Infineon Dresden to focus purely on logic

Dresden, Germany – November 30, 2007 – With Qimonda due to withdraw from 200 mm production at Infineon Dresden, this facility will in future be a manufacturing site for logic ICs (integrated circuits) only. Qimonda has cancelled its existing wafer supply agreement for memory products with Infineon. It will terminate on March 1, 2008. For Infineon, this is the final step in the transition from memory chip manufacture to the production of logic chips.

Qimonda's withdrawal from Infineon's production activities in Dresden requires adjustments both in terms of capacity utilization and personnel. "Qimonda and Infineon are investigating whether the necessary personnel adjustments at Infineon can be effected by a transfer from Infineon Dresden to Qimonda Dresden," explained Helmut Warnecke, Vice President and Managing Director Infineon Dresden. "As we move to adjust capacity, we will make use of the flexibility afforded us by temporary staff and service agreements across the site."

Warnecke sees Infineon Dresden on the right track: "We have established this facility as a competence center for logic chips. We produce high-quality, innovative components with structures from 250 through 90 nm for use in automotive, security and communication applications. Dresden is and will remain an important manufacturing site for Infineon."

About Infineon Dresden
Infineon Dresden is an Infineon production facility that uses complex manufacturing technology to produce high-grade logic ICs (integrated circuits) on 200 mm silicon wafers.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security.
In the 2007 fiscal year (ending September), the company reported sales of Euro 7.7 billion (including Qimonda sales of Euro 3.6 billion) with approximately 43,000 employees worldwide (including approximately 13,500 Qimonda employees). With a global presence, Infineon operates through its subsidiaries in the U.S. 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).