Major Security Contract Clinched: Infineon to Supply Next Generation of Security Controllers for German ID Cards, Europe’s Biggest ID Project

Neubiberg, Germany – December 7, 2010 – Semiconductor manufacturer Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) is supplying its next generation of security controllers of the SLE 78 product family for the new German ID card. The German authorities have been issuing the new electronic ID in chip card format since November 1, 2010. Infineon is providing a significant share of the chips for Europe’s biggest ID project. Currently, around 60 million German ID cards are in circulation, usually valid for ten years. About 6.5 million ID cards are issued each year.

Infineon’s ”Integrity Guard” security technology is used in the new ID card. The product family SLE 78 is based on this revolutionary technology, specially developed for applications in which stored data needs an especially high level of protection. Such applications include government ID and payment cards.

“Right from the start, Infineon has played a significant role as an innovation driver in shaping the over 25-year history of the chip card. We are delighted that our new generation of security controllers are used in the German ID card. It confirms our technological expertise in government identity documents”, said Dr. Helmut Gassel, President of the Chip Card & Security Division at Infineon Technologies.

Electronic ID documents gaining ground in Europe

The use of contactless technology in electronic passports has stood the test of time. Now it is the turn of the ID card. Many EU member states have started its introduction, and about 80 percent of electronic ID cards in Europe today contain Infineon security controllers. By the end of 2011, 14 of the 27 EU member states will have started issuing the electronic ID card to their citizens. As a result, almost half of the 500 million EU citizens will have obtained such an ID card within the next years.

The SLE 78 chip in the new German ID card has been certified by the Germany Federal Office for Information Security (BSI). Infineon developed the chips for the ID card in Neubiberg near Munich (Germany). The chips are made in Dresden (Germany) and the chip package comes from Regensburg (Germany). The SLE 78 family based on “Integrity Guard” security technology is Infineon’s latest generation of security chips.

Infineon is a long-standing global market leader

For more than 13 years in succession, Infineon has led the global market on chip card ICs. According to the US market research company Frost & Sullivan Infineon holds a 27 percent market share of the overall chip card IC (integrated circuit) market that totaled about USD 1.76 billion in 2009.

EUROSMART, the international Smart Security Industry association, estimates the market for security chips in official documents in 2010 to be about 190 million chips. Infineon has the lion’s share of about 40 percent of this market.

Further information:

For information on Infineon’s product range for chip card and security applications and on the SLE 78 family, go to: www.infineon.com/security and to www.infineon.com/SLE78

For a brief film (duration: approx. 3.5 mins; language: English) on security technology entitled “Integrity Guard” visit www.infineon.com/integrity_guard_movie

For information on international common criteria security certification click on
www.commoncriteriaportal.org

Infineon will exhibit at the “Cartes & Identification 2010” trade show (Paris-Nord, Villepinte Exhibition Centre, December 7-10, 2010). For more information on its show highlights (Booth #4J 002 in hall 4) please visit www.infineon.com/cartes.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2009 fiscal year (ending September), the company reported sales of Euro 3.03 billion with approximately 25,650 employees worldwide. 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 (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).