Copyright © Infineon Technologies AG 2014. All rights reserved.

Power 300 Alfred Hoffmann

November 12, 2014

Revenue Split by Segment Q3 FY 2014 Revenue: € 1,110m Automotive

IPC

ATV € 510m CCS € 123m

IPC € 200m PMM € 271m

Chip Card & Security

PMM OOS+C&E* € 6m

*Other Operating Segments; Corporate & Eliminations. November 12, 2014

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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 2013: € 3.843 billion  Around 29.000 employees worldwide (as of June 2014)  Strong technology portfolio with more than 18,650 patents and patent applications (as of September 2013)  21 R&D locations; 12 manufacturing locations  Germany's largest and Europe's second largest semiconductor company November 12, 2014

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Revenue Split by Regions FY 2013 vs FY 2012

44% 12%

38% 40%

41%

13% 6%

Americas

therein: Germany

23%

21%

therein:16% China

6%

18%

Asia / Pacific

Japan

Europe, Middle East, Africa (EMEA)

FY 2012 November 12, 2014

FY 2013 Copyright © Infineon Technologies AG 2014. All rights reserved.

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BMW and Infineon: Working together to shape the future of electro mobility

Power module

 75 semiconductors ensure a highly efficient electric drive in the BMW i3, e.g. Microcontroller AUDO Future, IGBT Power Module HybridPACK™ 2, EiceDRIVER™ Products, CoolMOS™ High voltage MOSFETs.  Further components: airbag control, LED light modules, steering locks, windshield wipers and seatbelt retractors. November 12, 2014

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Industrial Power Control Overview

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

Market Positions  No.1 in Discrete IGBTs with 19.4% market share  No. 2 in IGBT modules with 20.3%

market share

 Dedicated account teams and distributors Source: IHS Research, January 2014 July 30, 2014

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Power Components for Drive Control of Train Systems High-Speed Trains

Metro Trains

Infineon Parts  Power: 5 to 10MW per train

 Power: 0.5 to 1MW per train

 80 to 120 IGBT modules per train

 25 to 50 IGBT modules per train

 Semiconductor content: ~ € 100,000 per train

 Semiconductor content: ~ € 10,000 per train

July 30, 2014

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Power Management & Multimarket Overview Product Range  Digital Control ICs, Drivers and Power Discretes for Voltage Regulators  LED Drivers  RF Diodes and Transistors, RF Power  Chips for Silicon Microphones, TVS Diodes

 ASIC design solutions for authentication and battery management

Core Competencies/ Value Proposition  Technology Leadership in Power & RF:  Energy Efficiency  Power Density, system size and weight reduction  Connectivity and reliable, clean Data Transmission for 50bn devices in 2020

 Revolutionary Innovation made "easy to use"  Application centric Innovation  Integration competence: Power/RF, Digital Power, Discretes, chip embedding

November 12, 2014

Market Positions  No. 1 in Power Discretes with 9.3% market share

(IHS: The World Market for Power Semiconductor Discretes & Modules – Nov 2013)

 No. 2 in Discrete MOSFETs with 12.7% market share (IHS: The World Market for Power Semiconductor Discretes & Modules – Nov 2013)

 No. 2 in Chips for Silicon Microphones with 30% market share (IHS: MEMS Microphones Report– April 2014)

 No. 3 in RF Power Devices with 15.7% market share (ABI Research: RF Power Amplifiers – Dec 2012)

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Power Components for Servers and RF Devices for Cellular Infrastructure Energy Efficient Server

Cellular Infrastructure

Infineon Components  Efficiency values of 95% and higher  Technology leadership in silicium and silicumcarbide products  Highest power density enabling best cost-performance ratios  Unique system solutions with MOSFETs, power ICs and driver products

November 12, 2014

 Applicable for all standard frequencies of 2G, 3G, 4G (450 MHz to 2.7 GHz)  Industry leading power efficiency for LTE  Wide range of devices with power levels from 4 – 700 W  Best-in-class thermal performance

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39 years of continuous growth of the semiconductor manufacturing site of Infineon in Villach

2013 Start of 12-inch production 2012 New production hall 2000 Start of 8-inch wafer production 1997 Start of 6-inch wafer production 1984 Start 5-inch wafer production

1979 Start 4-inch wafer production

Founding - diode production facility in Villach - 1970 November 12, 2014

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Power Semiconductors Are Key Drivers for the Challenges of Today‘s Society Low-voltage MOSFET

High-voltage MOSFET

Discrete IGBT

Low-power IGBT module

High-power IGBT module

Power Semiconductor Devices are key enablers to solve global challenges

Energy Efficiency

November 12, 2014

Renewable Energy

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Electromobility

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Functional Diversification is a main Strength of the European Industry…  Leading system competence in major application areas like power electronics for industry and individual mobility located in Europe  A leading MtM semiconductor industry and fast access to innovations in micro/nanoelectronic is vital for leveraging further this European strength

