IFX Day 2007
Munich, March 13, 2007
Communications Solutions
Access
Christian Wolff
Disclaimer
This presentation was prepared as of March 13, 2007 and is current only as of that date.
This presentation includes forward-looking statements about the future of Infineon’s business and the industry in which it operates. These include statements relating to future developments in the world
semiconductor market, including the market for memory products, Infineon’s future growth, the benefits of research and development alliances and activities, Infineon’s planned levels of future investment in the expansion and modernization of its production capacity, the introduction of new technology at its facilities, the continuing transitioning of its production processes to smaller structure sizes, cost savings related to such transitioning and other initiatives, Infineon’s successful development of technology based on industry standards, Infineon’s ability to offer commercially viable products based on its technology, Infineon’s ability to achieve its cost savings and growth targets, and the impact of the carve-out of Qimonda, the group’s memory products business, its initial public offering, and any further sales of Qimonda shares or other corporate financing measures in that regard.
These forward-looking statements are subject to a number of uncertainties, including trends in demand and prices for semiconductors generally and for Infineon’s products in particular, the success of Infineon’s
development efforts, both alone and with partners, the success of Infineon’s efforts to introduce new
production processes, the actions of competitors, the availability of funds for planned expansion efforts, and the outcome of antitrust investigations and litigation matters, as well as the other factors mentioned in this presentation and those described in the “Risk Factors” section of the annual report of Infineon on Form 20-F filed with the U.S. Securities and Exchange Commission on November 30, 2006 or contained in the
company’s quarterly reports. As a result, Infineon’s actual results could differ materially from those contained in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements.
Infineon does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
Access Market Focus
Market Trends
Why We Win
Achievements in 2006
Summary
Table of Contents
Access Market Focus
Market Trends
Why We Win
Achievements in 2006
Summary
Table of Contents
ADSL2+ VDSL2 SHDSL Modem IAD ADSL2+ VDSL2 SHDSL
Target Applications
Access Market Focus
ADSL2+ VDSL2 SHDSL IP/ATM VoIP ADSL2+ VDSL2 IP/ATM VDSL2 ADSL2+ VDSL2 SHDSL VoIP 100bT GE 2G 3G VoIP 1-4 ch
Copper
based
Wireline
Access
DSLAM MSAN Router IP_Phone ATA T/E TDM ATM RNC PON VoIP VDSL2 T/E ONT POTS ISDN DLC Basestation MDUMarket Segmentation
Access Market Focus
Access
Semiconductor
Market
structured by technologies
2004 2005 2006
$2.1 bn
1)$2.2 bn
1)$2.4 bn
2) Source:1) Gartner Dataquest, June 2006 2) Infineon Estimates
VoIP
T/E
Analog Line Card
Others
DSL-CPE
DSL-CO
DSL-CO
DSL-CPE
VoIP
T/E
Analog
Line Card
Infineon’s major chip set families
ADSL2+
GEMINAX_MAX
AMAZON
DANUBE
VDSL2
VINAX
VINAX
SHDSL
SOCRATES
SOCRATES
VINETIC-2
(ATA/IAD)
INCA_IP
(IP_Phone)FALC
QUAD_FALC
OCTAL_FALC
SICOFI
DUSLIC
VINETIC
NP
CONVERGATE
5120
3120
IWORX
ELIC
Complete, end-to-end, modular.
Product Porfolio
h
Product Portfolio – Home Networking
Access Market Focus
Analog Phone/ DECT Media /Storage Hard-drive USB 2.0 802.11x Network Ethernet Ethernet/POF IP Set-top Box
Wired
Voice
ISDN/VoIP DECT
Data
Ethernet WLAN**
Video POF
n.a.
