SYSTEMATIC 
GROWTH
Infineon Technologies AG
Annual Report 2014

Page 40
Page 46
INFINEON 
AT A GLANCE
AUTOMOTIVE
INDUSTRIAL 
POWER CONTROL
Applications
•  Chassis and comfort electronics
• Electric and hybrid vehicles
• Powertrain
• Safety
• Security
Product range
•  Microcontroller (8-bit, 16-bit, 32-bit) 
for automotive and industrial applications
• Software development platform DAVE™
• Discrete power semiconductors
• IGBT modules
• Voltage regulators
• Power ICs
• Bus interface devices (CAN, LIN, FlexRay)
• Magnetic and pressure sensors
• Wireless transmit and receive ICs (RF, radar)
Key customers  ¹
Autoliv / Bosch / Continental / Delphi / Denso / 
Hella / Hitachi / Hyundai / Lear / Mando / Mitsubishi / 
TRW / Valeo
Market position  ² 
2
with a market share of 9.6 %
Source: Strategy Analytics, April 2014
Applications
•  Charger station for electric vehicles
• Energy transmission and conversion
• Home appliances
• Industrial drives
• Industrial vehicles
• Renewable energy generation
• Traction
• Uninterruptable power supplies
Product range
•  IGBT module solutions including IGBT stacks
•  IGBT modules (high-power, medium-power, 
low-power)
• Discrete IGBTs
• Bare die business
• Driver ICs
Key customers  ¹
ABB / Alstom / Bombardier / CSR Times / Delta / 
Emerson / Goldwind / Rockwell / Schneider Electric / 
Semikron / Siemens / SMA Solar Technology / 
Tesla / Vestas
Market position  ² 
1
 with a market share of 12.3 % 
for discrete power semiconductors and modules
Source: IHS Inc., September 2014
1  In alphabetical order. Infineon’s major distributions customers are Arrow, Avnet, Beijing Jingchuan, Tomen and WPG Holding.
2  All figures for 2013 calendar year. The market share of the five largest competitors is shown in the “Market position” section of the relevant segment. 
The figures provided in those sections with respect to changes in market share relate to the 2012 and 2013 market share figures as calculated in 2014. 
Due to changes in the way the market is analyzed, these figures may differ from the 2012 market share figures reported in 2013.

INFINEON AT A GLANCE
Page 52
Page 58
Infineon Technologies AG, Neubiberg (Germany), offers semiconductor and system solutions addressing three 
central challenges to modern society: energy efficiency, mobility, and security. In the 2014 fiscal year (ending 
September 30), the Company reported revenues of 4.3 billion euros with approximately 29,800 employees 
worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the 
over-the-counter market OTCQX Inter  national Premier (ticker symbol: IFNNY).
POWER MANAGEMENT 
& MULTIMARKET
CHIP CARD 
& SECURITY
Applications
•  Cellular network infrastructure
• Lightmanagement and LED lighting systems
• Micro-inverter for photovoltaic rooftop systems
• Mobile devices
• Power supplies
Product range
•  Discrete low-voltage and high-voltage power transistors
• Driver ICs
• Control ICs
• RF power transistors
•  Small-signal components:
– TVS (Transient Voltage Suppressor) diodes
– LNAs (Low Noise Amplifiers) for satellite navigation
• CMOS RF switches for antenna modules
• Antenna tuning ICs
• MEMS and ASICs for silicon microphones
• Customized chips (ASICs)
Key customers  ¹
AAC / Artesyn / Dell / Delta / Emerson / Ericsson / 
Hewlett-Packard / Huawei / LG Electronics / Lite-On / 
Osram / Quanta / Samsung / Tridonic / ZTE
Market position  ² 
1
with a market share of 13.6 % 
standard MOSFET power transistors
Source: IHS Inc., September 2014
Applications
•  Authentication
• Government identification
• Health care cards
• Mobile communication
• Near Field Communication (NFC)
• Payment systems
• Ticketing, access control
• Trusted computing
Product range
•  contact-based security controllers
• contactless security controllers
•  Dual-interface security controllers 
(contact-based and contactless)
Key customers  ¹
Beijing Watch Data / Gemalto / Giesecke & Devrient /
Hewlett-Packard / Microsoft / Oberthur Technologies /
Safran Morpho / US Government Printing Office
Market position  ² 
2
 with a market share of 21.7 % 
for microcontroller-based chip card ICs
Source: IHS Inc., July 2014
P   An overview of our worldwide locations can be found on pages 112 and 113 in the chapter “Infineon worldwide”.

