People Excellence in a High Performance CompanyHuman Resources Report 2010

[ www.infineon.com ]

2 3

“Infineon at a Glance“

Infineon Technologies develops, manufactures and markets semiconductor products and system solutions designed to help address the three principal challenges facing modern society: energy efficiency, mobility and security. The innovative, high-quality products born out of our trend-setting technological expertise inspire customers across our target markets in the fields of automotive and industrial electronics, computers, security, chip cards and mobile communication*.

Infineon recorded revenue of 4.585 billion Euro in 2010.** It is the global market leader in a number of areas including power semiconductors and power modules, a field in which it has now been the dominant force worldwide for seven years in succession.

Headquartered in Neubiberg near Munich, Germany, Infineon has over 26,000 employees (at September 30, 2010) spread across more than 40 research, development and produc-tion sites all around the world. Our innovative strength is evident both in our European Innovation Fabs and our approximately 22,900 patents. Lower cost production facilities in Asian countries keep Infineon competitive and strengthen the Company’s presence in future markets.

Employees by Function 2010

22%

67%

6%5%

Production Research and Development

Administrative Sales and Marketing

Employees by Region 2010

51%

33%

13%

2%

1%

Asia/Pacific Germany Japan

North America Rest of Europe

* Infineon Technologies AG and Intel Corporation have signed an agreement concerning the sale of Infineon’s mobile communication business to Intel. The sale is scheduled for completion during the first quarter of 2011.

** All of the facts and figures contained in this report are calculated to September 30, 2010 and therefore still include the Wireless Solutions business.

Content

Foreword 6

Strategy 8

The Infineon Compass: Up to the Top HR Mission: People Excellence

Projects 12

Giving Employees a Stake: The New Compensation System Improving Attractiveness: Workplace Culture and Employer Image Benefiting from Variety: Diversity Management at Infineon Outlook for 2011: Strategy, Culture and Talents

HR Indicators at a Glance 20

Organizational Structure of Infineon Organizational Structure of Human Resources Key Indicators

H R C h a m p i o n s – f r o m P r o m i s e t o P e r f o r m a n c e

G L O B A L H R C O N F E R E N C E

D R E S D E N , N O V E M B E R 3 – 5 , 2 0 0 3

w w w . i n f i n e o n . c o m

w w w . i n f i n e o n . c o m

G L O B A L H R C O N F E R E N C ER O T T A C H - E G E R N , D E C E M B E R 6 – 8 , 2 0 0 4

H R J o u r n e y – F r o m P r o m i s e t o P e r f o r m a n c e

w w w . i n f i n e o n . c o m

G L O B A L H R C O N F E R E N C EM U N I C H , J A N U A R Y 1 7 – 1 9 , 2 0 0 6

H R D e l i v e r y – F r o m P r o m i s e t o P e r f o r m a n c e

w w w . i n f i n e o n . c o m

D r i v e O p p o r t u n i t i e s –P e o p l e t o R e s u l t s

G L O B A L H R C O N F E R E N C ER E G E N S B U R G , D E C E M B E R 1 1 – 1 2 , 2 0 0 6

w w w . i n f i n e o n . c o m

G L O B A L H R C O N F E R E N C EB A D W O E R I S H O F E N , D E C E M B E R 5 – 6 , 2 0 0 7

W i n T o g e t h e r –P e o p l e t o R e s u l t s

w w w . i n f i n e o n . c o m

F a c e t h e C h a l l e n g e –P e o p l e t o R e s u l t s

H U M A N R E S O U R C E S – 2 0 0 8 / 2 0 0 9

HUMAN RESOURCES 2009–2012 

www.infineon.com

People ExcellenceProfitability & Engagement

4 5

09/10

Profitability & Engagement

08/09

Face The Challenge

07/08

Win Together

06/07

Drive Opportunities

People ExcellencePeople to Results

HR Strategy Roadmap

From Promise to Performance

Financial Year 03/04

HR Champions

Reorganization of HR(Business Partner Model)

ESS/MSS/eTrain Reduction of Complexity(ICoRe)

HR Focus 2010 Crisis Management(IFX10+)

HR Focus 2010Reloaded

Outsourcing/GMDS

04/05

HR Journey

05/06

HR Delivery

76

Foreword

Dear Reader,

The people who work for Infineon operate in an extremely dynamic environment in which condi-tions and demands evolve rapidly. The overriding challenge for all employees in 2010 was to main-tain the strong momentum we managed to build over the course of 2009. Our stated objective was to deliver a 10 percent segment profit margin and achieve lasting profitability. The balance sheet leaves no doubt as to our success: as the key business indicators illustrate, our people per- formed so exceptionally in 2010 that we were able to realize even this ambitious commercial objective. What we need to do now is to develop Infineon further from a good company into a true high performance company. Sustaining our profitability is paramount in this: if we are to remain a competitive and attractive proposition in the financial markets, we have to bring in sufficient rev-enues not only to cover our capital costs, but also to allow us to invest.

Not all of the results and achievements of a year can be read in the balance sheet or described in financial indicators, however, and this is especially true of the changes we are implementing, for and with our employees, to help the Company meet its business targets more consistently. Prominent examples from 2010 include our new mission statement and the introduction of a new compensation system for above-tariff employees. Transforming Infineon into a high performance company is a venture we cannot hope to conclude successfully without the full support of our highly qualified and dedicated staff.

Our Human Resources function is committed to a forward-looking approach in all areas of its work. We invariably have our eyes on the future as we shape the changes needed to bring our objec- tives within reach and plan the measures necessary to keep our people engaged and properly qualified. We always take our lead directly from the corporate strategy in order to ensure our con-tribution is as effective as possible in helping the Company to achieve its goals. All of this we do with the people at Infineon as our absolute top priority. People are the pivotal success factor in the value creation process and for Infineon’s development into a true high performance company.

This report gives an overview of the objectives, strategies and activities of the Human Resources function in 2010. We describe the projects and key issues to which we applied ourselves, for and with our employees, over the last year and the important role played by these efforts in helping the Company to realize its commercial aspirations. We also explain our structure and the purpose of the various Human Resources departments, in order to provide a better insight into our organiza-tion, and present indicators covering both Infineon’s personnel structure and the contribution we make to the value creation.

The Infineon Human Resources Report is intended first and foremost for all of our employees. We hope you will find its insights into our work both interesting and informative.Dr. Reinhard Ploss

Member of the Management Board, Operations and Labor Director

Dr. Thomas MarquardtGlobal Head of Human Resources

Fiscal 2010 was a successful and rewarding year. We would like to thank all of our people, especially our col-leagues at HR, for helping to make the achievements of 2010 possible.