Wireless
Product Portfolio – Home Networking
Access Market Focus
DECT
WLAN
Ethernet
2x
VoIP
IFX Reference Design and SW Stack
WLAN, Ethernet, VoIP, DECT
Customer Structure
Access Market Focus
CPE Side
2wire
Alpha
ARCADYAN
Asus
AVM
Aztech
Dare
Linksys
Siemens
Sphairon
Westell
TMM
Zyxel
Others
Major Customers
CO Side
ADTRAN
Alcatel-Lucent
CISCO
ECI
Ericsson
Fujitsu
Huawei
NEC
Nokia
Siemens
Tellabs
ZTE
Others
Access Market Focus
Market Trends
Why We Win
Achievements in 2006
Summary
Table of Contents
Infineon’s VINAX Solution Powers
Germany’s VDSL2 Rollout in 10 Cities Deutsche
Telekom Becomes the First
Carrier Worldwide to Deploy VDSL2
with Speeds up to 50 Mbit/s
Munich, Germany – March 10, 2006 – Infineon Technologies, a leading provider of Communication ICs, today announced that T-Com, the Fixed Network business unit of Deutsche Telekom AG will base the rollout of its new hyper-speed VDSL2 network entirely on broadband access systems
powered by Infineon’s VINAX™ chip-set.
Infineon Enables First VDSL2 Deployments
in Korea: VINAX Selected by Hyundai
Network Systems for National Roll-out
Munich, Germany – January 22, 2007 – Infineon Technologies, a leading provider of Communication ICs, today announced that its South Korean based customer Hyundai Network Systems will supply VDSL2 systems based on the VINAX™ chipset from
Infineon to a major Korean Telecommunication
carrier.
Major VDSL2 DSLAM Design-Wins
Achievements in 2006
ADSL2+
SHDSL
SLIC SLIC
ADSL2+
DRAM FLASHAmazon
VINETIC
2VIP
SamuraiMajor CPE/VoIP Design-Wins
Achievements in 2006
Samurai
TANTOS
2xGE
VoIP is now also accepted
and driven by the big
incumbent carriers.
Major CPE/VoIP Design-Wins
Achievements in 2006
Danube
SLIC SLIC DRAM FLASH VINETIC2VIP
Amazon
ADSL2+ 4x100MCountry Operator System Laos Lao Telecom GSM Austria Mobilkom Austria 3G/HSPA Latvia Bite 3G Bahrein Batelco 3G/HSPA Lithuania Bite 3G Bangladesh Warid Telecom Int LLC GSM/EDGE Malaysia MiTV 3G/HSPA Bangladesh TM International GSM/GPRS Malaysia DiGi Telecommunications GSM/EDGE Bangladesh GrameenPhone GSM/EDGE Malaysia Celcom Berhad GSM Brazil Vivo GSM/GPRS New Zealand TelstraClear 3G/HSPA Canada Rogers Communications 3G/HSPA Pakistan Warid Telecom Int LCC GSM
Chile ENTEL PCS 3G/HSPA Palestine Jawwal GSM/GPRS/EDGE Chile Claro Chile GSM/GPRS Saudi Arabia Mobily 3G/HSPA
China China Mobile GSM Saudi Arabia Mobily GSM Czech Republic Vodafone 3G Saudi Arabia Saudi Telecom 3G/HSPA El Salvador Digicel Group GSM/EDGE Scandinavia 3 3G/HSPA Estonia EMT 3G/HSPA Serbia Telekom Srbja 3G/HSPA
France Bouygues Telecom 3G/HSPA Serbia Telekom Serbia GSM/GPRS/EDGE Guyana Digicel Group GSM/EDGE Sri Lanka Dialog Telekom 3G/HSPA
Hong Kong Vodafone 3G Taiwan FarEasTone 3G/HSPA India Bharti Airtel GSM/GPRS Thailand AIS GSM/EDGE Indonesia PT Indosat 3G/HSPA Thailand Lao Telecom GSM Indonesia Telekomsel 3G/HSPA Turkey Avea GSM Indonesia NTS 3G UK T-Mobile dual 2G/3G Ireland O2 3G/HSPA USA T-Mobile 3G
Japan Softbank Mobile Corp 3G/HSPA USA Cingular 3G/HSPA Japan eMobile 3G/HSPA Vietnam Viettel GSM Kuwait Wataniya 3G/HSPA
Major Design-Wins in Wireless Infrastructure
Achievements 2006
IWORX V1.2 PXF4225 FALC56 QUAD-FALC Octal FALCATM
TDM
Voice over ATM
2004 2005 2006
17%
1)19%
1)>21%
2)Source:
1) Gartner Dataquest, June 2006 2) Infineon Estimates
2005
2006
ADSL_CO
2005
2006
ADSL_CPE
2005
2006
VoIP
2005
2006
VDSL2
2005
2006
T/E
2005
2006
Analog LC
Source: for 2005: Gartner Dataquest, June 2006
Market Share and Market Growth
Business Performance
Achievements in 2006
FY 2005
FY 2006
Rev
enue
EBIT
Competition is announcing
partly severe revenue drops.