Infineon key data
As and for the fiscal years ended September 30 (under IFRS) ¹
Fiscal year from October 1 to September 30
2014
2013
2014/2013
 
€ in millions
in % of 
revenue
€ in millions
in % of 
revenue
Change
in %
Revenue by region
4,320 
 
3,843 
 
12 
Europe, Middle East, Africa
1,707 
39 
1,567 
41 
9 
 
Therein: Germany
859 
20 
795 
21 
8 
Asia-Pacific (w/o Japan)
1,845 
43 
1,560 
40 
18 
 
Therein: China
868 
20 
710 
18 
22 
Japan
284 
7 
227 
6 
25 
Americas
484 
11 
489 
13 
(1) 
 
 
 
 
 
 
Revenue by Segment
4,320 
 
3,843 
 
12 
Automotive
1,965 
45 
1,714 
44 
15 
Industrial Power Control
783 
18 
651 
17 
20 
Power Management & Multimarket
1,061 
25 
987 
26 
7 
Chip Card & Security
494 
11 
463 
12 
7 
Other Operating Segments
22 
1 
26 
1 
(15) 
Corporate and Eliminations
(5) 
0 
2 
0 
(350) 
 
 
 
 
 
 
Gross profit/Gross margin
1,647 
38.1 
1,323 
34.4 
24 
Research and development expenses
(550) 
12.7 
(525) 
13.7 
5 
Selling, general and administrative expenses
(496) 
11.5 
(440) 
11.4 
13 
Operating income
525 
 
325 
 
62 
Income from continuing operations 
488 
 
283 
 
72 
Gain (loss) from discontinued operations, net of income taxes 
47 
 
(11) 
 
527 
Net income 
535 
 
272 
 
97 
Segment Result/Segment Result Margin
620 
14.4 
377 
9.8 
64 
Property, plant and equipment
1,700 
 
1,600 
 
6 
Total assets
6,438 
 
5,905 
 
9 
Total equity
4,158 
 
3,776 
 
10 
Net cash provided by operating activities from continuing operations
988 
 
610 
 
62 
Net cash used in investing activities from continuing operations
(272) 
 
(328) 
 
17 
Net cash used in financing activities from continuing operations
(179) 
 
(165) 
 
(8) 
Free cash flow ²
317 
 
235 
 
35 
Depreciation and amortization
514 
 
466 
 
10 
Capital expenditure
668 
 
378 
 
77 
Gross cash position ³
2,418 
 
2,286 
 
6 
Net cash position ⁴
2,232 
 
1,983 
 
13 
Basic earnings per share in €
0.48 
 
0.25 
 
92 
Diluted earnings per share in €
0.48 
 
0.25 
 
92 
Dividend per share in € ⁵
0.18 
 
0.12 
 
50 
Equity ratio
64.6 %
 
63.9 %
 
1 
Return on equity ⁶
12.9 %
 
7.2 %
 
79 
Return on assets ⁷
8.3 %
 
4.6 %
 
80 
Inventory intensity ⁸
11.0 %
 
10.3 %
 
7 
Debt-to-equity ratio ⁹
4.5 %
 
8.0 %
 
(44) 
Debt-to-total-capital ratio ¹⁰
2.9 %
 
5.1 %
 
(43) 
Return on Capital Employed (RoCE) ¹¹
20.3 %
 
14.1 %
 
44 
 
 
 
 
 
 
Employees Infineon as of September 30
29,807 
 
26,725 
 
12 
 1 Columns may not add due to rounding.
 2 Free cash flow: for definition G  see glossary, page 275.
 3 Gross cash position: for definition G  see glossary, page 276.
 4 Net cash position: for definition G  see glossary, page 276.
 5 A dividend per share of €0.18 for the 2014 fiscal year will be proposed to the Annual General Meeting on February 12, 2015.
 6 Return on equity = net income divided by total equity.
 7 Return on assets = net income divided by total assets.
 8 Inventory intensity = inventories (net) divided by total assets.
 9 Debt-to-equity ratio = long-term and short-term debt divided by total equity.
10 Debt-to-total-capital ratio = long-term and short-term debt divided by total assets.
11 Return on Capital Employed (RoCE): for definition G  see glossary, page 276.
INFINEON AT A GLANCE

