Infineon Invests 160 Million US Dollar to Further Expand Manufacturing Capacity in Malaysia

MALACCA, Malaysia, March 31, 2011 - Infineon Technologies invests 160 million US dollar this year to expand
its production capacity, research & development and to upgrade its
manufacturing facilities in Malacca, Malaysia. The investment will mainly
increase the capacity to produce power semiconductors for energy efficiency
applications and will add 350 jobs in Malacca in 2011. Today, Infineon
employs nearly 7,000 employees in Malacca.

This investment is another step by Infineon to expand its presence in
Asia and to integrate more tightly into local market structures. In the
fiscal year 2010, Infineon generated 42 percent of its revenues in the Asia
region including Japan, thus being the front-runner in that category among
all big German companies listed on the DAX stock exchange index. "In order to
be successful in Asia you have to do more than just business. It is about
recognising the culture and becoming a part of society. We aim to create
local value added, contribute knowhow and employ and groom talents," says
Peter Bauer, CEO of Infineon Technologies AG.

In recent years, Asia has developed into a key market for global
semiconductors sales. Infineon continuously expands its Asian business. In
January, Infineon opened a new entity in Beijing, China, called Infineon
Integrated Circuits (Beijing) Co., Ltd. In addition to sales and marketing,
application R&D and central functions, the new entity houses a technical
center for automotive solutions and an IGBT stacks manufacturing facility.
IGBTs (Insulated Gate Bipolar Transistors) are power semiconductors used for
instance to drive electric motors in cars or high-speed trains.

About Infineon

Infineon Technologies offers semiconductor and system solutions
addressing three central challenges to modern society: energy efficiency,
mobility, and security.

Further information is available at www.infineon.com .

David Ong, Infineon Technologies Asia Pacific, +65-6876-3070, david.ong at infineon.com