Infineon enables manufacture of more than 100 million ultra-low-cost mobile phones. New generation of even more affordable handsets to launch soon

Neubiberg, Germany, January 20, 2009 – Infineon Technologies AG has sold more than 100 million of its chips for the so called ultra-low-cost mobile phone segment. This was announced by the company ahead of the Mobile World Congress, the world’s largest industry show for mobile communications. The X-GOLD™101 (E-GOLDvoice™) mobile communications chip is the second generation of Infineon’s highly integrated baseband chips for GSM/GPRS. With its incomparably affordable cost position, it enables mobile handset makers to lower system costs by more than 30 percent.

Infineon is also unveiling its third-generation ultra-low-cost (ULC) mobile communications chip, the new X-GOLD™110. Manufactured with a structure size of 65 nanometers, the chip lowers system costs (bill-of-material) for mobile phone manufacturers by 20 percent compared to its predecessor. The X-GOLD110 is a ULC chip that includes an FM radio receiver in addition to a full range of telephony functionalities.

“Our sales figures in the ULC segment are a testament to the success of our highly integrated solution,” says Prof. Hermann Eul, member of the board and responsible for Technology, Sales and Marketing at Infineon Technologies AG. “The X-GOLD101 chip combines a variety of basic mobile communications components, including a baseband processor, transceiver, power management and memory. It packs a phone onto a single chip with an area the size of a finger nail.”

Another triumph, the X-GOLD™110

Infineon is also rolling out the next generation of its GSM/GPRS ultra-low-cost chip, the X-GOLD110, which provides an incomparably affordable basis for mobile handsets by offering fundamental functions like telephony, SMS, color display support, camera capabilities, and MP3 and radio functionality.

Major mobile handset makers are the main customers for Infineon’s ULC solutions, but these chips also enable smaller vendors in new markets like China and India to produce mobile phones quickly and inexpensively. With these components, Infineon shortens manufacturers’ development cycles from a year to just three or four months and further reduces the number of electronic components in a simple mobile phone from over 200 to fewer than 50.

Not only has Infineon sold more than 100 million ULC chips, its X-GOLD101 (E-GOLDvoice) device has also been chosen as a finalist in the 29th Innovation Award of Germany Industry. The award ceremony is to be held in Frankfurt on January 24.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion with approximately 29,100 employees worldwide. With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. 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).