'10 – '30 Changes

'90 – '10

Shift towards renewable energies requires orders of magnitude more high-power semis per MW of power generated.

Higher efficiency in power conversion lowers CO² , material and electricity costs.

Electrification of powertrain fuels demand for high-power semis in cars and doubles silicon content.

Stronger demand for goods containing power semis due to faster increase in standard of living in BRIC countries.

Copyright © Infineon Technologies 2011. All rights reserved.

Automotive Overview

Core competencies/ Value proposition

• Automotive commitment: More than 40 years of automotive system and application expertise
• Complete automotive system provider
• Hybrid and E-Mobility: industry leading expertise and product portfolio
• Worldwide development, production and support sites for automotive semiconductors
• Automotive Excellence: most comprehensive quality program of the industry

Product range

• Sensors: pressure, temperature, magnetic; wireless control ICs, radar
• Microcontrollers: 8-bit, 16-bit, 32-bit
• Power: MOSFETs, IGBTs, smart power ICs: voltage regulators, bridges, driver ICs, CAN / LIN / FlexRay™ transceiver, DC-DC converter, power system ICs, system-on chip embedded power ICs
• Hybrid & Electric Vehicle: HybridPACK™ Modules, Automotive Easy Modules, gate driver ICs, MOSFETs, IGBTs

Market positions

• No. 2 in Automotive semiconductors worldwide
• No. 1 in Europe
• No. 2 in NAFTA
• No. 4 in ROW

Source: Strategy Analytics (April 2011)

* FlexRay is a trademark licensed by FlexRay Consortium GbR

We Focus on Future Business Example 1: Making Cars Cleaner

Market trends

• Dwindling energy resources
• Stricter CO² emission legislations
• Growing environmental awareness

Infineon's opportunities

• Infineon components are key for CO² reduction: Total improvement of CO² -emission ~23 g/km
• We offer Hybrid and electric drivetrain products (HybridPACK™)
• No electric vehicle without semiconductors: electric drive and control, battery management, onboard battery charging and power grid communication

Note: Baseline CO² reduction in g/km: 170 g/km on Ø EU cars

Target Applications for Electric Drive Train Product Portfolio

Industrial & Multimarket Overview

Product range

• Power discretes, modules and stacks
• Power management ICs
• AF/RF diodes and transistors, RF Power
• Silicon MEMS microphone, TVS diodes
• LED drivers
• ASIC design solutions incl. secure ASICs for authentication and brand protection
• Microcontrollers: 8-bit, 16-bit, 32-bit

Core competencies/ Value proposition

• High quality products and services
• Leading edge technology and IP portfolio
• System expertise with broad application competence
• Strong worldwide presence with local sales and application support
• Dedicated account teams & distributors

Market positions

• No.1 in Power Semiconductors for eight consecutive years
• No.2 in Power Modules with 20.4% share
• No.1 in Power Discretes with 8.6% share

Source: IMS Research, August 2011

Power Components for Drive Control of Train Systems

High-speed trains Metro trains

Infineon parts

• Power: 5 to 10MW per train
• 80 to 120 IGBT modules per train

• Semiconductor content: ~EUR 100k per train

• Power: 0.5 to 1MW per train

• 25 to 50 IGBT modules per train
• Semiconductor content: ~EUR 10k per train

Copyright © Infineon Technologies 2011. All rights reserved. Page 31

Chip Card & Security Overview

Product range

• Contactless and contact-based security products for Communication, Payment, Government ID, Personal & Object ID, Entertainment and Platform Security
• Extensive packaging and service portfolio
• Innovative solutions from basic security RFID and memories to high-end security controllers (including the award winning SLE 78 family)

Core competencies/ Value proposition

• Tailored security: right level of security at the best cost-performance ratio
• Contactless excellence: focus on interoperability and dual interface
• Embedded control: right trade-off between computing power, power consumption, level of security and cost

Market positions

• No. 1 in the Chip Card IC market for 14 years with a market share of 27%¹ by revenue
• Market leader in Gov ID, Payment² and TPM
• Roughly every second Government ID document issued in 2010 incorporated a security chip of Infineon (without China ID)
• Supplier to Europe's biggest national ID program: the new German national ID (nPA)

Copyright © Infineon Technologies 2011. All rights reserved. Page 32

We Focus on Future Business Example 3: Protecting Privacy

Market trends

• Trusted Platform Modules (TPM) on 70% of enterprise notebooks and desktops; Windows 7 support
• Data protection: Encryption of files, folders, disks, messaging, digital signatures
• Strong authentication: Network access protection and additional authentication factor

Infineon's opportunities

• No. 1 supplier for TPM solutions
• Infineon's TPM security chips are first to receive global TCG and Common Criteria Certification and UK government approval

Infineon's SLE 78 Security Controller for the New German National e-ID Card (nPA)

German national electronic ID card

• Project start in Nov 2010.
• Europe's biggest ID project.
• Currrently, about 60m e-ID card holders in Germany.
• About 6.5m ID cards are issued each year in Germany.
• Infineon is providing a significant share of the total volume.
• The new German national e-ID (nPA) is attracting significant attention worldwide as it is one of the most advanced approaches regarding security in ID projects.

• ~ 80% of e-ID cards in Europe contain Infineon security µC.

• nPA is the first major project for the 16-bit SLE 78 family.

• SLE 78 is based on "Integrity Guard" security technology.

