Infineon Technology Day

Jochen Hanebeck Oct-2010

Global semi market is back on pre-crisis level

Revenue in US Dollar billion and market growth rate
333 290

Revenue Forecast range revenue

Market growth rate Forecast range (average) market growth rate

Source: WSTS for historical data; Forecast: of VLSI, Gartner, iSuppli, WSTS, IC Insights, Future Horizons; market growth rate year-on-year.
Oct-2010

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We align to our customer segments

Customers

Automotive

Industrial & Multimarket

Chip Card & Security

Wireless Solutions

Power Semiconductors Power ICs Microcontroller Sensors Electric Drivetrain

Power Discretes Power Modules Power ICs ASICs RF & Protection Devices Microcontroller

Payment Communication Entertainment Government ID Personal & Object ID Platform Security

Mobile Phone Platforms Mobile Software RF Solutions Tuner and Receiver RF Power

Sales, Operations, Central Functions

Board
Oct-2010

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Infineon's revenue in Q3 was 1,209 million

Infineon Third Quarter FY10 +59%

Segment Result

52

88

110

163

Revenue in million
Oct-2010

Segment Result margin

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Revenue Split by Focus Area

H1 FY10 revenue split Automotive

Industrial & Multimarket

Energy Efficiency / Mobility 1,183m Communications 537m

Wireless Solutions

Security 182m
Chip Card & Security

Oct-2010

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Infineon Functional Organization

Board

P. Bauer (CEO)

Prof. Dr. H. Eul

Dr. R. Ploss

Divisions & Sales

Automotive J. Hanebeck C. Geisler M. Seitz

Industrial & Multimarket A. Mittal P. Schiefer O. Schuster

Chipcard & Security Dr. H. Gassel M. Friedinger

Wireless Solutions W.K. Tan C. Eisenschmid

Sales, Marketing & Distribution A. Mueller

Joint management responsibility of Division Head and Division Finance Head

Operations

Operations Dr. R. Ploss

Frontend - Power Dr. H.-D. Loewe Assembly & Test - Power K. T. Ng Accounting Services & Processes M. Schneider Audit & Risk Management R. Hawliczek Business Continuity W.-R. Moritz Communications R. Driever Compliance Officer R. Hawliczek Frontend CMOS P. Haidas Assembly & Test CMOS W. T. Gan Consolidation & External Reporting Dr. F. Kirchmeier Controlling & Projects A. Sauer Corporate Dev. & Investor Relations U. Pelzer Enabling Technologies & Services Dr. F. Neppl Public Authorities & Associations Dr. A. Hoffmann Corporate Supply Chain Dr. K. Gruber Finance P. Gruber Finance & Treasury F.-X. Gerard Human Resources Dr. T. Marquardt Information Technology M. Schmelmer Legal & Patent M. v. Eickstedt Purchasing H.-M. Schweizer Quality Management H. Mahler R&D Excellence Dr. C. Kutter Taxes A. Rappl

Regions

Central Functions

North America J.-B. Loire, A. Prillwitz

Asia Pacific A. Chong, T.T. Pow, H.-M. Stech

Japan Y. Mori, A. Trost

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Oct-2010

Strategic Cornerstones Aim at Expanding Leadership Positions Using

Focus Areas Energy Efficiency Communications Security Core Competencies

Analog / Mixed Signal

RF

Power
Embedded Control

Target Markets Automotive Industrial Electronics Chip Card & Security Mobile Phone Platforms
Oct-2010

Manufacturing Strategy Investment in in-house manufacturing for speciality technologies eg 300mm for Power discretes

Manufacturing of standard techno-logies in foundries. Below 65nm no investment in own plants.

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The Automotive Division focuses on Products for three Major Growth Drivers

Infineon Automotive - We make cars

Cleaner
Best-in-class powertrain products (TriCore, Sensors, Power ICs) System & application know-how Optimized hybrid and electric drivetrain products (HybridPack)

Safer
Dedicated sensor, power and

Affordable
Scalable product portfolio to address low

microcontroller products
Innovative sensor technologies: Magnetics (Hall, I-GMR), MEMS (Inertia, pressure) and SiGe (Radar, ACC) Safety standard compliant products PROSILTM (SIL3 or ASIL-D standard)

cost car design and production

Easy to integrate chipset solutions for safety and powertrain and body Software and support structure to enable emerging country OEM and Tier1s Optimized Chipsets for E-bikes

Energy management concepts

Electrification of functions and replacement of relais & mechanical functions

Oct-2010

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Infineon Automotive Market Share Development

Worldwide Automotive Semiconductor Ranking
1. 2. 3. 4. 5. 6. 7. 8. Infineon Freescale STM NEC Renesas NXP Toshiba Bosch 9,0% 8,0% 7,7% 7,3% 7,0% 6,4% 5,6% 4,9%
9,0% 8,2% 5,7% 3,9%

Infineon is the worlds #1 in Automotive!

2009

1994

1998

2002

Europe
1. 2. 3. 4. 5. 6. 7. 8. Infineon STM Bosch Freescale NXP TI NEC ON Semi 13,6% 10,5% 10,4% 8,5% 8,2% 5,9% 5,3% 2,9%

APAC + ROW
1. 2. 3. 4. 5. 6. 7. 8. STM Infineon Freescale NXP NEC Renesas Toshiba ROHM 9,2% 8,8% 7,6% 7,0% 4,5% 3,9% 2,8% 2,7% 1. 2. 3. 4. 5. 6. 7. 8.

