Infineon Enables Convergence to All-IP DSL Networks with a Flexible Cost-Effective Gigabit Ethernet Communication Processor

Munich, Germany – March 19, 2004 – Infineon Technologies (FSE/NYSE: IFX) today introduced ConverGate™-C, a protocol convergence processor designed to facilitate the evolution of telecommunications networks from traditional ATM transport to end-to-end Ethernet/IP. By integrating the on-chip buffer memory, this single-chip solution reduces the overall system cost of an IP-DSLAM/DLC system while increasing the capacity of xDSL channels served by a DSL linecard up to 128 channels. In combination with Infineon’s GEMINAX MAX ADSL2+ central office chipset ConverGate-C enables system vendors with cost-effective, highly competitive and future-proof system designs while providing full support for the advanced services required for 21st century telecommunications IP networks.

The emergence of advanced communication services such as VoIP, Video on Demand, IP/Ethernet Multicast and Virtual Networks is leading system vendors toward single, cost-effective network architectures to bridge ATM-based xDSL Access with more affordable Ethernet MAN infrastructure. One effect of this evolution is the adoption of IP-DSLAM systems across the Ethernet backbone. According to Infonetics Research (November 2003) worldwide IP DSLAM revenue will reach by 2006 US-Dollar 774 million, representing 25 percent of total DSLAM revenue and 33 percent of all DSL port shipments.

”Core network designs increasingly are based on Gigabit Ethernet technology, while the Access side is still dominated by ATM based ADSL,” said Christian Wolff, Vice President, Wireline Communications Business Group and General Manager, Access Business Unit at Infineon Technologies. “It is just a natural extension to migrate Ethernet to the DSLAM/DLC backplane architecture that is based on ATM today. ConverGate-C bridges ATM and Ethernet protocols and can be easily integrated with Infineon's xDSL chip solutions, saving system providers precious design time as well as research and development costs.”

Applications of the Infineon ConverGate-C

The ConverGate-C convergence processor can be combined with other Infineon components to implement a fully functional DSLAM/DLC system solution from the core to the door. By integrating ConverGate-C with Infineon's GEMINAX-MAX multistandard ADSL/2/2+ chip set on IP-DSLAM/DLC linecards and stackable Pizza-box designs, system providers can increase the subscriber base and bandwidth per user. Infineon provides complete hardware and software ATM and Ethernet ADSL2+ reference packages to enable system vendors with significantly lower development cycles and system cost.

ConverGate-C provides ATM termination toward an Ethernet backplane. The chip supports line-side connectivity of up to 128 xDSL lines and enables non-blocking ADSL2+ designs. The integrated UTOPIA/POS PHY L2 line-side interface sets the base for migration toward all-Ethernet access. System-side connectivity is facilitated through two GMII/TBI interfaces, which can also be operated as four MII/SMII interfaces, all working in load-share and redundancy modes. ConverGate-C improves the QoS of any access-system by a rich variety of on-board, programmable adjustable classification and prioritization functions to support delay-sensitive services such as Voice, Video and VLAN while substantially reducing costs for operation and maintenance. The processor’s ATM-over-Ethernet Encapsulation mode allows the deployment of IP-DSLAMs in legacy ATM networks.

Engineering samples of Infineon’s ConverGate-C are currently being shipped to lead customers. The device will be available in production quantities by July 2004.

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2003 (ending September), the company achieved sales of Euro 6.15 billion with about 32,300 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 www.infineon.com.

Glossary

ADSL Asynchronous Digital Subscriber Line
ATM Asynchronous Transfer Mode
DLC Digital Loop Carrier
DSL Digital Subscriber Line
DSLAM Digital Subscriber Line Access Multiplexer
IP Internet Protocol
MAN Metropolitan Area Network
VLAN Virtual Local Area Network
VoIP Voice over IP
QoS Quality of Service