Infineon expands China operations - Dr. Ulrich Schumacher opens new Chinese headquarters in Shanghai

Shanghai, September 17, 2003 – Dr. Ulrich Schumacher, CEO of the world’s sixth largest semiconductor company, opened Infineon’s new Chinese headquarters in Shanghai. This move marked a further milestone in the expansion of Infineon’s business operations in China. The Infineon China headquarters is situated in Shanghai’s booming business district Pudong. It will house central administration, as well as a large software center. Today, the Infineon China headquarters has already more than 100 employees and it will become one of the biggest software centers of Infineon.

“We have set ourselves ambitious goals in China and are confident that we can achieve them,” declared Dr. Schumacher, President and CEO of Infineon Technologies, at a press conference in the burgeoning Chinese metropolis. “In the next five years we aim to double our market share in China, from its current five percent to ten percent.”

“Infineon Technologies China is organized as a holding company, which provides a high degree of flexibility for entering into new partnerships and joint ventures with other Chinese companies,” explained Pow Tien Tee who has been appointed Managing Director of Infineon’s Chinese subsidiary.

According to forecasts by the market research firm, iSuppli, the Chinese semiconductor market will triple in size over the next four years and be worth more than US $80 billion by 2007.

“It is extremely important for the success of Infineon to be involved in this fast-growing market,” said Dr. Schumacher. “This will also help us to safeguard jobs in Germany and at our other locations.”

Infineon in China

Infineon has been a player in China since October 1994 (at that time still as Siemens Semiconductors). Today the company employs about 800 people in China and to grow its workforce here to more than 3000 in the future. In Shanghai, the company cooperates with SMIC, which enables it to secure production capacities for memory chips without having to invest in its own facilities. In return Infineon licenses its leading 300-mm technology to its Chinese partner. Infineon also recently announced formation of a joint venture for assembly and test of memory chips in Suzhou. In Wuxi, Infineon has a backend production facility for logic products, while the newly founded development center in Xian develops products for the communication segments and the automotive and industrial electronics sector. Infineon also has sales offices in Beijing, Shanghai, Shenzhen and Hong Kong.

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com.