98

Strategy

The Infineon Compass shows us the path we need to take in order to become a true high performance company.

Our new mission statement, the Infineon Compass, helps our people to under-stand where we are, where we want to be and how we plan to arrive there together with the values that are to guide our actions along the way. The four fundamental values

“We commit – We innovate – We partner – We perform”

function as both a framework and a spur for our day-to-day actions. Complement-ing them in the mission statement are four cardinal criteria for high performance:

Ambitious goals and a clear focus on results:�� We set ourselves ambitious targets and focus with what we do on things that lead us to the aspired result.Entrepreneurial decision-making:�� We take decisions entrepreneurially – accept responsibility for target attain-ment and are alive to opportunities and risks.Lean and fast execution:�� We swiftly and efficiently implement decisions that have been made, instead of calling them into question time and again.Passionate and talented people:�� We work with passion and confidence across organizational boundaries towards joint success.

Our people at “Change Management” and “Learning and Development” devel-oped the Infineon Compass together with the Company’s senior management and have implemented numerous measures to accompany its introduction. Workshops held at all levels and in all areas of the Company ensure that tangible improvements are initiated in the various departments and teams. Now it is down to our people, their achievements and their commitment to put the Infineon Compass to work and make a reality of the high performance culture every day.

The Infineon Compass: Up to the Top

Strategy The strategy adopted by Infineon largely determines the objectives of the Human Resources function. All of our activities are guided by the Infineon Compass, our mission statement that reminds us what we aim to achieve and how. Applying the Infineon Compass in the area of Human Resources, as in other functions, requires us to consider a number of key issues. What is our mission? What are the purpose and objective of our work? What is our strategy and how do we intend to achieve our goals?

Strategy

1110

High Performance

Company

StrategicLeadership

Operational Excellence

Client Focus

HR Mission: People Excellence

Infineon’s employees represent the true potential of our company: they determine Infineon’s future success.

Infineon’s defined objectives underpin every aspect of the work of Human Resources. We have a duty to take a forward-looking approach and to help shape the changes neces-sary to bring our objectives within reach.

Our mission statement – “We actively drive people excellence in a high performance company” – thus provides the foundation for our strategic focus, our organizational struc-ture and our projects.

We have defined three core strategic elements to our work to help us accomplish this mission. These elements encapsulate the approach we intend to take.

Client Focus:�� We focus on the customer and are quick and straightforward in our response to organizational and individual requirements. This enables us to cultivate valuable partnerships.Operational Excellence:�� We never lose sight of our costs and always strive to deliver a high level of service out of a lean organization. We standardize processes and HR applications, offer transparent and measurable services and ensure that all data is both complete and of good quality.Strategic Leadership:�� We embrace a strategic leadership role. This means that we assist and advise actively in relation to HR issues including recruiting, education, training and development, succession planning, remuneration, change management and many other matters across the company.

“We actively drive People Excellence

in a High Performance

Company”

131312

Projects

It is our employees who make the Company successful. Now they can enjoy a greater share of the proceeds of this success.

The new compensation system introduced on October 1, 2010 for employees previously covered by the old Bonus & Incentive Guideline removes the link between variable compensation and individual targets, tying future bonus pay-ments solely to the financial performance of Infineon instead. Every employee receives an attractive basic salary plus a performance-related bonus based on targets and metrics chosen to reflect the commercial success of the Company. This change gives employees an even greater stake in the Company’s business achievements.

We believe the new compensation system offers other significant advantages too, not least the fact that the annual employee reviews will now be able to con-centrate even more closely on specific feedback from manager to employee. This does not mean that discussing past performance and defining individual targets will take a back seat; on the contrary we expect severing the immediate link between individual performance and the level of bonus payments to make discussing performance and targets not only easier, but also more productive. The new arrangements fit in well with our drive to make internal processes faster and more efficient as well. They reduce administrative work and help to streamline human resources processes across the organization as well as for the HR function, giving us greater opportunity for an effective dialog between managers and employees.

Projects Projects are the concrete actions we take in order to put our mission into practice. We always regard our Human Resources projects as Infineon projects, they are projects to support Infineon in its business operations. Our projects incorporate both long-term objectives and activities with a more day-to-day focus. To work openly and constructively with the employee representatives in all rele vant areas is a key element.

Giving Employees a Stake: The New Compensation System

151514

Projects

Improving Attractiveness: Workplace Culture and Employer Image

An attractive workplace culture is one of the cornerstones of a high performance company. We put our culture under the microscope in 2010.

If we are to be a true high performance company, we need to make sure we main-tain an attractive workplace culture. Employees who are strongly loyal to what they perceive as an attractive employer and identify closely with their employer and its objectives tend to be more highly motivated and hence contribute on a higher level to make it successful.

If we are to maintain such a relationship with our own people, we need to know exactly how they feel about their workplace and the image of Infineon, to under-stand what they consider important and to identify those areas in which there is room for improvement. With this in mind, we arranged for the Great Place to Work® employee survey to be carried out across Infineon’s German sites for the first time at the beginning of fiscal 2010. We reinforced the importance we attach to the study and its results by arranging for a member of the Management Board to be in attendance when we presented the findings to all employees at our German sites in early 2010. The next step entails using the findings to engage even more actively in the cultivation of a positive employer image among our existing people: we now know where we stand and what we need to work on in order for our employees to consider us an attractive employer – even in difficult times. We have also formally committed ourselves to trying to gain a good ranking among the top employers included in this comparative external study by enhancing our workplace culture.

Several employee-related issues from the High Performance Initiative that are also of relevance for our workplace culture were addressed in 2010, among them the introduction of the new compensation system, the extension of the Infineon Award Program and a number of regional and site-specific activities including cer-emonies to celebrate our jubilees, for example, and the organization of our family and summer parties.

Our participation in 2010 was no one-off: we intend to conduct the survey regu-larly from now on so that we can use the feedback from our employees to derive further measures. In fact the 2011 survey has already taken place.

171716

Projects

Benefiting from Variety: Diversity Management at Infineon

The proportion of women in management positions, which has recently been the subject of much public debate, is also a matter of concern for management at Infineon. We have been focusing for many years – and not without success – to generate enthusiasm for careers in the natural sciences among both men and women alike and to support their progression at all levels of responsibility in all areas of the Company. This has enabled us to increase the proportion of women in top management roles significantly over recent years. Infineon engages actively with industry-wide networks and initiatives like the Code of Best Practices for Women in ICT and the German government’s MINT initiative and Erfolgsfaktor Familie (“Success Factor Family”) program to make business more family-friendly as part of its continuing effort to attract more women into the semiconductor industry. We offer internal mentoring programs for women and in 2010 joined the Frauen in Führungspositionen (“Women in Management”) pilot project set up in Germany by BayMe, the Employers’ Association for the Bavarian Metalworking and Electrical Industries.