Infineon – Partner of the Worldwide Electronics Industry

Infineon Semiconductor Technology Portfolio

Technology	portfolio	fits	needs of logic and	power	applications
Power/Analog	Analog Bipolar: Smart Power :		DOPL, Ax, BIPEP, B4C Analog BICMOS:B6CA, B6CA-CT, B7CA, SPT170 500 - 350nm HV-CMOS-SOI 1200-130nm BIP/CMOS/DMOS SPTx (Automotive, EDP) (BCD)	DMOS: HV-DMOS: IGBT:	Low Voltage Trench Mosfets (OptiMOS) Superjunction MosFET (CoolMOS) Trench IGBT 600-6500V, rev.
incl. Green Robust	Smart : (SmartMOS)		CMOS/DMOS, SMARTx, MSMARTx, SSMARTx Opto-TRIAC	SiC:	cond., fast recov. diodes Diode; MOS/JFET
			all of them adopted for automotive and industrial requirements
MEMS/Sensors	Analog ICs:	B6CA, B7CA	Coreless Transformer	Pressure:	BxCSP, TIREPx
	Magnetic:		BxCAS, C9FLRN_GMR	Silicon-Microphones
	Opto:		OP-DI, OP-TR, OP-C9N, µ-modules
CMOS	Digital CMOS: Analog/Mixed Signal: eNVM: eFlash/EEPROM: HV-CMOS:		800nm – 65nmTechnology Nodes (Platform <180nm incl. RF, AMS) 500nm – 180nm Technology Nodes (CxNA) EEPROM: IMEMR, C9FL, OTP: C5OP (Automotive) 250nm – 65nm CxFL (Chip Card), CxFLA, CxFLN (Automotive) 130nm, C11HV
RF/Bipolar	RF BICMOS: Bipolar IC: HiPAC: Bipolar/Discretes/MMIC: RF-Transistors Diodes:		25GHz – 100GHz: B6HFC, B9COPT, B10C 2GHz200GHz RF-Bipolar: BxHF Al/Cu Integrated Passives P7Mxx, P7Dxx, P8Mxx, P9Mxx NF-TR; BxHF(D/M), Power Amplifier: LDMOS, LDxM, LDxIC, LD9AB NF-DI, Tuner: DxT, Schottky: DxS	RFMOS: HFM PIN: DxP	SiGe: B7HFM, B7HF_SLC, B7HF200 RF Switches: C7NP, C11NP SiGe: B7HFD/M, B7HF_SD

Infineon Package Technology Portfolio
		IC				Power
Wafer Level Packages, Bare Die	Laminate based Packages	Leadframe based Packages	Chip Card	Discretes	Sensors	High Power	Power
Surface Mount Technology (SMD) Wafer Level w/o redistribution WLP  (fan-in)	SMD 1)  OCCN  BGA  LBGA xFBGA,  xFSGA	Through Hole  DIP 2) SMD  PLCC 2)  TSSOP TQFP   LQFP  MQFP Leadless  VQFN O-LQFN 1) 	Mold on LF  P-MCCx Mold  P-Mx.x Chip on Flex  FTM UV Globe top  T-Mx.x PRELAM  PPxx	SMD leaded  SOT  SOD Flat lead TSFP   SC Leadless  TSLP TSSLP   TSNP	Through Hole  PSSO SMD Leaded DSO SC TSOP Open cavity DSOF	Power Modules  Easy  62mm Econo   Econo PACK+  PrimePACK  IHM IHV   Hybrid PACK	Through Hole  TO, DIP SMD TO   DSO SSOP  Leadless TDSON  TSDSON   CanPAK SON   QFN
w/redistribution  WLB (fan-in) eWLB  (fan-out) Bare Die Wirebond Flip chip	Flip chip FCxBGA xF2BGA, xF2SGA		Flip Chip S-MFCx.x  Wafer Bumped  Diced 	Wafer level  WLP			SIP Low Power IDC  SIP Medi. Power  CIPOS
1) for specialities only	2) phase-out

07/28/2010

Copyright © Infineon Technologies 2011. All rights reserved. Page 37

Expanding 200mm Capacity in Kulim; Driving 300mm Thin Wafer in Dresden

Kulim 2

In order to fully exploit Infineon's growth potential, Infineon will expand the costefficient 200mm manufacturing site in Kulim, Malaysia.

Dresden 300mm

Infineon will further extend its technology leadership by driving 300mm thin wafer manufacturing of power semiconductors out of the newly-acquired facility in Dresden.

Copyright © Infineon Technologies 2011. All rights reserved.

Sustainability for Human Beings and the Environment

Sustainability for Human Beings and the Environment

IMPRES*): Synergy between responsibility for humans & environment and economic success

For Infineon, responsibility and sustainability are more than just the fulfillment of legal requirements

*)Infineon Integrated Management Program for Environment, Safety & Health

Sustainability for Human Beings and the Environment

We have one of the most advanced sustainability concepts in the world

Our Occupational Safety

... accident rate is benchmark compared to the German Social Accident Insurance Institution for the Energy, Textile, Electrical and Media Products Sectors – even our accident counting method is more strict.

Our	Our
Products	Manufacturing
are enablers for energy efficient end  products and applications. are subject to an unique life-cycle analysis  approach for the optimization of the environmental footprint. are drivers of green Product development. 	 saved electricity equal to the annual consumption of a city with 1.7 Million inhabitants. achieved our voluntary agreement to reduce  Kyoto-Gases (PFC) three years earlier than the global target of our industry. is considered benchmark in terms of  resources efficiency.