Design-wins made in FY2004
have materialized in FY 2005
and made us outperforming
the market.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Access Market Focus
Market Trends
Why We Win
Achievements in 2006
Summary
Table of Contents
The “Domino Effect”
Market Trends
ADSL
Large
deployment
enables
VoIP
VoIP
Jeopardizes
Carrier
Voice
Revenue
NGN
Enables
significant
OPEX
reduction
IP_TV
Enables
new
revenue
streams
Advert.
Enables
personalized
advertisement
for eve ry subscriber ADSL2+ / VDSL2 and VoIPDSL overlay
VoIP
N
G
N
IP_TV
Convergence
IMS
1990
2000
2010
Digital telephone network
Network replacement
profile per carrier
3-4 years
=10-30 m lines
Cumulated worldwide demand
~10 years
Line Card
NGN Basis Structure
DSL
VoIP
all IP
Network Replacement
Market Trends
GigE/GPON
VDSL2/ADSL2+
IP only
network
VDSL2/ADSL2+
VoIP
DSL only
IP only
GE
VDSL2/ADSL2+
&
VoIP
DSL and Voice
IP only
NGN Means New Access Technology
Market Trends
Any
Any
option means
option means
significant
significant
volume for
volume for
Access semi
Access semi
GigE/GPON
Why GPON?
Market Trends
h
300m-1km
1-5km
ADLS2/2+
h
300m-1km
fiber
VDSL2
Point-to-Point
GigE
GPON
h
Fiber is expensive but
necessary to
enable high data rates.
GPON is a very cost optimized
way to deploy fiber.
1.24 Gbit/s 2.48 Gbit/s
copper
copper
Access Market Focus
Market Trends
Why We Win
Achievements in 2006
Summary
Table of Contents
Infineon has the most complete
Access portfolio in the industry.
ADSL2+
VDSL2
SHDSL
IP
Network
Processor
Line
Driver
Customer Benefits
simplified product development
low BoM and cost advantage
logistic advantage
fast roadmap path
DSL
Switch
VoIP
SLIC
HN
Portfolio
Why We Win
First to market
VDSL2
VINAX
First to market
TwinPass
First to market
Dual
Core
Architecture
Innovation and Time-to-Market
Why We Win
No Data Traffic 1 Mbit/s Download 8 Mbit/s Download 32 Mbit/s Download 4.5 5.0 2.0 1.0 3.0 4.0 4.5 5.0 2.0 1.0 3.0 4.0 4.5 5.0 2.0 1.0 3.0 4.0 4.5 5.0 2.0 1.0 3.0 4.0 Very Good Satisfying Acceptable Not Acceptable Theoretical maximum MOS value
(G.711 no impairment) System One
System Two (no G.729) System Three
Infineon System
MOS values not achievable with G.711
No call possible
Infineon’s VoIP solution stays at maximum quality over all speeds
Product Performance
Why We Win
Unique experience level
Customer presence
Optimized cost structure
Stability
Team Structure
Why We Win
1Y 3Y 5Y 7Y 9Y 11Y 13Y 15Y 17Y 19Y >20Y5000 MY
[years]Roadmap
Why We Win
Innovation
Innovation
ADSL2+
VoIP
VDSL2
AMAZON
DANUBE
VINAX-VE
VINAX
GPON
Home Networking
Forecast Ports worldwide [1000s unit]