Diversity management at Infineon concentrates on activities that provide the same opportunities to men and women and make it easier to combine work and family. We want the importance of family life to be recognized and acknowledged across all aspects of the Company’s operations and for this to become a perma-nent and prominent element of our corporate culture. Examples of the measures we have introduced to support mothers and fathers in their family roles include part-time contracts, teleworking and child care at our sites – also during holiday periods. We took another significant stride toward realizing our objectives in this area in the summer of 2010 with the completion of the certification process for the berufundfamilie (“career and family”) initiative run by the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth. The results of the certification audit form the basis of a three-year action plan detailing how we can provide even better support to help our employees combine career and family.

It goes without saying that fair and equal treatment of men and women when determining pay is of course a cornerstone of promoting equal opportunities at Infineon. With this in mind we conducted a pay comparison for employees in Germany which showed that there are no gender-related pay differences at Infineon.

Preparing women for management positions and advancing them accordingly is one of Infineon’s corporate objectives. We have set ourselves the target to increase the proportion of women in management positions from ca. 11 percent at present to 15 percent by 2015 and to 20 percent by 2020. Further, it is a core task for us to ensure a sufficient supply of talents going forward, especially in technical areas.

Infineon is rich in diversity – and from diversity springs potential.

Difference and diversity in people and cultures harbor enormous potential in terms both of expertise and of the particular personal strengths of each individual employee. We have accordingly made a conscious decision to coordinate diver-sity affairs across regions and established a diversity management-function as an element of our HR structure three years ago. This move reflects the priority status afforded to diversity within Infineon. The Human Resources function’s work in this area over recent months has focused in particular on promoting equality of opportunity for women and men and on improving the work/family life balance.

191918

Projects

Facilitating organizational change, workplace and leadership culture and the promotion of talents are the priority topics for fiscal 2011.

Trends in the market and internal developments will again shape HR work at Infineon to a significant degree in 2011. It is essential for us that as well as actively supporting management decisions, we successfully recruit and retain qualified people. If we are to continue to do this effectively going forward, we need to keep a very close eye not only on our attractiveness as an employer, the quality of our leadership and our management of talents, but also on external factors like demographic change and the looming short-age of specialist personnel.

Facilitating Organizational Change

Human Resources has a key role to play in implementing corporate decisions. Chief among these is at the moment the planned sale of our Wireless Solutions business to Intel, which involves the transfer of around 3,400 employees at more than 20 sites around the world. Human Resources has faced quite a range of challenges in connection with this project: we led the negotiations with the Works Council in Germany and agreed a settlement, for example, and are helping employees and managers in the areas affected to prepare for the transfer. These activities encompass talks between managers and employees as well as dealing with questions and enquiries in relation to labor law and the transfer. We are also working to ensure that all HR-related functions and processes remain available when the carve-out takes effect. There are thus two distinct strands to the sale of the Wireless Solutions business from an HR perspective: the operational transfer of employees, remuneration systems, structures and HR data; and the task of boosting employee motivation in both companies.

Workplace and Leadership Culture

Over the coming year we will be prioritizing a number of issues associated with improv-ing our workplace culture and establishing a positive and constructive leadership and feedback culture at Infineon. Much of this work will be based on the 2011 Great Place to Work® study conducted recently. Improving Infineon’s leadership culture – and recon-figuring the annual employee review in the process – will be another of the year’s major topics. We are casting a critical eye over the philosophy, processes and tools of the employee review as part of the drive to promote our leadership philosophy, strengthen dialog between manager and employee and improve feedback to employees in relation to results and conduct and will in future be offering targeted feedback training for managers.

Promotion of Talents

We are launching a Talent Management Program in Asia in 2011 in order to make better use of the potential offered by the Company’s diversity and its talents. The countries of Asia are vitally important for us: home to an enormous range of cultures and harboring immense potential for growth, they offer us unparalleled opportunities to recruit talented people. We are investing in alliances with respected universities and institutions in the region in order to secure a supply of talents for the Company. These measures will encour-age and enable more of our Asian employees to pursue key positions within the Company and, along the way, expand our regional and global talent pool. We intend to roll-out the Talent Program worldwide in the medium term.

Outlook for 2011: Strategy, Culture and Talents

21

Overview

Employees by Region 2010 (Infineon worldwide)

51%

33%

13%2%

1%

Germany

Asia/Pacific

North America

Rest of Europe

Japan

2,000 €

1,500 €

1,000 €

500 €

0 €

Employment Cost in EUR Milions (Infineon worldwide)

2008 2009 2010

1,718€

1,198€1,379€

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0 2008 2009 2010

Employees by Function (Infineon worldwide)

Administrative

Sales and Marketing

Research andDevelopment

Production

17,338

5,971

1,4741,681

17,924

5,7711,5201,439

6,273

1,5831,905

19,358

Overview The following pages, which provide an overview of the main human resources facts and figures,

present the current position of the Company – in terms of our people, their organization, their capabilities and

their diversity – in a structured analytical form.

Key HR Indicators at a Glance

2008 2009 2010

Average Age (Infineon worldwide)

37.236.4 36.4

Proportion of Men and Women 2010 (Infineon worldwide)

35.5%

64.5%

Women

Men

20

Organizational Structure of Infineon

Infineon’s products target the automotive and industrial

electronics markets, the computer, security and chip

card sectors and the field of mobile communication. The

Company’s organizational structure is aligned with these

markets and has been designed to ensure our people

have direct contact with the customers they serve and can

respond quickly and flexibly to different requirements.

Our operating Divisions – Automotive, Chip Card & Security,

Industrial & Multimarket and Wireless Solutions* – form

the heart of the Company. Each of the Divisions and the

Business Lines they manage has global responsibility for

the financial results of business in its respective market

segment. The Sales, Marketing & Distribution unit is struc-

tured analogously to the Divisions in order to maintain an

effective customer interface.

The Operations unit comprises of the Infineon manufactur-

ing network and key areas of the value chain. It includes

technology, logistics, purchasing and the finance function

for Operations as well as front-end and back-end manufac-

turing.

