Annual Report 2018 Infineon Technologies AG Infineon at a glance Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2018 fiscal year (ending 30 September), the Company reported sales of approximately €7.6 billion with some 40,100 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Infineon at a glanceInfineon Automotive Industrial Power Digital Security Power Control Management Solutions (previously Chip Card & Security) & Multimarket Page 40 Page 42 Page 45 Page 47 Applications Applications Applications Applications › Assistance systems and safety systems › Charging stations for electric vehicles › Cellular infrastructure › Authentication › Comfort electronics › Energy distribution › Charging stations for electric vehicles › Automotive › Powertrain › Home appliances › DC motors › Governmental identification documents › Security › Industrial drives › HiRel (high-reliability components) › Healthcare cards › Industrial power supplies › Internet of Things › Internet of Things Product range › Industrial robots › LED and conventional lighting systems › Mobile communications › 32-bit automotive microcontrollers for powertrain, › Industrial vehicles › Mobile devices › Payment system, mobile payment safety and driver assistance systems › Renewable energy generation › Power management (adapters, chargers, › Ticketing, access control › 3D ToF sensors › Traction power supplies) › Trusted computing › Discrete power semiconductors › IGBT modules Product range Product range Product range › Industrial microcontrollers › Bare die business › Control ICs › Contact-based security controllers › Magnetic and pressure sensors › Discrete IGBTs › Customized chips (ASICs) › Contactless security controllers › Power ICs › Driver ICs › Discrete low-voltage and high-voltage › Dual-interface security controllers › Radar sensor ICs (77 GHz) › IGBT modules (low-power, medium-power, power MOSFETs (contact-based and contactless) › Transceivers (CAN, LIN, Ethernet, FlexRay) high-power) › GPS low-noise amplifier › Embedded security controllers › Voltage regulators › IGBT module solutions including IGBT stacks › Low-voltage and high-voltage driver ICs › Intelligent power modules with integrated › MEMS and ASICs for pressure sensors Key customers 1 Key customers 1 control unit, driver and switch › MEMS and ASICs for silicon microphones Gemalto / Giesecke & Devrient / Google / HP / Aptiv / Bosch / BYD / Continental / Delphi / › Silicon carbide MOSFETs and modules › Radar sensor ICs (24 GHz, 60 GHz) Idemia / Lenovo / Microsoft / Samsung / Denso / Hella / Hitachi / Hyundai / Keihin / Lear / › RF antenna switches US Government Publishing Office / Watchdata Mando / Mitsubishi Electric / Omron / Preh / Key customers 1 › RF power transistors Valeo / Veoneer / ZF ABB / Alstom / Bombardier / CRRC / Danfoss / › Silicon carbide diodes Market position2 › TVS (transient voltage suppressor) diode Eaton / Emerson / Goldwind / Inovance / Midea / # 1 with a market share of 24.2 % Market position2 Nidec / Rockwell / Schneider Electric / Siemens / for smart card and secure ICs Key customers 1 # 2 with a market share of 10.8 % Sungrow / Toshiba / Vestas / Yaskawa Source: ABI Research, October 2018 Source: Strategy Analytics, April 2018 Airbus / Alibaba / Artesyn / Baidu / Boeing / Cisco / Market position2 Dell / Delta / Ericsson / Google / Hewlett Packard # 1 with a market share of 27.1 % Enterprise / HP / Huawei / Lenovo / LG Electronics / for IGBT-based power semiconductors Lite-On / Makita / Nokia / Osram / Panasonic / Source: IHS Markit, Technology Group, September 2018 Quanta / Samsung / ZTE Market position2 # 1 with a market share of 26.3 % for standard power MOSFETs Source: IHS Markit, Technology Group, September 2018 1 In alphabetical order. Infineon’s major distributions customers are Arrow, Avnet, Intron, Jingchuan, Macnica, Weikeng and WPG Holding (SAC). 