Joint News Release by Infineon and Nanya

Infineon and Nanya to Extend Development Collaboration

Munich/Germany and Taoyuen/Taiwan – September 29, 2005 – Infineon Technologies AG (FSE/NYSE: IFX), Munich, and Nanya Technology Corporation (NTC), Taoyuen/ Taiwan, today announced that they have signed an agreement to expand their development cooperation on DRAMs. The agreement provides for the joint development of advanced 60nm production technologies for 300mm wafers, starting September 2005. The cooperation is the extension of the existing co-development of the 90nm and 70nm production technologies and will help each partner expand its position in the DRAM market while sharing development costs. The new production technology, jointly developed at Infineon’s Dresden site may be used in both companies and at their manufacturing joint venture Inotera Memories. Further collaboration on the development of 60nm reference products in Munich is also planned. Infineon and Nanya have together committed more than 100 people to work on this development project. The first 300mm wafer memory products using the new 60nm process is expected to leave the production line in 2008. “The extension of the successful strategic development partnership with Nanya towards the 60nm technology will pave the way to increase our DRAM manufacturing productivity significantly,” explained Kin Wah Loh, Member of the Infineon’s Management Board and President of Infineon’s Memory Products Business Group. “The cooperation with Nanya proves the efficiency of Infineon’s partnership approach and gives us a competitive edge in the highly dynamic DRAM industry.” “The strategic partnership with Infineon on the 60nm technology will greatly enhance this camp’s competitiveness,” stated Dr. Jih Lien, President of Nanya Technologies. “Through the technology cooperation, we can mutually benefit from the cost and resource sharing for leading edge R&D.” In addition to the joint development of advanced DRAM trench technologies, Infineon and Nanya are also partners in the manufacturing joint venture Inotera, situated in Taoyuan, Taiwan. Inotera focuses on the production of DRAM products and has in the meanwhile ramped to a capacity of more than 60,000 wafer starts per month turning it into one of the worldwide largest manufacturing facilities. About Nanya Nanya Technology Corporation, one member of the Formosa Plastics Group, is a global leader in advanced memory semiconductors and conducts research and development, design, manufactory, and sales of DRAM products. The company currently owns two 200mm fabrications with the capacity of 73k wafers per month implementing 0.11um process technology. Nanya has launched 90nm and 70nm joint development programs and a 300mm joint venture (Inotera Memories, Inc.) with Infineon Technology AG in December 2002 to remain competitive in the upcoming “nanometer” era. Nanya aims to become a major global DRAM supplier of quality, capability, and accountability. Welcome to visit us at http://www.nanya.com

About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products. With a global presence, Infineon operates through its subsidiaries in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2004 (ending September), the company achieved sales of Euro 7.19 billion with about 35,600 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com