The entire organization is supported by Central Functions,

which look after relevant tasks across all areas of the

company. Departments such as Human Resources, Legal,

Controlling and Information Technology assist with expert

knowledge and provide the necessary infrastructure.

Infineon has operations all over the world and is represen-

ted at a local level by large regional corporate units in North

America, Asia/Pacific and Japan.

P. Bauer (CEO and acting CFO) Prof. Dr. H. Eul Dr. R. Ploss D. Asam**

Automotive Industrial & Multimarket

Chip Card & Security

Wireless Solutions

Sales, Marketing & Distribution

Operations

Central Functions

Region North America Region Asia Pacific Region Japan

Organizational Structure of Human Resources

The Human Resources unit helps Infineon to put its strategy

into practice. We proactively tackle HR-relevant employee

and management topics and take a lead role in the realiza-

tion of HR-related programs, processes and activities. This

approach can only function effectively if we are acknow-

ledged and accepted within the Company as a partner in

value creation and consistently develop our sphere of activ-

ity in line with business requirements. We have set our-

selves the task of performing the following four roles in order

to ensure these conditions can be met:

Strategic partner:�� we align our HR concepts and activities

with the strategies adopted by the units to help them turn

policy into actions and tangible results.

Change agent:�� we support change processes and help

to make sure they can be implemented quickly and with a

high level of acceptance.

Employee champion:�� we monitor the needs of our employ-

ees closely and nurture the talents the Company needs for

its future.

Transactional expert:�� we provide high-quality HR pro-

cesses and services which are quick and easy to use.

Performing these roles ensures that we continue to be pro-

cess- and employee-led without losing our operational and

strategic focus.

The Human Resources unit moved to a function-based

organizational structure more than six years ago. Built

around global service, supervision and planning functions

and regional organizations with an international scope, it

has four main sections all under the leadership of Global

Head of Human Resources Dr. Thomas Marquardt:

Business Partner��

Competence Center��

Transaction Services��

Regional Management��

Human Resources (HR)T. Marquardt

Regional Management

Transaction Services

Competence Center

Business Partner

* Infineon Technologies AG and Intel Corporation have signed an agreement concerning the sale of Infineon’s mobile communication business to Intel. The sale is scheduled for completion during the first quarter of 2011.

** CFO from 01.01.2011

22 23

Overview

This organizational structure enables Infineon’s HR unit to

be close to the business, to capitalize on expert knowledge

and to ensure processes are transparent and efficient. We

intend to maintain this approach consistently in the future.

HR Business Partners

The Business Partners provide advice for managers in all

aspects of HR strategy and policy. They assist with the

implementation of the unit strategy and with operational

HR issues such as appointments, staff reviews, remunera-

tion measures and staff development decisions. While this

makes them the first port of call for the departments for all

HR-related topics, they also function as drivers in relation

to culture, strategy and structure issues.

Our Business Partners are intended to make sure we are

always close to departments and their duties consequently

include being part of relevant management. This enables

them not only to participate in addressing matters of impor-

tance to the business, but also to make certain that HR

policies are implemented worldwide.

Infineon’s HR Business Partners are organized in teams in

line with the organizational structure of the business.

HR Competence Centers

The units of the Competence Centers are arranged along

functional lines - specific subjects that represent a functio-

nal sub-area of human resources work and are best handled

by experts are brought together. Competence Centers pro-

vide services for the entire organization.

The departments of the Competence Centers deal with both

strategic aspects which will have to be implemented and

provide advisory services to other functions. They define

the cornerstones of the HR strategy and set Infineon-wide

standards for specific human resources tasks. The Com-

pany’s experts in specific areas of human resources work are

grouped within the Competence Centers in order to ensure

optimal handling of over-arching tasks

Infineon has established Competence Centers for the follow-

ing subject areas:

Compensation & Benefits:�� Our compensation systems

have been devised to produce better commercial results

both now and in the future by encouraging high perfor-

mance and enhancing employee motivation and retention.

Regional Management

Infineon operates a number of regional units in order to

maintain a local presence in the various international

markets. The Human Resources function similarly has dedi-

cated units covering North America, Asia/Pacific and Japan

to help it meet local requirements effectively.

New HR Organization from 2011

The sale of our mobile communication business entails

certain changes in personnel at HR. On top of that we also

see a need to establish future priority issues for HR imple-

mented more firmly in our organization and to strengthen

our ties to the business through the Business Partners.

Consequently we intend to revise the organization of the

HR function on completion of the sale of WLS.

Human Resources (HR)T. Marquardt

IMM/SMD

Central Functions II

Talent Mar-keting, Diver-sity & Health

Labor Relations

Executive Matters

OP Backend

OP Frontend Compensation

& BenefitsHR Internal

Services Asia

Infineon Institute

General Services Japan

Americas

ATV/CCS

Transaction Services

Regional Management

Business Partner

Competence Center

Central Functions I

Infineon Institute:�� The Infineon Institute helps to build

employee commitment through its focus on the areas

of learning and development, change management and

leadership.

Talent Marketing, Diversity and Health:�� Our future

depends on our ability to carry on putting the right people

in the right positions, so it is important we are regarded

as an employer that offers an attractive working environ-

ment for all employees. Acknowledging and making use of

the diversity of our people is a part of this process, as is

working to protect and enhance their health.

Labor Relations:�� This department looks after all labor law

issues.

Executive Matters:�� This unit has responsibility for sup-

porting managers who report directly to the Management

Board and for succession planning in respect of top

management positions.

Transaction Services

The contribution made by the Human Resources function

to value creation at the Company has become much more

substantial over recent years. There is more to this enhanced

role than simply acting as a strategic partner, helping to see

changes through and keeping employees committed. We

also have to provide efficient, high-quality processes and

transaction activities.

The units of the Transaction Services section uphold our

delivery standards by mapping the administrative tasks of

the Human Resources function in standardized processes

and HR systems to create a transparent, flexible and cost-

optimized environment. The Transaction Services depart-

ments are structured in line with the various tasks and

processes and cover areas such as payroll, travel manage-

ment, fleet management, reporting, IT systems and the man-

agement of external service providers.

We have established a central HR Service Center in

Regensburg to help bring about further standardization and

efficiency gains in HR work in Germany. The Service Center,

which takes care of the administrative side of HR processes

for the whole of Germany, also gives employees another

access point to the HR function, for example as an initial

source of information in connection with HR-related affairs.

As well as making it easier to standardize and pool services

and deliver them much more efficiently by using modern

IT solutions, the Service Center gives the Business Partners

and Competence Centers more time for their core activities

by relieving them of routine administrative tasks.

