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IFX Day 2010 Campeon – June 24, 2010 Weng Kuan Tan Division President Wireless Solutions (WLS) Infineon Is Growing Share and Becoming Top-3 Player Now

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IFX Day 2010 Campeon – June 24, 2010 Weng Kuan Tan Division President Wireless Solutions (WLS) Infineon Is Growing Share and Becoming Top-3 Player Now IFX Day 2010 Campeon – June 24, 2010 Weng Kuan Tan Division President Wireless Solutions (WLS) Infineon Is Growing Share and Becoming Top-3 Player Now Infineon Wireless market position Slim modems WCDMA/HSxPA Rank Market share HSPA+ 5 band Baseband suppliers 2008 2009 2008 2009 40nm HSPA Texas Instruments* 1 1 35.6% 30.4% 4 band 6cm² 65nm Qualcomm 2 2 32.0% 29.8% HSDPA Infineon 4 3 7.2% 14.1% 3 band 8cm² 3G 90nm ST-Ericsson 3 4 15.1% 14.1% Broadcom 5 5 2.4% 2.9% 10cm² Other 7.7% 8.7% SoC platforms GSM/GPRS/EDGE Rank Market share Baseband suppliers 2008 2009 2008 2009 Texas Instruments* 1 1 40.7% 33.7% Mediatek 2 2 23.3% 32.7% 2G Infineon 4 3 12.4% 13.4% ST-Ericsson 3 4 13.4% 11.7% Broadcom 9 5 0.2% 3.7% Other 10.0% 4.8% *TI expects substantially all of its baseband revenue, which was $1.73bn in 2009, to cease by the end of 2012. Source: Strategy Analytics, market shares are unit based 2010-06-24 Copyright © Infineon Technologies 2010. All rights reserved. Page 2 Major Design Wins to Drive Further Growth Key growth drivers of Infineon platform shipments Strong design win Expansion of customer base pipeline >2x growth [units] undisclosed (09-11e) CAGR (06-09) 2G: XMM™ 1100/2130 77% ramp at Nokia and ~165m other tier-1 OEMs. ~135m 3G: Major design wins ~80m at tier-1 customers ~50m with HSUPA platform ~30m XMM™ 6160/6180. 2005 2006 2007 2008 2009 2010e 2011e 2010-06-24 Copyright © Infineon Technologies 2010. All rights reserved. Page 3 Strong Ramps at Nokia in 2010 and 2011 Nokia mobile phones based on Infineon platforms Dual- SIMs Nokia Nokia Nokia Series 40 Series C1-01 C1-02 C2-00 Based on XMM™ 2130 One model for one Multiple models for the global market: market (India) China, India, MEA, Eurasia, SEAP, … Dual- SIMs Series 30 Series Nokia Nokia Nokia Nokia Nokia 1202 1280 1616 1800 C1-00 Based on XMM™ 1010 Based on XMM™ 1100 2008 1H 2010 2H 2010 2010-06-24 Copyright © Infineon Technologies 2010. All rights reserved. Page 4 Leading Smartphone Customer Base Selected smartphone models using Infineon platform / RF Samsung Undisclosed Another undisclosed Galaxy S customer tier-1 customer HSUPA platform HSUPA platform HSPA+ platform XMM™ 6160 XMM™ 6160 XMM™ 6260 RIM Blackberry Motorola Bold 9700 Milestone HSUPA RF HSUPA RF SMARTi 3GE2 SMARTi UE+ 2010-06-24 Copyright © Infineon Technologies 2010. All rights reserved. Page 5 Focus on Fastest Growing Market Segments Smartphones and Connected Devices Applications and roadmap focus Addressable market 6cm² Slim modems 8cm² New platforms 10cm² "Legacy" platforms Smallest size. Industry-leading, lowest power consumption. Best-in-class SMARTi UE2 RF Transceiver. Connected Entry-level Applications devices Mobile OS smartphone X - GOLD TM 618 platform Enabling Android 3G smartphones below USD 150. Smartphones Dedicated video, graphics and audio processing. Single-chip Mobile Phones Lowest bill-of-materials for ultra-low cost handsets. Fully integrated RF transceiver, PMU and memory. 2009 2014 Source: Strategy Analytics, September 2009 2010-06-24 Copyright © Infineon Technologies 2010. All rights reserved. Page 6 Profitability to Increase Further Through Growth, Fabless Transition and R&D Efficiency Financial performance [EUR m] 265 270 267 251 Key levers for increased profitability: 197 204 Grow scale further through 2010 and 2011 by ramping design wins (CY 2009 revenue was $1.4bn). Leverage fabless transition and new technologies for 19 18 17 9 gross margin improvement. Execute on R&D efficiency program to address -29 -44 challenges from increasing engagements at customers Q1 FY09 Q2 Q3 Q4 Q1 FY10 Q2 and growing product portfolio. Revenue Segment Result 2010-06-24 Copyright © Infineon Technologies 2010. All rights reserved. Page 7 Summary No. 2 in 2G and 3G platforms (excl. TI baseband ASICs). Poised for strong share gains in 2G and 3G, driven by: strong design win pipeline, leading customer base, roadmap focused on fastest 6cm² HSPA+ growing market segments. 5 band Higher scale, as well as gross margin and R&D measures are expected to increase profitability further. 2010-06-24 Copyright © Infineon Technologies 2010. All rights reserved. Page 8 Disclaimer This presentation was prepared as of June 24, 2010 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 we operate. These include statements relating to general economic conditions, future developments in the world semiconductor market, our ability to manage our costs and to achieve our growth targets, the resolution of Qimonda’s insolvency proceedings and the liabilities we may face as a result of Qimonda’s insolvency, the potential disposition or closure of our ALTIS joint venture, the benefits of research and development alliances and activities, our planned levels of future investment, the introduction of new technology at our facilities, our continuing ability to offer commercially viable products, and our expected or projected future results. These forward-looking statements are subject to a number of uncertainties, such as broader economic developments, including the sustainability of recent improvements in the market environment; trends in demand and prices for semiconductors generally and for our products in particular, as well as for the end-products, such as automobiles and consumer electronics, that incorporate our products; the success of our development efforts, both alone and with partners; the success of our efforts to introduce new production processes at our facilities; the actions of competitors; the availability of funds; the outcome of antitrust investigations and litigation matters; and the resolution of Qimonda’s insolvency proceedings; as well as the other factors mentioned in this presentation and those described in the “Risk Factors” section of our most recent annual report on Form 20-F on file with the U.S. Securities and Exchange Commission. As a result, Infineon’s actual results could differ materially from those contained in or suggested by these forward-looking 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 in light of developments which differ from those anticipated. 2010-06-24 Copyright © Infineon Technologies 2010. All rights reserved. Page 10.
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