Whatever we do, we do it systematically:
We are well positioned in markets that promise continued 
growth: energy efficiency, mobility and security.
Our strategic approach “Product to System” additionally 
enhances our ability to leverage our comprehensive 
technology and product expertise in key markets.
Increasingly efficient capacity utilization at our 300-millimeter 
manufacturing sites will lead to cost advantages.
The planned acquisition of International Rectifier represents 
an excellent strategic fit.
In addition to achieving our economic targets, sustainability 
is key to the way we run the business. 
We propose to raise the dividend from 12 to 18 cents.
These points embody the motto of this report:
The title page shows a 400x enlargement of a micromechanical transducer in a silicon microphone. 
Microphones of this type are used in applications such as smartphones.
Microscopic holes ten thousandths of a millimeter in diameter are etched in the upper signal electrode 
to enable the undamped oscillation of the membrane below. Bonding pads located top right are 
used to connect the signal electrode and the membrane.
You can find out more about our silicon microphones on page 56.
SYSTEMATIC GROWTH

Combined Reporting
This combined report documents Infineon’s economic, ecological and social performance 
during the 2014 fiscal year. In addition to providing a description of financial developments, 
we also wish to demonstrate how sustainability contributes to Infineon’s success and how 
our activities in this area create value for all of our stakeholders.
The reporting period covers the 2014 fiscal year – from October 1, 2013 to September 30, 2014. 
This report is published annually; the previous report was published in November 2013. 
Unless otherwise stated, the key performance figures and other disclosures contained in this 
report relate to the 2014 fiscal year.
In order to help readers identify and interpret trends relating to quantitative disclosures, 
the report includes data for at least the last two years.
 
G 01
Combined Reporting
Finanzielle 
Berichterstattung
Nachhaltige 
Berichterstattung
Sustainability
Reporting
Financial 
Reporting
 ABOUT THIS REPORT
2
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
 ABOUT THIS REPORT

Notes to the Consolidated Financial Statements and Group Management Report
The Consolidated Financial Statements have been prepared in accordance with International 
Financial Reporting Standards (“IFRS”). 
The Group Management Report has been prepared in accordance with sections 315 and 
315a of the German Commercial Code (“HGB”) and in accordance with German Accounting 
Standard (“DRS”) 20. Disclosures with respect to the compensation of members of the 
Management Board are provided in accordance with DRS 17 (which sets out the requirements 
for reporting on the remuneration of members of governing bodies) and in addition based 
on the model tables recommended by the German Corporate Governance Code. 
KPMG AG Wirtschaftsprüfungsgesellschaft, Munich, has audited the Consolidated Financial 
Statements prepared in accordance with IFRS and the Group Management Report for the 
fiscal year ended September 30, 2014 and has issued an unqualified audit opinion thereon.
Sustainability Reporting 
The non-financial performance figures and other disclosures contained in this combined 
report have been prepared on the basis of the G3.1 Guidelines of the Global Reporting 
Initiative (“GRI”) and can be found in the Group Management Report. The GRI has confirmed 
that this report fulfills the requirements at the Application Level B+.
The information contained in the Infineon Annual Report 2014 also serves as “Communication 
on Progress” for the United Nations Global Compact. 
Infineon engages in continuous dialog with its stakeholders. We assess sustainability topics 
on the basis of a materiality analysis, the results of which are used to identify and prioritize 
topics for inclusion in this report. The topics resulting from the analysis can be found in the 
chapter “Sustainability at Infineon”.
In addition to the statutory audit of the Group Management Report, KPMG AG Wirtschafts­
prüfungsgesellschaft, Munich, has provided independent assurance (“limited assurance”) on 
the sustainability performance information provided in the chapter “Sustainability at Infineon” 
in accordance with the International Standard for Assurance Engagements ISAE 3000 and 
ISAE 3410, the pertinent standards for assuring sustainability information.
The Independent Assurance Report issued by KPMG AG Wirtschaftsprüfungsgesellschaft, 
Munich, as well as the explanatory notes to the key performance figures and other disclosures 
provided in the chapter “Sustainability at Infineon” of the Annual Report 2014 can be found 
on Infineon’s website.
P   see page 271
P   see page 288
P   see page 83
P   see page 82 ff.
@ www.infineon.com/csr_reporting
3
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
ABOUT THIS REPORT ﻿

