Infineon in Detroit Increases to 90 Employees

LIVONIA, Mich.--Dec. 9, 2004--Infineon Technologies , the world's fifth largest semiconductor manufacturer(1), officially opened its new office for the company's Automotive & Industrial Business Group today. The facility, at 19111 Victor Parkway in Livonia/Detroit, supports Infineon's plan to add up to 45 employees to provide expanded engineering and technical support to its automotive customers for innovative semiconductor solutions in the region and across North America.

"Infineon's decision to grow in Michigan is a testament to our top-notch workforce as well as our continued leadership in automotive R&D," said Governor Jennifer M. Granholm. "Our highly qualified workers are the reason why we remain number one in this increasingly competitive industry."

"Infineon's global position as the second largest supplier of automotive electronics includes a strong and growing presence here in North America," said Robert LeFort, president of Infineon Technologies North America. "We are focused on excellence in service and best-in-class support for our partners and customers. The expansion of operations here in Michigan will help us meet our strong commitment to better serve one of our key markets."

Infineon, which has supplied semiconductors for automotive and industrial electronics applications for more than 35 years, first began operations in the Detroit area in 1995. With continued success, the company has steadily increased its presence from sales operations to more comprehensive customer support, application engineering and technical test and analysis.

"Semiconductors play an increasing role in delivering advanced safety, comfort and performance features in automobiles. Thus, Tier One suppliers and automotive OEMs look to chip suppliers to constantly expand and improve their level of service," said Christopher Cook, vice president of Automotive & Industrial, Infineon Technologies North America. "This expansion, with a committed investment of nearly $5 million in the new facility, will support new integration and test capabilities to meet our customer's needs."

Infineon Technologies' products add chip-based intelligence to thousands of digital devices that people use every day. From automobiles and industrial machinery, to wired and wireless communications, computer memories and other advanced applications, Infineon solutions power electronic products that are a part of 21st century lifestyles.

Ranked as the world's fifth largest semiconductor manufacturer in the first six months of 2004 by IC Insights, Infineon is headquartered in Munich, Germany. The company's North America sales in fiscal year 2004 (ended September 30, 2004) were US $ 1.89 billion. Infineon's commitment to North America is backed by an expanding presence in the United States, where its subsidiaries employ more than 3,000 people. The company has seven development centers and operational offices, with headquarters in San Jose, California and offices in Cary (Research Triangle), North Carolina; Albany and East Fishkill, New York; Livonia, Michigan; Morgan Hill, California; Phoenix, Arizona; and Williston, Vermont. Additionally, more than 2,000 employees work at a state of the art manufacturing site in Richmond, Virginia, where Infineon has invested more than US $1.7 billion.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2004 (ending September), the company achieved sales of Euro 7.19 billion with about 35,600 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.

((1) Based on first-half 2004 sales, as reported by IC Insights, July 2004)