Staff Structure

Employee Figures

The table below presents the composition of our staff

by function and region on September 30 of the fiscal year

indicated*:

Fiscal year ending September 30 2008 2009 2010

Functions: Production 19,358 17,338 17,924

Research and Development 6,273 5,971 5,771

Sales and Marketing 1,905 1,681 1,520

Administrative 1,583 1,474 1,439

Infineon total 29,119 26,464 26,654

Regions: Germany 10,053 9,160 8,826

Rest of Europe 5,192 4,676 3,449

North America 821 687 640

Asia/Pacific 12,897 11,803 13,619

Japan 156 138 120

Infineon total 29,119 26,464 26,654

The changes in employee numbers in fiscal 2010 principally

reflect the end of the crisis management phase and associ-

ated reduction in headcount, which commenced in the

2009 fiscal year. Also included are one-time factors relat-

ing to the deconsolidation of the Altis Semiconductor joint

venture in France, which involved 1,315 employees, most

of them in the production area, being removed from the

Company’s figures as of December 31, 2009. A total of 807

employees from the WLC unit and the Central Functions

moved to Lantiq in fiscal 2010 as part of the sale of our

wireline communications business.

The headcount reduction resulting from the above activi-

ties was more than offset by a successful phase of high

plant capacity utilization: while the number of employees

in the areas of Research and Development and Sales and

Marketing dropped slightly compared to the previous year,

we increased the number of people in the production area

due to the rise in new orders. Most of these increases took

place at our Asian locations. These various factors combined

resulted in a slight increase in headcount overall.

* It is anticipated that around 3,400 employees worldwide will transfer to Intel from our WLS Division and the Central Functions in connection with the sale of Wireless Solutions.

24 25

Overview

Recruitment

The implications of demographic change and the shortage of

expert personnel anticipated in many parts of the world have

made recruitment policy and the development of new talents

even more important for Infineon.

We recruited a total of 5,354 employees worldwide in fiscal

year 2010. Most of the new employees (4,704) joined

the Company in Asia, and in terms of area, most of the new

recruits (4,385) were taken into production. However, since

employees also left the Company in the same time scale

due to the IFX 10+ cost reduction program, the deconsoli-

dation of Altis, and the sale of the Wireline Communication

business to Lantiq, there was only a slight net increase in

overall headcount.

Our large number of alliances with universities and other

higher education establishments contributed to the fact that

globally we won over 2,300 graduates as new employees in

the 2010 fiscal year. This means that more than 40 percent

of all new employees around the world were graduates.

Every fourth graduate we recruited was a woman – a sign

that our efforts to promote women in MINT professions

(mathematics, IT, natural sciences and technology) are bear-

ing fruit. Most newly recruited graduates joined locations

in the Asia-Pacific region (> 1,800 recruits), followed by

Germany (> 300 recruits) and other European locations

(> 100 recruits). It is also noteworthy that 40% of our hires

with a background in vocational training programs are

women.

As of September 30, 2010, in addition to its permanent

workforce, Infineon had worldwide 3,282 external employ-

ees working for it in order to enhance flexibility. Out of

this number, more than 50 percent worked at our locations

in Asia.

Staff Turnover and Length of Service

In Germany, staff turnover (including voluntary resignations

and other reasons for leaving) amounted to 3.2 percent

in the 2010 fiscal year. This turnover figure does not include

the employees who left the Company as a result of the sale

of the WLC business to Lantiq.

The staff turnover rate in Germany has thus settled back to

a low level following the extensive staffing cutbacks made

in 2009 under IFX 10+ (previous year: 12.8 percent). Staff

turnover (excluding Lantiq) at the global level in fiscal 2010

200180160140120100

80604020

0 2008 2009 2010

Rounded Revenue per Employee (average FTE*) in T €

180

125

150

Idea Management at Infineon

The extensive expertise held by our people and their ideas

concerning innovations and enhancements are vital to the

ongoing development of both processes and products and

to the continuous improvement of productivity at Infineon.

Mindful of this Infineon has been operating an internal idea

management system for many years. We consider the Your

Idea Pays (YIP) system to be an important tool in motivat-

ing employees to actively put forward their suggestions. We

believe creativity should pay not just for Infineon, but also

for our people and hence consistently reward good ideas.

The number of employees actively proposing ideas almost

doubled in fiscal year 2010 (2009: 19 percent, 2010: 37 per-

cent) and the actual number of ideas submitted rocketed by

more than 130 percent year on year. The low levels of partici-

pation in 2009, when all efforts were focused on weathering

the crisis, certainly explain much of this sharp increase.

Participation in the system in 2010 is nevertheless signi-

ficant: the participation rate was 7 percent higher than in

2008, the number of suggestions submitted almost

15 percent higher.

20,000

15,000

10,000

5,000

0

40%35%30%25%20%15%10%

5%0%

2008 2009 2010

Idea Management at Infineon

Part

icip

atio

n ra

te

15,287 30%

19%

37%

7,461

17,364

Sugg

estio

ns s

ubm

itted

amounted to 12.7 percent. The proportion of staff turnover

resulting from voluntary resignations was 9.9 percent world-

wide in 2010.

In contrast to the low staff turnover in Germany, the turnover

rate in the Asian markets, excluding Lantiq, was 21 percent,

reflecting the dynamic nature and competition for expert and

management staff in this region.

Globally, the average length of service remained almost

constant at 9.0 years in the 2010 fiscal year (previous year:

9.2 years). In contrast, the average length of service increa-

sed quite significantly in Germany. At 13.4 years, this figure

is substantially above the average length of service in

Germany of 11.8 years recorded in the previous year.

Performance and Employment Cost

Improving Infineon’s financial results and enhancing its

competitive edge are core objectives of the Company. If

these objectives are to be achieved, we need to convert the

performance of our employees into commercial success even

more effectively. Active cost management and a constant

review of employment cost have a significant part to play

in this respect.

Revenue of Infineon

Infineon made remarkable progress in fiscal 2010 to post

annual revenue (including the Wireless Solutions business)

of 4.585 billion Euro and a segment profit of 635 million

Euro.

Revenue per Employee (FTE*)

Revenue per employee (average FTE in the fiscal year) wor-

ked out at almost 180,000 Euro in fiscal year 2010, which

equates to an increase of 42 percent over 2009 and almost

21 percent over 2008.