6	 Management Board and Supervisory Board
    6	
LETTER TO SHAREHOLDERS
  10	
THE MANAGEMENT BOARD
  12	
REPORT OF THE SUPERVISORY BOARD TO THE ANNUAL GENERAL MEETING
GROUP
MANAGEMENT REPORT
  20	 The Infineon Group
  22	
FINANCES AND STRATEGY
	
23  Strong 2014 fiscal year
	
26  Group strategy
  38	
THE SEGMENTS
	
40  Automotive
	
46  Industrial Power Control
	
52  Power Management & Multimarket
	
58  Chip Card & Security
  64	
RESEARCH & DEVELOPMENT
  72	
OPERATIONS
  76	
R&D AND MANUFACTURING SITES
  78	
INTERNAL MANAGEMENT SYSTEM
  82	
SUSTAINABILITY AT INFINEON
  96	
OUR EMPLOYEES
104	
NOTABLE EVENTS 2014
106	
THE INFINEON SHARE
110	
AWARDS
112	
INFINEON WORLDWIDE	
CONTENT
4
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONTENT

114	 Our 2014 fiscal year
116	
GROUP PERFORMANCE
	
116  Review of results of operations
	
123  Review of financial condition
	
126  Review of liquidity
130	
REPORT ON EXPECTED DEVELOPMENTS, TOGETHER WITH 
ASSOCIATED MATERIAL RISKS AND OPPORTUNITIES
	
130  Outlook
	
137  Risk and opportunity report
149	
TREASURY AND CAPITAL REQUIREMENTS
154	
OVERALL STATEMENT OF THE MANAGEMENT BOARD WITH RESPECT TO 
INFINEON’S FINANCIAL CONDITION AS OF THE DATE OF THIS REPORT
156	
INFINEON TECHNOLOGIES AG
159	
SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD
160	
CORPORATE GOVERNANCE
	
160  Information pursuant to section 289, paragraph 4, and 
section 315, paragraph 4, of the German Commercial Code (HGB)
	
167  Corporate Governance Report
	
177  Compensation Report
CONSOLIDATED 
FINANCIAL STATEMENTS
194 	
CONSOLIDATED STATEMENT OF OPERATIONS
195	
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
196	
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
198	
CONSOLIDATED STATEMENT OF CASH FLOWS
200	
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
202	
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
270	 Further Information
270	
RESPONSIBILITY STATEMENT BY THE MANAGEMENT BOARD
271	
AUDITOR’S REPORT
272	
FINANCIAL DATA 2010 – 2014
274	
LIST OF GRAPHICS
275	
FINANCIAL GLOSSARY
277	
TECHNOLOGY GLOSSARY
284	
MEMBERSHIPS AND PARTNERSHIPS
285	
GRI INDEX
288	
GRI CERTIFICATE
289	
FINANCIAL CALENDAR
289	
IMPRINT
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Content
5

The 2014 fiscal year was a highly successful one for Infineon. First, this is evidenced by our 
financial performance indicators. Revenue grew by 12 percent, the Segment Result jumped by 
64 percent, the share price rose by 11 percent and the dividend – based on the proposal of the 
Management Board and the Supervisory Board – is set to increase from 12 cents to 18 cents 
per share. Perhaps even more important evidence lies in the fact that we are beginning to reap 
the benefits of the strategic groundwork laid in recent years. With growing capacity utilization 
levels at our 300-millimeter manufacturing facilities, we will benefit greatly from economies of 
scale and therefore significantly reduce unit costs. In addition our strategic approach “Product 
to System” is helping us generate economies of scope from our considerable technological 
and product expertise and develop the right technologies for the needs of today, tomorrow 
and beyond. Furthermore, the upcoming acquisition of International Rectifier adds additional 
impetus to both of these approaches, while at the same time leveraging the financial flexibil­
ity made possible by our healthy balance sheet. Thus, at Infineon, we are committed to 
“Systematic Growth” in a whole host of ways. 
Systematic growth
What precisely do we mean by “systematic growth” ?
This means being present systematically in the markets that promise us good growth 
opportunities. We provide solutions to the challenges arising from key global issues – energy 
efficiency, mobility and security – all of which are generating unabated demand for our 
products. The main competitive factors are the ability to deliver technologically outstanding 
products and to achieve the right price/performance ratio for the customers, which suits a 
company like Infineon with its high degree of innovative strength and technological expertise.
Neubiberg, November 2014
LETTER TO SHAREHOLDERS
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
MANAGEMENT BOARD AND SUPERVISORY BOARD
6

