Infineon Strengthens Its Position as the Market Leader in Power Semiconductors – Renewable Energy Sources and Smart Grids Opens Up Additional Growth Potential

Neubiberg, Germany – October 25, 2011 – Infineon Technologies is the global market leader in power semiconductors for the eighth consecutive year. According to IMS Research* data, Infineon again strengthened its position in 2010 and commands an 11.2 percent share of the overall market, ahead of Toshiba (6.8%), STMicroelectronics (6.5%) and Mitsubishi (6.5%). The IMS Research study shows that Infineon holds a market share of 8.6 percent in the discrete power semiconductor segment, making the company the clear number one there for the first time.

“We are delighted to have not just retained our pole position in the power semiconductor market, but also to have strengthened it. Infineon is now also the clear leader in the power discretes market,” said Arunjai Mittal, Division President of the Industrial & Multimarket Division at Infineon Technologies. “The energy distribution from renewable energy sources requires efficient power lines and smart grids. This opens up additional growth opportunities for Infineon as leading provider of key components for raising energy efficiency – from energy generation and distribution to consumption.”

IMS Research continues to see the longer-term prospects of the global power semiconductor market in a very positive light and forecasts market growth by around 50 percent to reach about US dollar 24.0 billion by 2015. Having undergone a distinct decline in 2009, the global power semiconductor market recovered in 2010, increasing by 40 percent to approximately US dollar 16 billion. That is two billion more than in the previous record year of 2008. The market for power semiconductor modules increased by 58 percent in 2010 to close on US dollar 3.5 billion. The power modules market growth is being driven primarily by industrial motor drives, renewable energy, hybrid and electric cars, and consumer electronics. In 2010, growth of the power modules market outpaced that of power discretes, which was up 37 percent to US dollars 12.3 billion. This segment benefited particularly from high demand in the sectors of PCs and servers, lighting applications, energy-efficient industrial and renewable energy applications, and household electronics. An increase in the production of air-conditioning systems and washing machines with variable speed drives (VSD) is being seen particularly in China.

Power semiconductors are instrumental in feeding as much as possible of the electric power harnessed from wind or solar into the grid, and in minimizing energy loss in long-distance transmission from the place where it is generated to the place where it is consumed. These energy-saving chips also enable efficient power supply for computers, servers and domestic appliances, and are essential for an efficient control of electric motors.

In order to take the success story of energy-saving chips forward, Infineon is already working intensively on future generations of power semiconductors. On October 10, 2011 the company announced having reached a technological milestone: Infineon became the world’s first supplier to produce chips (“first silicon”) on a 300-millimeter thin wafer for power semiconductors. At the end of July Infineon announced setting up Dresden as the site for high-volume production of 300-millimeter power semiconductors as part of the investment plans. Infineon will invest around Euro 250 million until 2014 for this purpose and will create approximately 250 jobs in Dresden.

Further information on Infineon’s semiconductor solutions for energy efficiency is available at www.infineon.com/energy-efficiency

*Source: IMS Research report “The World Market for Power Semiconductor Discretes & Modules 2011”, August 2011. IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry. IMS offers syndicated market studies, bespoke client research and consultancy services to help clients better understand markets and shape strategies. The company was founded in 1989, and now has over 120 analysts worldwide with clients in over 50 countries. Further information is available at www.imsresearch.com

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2010 fiscal year (ending September 30), the company reported sales of Euro 3.295 billion with approximately 26,650¹ 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). Further information is available at www.infineon.com.

¹ Mentioned number of employees contains about 3,075 employees of the wireless mobile phone business (Wireless Solutions), which was sold to Intel Corporation.