NAFTA
Freescale Infineon NXP STM ON TI Renesas NEC 16,1% 7,8% 7,1% 6,6% 4,3% 3,7% 3,3% 3,1% 1. 2. 3. 4. 5. 6. 7. 8.

Japan
Renesas Toshiba NEC ROHM Fujitsu TI Sanken Infineon 19,8% 18,0% 15,6% 3,8% 3,6% 3,2% 3,1% 2,8%

ROW: Key Rest-Of-World countries Brazil, Russia

Oct-2010

Source: Strategy Analytics, April 2010

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Infineon Automotive Semiconductor Solutions combine Sense, Compute and Actuate

Our target markets
Powertrain
Diesel Engine Mgmt. Gasoline Engine Mgmt. Transmission Control Starter / Alternator

Sense
Pressure Sensors Magnetic (Hall) Sensors

Compute Actuate
16/32 bit C 32 bit TriCore (C + DSP) MOSFETs IGBTs Regulators Transceivers Smart Power System ICs

Hybrid Electrical Drives

Hybrid motor drive Regenerative braking Battery management

Magnetic Sensors Temperature Sensors

8 bit Cs 16/32 bit Cs 32 bit TriCore (C + DSP)

HybridPack IGBTs Regulators Transceivers Smart Power MOSFETs Diodes Transistors MOSFETs Regulators Transceivers Smart Power System ICs Transceivers Diodes MOSFETs Transistors Regulators E-Power Smart Power
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Safety

ABS/ESP/Traction Control Suspension Airbag/Restraint Systems Side-airbag Power Steering Tire Pressure Monitoring

Pressure Sensors TPMS Magnetic (Hall) Sensors RF ICs

8 bit Cs 16/32 bit Cs 32 bit TriCore (C + DSP)

Body & Convenience

Light Control Heating, Ventilation, Air Condition Door & Seat Smart Battery Terminal

Magnetic Sensors Temperature Sensors RF ICs

8 bit Cs 16/32 bit Cs

Oct-2010

Infineon Automotive Your trusted partner for HEV / EV

Automotive Semiconductor*
1

Power Semiconductors*
1 1

2 2 2 2

High Commitment to
5 5

the Automotive Industry +

8

Focus and long

experience on

power
semiconductors
95 98 02 03 05 06 09
* Application-specific

=
Ideal Match for HEV

95 98 01 03 05 07 09
** Power

semiconductor Source: Strategy Analytics

/ EV

Semiconductor Source: IMS; Including power semis for automotive

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Oct-2010

ATV semiconductors are key elements in Hybrid and Electric Vehicle architectures
IFX Differentiators
Extension of battery lifetime Efficient DC/AC and AC/DC conversion Monitoring and control of battery packs state by smart algorithms MOSFETs, Cs, Sensors, Vregs

Lowvoltage battery HV auxiliaries HV-LV DC/DC

M
Inverter
Highpower DC/DC

High-voltage boardnet

Battery mgmt.

High-voltage battery

Charger AC/DC

IFX Differentiators
Highest power density Innovative mounting & interconnect HybridPACKs, IGBTs, Cs

IFX Differentiators
Efficient AC/DC conversion Short charging time Handling of high currents
EV HEV HV LV AC DC = electric vehicle = hybrid electric vehicle = high-voltage = low-voltage = alternating current = direct current

IGBTs, MOSFETs
Oct-2010

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Electric Vehicles (EV) and Hybrid EVs drive semiconductor demand

Auto(ICE) vs. EV/HEV Semiconductor BOM

Fuel cost, CO2 reduction and price are main drivers for EVs and HEVs Powertrain semiconductor (SC) bill-of-material (BOM) of an EV/HEV is 2 to 3 times higher than total Auto (ICE) Semiconductor Bill-ofMaterials 50-80% related to IGBT and diode chips in state-of-the-art module packages

Market growth fostered by new vehicle launches

Fast followers enter HEV market

Oct-2010

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Infineon established the Automotive Excellence Program in 2003

Infineons Automotive Excellence Program
Goals: Sustainable quality improvement Zero Defect Culture
Measurables: Decrease of number of customer returns and quality spills Increase of customer satisfaction
Product: CAN transceiver TLE6250G

Toyotas Honor quality award

First time ever that a non-Japanese company was honored with this award

Improvement Examples

Our target of Zero Defect is your competitive advantage

No quality events Defect-free product launches Low non-conformance costs Highest quality image in your market More business due to satisfied customers

Advanced Process Control

Excellent Requirement Management

Our quality is clearly seen as industry benchmark by almost all of our customers
Oct-2010

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Infineon Automotive Your trusted partner for automotive applications

Global No. 1 for automotive semiconductors

Broad innovative product portfolio, leading edge technologies and system expertise

Growing global customer base

Strategic partnerships on all levels of the value chain

Automotive ExcellenceTM: Most comprehensive quality program in the industry

Strong growth perspective driven by Low cost cars and HEV/EV

Oct-2010

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