Infineon Purchases Manufacturing Facilities from Qimonda Insolvency Administrator in Dresden, Germany

Neubiberg, Germany - May 10, 2011 - Infineon Technologies Dresden GmbH has purchased real estate and manufacturing facilities from the insolvency administrator managing the assets of Qimonda Dresden GmbH & Co. OHG, Dr. Michael Jaffé, for a total sum of Euro 100.6 million. The real estate borders directly on the Infineon premises in Dresden, Germany. The purchase of real estate covers cleanroom and manufacturing facilities as well as 300mm manufacturing equipment of the former Qimonda Dresden GmbH & Co. OHG and forms part of the company’s strategic capacity expansion. The insolvency administrator had kept the cleanroom facilities operational after the insolvency proceedings were opened. Infineon now takes over the full remaining items of property and manufacturing facilities. With this purchase Infineon secures 300mm manufacturing equipment that forms an important basis for potential volume production of 300mm power semiconductors. Infineon Technologies AG is currently working on a development project to assess the use of 300mm wafers for manufacturing power semiconductors on thin wafer technology. For this purpose a pilot line is set-up at the company’s site in Villach, Austria. Some of the machinery now acquired will be used for completion of the pilot line in Villach. Infineon will decide about the start and the location of a 300mm volume production during the current fiscal year. Power semiconductors are used, for example, in electric vehicles, wind and solar systems, all types of motors and generators, PCs and servers, household appliances, flat-screen TVs and game consoles, and are instrumental in significantly reducing the energy consumption of electronic devices. Based on this transaction and the further expansion of capacity due to continued strong order intake and a healthy level of orders on hand, Infineon is increasing the capital expenditure budget for the 2011 fiscal year from approximately Euro 700 million to Euro 850 million. In the 2010 fiscal year, the volume of capital expenditure was Euro 325 million. The company defines capital expenditures as expenditures in property, plant and equipment, and intangible assets including capitalized research and development costs.

About Infineon 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. 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 3,500 employees of the Wireless mobile phone business (Wireless Solutions), which was sold to Intel Corporation.