2 All figures for 2017 calendar year. The market share of the five largest competitors is shown in the “Market position” section of the relevant segment. The figures provided in those sections with respect to changes in market share relate to the 2017 and 2016 market share figures as calculated in 2018. Due to changes in the way the market is analyzed, these figures may differ from the 2016 market share figures reported in 2017. Infineon at a glance Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2018 fiscal year (ending 30 September), the Company reported sales of approximately €7.6 billion with some 40,100 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Infineon at a glanceInfineon Automotive Industrial Power Digital Security Power Control Management Solutions (previously Chip Card & Security) & Multimarket Page 40 Page 42 Page 45 Page 47 Applications Applications Applications Applications › Assistance systems and safety systems › Charging stations for electric vehicles › Cellular infrastructure › Authentication › Comfort electronics › Energy distribution › Charging stations for electric vehicles › Automotive › Powertrain › Home appliances › DC motors › Governmental identification documents › Security › Industrial drives › HiRel (high-reliability components) › Healthcare cards › Industrial power supplies › Internet of Things › Internet of Things Product range › Industrial robots › LED and conventional lighting systems › Mobile communications › 32-bit automotive microcontrollers for powertrain, › Industrial vehicles › Mobile devices › Payment system, mobile payment safety and driver assistance systems › Renewable energy generation › Power management (adapters, chargers, › Ticketing, access control › 3D ToF sensors › Traction power supplies) › Trusted computing › Discrete power semiconductors › IGBT modules Product range Product range Product range › Industrial microcontrollers › Bare die business › Control ICs › Contact-based security controllers › Magnetic and pressure sensors › Discrete IGBTs › Customized chips (ASICs) › Contactless security controllers › Power ICs › Driver ICs › Discrete low-voltage and high-voltage › Dual-interface security controllers › Radar sensor ICs (77 GHz) › IGBT modules (low-power, medium-power, power MOSFETs (contact-based and contactless) › Transceivers (CAN, LIN, Ethernet, FlexRay) high-power) › GPS low-noise amplifier › Embedded security controllers › Voltage regulators › IGBT module solutions including IGBT stacks › Low-voltage and high-voltage driver ICs › Intelligent power modules with integrated › MEMS and ASICs for pressure sensors Key customers 1 Key customers 1 control unit, driver and switch › MEMS and ASICs for silicon microphones Gemalto / Giesecke & Devrient / Google / HP / Aptiv / Bosch / BYD / Continental / Delphi / › Silicon carbide MOSFETs and modules › Radar sensor ICs (24 GHz, 60 GHz) Idemia / Lenovo / Microsoft / Samsung / Denso / Hella / Hitachi / Hyundai / Keihin / Lear / › RF antenna switches US Government Publishing Office / Watchdata Mando / Mitsubishi Electric / Omron / Preh / Key customers 1 › RF power transistors Valeo / Veoneer / ZF ABB / Alstom / Bombardier / CRRC / Danfoss / › Silicon carbide diodes Market position2 › TVS (transient voltage suppressor) diode Eaton / Emerson / Goldwind / Inovance / Midea / # 1 with a market share of 24.2 % Market position2 Nidec / Rockwell / Schneider Electric / Siemens / for smart card and secure ICs Key customers 1 # 2 with a market share of 10.8 % Sungrow / Toshiba / Vestas / Yaskawa Source: ABI Research, October 2018 Source: Strategy Analytics, April 2018 Airbus / Alibaba / Artesyn / Baidu / Boeing / Cisco / Market position2 Dell / Delta / Ericsson / Google / Hewlett Packard # 1 with a market share of 27.1 % Enterprise / HP / Huawei / Lenovo / LG Electronics / for IGBT-based power semiconductors Lite-On / Makita / Nokia / Osram / Panasonic / Source: IHS Markit, Technology Group, September 2018 Quanta / Samsung / ZTE Market position2 # 1 with a market share of 26.3 % for standard power MOSFETs Source: IHS Markit, Technology Group, September 2018 1 In alphabetical order. Infineon’s major distributions customers are Arrow, Avnet, Intron, Jingchuan, Macnica, Weikeng and WPG Holding (SAC). 2 All figures for 2017 calendar year. The market share of the five largest competitors is shown in the “Market position” section of the relevant segment. The figures provided in those sections with respect to changes in market share relate to the 2017 and 2016 market share figures as calculated in 2018. Due to changes in the way the market is analyzed, these figures may differ from the 2016 market share figures reported in 2017. Infineon key data As of and for the fiscal years ended 30 September (under IFRS) ¹ Fiscal year from 1 October to 30 September 2018 2017 2018/2017 € in in % of € in in % of Change millions revenue millions revenue in % Revenue by region 7,599 7,063 8 Europe, Middle East, Africa 2,443 32 2,272 32 8 therein: Germany 1,171 15 1,094 15 7 Asia-Pacific (excluding Japan, Greater China) 1,129 15 1,071 15 5 Greater China 2,599 34 2,376 34 9 Infineon at a glance therein: China 1,921 25 1,735