Infineon Technologies Plans Expansion of Manufacturing Capacity - Will Start Equipping 300mm Module in Virginia Plant

Munich, Germany / Richmond, Virginia - April 23, 2004 -– Infineon Technologies AG (FSE/NYSE: IFX) today announced a capacity expansion at its Virginia subsidiary semiconductor plant, Infineon Technologies Richmond, LP. The expansion will begin with an initial equipment move in to start production of advanced DRAM chips on 300mm wafers beginning in early 2005. The US dollar 1 billion expansion project will increase Infineon’s flexibility and responsiveness to customer requirements for its memory and logic products.

“Overall customer demand - both for logic as well as memory chips - is increasing at a strong pace. This initial expansion of capacity at Richmond will allow us to accelerate the shift of production from memory to logic products at our 200mm plant in Dresden,” said Dr. Andreas von Zitzewitz, Chief Operating Officer of Infineon Technologies. “We are leveraging the existing building shell and synergies gained with the experienced staff at Richmond to quickly bring 300mm capacity on line in a way that is consistent with our corporate capital expenditure plans. The excellent infrastructure and state-of-the art manufacturing expertise at Richmond make this the fastest and most cost effective way for us to respond to changing market conditions.”

After completion of the initial expansion, the site will be capable of processing 25,000 wafer starts per month in 300mm technology. With operations scheduled to begin in early 2005, the initial build out also will give Infineon the option to ramp up additional capacity rapidly if and when it is required by market conditions.

The 300mm production module will initially produce high performance and high density DRAM chips using 110nm technology, with a fast transition to 90nm devices. Infineon will continue to operate the 200mm module now running at full capacity at the Richmond site. When the initial expansion project is complete, the 25,000 300mm wafer starts will more than double total capacity for DRAM at the Richmond site. At the same time headcount is expected to increase by 800 employees from the current 1,750 employees to approximately 2,550. Future decisions regarding the next phases of expansion, timetable and total investment in the increased capacity will be determined in response to developing market requirements.

The Infineon Technologies Richmond plant was founded in 1996 as White Oak Semiconductor, and began manufacturing memory IC products in August 1998. Construction on the 300mm plant expansion began in 2000, but its completion was delayed as a result of economic conditions. The plant produces DRAM chips used in personal computers, computer servers and other advanced electronic devices.

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.

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