Employment Cost at Infineon

Employment cost comprise of wages and salaries, includ-

ing overtime and bonuses, plus social cost such as pension

expenses and social security contributions. These figures

include only the cost associated with active internal employ-

ees and not those for external temporary staff. The Group’s

employment cost in fiscal year 2010 totaled 1.379 billion

Euro. Social security contributions amounted to 181 million

Euro and accordingly accounted for 15 percent of wages

and salaries. This figure includes expenses for pension pro-

visions and pension-related benefits of 14 million Euro.

Employments cost increased by 15.1 percent year on year.

The effects of provisions for purposes such as variable

pay components were the main factor in this rise in cost.

The ending of temporary cost-cutting measures (including

reduced working hours and unpaid leave) also contributed,

as did new hires, especially at the production sites in Asia.

Off-setting these increases were cost reductions ensuing

from the various carve-outs. Some of the increase in staffing

requirements was met using temporary workers.

2,000 €

1,500 €

1,000 €

500 €

0 €

Employment Cost in EUR Milions (Infineon worldwide)

2008 2009 2010

1,718€

1,198€1,379€

Employment Cost per Employee (FTE*)

Employment cost per employee (average FTE in the fiscal

year) in fiscal year 2010 amounted to 54,000 Euro per FTE,

which represents a 20 percent increase over 2009, but an

8 percent decrease when compared with 2008. The employ-

ment cost per employee indicator for fiscal year 2010 is

actually also lower than in the previous year if the effects of

provisions are purged from the calculation.

The number of employees based at sites with comparatively

high rates of pay has fallen, especially in Europe, as a result

of the sale of units of the Company discussed above. Other

reasons for the movement recorded include the restraint

demonstrated in respect of pay rises and increased recruit-

ment in Asia, where labor cost are lower.

* FTE: Full-time equivalent; part-time positions are included in the calculation pro-rata.

* FTE: Full-time equivalent; part-time positions are included in the calculation pro-rata.

26 27

Overview

70.0 €60.0 €50.0 €40.0 €30.0 €20.0 €10.0 €

0.0 €

Employment Cost per Employee (FTE*) in T €

2008 2009 2010

Employment Cost by Region

Germany accounted for the largest portion of employment

cost (57 percent) just as in previous years. The most signi-

ficant changes occurred in Europe as a consequence of the

carve-outs: the proportion of employment cost attributable

to Europe excluding Germany and Austria fell from 11 per-

cent in fiscal year 2009 to just 5 percent in 2010.

Employment Cost by Region

57%

16%

14%

6%5% 1%

Germany

Asia/Pacific

Austria

North America

Rest of Europe

Japan

Employment Cost Ratio

The employment cost ratio, which expresses employment

cost as a proportion of revenue, amounted to 30.1 percent in

fiscal year 2010. This represents the third successive annual

fall. This development resulted to an extent from the change

in employee numbers and also from the recent sharp rise in

revenue.

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Employment Cost Ratio as % Revenue

2008 2009 2010

39.8%35.7%

30.1%

Infineon plans to take on a further 64 vocational trainees in

fiscal year 2011. We will be concentrating on the following

areas:

Technical integrated work/study schemes and scholarship ��

programs in the fields of electrical engineering and elec-

tronics, mechatronics and microsystems technology

Traineeships in vocational careers and additional qualifi-��

cations primarily in the fields of mechatronics, electronics

and microtechnology

Acting in response to the increasingly international nature -

of our markets and rising demand for business admin-

istrators with strong foreign language skills, Infineon

also intends to begin training foreign language business

administrators (“Fremdsprachenkaufleute”) for the first time

and to enhance programs such as the industrial business

administrator (“Industriekaufleute”) with specific foreign

language trainings.

Learning and Development Indicators

Development activities represent an investment in our

people and thus in the future of Infineon. Facilitating con-

tinuous personal development for employees of all ages

is also an important element of our efforts to counter the

effects of demographic change. The pressing need to ensure

profitability meant that the training budget remained tight

once again in 2010 and external training could consequently

only be provided where required by law or essential to the

business. For Infineon, this meant that the focus continued

to be on internal options.

We managed to arrange numerous internal training oppor-

tunities in 2010 in conjunction with the departments and

did much to encourage innovation and knowledge transfer

within the Company through the InnovationNet, Innovation-

Fab and Innovation Star initiatives and the many iCommuni-

ties. These measures, it should be noted, are also important

in encouraging experienced employees to stay with the Com-

pany and to assist with multiplying high-level knowledge.

Other priorities in fiscal year 2010 beside promoting knowl-

edge transfer included e-learning and online training, of

which we have begun to make greater use. These modern

pathways allowed us to provide more development mea-

sures for our employees without having to organize expen-

sive and time-consuming face-to-face events. The number

of internally-developed e-learning courses offered through

Infineon’s iLearn online tool rose by 50 percent in 2010 and

Education, Training and Development

Securing the people needed to fill key positions at the Com-

pany going forward is central to sustainable human

resources work, as is continuously developing all of our

employees. Consequently, we attach great importance

to facilitating knowledge transfer between our employees

and to the education and training of our staff.

Education and Training Indicators

Young employees possessing the qualifications required for

specific posts at Infineon provide the basis for our succes-

sion planning for specialist and management positions. We

have therefore stepped up our vocational training activities

for young employees again and restored the number of voca-

tional trainees recruited in Germany to the pre-crisis level of

2008. We took on 69 new vocational trainees in total in fis-

cal year 2010 – almost twice as many as we managed in the

crisis year of 2009 – bringing the total number of vocational

trainees employed by Infineon to 159 as of September 30,

2010. This means the number of active employees in educa-

tion and training was almost unchanged from the previous

year (active employees in education and training in 2009:

162). As in the previous year, most of our vocational trainees

(97 people) were engaged in industrial training. A further

37 people were receiving commercial/technical training and

the remaining 25 people were on integrated work/study pro-

grams. The proportion of the overall workforce in Germany

accounted for by trainees was essentially unchanged at

2 percent. Vocational traineeships are just one of several

ways we use to bring young people into the Company. We

also pay particular attention to young professionals in engi-

neering and the natural sciences as well as candidates from

integrated work/study schemes, scholarship programs and

the university courses.

8070605040302010

0 2008 2009 2010

Hiring of Vocational Trainees in Germany

63

35

69

the number of employees taking advantage of e-learning

courses to enhance their skills doubled.

Thanks to the combination of external, internal and, most

notably, online development measures outlined, we man-

aged to keep overall global training cost at their established

low level while simultaneously increasing the number of

personal development hours per employee.

Training hours peremployee worldwide

Training cost expenditureworldwide (in EUR millions)

25

20

15

10

5

0

Learning and Development Indicators

10

2,1

7

2,1

22

8,9

2008 2009 2010

Health Management at Infineon

Occupational medicine and health protection are matters

of priority at Infineon.

