Infineon's SOLID FLASH™ Security Controllers for Payment Applications Gain Worldwide Acceptance in Key Projects

Neubiberg, Germany and Paris, France – November 6, 2012 – Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today confirmed at Cartes 2012, the chip card industry’s leading tradeshow, the success of its new generation of security products for payment applications. Security controllers based on SOLID FLASH™ technology are already used in key projects around the world. Bank cards issued by the German Sparkasse Verlag, Swiss Maestro debit cards and France's Carte Bancaire cards will be equipped with Infineon's new SOLID FLASH security controllers. They will also be shipped to projects in other European countries, North and South America as well as Africa and Asia (Japan, China, Korea, Indonesia) in the course of volume ramp up.

Infineon provides the industry's only Flash-based security controller that – in addition to contact-based payment – also includes outstanding contactless functionality. Compared to conventional products, SOLID FLASH-based controllers are up to 40 percent faster in contactless applications. The reliable and high processing speed increases the convenience for the end user and will further increase acceptance of the contactless use of bank cards or multifunctional smart cards.

Previously, data were saved on a chip card with security controllers based on ROM and EEPROM memory technology. However, conventional Mask ROM technology is approaching its limits. While miniaturization of chip structures results in disproportionately increased mask costs, Mask ROM technology does also no longer meet the requirements with regards to flexibility of the end products. SOLID FLASH from Infineon therefore combines the more flexible Flash memory technology with a sophisticated security mechanism and highest reliability.

Benefits of SOLID FLASH products along the value chain

Card manufacturers are benefiting in many ways from the great flexibility of SOLID FLASH technology: Compared to conventional Mask ROM technology, lead times - from the determination of variants to delivery - can be approximately cut in half. Rapid error-checking and -correction during software development result in further savings of time and costs; short-term modifications due to changed customer needs can be immediately factored in using Flash technology. This reduces planning expense, inventory costs and market risks for the card manufacturer.

At the same time, SOLID FLASH products also include sophisticated security and reliability features superior to those of Mask ROM products. Security along the value chain from prototyping to delivery of the end product is given thanks to secure mask transfer, secure downloading and a special locking mechanism and is certified together with the hardware. The secure locking mechanism prevents modification of program code and personal data. Each chip is also equipped with a random key. Infineon's Flash-based security controllers fulfill today's highest security standards. They are certified up to EAL 6+ (high) according to the international "Common Criteria" standard and have EMVCo approvals.

Market trends

As the market leader for security controllers for payment applications, with a market share of 33 percent in 2011 (IMS, an HIS company, July 2012), Infineon is establishing a new industry standard with its SOLID FLASH security products. According to the current study by the market research company IMS ("The World Market for Payment and Banking Cards" – 2012 Edition, July 2012), the market for smart card ICs in payment applications will grow from 1.5 billion pieces in 2012 to 3.6 billion pieces by 2017.

Security controllers for payment cards store operating information and personal data for secure processing of payment transactions. The desired functionality of payment cards is constantly expanding and requires ever-greater security in an increasingly connected environment. EC or credit cards are becoming multi-application cards that – in addition to contactless payments – can also offer contactless access to transportation systems. Additional uses include projects by public authorities in regions with weak banking infrastructures such as South Africa, where smart cards are used for payment of social grants.

Security for the connected world

With its core competences in the areas of security, contactless communication and integrated microcontroller solutions (Embedded Control), Infineon offers a comprehensive portfolio of semiconductor security products for many chip card and security applications. With this expertise, Infineon is improving security in our increasingly connected world, for example for mobile payments, for system security and secure official electronic documents. Infineon has been developing innovative solutions in the area of chip-based security for over 25 years and has been a global market leader for the last 15 years.

Further information on chip card and security solutions from Infineon is available at www.infineon.com/chip-card-and-security

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2011 fiscal year (ending September 30), the company reported sales of Euro 4.0 billion with close to 26,000 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). Further information is available at www.infineon.com.