Market Analyst Firm IMS Research Reaffirms Infineon as World’s Largest Supplier of Power Semiconductors; Infineon Grows Faster Than This Market

Kulim, Malaysia and Munich, Germany – September 12, 2006 – At its new power fab’s opening ceremony in Kulim today, Infineon Technologies AG (FSE/NYSE: IFX) reaffirmed its number one market position in power semiconductors. Market research firm IMS Research, headquartered in the UK, has named Infineon the leader in worldwide sales revenue for power semiconductors. According to initial findings from IMS Research’s latest study into this market, Infineon’s power semiconductor business significantly outperformed the global market as a whole, which expanded by just 0.6 percent to US $11.35 billion, and achieved a revenue growth of 11.6 percent in 2005. IMS Research indicates that Infineon’s sales revenue in this market rose to US $1.06 billion from approximately US $950 million in 2004, and states that Infineon held a 9.3 percent share of the total US $11.35 billion market in the year 2005. This marks the third consecutive year that IMS Research has ranked Infineon as the number one provider of silicon to this market which IMS Research forecasts to grow at an average annual rate of 6 to 8 percent over the next five years. IMS Research intends to publish its final results on “The Global Market for Power Semiconductors 2006” at the end of September 2006. “We have been at the forefront of power semiconductor and module development for many years, and this expertise is a strong contributor to our continued leadership role,” said Dr. Reinhard Ploss, Group Senior Vice President and General Manager of Infineon’s Automotive, Industrial and Multimarket business group. “We are committed to maintaining our leading position in these core competence areas and dedicated to developing power semiconductor products enabling efficient use of the electrical energy available, with excellent price-performance ratios.” The power semiconductor market is driven by the global trend for continued electrical energy demand and declining natural resources. Semiconductors for power electronics – as manufactured by Infineon in Kulim (Malaysia), Villach (Austria) and Regensburg (Germany) – are key enablers for efficient energy management. Enhanced efficiency in management of electrical power provides a huge potential for energy saving in electrical motor drives, power supplies, computing equipment, consumer products, lighting equipment as well as in cars where power semiconductors are a key component to improve fuel efficiency and safety. About IMS Research IMS Research is a specialist supplier of market research and consultancy services on global electronics markets. Information from IMS Research is used by major companies worldwide to assess market trends, solve marketing problems, and improve the efficiency of their businesses. IMS Research is an international company, selling in more than 35 countries around the world and supported by headquarters in the UK and offices in Austin, Texas and Shanghai, China.

About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for automotive, industrial and multimarket sectors, for applications in communication, as well as memory products through its subsidiary Qimonda. With a global presence, Infineon operates through its subsidiaries in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2005 (ending September), the company achieved sales of Euro 6.76 billion with about 36,400 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. Further information on Qimonda is available at www.qimonda.com.