Health management at Infineon involves a variety of

measures intended to help prevent illness, promote good

health and improve general employee wellbeing. Healthy

employees who feel happy in their working environment are

more motivated and perform better – important factors for

Infineon’s continued success. Our policies on health man-

agement consequently go well beyond the minimum legal

provisions and preventive occupational medical checkups

and cover an enormous range of occupational health promo-

tion measures, especially in the area of prevention.

Industrialhygiene

Emergency and disaster management

Occupationalrehabilitation

Health protection and occupational healthand safety

Travel medicine advisor services

Occupational and environmental medicine

Occupational health promotion

Occupational health fitness to work checkup

Workplace design and ergonomics

Comprehensivehealth

management

* FTE: Full-time equivalent; part-time positions are included in the calculation pro-rata.

28 29

Overview

Diversity and Demographics

Infineon brings together men and women from many dif-

ferent backgrounds, countries, cultures, religions and age

groups. We regard the diversity of our people as an impor-

tant competitive advantage and it is our stated objective

to offer attractive working conditions for different kinds of

people so as to make best use of the wide range of experi-

ence and potential they bring to our Company. We are also

very aware that we can only be successful in the face of stiff

international competition if we manage to cooperate closely

and effectively across all borders.

Cultural Diversity

Infineon’s operations around the world employ people from

90 different countries and there are around 65 nationalities

to be found in Germany alone. The cultural diversity of our

people, we believe, harbors enormous potential in terms of

skills, experience and qualifications. We strive to maintain a

respectful, trusting and open corporate culture that encour-

ages our people to realize this potential: every employee

should feel motivated to put his or her ideas and experience

forward and share them openly with colleagues.

Infineon has formally committed itself to treating all employ-

ees with fairness and respect by signing the Charta der Vielfalt (“Charter of Diversity”) of German Companies, which

obliges us to provide a work environment free of all preju-

dice and exclusion. We always strive for an open corporate

culture based on inclusion and mutual respect.

Age Profile

The average age of our employees dropped to 36.4 years in

fiscal year 2010 (previous year: 37.2). The largest employee

age group worldwide is the 31 to 35 segment, into which

18.9 percent of our people fall. More than 65 percent of our

employees with university degrees are under the age of 40.

>6056–6051–5546–5041–4536–4031–3526–3017–25

Age Structure (Infineon worldwide 2010)

0.4%2.7%

6.4%10.0%

14.3%16.5%

18.9%15.9%

15.0%

German Corporate Governance Code 2010

The German Corporate Governance Code requires a com-

pany’s management board to take diversity considerations

into account when filling management positions and place

particular emphasis on an appropriate level of women.

Infineon

operates a dedicated diversity management system,��

has drawn up values and objectives for diversity ��

management,

tracks corresponding KPIs (for example the proportion of ��

women),

has set a clear, quantitative target for increasing the pro-��

portion of women,

has been rated as “Very Good” in diversity matters by its ��

own employees within the Great Place to Work® survey.

Gender Profile

Fiscal year 2010 was a good year for increasing the pro-

portion of women in the Company, with a rise of nearly 3

percentage points worldwide to 35.5 percent (previous year:

32.6 percent). As in previous years, the proportion of women

was highest in the Asia/Pacific region (48 percent). The USA

had the next highest proportion (26 percent) and after that

came Germany (24 percent).

Germany Europe USA Asia/Pacific Japan

Women in the Regions 2010

19%

24%26%

48%

18%

The proportion of women in management positions has

also risen in recent years such that in fiscal year 2010, of

our 4,042 employees with staff management responsibility

around the world 414 – that is 10.2 percent – were women.

The proportion of women in middle management positions

in fiscal year 2010 fell just short of 11 percent following

increases in the Germany and Asia regions in particular.

The proportion of women in top management positions in

2010 stood at 5.3 percent, proving that women have made

considerable progress at this level over the last five years

(2006: 3.5 percent).

Preparing women for management positions and advancing

them accordingly is one of Infineon’s corporate objectives.

Specifically, we have undertaken to raise the proportion of

women in management positions to 20 percent by 2020.

Infineon already offers a variety of part-time models, child-

care centers, sabbaticals and teleworking options to help

employees combine work and family more effectively. These

opportunities are available to all of our people, men and

women alike, to help them make the most of a career with

Infineon.

30 31

ImpressumGlossary

Frontend manufacturing Frontend process is the designation for all

process steps that the entire wafer must complete. These are lithogra-

phy, diffusion, ion implantation and application of circuitry levels. Some

stations must be completed a number of times. At the end of the fron-

tend-process, the wafer may have been through as many as 500 indi-

vidual process steps.

FTE Full time equivalent: Staff working part-time are included pro-rata

when calculating employee numbers.

FY Fiscal year

GMDS Global Master Data System: Infineon’s human resources data-

base.

iCommunities An iCommunity is a protected space for a self-organizing

group of selected experts who are working on a specific topic, in addi-

tion to their everyday tasks, in pursuit of innovations.

iLearn iLearn is Infineon’s web application for e-learning.

InnovationFab InnovationFab is an Operations initiative intended to

boost innovation at all sites and across all units.

InnovationNet InnovationNet is the framework under which Infineon’s

innovation initiatives and activities are brought together.

Innovation Star Innovation Star is an Infineon program that supports

the establishment of a successful innovation culture and an innovative

attitude within the Company.

IFX10+ IFX10+ is the cost reduction program launched by Infineon in

the summer of 2008.

MINT MINT is an acronym for mathematics, IT, natural sciences and

technology.

MSS MSS (Manager Self Service) is a web-based application for all

managers. Managers can use MSS to a.o. approve or reserve trainings

for employees.

Segment Result We define Segment Result as operating income (loss)

excluding asset impairments, net, restructuring charges and other

related closure costs, net, share-based compensation expense, acquisi-

tion-related amortization and gains (losses), gains (losses) on disposal

of assets, businesses, or interests in subsidiaries, and other income

(expense), including litigation settlement costs. This is the measure,

Infineon uses to evaluate the operating performance of its segments.

Segment Result Margin An indicator on operating performance, calcu-

lated as the percentage of Segment Result in relation to revenues.

WLC WLC was Infineon’s wireline communications business unit. It was

carved-out on November 6, 2009 with all products, projects and sites

transferring over to a new, independent company called “Lantiq”.

WLS WLS is Infineon’s wireless solutions business unit.

