Strengthening European microelectronics: Infineon launches "IoSense" pilot lines project in Dresden

Munich and Dresden, Germany – May 19, 2016 – One of the most important European pilot line projects for sensors and sensor systems has been launched today at the Dresden site of Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY). The project, named IoSense is derived from the “ Internet of Sensors”. The Internet of Things (IoT) will require vast quantities of sensors in order to succeed. Cost-effective production of sensor systems is, therefore, a key prerequisite as they enable devices and systems to capture and process the properties of the physical world. “IoSense will further extend Infineon’s position in the field of sensor technology,” said Dr. Reinhard Ploss, CEO of Infineon Technologies AG. “Sensor solutions from Infineon in cars make a major contribution to improving road safety. With an increasingly networked world and the Internet of Things, the demand for such sensor solutions will see a dramatic rise. In addition, sensors are increasingly employed in smartphones and lifestyle products. We will benefit from this market growth through new sensor technologies and competitive production methods“. IoSense is part of ECSEL, the European support program for microelectronics. It is designed to further strengthen Germany and Europe in the production of more flexible, more application-oriented and more cost-effective sensors and sensor systems. For three years, 33 partners from six countries will perform R&D along the entire value chain. The project has a budget of 65 million euros and will be led by Infineon Technologies Dresden GmbH. The EU is supporting the venture within the context of ECSEL with 14.7 million euros. The German state of Saxony and the German Federal Ministry of Education and Research (BMBF) will jointly contribute 5.2 million euros to the project. At the heart of IoSense is the building of pilot lines with complementary competencies: from the development of new sensor technologies and methods for competitive high-volume manufacturing to the creation of new application examples. Together with the project partners, representatives from the participating funding bodies and governmental authorities attended the kick-off ceremony in Dresden. Infineon’s CEO Dr. Reinhard Ploss welcomed the Prime Minister of Saxony, Stanislaw Tillich, and Prof. Wolf-Dieter Lukas, Departmental Head of the BMBF. Prime Minister Stanislaw Tillich said: “With the official launch of IoSense, Saxony once more lives up to its reputation as a leading European microelectronics destination. Future technologies, know-how and innovation are at home in Saxony. Therefore, we are the only region in Europe funding projects within the research program ECSEL, together with the member state. In future, Europe must invest even more in research and development and bundle the core competencies in microelectronics to safeguard Europe as a destination both for research and production”. Prof. Wolf-Dieter Lukas underlined the importance of microelectronics and explained the strategy of Germany’s Federal Government: “Microelectronics are the central drivers of digitalization. Therefore, the Federal Government has put special emphasis on this key technology. This is reflected in the framework resolved by the Federal Cabinet this year, as well as by the participation of Germany in the European ECSEL initiative. It is our aim to safeguard value creation and employment opportunities both in Germany and Europe and to shape the digital transformation with regard to its implications on society and technology”. Bert De Colvenaer, Executive Director of ECSEL Joint Undertaking, summarized the project from a European perspective: “ECSEL JU is the leading instrument for securing important key technologies in Europe. In that regard IoSense is an excellent example in terms of project set-up, consortium and objectives as it is contributing actively to sustainable wellbeing, security and prosperity in Europe. It enables the countries to continue developing ambitious innovation and to strengthen global competitiveness in this critical technological area that is impacting both economy and societal life sustainably“. Infineon leads another European research project Under the leadership of Infineon Technologies Austria AG, a second European research project will begin this month. The kick-off event for “Semi40” will be held in Villach, Austria on May 31, 2016. The focus here will be on manufacturing power semiconductors according to Industry 4.0 requirements. The initiation of these two new pilot line projects underscores Infineon’s commitment to and leading role in the manufacture of semiconductors in Europe.

About Infineon Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2015 fiscal year (ending September 30), the company reported sales of about Euro 5.8 billion with some 35,400 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 This press release is available online at www.infineon.com/press Follow us: twitter.com/Infineon – facebook.com/Infineon – plus.google.com/+Infineon