 Policy must support full value chains enabled by pilot lines and high volume semiconductor production (MtM Semiconductors Made in Europe)

November 12, 2014

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Important steps to strengthen European Power Semiconductor Manufacturing  Semiconductor manufacturing is among the most capital intense industry segments  Infineon is a globally acting enterprise and is facing regional funding behaviours (Asia, US…) which mostly lead to competitive disadvantage of European companies

+

 We therefore heavily appreciate and support the Key Enabling Technologies Initiative of the European Community. Bridging research results to pilot line along the supply chain, is a major milestone to master this global challenge.  BUT: This must be just a beginning. We look forward and actively support further initiatives to strengthen manufacturing in Europe

Regensburg

2014-09-07

Dresden

Villach

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Kulim

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Manufacturing meets Development: Competence Center for Power Semiconductors  Highly qualified international team (3,038 employees) from 55 nations  Market, development and manufacturing expertise (1,050 R&D employees, 240 million EUR for R&D expenditures in fiscal year 2012)  Pioneer in thin-wafer technology up to 40 micrometers  Innovation fab: e.g. new materials like SiC, GaN or MEMS technologies  300mm pilot line for development of basic technologies (CoolMOS, OptiMOS, IGBT) and future technology generations in the industrial and automotive areas  Coordination of European research projects:  "Enabling Power Technologies on 300mm" (22 partners; project volume € 43.7 mill.) 

Parts of Power 300 were achieved in cooperation with the partners of this project and thus cofunded by grants from Austria, Germany, Italy, The Netherlands and the ENIAC Joint Undertaking

 "Enhanced Power Pilot Lines" (33 partners; project volume € 74 mill.)  Manufacture of base volumes of qualified products in 300mm thin-wafer technology November 12, 2014

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Context of pilot line activities in the area of Power semiconductors based on 300mm wafers

Medical xRay Industrial LED Automotive

Renewable Solar

Industrial drive

Automotive

Embedded LED

Total eligible cost ~160’ Euro 81 partner contributing November 12, 2014

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EPT300, Enable Power Technologies on 300mm wafer diameter Collaborative European Project: The project EPT300 researches basic capabilities to produce power Technologies based on 300mm wafers along the full value chain

Colaborative Project EPT300 # of partners in the consortia 22 # of applications 2 # of technologies researched 3 Total person months 3445 Total eligible cost ~43'0€ Total funding, all partners ~16'2€

November 12, 2014

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Leading manufacturing technology and products secure a leading position in the world market Customer acceptance

First 300mm thin-wafer technology CoolMOS™ qualified in 2/2013  CoolMOSTM C3 600V  CoolMOSTM C6 600V

... and released by customers Production start

 CoolMOSTM production in Villach and Dresden started  Capacity increase according demand in progress 2014-09-07

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EPPL Enhanced Power Pilot Line based on 300mm wafer diameter technologies Collaborative European Project: The project EPPL will establish a realistic environment to develop and manufacture world leading technologies for advanced power devices based on large 300mm silicon wafers

Colaborative Project # of partners in the consortia # of applications # of technologies researched Total person months Total eligible cost Total funding, all partners

November 12, 2014

EPPL 31 4 4 5580 ~74'0€ ~23'7€

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eRamp „Excellence in Speed and Reliability for More Than Moore Technologies“ Collaborative European Project:

The project eRamp will research on enhanced, next generation methodologies for design, reliability and productivity to leverage smart power pilot lines and establish a chip embedding pilot line

Colaborative Project # of partners in the consortia # of applications # of technologies researched Total person months Total eligible cost Total funding, all partners

November 12, 2014

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eRamp 28 3 various 4458 ~43‚7€ ~16'7€

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Infineon Dresden 300mm milestones First 300 mm fab worldwide for high volume production of power semiconductors Infineon has been market leader for power semiconductors since 9 years.  Jul 2011:

Decision to set up a high volume production for power semiconductors on 300 mm wafers in Dresden

 Apr 2012:

Start of the first 300mm lot

 Jul 2013:

Successful customer qualification of CoolMOS C3/C6 600V, further transfers ongoing

 Jan 2014:

Start of second power technology IGBT4

 Jul 2014:

First qualification lots with thin-wafer enabling

 Nov 2014:

Ready for equipment: new production building for IGBT implanter

 Upcoming:

Further technologies for automotive applications in preparation

Further ramp in progress according to market demand Copyright © Infineon Technologies AG 2014. All rights reserved.

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Summary: Power semiconductors on 300mm According to IMS Research, Infineon has been market leader for power semiconductors for 9 years. We are committed to maintain and expand this leading position. We have set the course in 300mm: First technology transfers have been successfully completed and volume production started. Additional technologies, especially for automotive applications, are in qualification or preparation.

Capacities will be increased according to market demand.

Copyright © Infineon Technologies AG 2013. All rights reserved.

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