YIP Your Idea Pays (YIP) is Infineon’s ideas management program. It

has been rolled out globally, so any employee can submit his or her

suggestions for improvements via the local YIP manager.

Backend manufacturing The part of the semiconductor manufacturing

process that takes place after the wafer has left the cleanroom (frontend

manufacturing). This includes testing the chips at wafer level, repairing

the chips if necessary, dicing the wafers and packaging the individual

chips. There is a growing trend among semiconductor manufacturers to

outsource the assembly and sometimes even the testing, to indepen-

dent assembly companies. Much of the assembly capacity is based in

the Pacific Rim countries.

BayMe BayMe, the Employers’ Association for the Bavarian Metalwork-

ing and Electrical Industries, represents the common macroeconomic,

social and political interests of around 1,800 member companies that

have either their headquarters or a branch office in Bavaria.

Best practices for women in ICT This initiative provides guidelines on

exemplary practice for the development and advancement of women in

the information and communication technology sector.

Bonus & Incentive Guideline This guideline lays down rules for vari-

able compensation including target structure, target function and

payment terms/modalities.

“Charta der Vielfalt” (Charter of Diversity) The ”Charta der Vielfalt” is a

business initiative in Germany to promote diversity in companies. The

signatories undertake to provide a work environment that is free of

prejudice and exclusion and is based on inclusion and mutual respect.

Participation in the initiative entails a formal commitment to treat all

employees with fairness and respect. The ”Charta der Vielfalt” has as its

patron German Federal Chancellor Dr. Angela Merkel.

ERA Employee remuneration in the German metalworking and electri-

cal and electronics industries has been governed since 2003 by the

ERA-TV collective agreement on pay.

“Erfolgsfaktor Familie” (Success Factor Family) “Erfolgsfaktor Familie”

is a joint initiative of the German Federal Ministry for Family Affairs,

Senior Citizens, Women and Youth, key German trade associations and

the Confederation of German Trade Unions intended to make family-

friendly practices a hallmark of the German economy.

ESS ESS (Employee Self Service) is a web-based application to which

all (Note: This is the case in Germany only for some of the services)

employees have access via a web browser. It can be used to find and

reserve training places, for example, to retrieve remuneration state-

ments or to submit requests for leave.

eTrain eTrain is the global training management application. Based on

SAP components (Personnel Administration, Organizational Manage-

ment and Personnel Development), it provides information about

training offerings, options for reserving a place/canceling a reservation

and provides information on trainings visited by individual employees.

Published by

Infineon Technologies AG

Am Campeon 1-12

85579 Neubiberg

www.infineon.com

Editors

Infineon Technologies AG, Human Resources

Design and Consulting

Nur Baute GmbH, Berlin/München

Photography

Infineon-Archive

Printed by

Druckerei Fritz Kriechbaumer, Taufkirchen bei München

Paper

MIX

The FSC certificate is awarded to paper

originating from responsibly managed

forests.

www.fsc.org Zert.-Nr. GFA-COC-001511

© 1996 Forest Stewardship Council

This report is also available in German.

32 33

Infineon worldwide

� Headquarters

� Majority holding

P Production

R&D Research & Development

S Sales

DC Distribution center

Morgan Hill | R&D | P

Livonia | S

Torrance | R&D

Milpitas | R&D | S

Kokomo | S

� | S | Lebanon

S | Durham

S | São Paulo

Infineon sites

Germany

S | Hannover

R&D | P | Dresden

S | Erlangen

R&D | P | Regensburg

R&D | S | Augsburg

� | R&D | S | Munich, Neubiberg

R&D | S | P | Beijing

R&D | S | Shanghai

S | R&D | Seoul

R&D | S | Taipeh

S | Hong Kong

R&D | S | P | DC | Singapore

S | Shenzhen

S | Melbourne

P | Batam

P | Malacca

P | Kulim

R&D | S | Bangalore

S | Nagoya

S | Tokyo

S | Osaka

DC

F&E

| Narita

S | P | Wuxi

S | Antwerp

S | Moscow

S | Birmingham, Hitex

S | Dublin

R&D | S | Bristol

R&D | Ascot

S | Copenhagen

R&D | S | Kista

S | Rotterdam

S | Vienna

R&D | Graz

R&D | S | P | Villach

� | P | R&D | S | Cegléd

R&D | Buckarest

� | R&D | Linz, DICE

S | Klagenfurt

R&D | Padua

S | Milan

S | Zurich

S | Marseille

S | Toulouse

S | Saint-Denis

Warstein | R&D | S | P

Großostheim | DC

Duisburg, Epos | � | R&D

Duisburg | R&D | S

Stuttgart | S

Karlsruhe, Hitex Development Tools | R&D | S | P

� Headquarters

� Majority holding

P Production

R&D Research & Development

S Sales

DC Distribution center

Morgan Hill | R&D | P

Livonia | S

Torrance | R&D

Milpitas | R&D | S

Kokomo | S

� | S | Lebanon

S | Durham

S | São Paulo

Infineon sites

Germany

S | Hannover

R&D | P | Dresden

S | Erlangen

R&D | P | Regensburg

R&D | S | Augsburg

� | R&D | S | Munich, Neubiberg

R&D | S | P | Beijing

R&D | S | Shanghai

S | R&D | Seoul

R&D | S | Taipeh

S | Hong Kong

R&D | S | P | DC | Singapore

S | Shenzhen

S | Melbourne

P | Batam

P | Malacca

P | Kulim

R&D | S | Bangalore

S | Nagoya

S | Tokyo

S | Osaka

DC

F&E

| Narita

S | P | Wuxi

S | Antwerp

S | Moscow

S | Birmingham, Hitex

S | Dublin

R&D | S | Bristol

R&D | Ascot

S | Copenhagen

R&D | S | Kista

S | Rotterdam

S | Vienna

R&D | Graz

R&D | S | P | Villach

� | P | R&D | S | Cegléd

R&D | Buckarest

� | R&D | Linz, DICE

S | Klagenfurt

R&D | Padua

S | Milan

S | Zurich

S | Marseille

S | Toulouse

S | Saint-Denis

Warstein | R&D | S | P

Großostheim | DC

Duisburg, Epos | � | R&D

Duisburg | R&D | S

Stuttgart | S

Karlsruhe, Hitex Development Tools | R&D | S | P

Overview according to Annual Report 2009/2010: Infineon sites after sale of Wireless Solutions business

[ www.infineon.com ]

Published by Infineon Technologies AG

Order Number B192-H9573-X-X-7600

Date: 01 / 2011