Infineon Outperforms Auto Electronics Market by 44%: No. 2 Global Market Position Firmly Reinforced By Faster Than Market Average Growth in All Regions

Neubiberg, Germany – July 19, 2007 – Infineon Technologies (FSE/NYSE: IFX) significantly outperformed the global market in semiconductor products for automotive electronics in 2006. According to the latest study by US market research group Strategy Analytics, Boston, Infineon grew by 9.8% in 2006, with sales posted at approximately USD $1.7 billion in chip sales for the automotive market, while the global market increased by 6.8% in this innovative sector to USD $17.54 billion (from USD $16.4 billion in 2005). Infineon expanded its market share to 9.5% of the global automotive semiconductor market. On average, every new vehicle built around the world now contains approximately two dozen components made by Infineon.

Growth in All Regions

Infineon grew significantly in all regions. Internationally, the company has continued to reinforce its strong No. 2 position. In Europe, Infineon remained the undisputed leader in the market with a market share of 15%. In the US, Infineon was able to improve its position from No. 3 to No. 2 with a market share of 8.4%. At No. 6 and with a market share of 3%, Infineon is currently the leading non-Japanese semiconductor supplier in Japan. In the other regions, comprising Asia for example, Infineon moved from No. 4 to No. 3 and now claims 7.8% of the market. If the chips for auto entertainment electronics are not included in these statistics, Infineon would be able to claim the No. 1 position.

“We Live the Automotive Spirit”

Peter Bauer, Member of the Infineon Management Board and Head of the company’s Automotive, Industrial and Multimarket business group, attributes the organization’s sustained success to “a consistent focus on automotive applications and their requirements, a profound understanding of the automotive system based on almost 40 years of experience, and a broad, innovative product portfolio of outstanding quality.” Infineon supplies the automotive industry with sensors, microcontrollers and power semiconductors.

According to Bauer, one of the factors that have helped Infineon’s automotive electronics business to above-average growth in the US is new legislation introduced to improve vehicle safety and environmental protection. Infineon has a strong position in both of these areas. In the US, every new vehicle will be required to have a tire pressure sensor system beginning in September 2007 - and Infineon is the world market leader in this field. Infineon is also one of the leading semiconductor suppliers in the automotive safety applications sector. The company is a leader internationally in pressure sensors for side airbags and for ABS sensor systems to measure the wheel speed. Intelligent chips for engine management that regulate the optimum air-fuel mixture and ideal injection and ignition timing for each individual cylinder have helped sustain Infineon’s success in this segment. For example, the company’s 32-bit AUDO-NG (Next Generation) series microcontrollers reduce fuel consumption by approximately 15 percent over previous models.

“We are the most successful non-Japanese chip supplier for automotive applications in Japan, which is convincing proof of our outstanding quality, reliability and customer orientation,” explains Bauer. “We firmly believe that our ‘Automotive Excellence’ program is the most comprehensive quality assurance program in the semiconductor industry.” This program was introduced by Infineon in the spring of 2003.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, connectivity and security. In fiscal year 2006 (ending September), the company achieved sales of Euro 7.9 billion (including Qimonda sales of Euro 3.8 billion) with approximately 42,000 employees worldwide (including approximately 12,000 Qimonda employees). With a global presence, Infineon operates through its subsidiaries in the US from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX).