Infineon launches its "Agenda 5-to1" program outlining its strategy for future growth
We are forging ahead with our further enhanced strategy. Agenda 5-to-1 is our response to the evolving market and we intend to apply it consistently during the next five years, explained Dr. Ulrich Schumacher, President and CEO of Infineon Technologies. To achieve the ambitious goals of Agenda 5-to-1, we must gain market share in each of our targeted markets and expand our solutions business, which will significantly enhance our profitability. We believe that our Agenda 5-to-1 will be vital to ensure Infineons long-term success.
The Agenda 5-to-1 program continues Infineons successful long-term growth strategy. Within five years Infineon aims to rank among the worlds top four semiconductor companies. In 1995, Infineon (then Siemens Semiconductors) was the worlds 15th largest semiconductor company. The company first achieved a Top 10 placing in 1998 and has remained in the top ten ever since. In the ranking of the first half of 2002, the market research company IC Insights put Infineon in sixth place among the worlds largest semiconductor manufacturers.
Infineons goal is to be among the top three in all of its business groups and segments. Today, the company is already the number one in security and chip card ICs and occupies the second place in automotive electronics (number one in Europe). In the field of memory products Infineon has been able to improve its ranking to number three in the most recent quarter. In selected segments relating to the communications business, Infineon is already one of the three leaders.
In financial data, especially regarding profitability, the company aims to be among the top two in the industry. Infineon expects to achieve this goal in particular in the high margin solution business. In this area, Infineon plans to become the number one semiconductor company.
Infineon believes that a key to the successful implementation of Agenda 5-to-1 will be a focus on technology lifestyle solutions. In the past, the development of new products was very much technology-driven. Technical feasibility was crucial for development. The company believes that in the future new trends in technology will be determined by peoples individual needs.
This will push the demand for solutions even further, making many aspects of everyday life easier and improving quality of life.
- Health care: Monitoring body functions, data security, healthcheck. For example, blood pressure values can be electronically monitored and aid can be provided automatically and very quicklywhere needed
- Mobile communications: Mobile multimedia applications will become increasingly important. People will be able to access any information or entertainment program they want anywhere, and at any time
- Security: Protection of individual privacy, fast encryption, biometric solutions, contactless access
- Wearable electronics: Chips will be integrated into clothes and will take over various functions (e.g. MP3-Player, brand protection, control of goods flow in laundries, access control, location of persons)
The technical applications used for realizing such aspects with high individual benefit are strongly determined by semiconductor solutions and not feasible without them. We see vast potential for growth in this field and aim to become the number one semiconductor company for the solution business, said Dr. Schumacher.
The solution business covers many emerging technologies. Some of these are system-on-chip, hardware and software solutions, biochip and bioelectronic solutions, nanotechnology and microsystem solutions. To enable these different technologies to be linked together, they will be complemented by software and consulting.
Through the implementation of Agenda 5-to-1, Infineon aims to double its market share by the end of 2007 and to gain a share of about six percent in the world market. Infineons growth strategy will mainly be based on organic growth as well as partnerships and strategic acquisitions. The company intends to concentrate its resources and investments on identified growth sectors. As in previous years, the company intends to continue to enter into strategic partnerships with both customers and technology partners.
Turning to the regional markets, Infineon will seek to become a leading provider in China and the USA, to strengthen its position in Japan and to maintain its position as a leading supplier in Europe and Asia/Pacific.
Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, 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 the fiscal year 2001 (ending September), the company achieved sales of 5.67 billion euros with about 33,800 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.
D I S C L A I M E R
This discussion includes forward-looking statements about our future business. These forward-looking statements include statements relating to future developments of the world semiconductor market, especially the market for memory products, Infineons future growth, the benefits of research and development alliances and activities, our planned levels of future investment in the expansion and modernization of our production capacity, the introduction of new technology at our facilities, the transitioning of our production processes to smaller structures, cost savings related to such transitioning and other initiatives, our successful development of technology based on industry standards, our ability to offer commercially viable products based on our technology, our ability to achieve our cost savings and growth targets. These forward-looking statements are subject to a number of uncertainties, including trends in demand and prices for semiconductors generally and for our products in particular, the success of our development efforts, both alone and with our partners, the success of our efforts to introduce new production processes at our facilities and the actions of our competitors, the availability of funds for planned expansion efforts, as well as the other factors mentioned herein. As a result, our actual results could differ materially from those contained in the forward-looking statements.
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