Nanoelectronics impact in semiconductors industry within Romanian Market. Infineon Technologies Romania Blvd. Dimitrie Pompeiu 6, Sector 2 20337 Bucharest Bucharest, 19th Jan 2010 Dr. Michael Neuhaeuser Vice President and General Manager

Table of contents Infineon Technologies specific data Target Markets R&D Network in Europe Development Center Bucharest Future perspective, 2010 evolution trend Technologies roadmap for semiconductors Electronic share within automotive applications Romanian Nanoelectronics SWOT analysis for semiconductors industry Key Challenges 2010 - 2014

Table of contents Infineon Technologies specific data Target Markets R&D Network in Europe Development Center Bucharest Future perspective, 2010 evolution trend Technologies roadmap for semiconductors Electronic share within automotive applications Romanian Nanoelectronics SWOT analysis for semiconductors industry Key Challenges 2010 - 2014

Infineon Technologies focus on Target Markets Key Trends Energy Efficiency Communications Security Core Competencies Analog/Mixed Signal RF Power Embedded Control Our Target Markets Automotive Industrial Electronics Chip Card & Security Mobile Phone Platforms 07.12.2018

Infineon - R&D Network in Europe Duisburg Warstein Aalborg Horten Skoppum Lin- köping Stockholm Riga Leuven Dresden Bristol Regens- burg Essonnes Bucharest Ulm Sophia Antipolis Augsburg Munich, Neubiberg Padova Villach Graz 07.12.2018

Infineon Technologies in Romania Founded in April 2005 Located in northern part of Bucharest Good public transport (tram, metro) 160+ employees as of today 3500 m² office, research and laboratory area General Manager Dr. Michael Neuhäuser 2009/01/15

Table of contents Infineon Technologies specific data Target Markets R&D Network in Europe Development Center Bucharest Future perspective, 2010 evolution trend Technologies roadmap for semiconductors Electronic share within automotive applications Romanian Nanoelectronics SWOT analysis for semiconductors industry Key Challenges 2010 - 2014

Technologies roadmap for semiconductors Future will require innovations in cross-disciplinary fields: nano-electronics nano-thermomechanics, nano-biology, extremely parallel software, etc Reduce the cost-per-function and increase the performance of integrated circuits The semiconductor industry is already working today in the nm scale and further scaling with increasing functionality incl. sensors is mandatory. 07.12.2018

Electronic share within automotive applications Europe has an excellent research competence in the area of automotive industry To maintain the leading position, different industries over the entire added value chain need closely cooperate combining their skills and expertise Competition drivers on the automotive market reduction of fuel consumption, CO2 emission targets reduction of traffic accidents, intelligent predictive safety systems innovation of the electronic devices with impacts in all parts of a vehicle (chassis, drive train, engine and auxiliaries, body shell structure, body exterior and interior as well as in standard operating system). 07.12.2018

Table of contents Infineon Technologies specific data Target Markets R&D Network in Europe Development Center Bucharest Future perspective, 2010 evolution trend Technologies roadmap for semiconductors Electronic share within automotive applications Romanian Nanoelectronics SWOT analysis for semiconductors industry Key Challenges 2010 - 2014

SWOT analysis for semiconductors industry within Romanian Market Strengths Weaknesses Good education at university Good English skills of students & teachers EU member since 2007 Special tax regulation for SW engineer Similar EU working culture and mentality Good IT infrastructure Competitive cost position Limited pool of experienced mixed signal designers in Romania (<100) IP protection law exists, implementation ongoing, enforcement ensured Opportunities Threats Highly motivated people Openness and willingness for cooperation Potential low attrition rate Bureaucracy Missing local high-tech initiative of the government (in comparison to other EU countries) 07.12.2018

Key challenges 2010 – 2014 for Romania Common strategic activities requiring multinational R&D teams Enhancing the value of the Romanian researchers Within R&D increased focus on applications Strong funding support for research inside companies To increase the knowledge transfer to industry Local legislation facilities for high-tech jobs, a top-down initiative New concepts in cooperation across Universities – R&D institutes – Industrial partners (to develop a strong cooperation platforms) To identify an algorithm enabling efficient usage/sharing of the public R&D resources 07.12.2018

A Typical Technology Production “Ramp” Curve 07.12.2018

Technology Cycle Timing Compared to Actual Wafer Production Technology Capacity Distribution1 07.12.2018