Infineon Strengthens Its Power Activities by Acquiring Primarion

  
    
  
  
    
      Infineon Technologies (FWB:IFX) (NYSE:IFX) today announced that the 
      company has acquired one hundred percent of Primarion, Inc. to further 
      strengthen its activities in the field of power management applications.
    
    
      Primarion is among the leaders in designing, manufacturing and marketing 
      digital power ICs for computing, graphics and communication 
      applications. Primarion is a fabless company, headquartered in Torrance, 
      California.
    
    
      “Infineon will now be positioned to set the 
      benchmark in system density, efficiency and control by combining the 
      performance of Primarion’s digitally 
      controlled power-management devices with Infineon’s 
      leading power semiconductors portfolio,” said 
      Peter Bauer, Member of the Management Board and Head of Infineon’s 
      Automotive, Industrial and Multimarket Business Group. “The 
      addition of Primarion helps accelerate our access to the potential 
      growth in the digital power segment by providing advanced system 
      solutions for our customers. This investment is also a great complement 
      to our power management activities based out of Villach in Austria.”
    
    
      Digital power is a fast-growing emerging market for ICs in power 
      supplies and is increasingly replacing today’s 
      traditional analog solutions. Advantages of digital power ICs include 
      the ability to optimize the efficiency and performance of the power 
      supply over all conditions on the fly by adjusting key system parameters 
      with advanced diagnostics, telemetry and non-linear control. This leads 
      to increased density and reduced system cost through the removal of 
      bulky output capacitors and the integration of many passive components 
      required for “tuning” 
      analog solutions. According to a December 2007 report by market analyst 
      firm iSuppli, an annual growth of approximately 50 per cent is expected 
      from 2007 to 2011.
    
    
      Following the carve-out of Qimonda in 2006, Infineon is focusing on 
      three key areas of business: Energy Efficiency, Communications and 
      Security.
    
    
      The company announced its intention to address these areas both through 
      acquisitions and investment in organic growth. Following the acquisition 
      of Texas Instruments’ DSL CPE business and LSI’s 
      Mobility Products Group last year, the acquisition of Primarion is 
      another major step in strengthening Infineon’s 
      core business. Infineon already delivers innovative high-performance 
      solutions with best-in-class technologies that help save energy and 
      reduce pollution. The company’s products are 
      the basis for intelligent and optimal use of energy resources, be it 
      along the entire power supply chain, in industrial applications, in 
      household appliances or in hybrid cars.
    
    
      About Infineon
    
    
      Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and 
      system solutions addressing three central challenges to modern society: 
      energy efficiency, communications, and security. In the 2007 fiscal year 
      (ending September), the company reported sales of Euro 7.7 billion 
      (including Qimonda sales of Euro 3.6 billion) with approximately 43,000 
      employees worldwide (including approximately 13,500 Qimonda employees). 
      With a global presence, Infineon operates through its subsidiaries in 
      the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, 
      and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock 
      Exchange and on the New York Stock Exchange (ticker symbol: IFX).
    
    
      Further information is available at www.infineon.com.
    
    
      This news release is available online at www.infineon.com/press/.