“Systematic growth” also includes our systematic commitment to 300-millimeter technology 
for manufacturing, despite the continued need for a high level of upfront investment. Once 
we will have reached full capacity utilization, our product unit costs will be 20 to 30 percent 
below those of the previously mainstream 200-millimeter wafers. It makes strategic sense for 
us to push ahead with this manufacturing technology, as so far we are the only manufacturer 
with the technological expertise to implement it. Even more important, however, is that we 
alone have the manufacturing volume for power semiconductors needed to ramp a plant such 
as our 300-millimeter facility in Dresden (Germany) at sufficient speed to make it cost-efficient 
and earn an attractive Return on Capital Employed. Volume production has now started and 
the key technologies have received the necessary customer approvals. Even if reaching full 
capacity utilization will still take several years, we will be able to take full advantage of the 
cost benefits of this technology. We are just beginning to drive these economies of scale.
“Systematic growth” is also a key factor in Infineon’s research and development activities, 
where we are applying our strategic approach “Product to System”. Thinking in terms of system 
helps us understand the factors that fuel the success of our customers and their markets, and 
enables us to generate added value as well as identify new market trends at an early stage. 
“Product to System” allows us to apply our extensive product and process technologies more 
effectively across our markets. We can help our customers solve their problems and suggest 
solutions that can make them even more successful. The needs of each customer and market 
differ: greater efficiency, lower costs, shorter development times or completely different 
approaches to finding solutions. “Product to System” is the strategic radar we employ to improve 
existing products and engage in markets with entirely new product requirements. With this 
approach, we develop innovative products with sustainable competitive advantages or con­
nect various components from our technology portfolio to pave the way for new solutions – 
flexibly and purposefully – with little additional expense. Thus we not only create added 
value for our customers, but also generate an adequate margin for our business. This is how 
we achieve economies of scope.
DR. REINHARD PLOSS, Chief Executive Officer
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Letter to shareholders
7

The contract signed on August 20, 2014 to acquire the US semiconductor manufacturer, 
International Rectifier, perfectly complements our overall strategy. After completion of the 
planned acquisition, we will transfer production of some of International Rectifier’s products to 
our own plants, in particular to our 300-millimeter facilities in Dresden (Germany) and Villach 
(Austria). The additional production volume will enable us to reach certain unit-cost milestones 
earlier than would have been possible otherwise. The products of both entities will become 
more competitive as a result of achieving these economies of scale. In addition, International 
Rectifier’s strengths lie mainly in the processes, products, regions and distribution channels 
in which we tend to be less represented. Combining the strengths of International Rectifier 
systematically with our own, we are set to achieve further economies of scope.
All of these factors give us good reason for continued confidence. On average, we intend to 
grow at an annual rate of 8 percent over the cycle, thereby generating a Segment Result Margin 
of 15 percent – quite systematically.
Running the business on a sustainable basis
In addition to “systematic growth” in revenue and earnings, we also systematically reflect on 
how to operate our business on a sustainable basis. We see sustainability as leaving behind a 
world worth living in – for our children and our grandchildren. Thus, sustainability is as much 
at the center of our actions as achieving economic targets. For example, our products and 
innovations give rise to a saving of around 14.4 million metric tons of CO2 during the life cycle 
of an application – a considerable net reduction beyond the CO2 emissions generated during 
the manufacture of these products. In recognition of our efforts, in the 2014 fiscal year we were 
listed in the prestigious Dow Jones Sustainability Index for the fifth year in succession. 
Our thanks to Infineon’s employees
Together we have made remarkable achievements in the past few years. We have increased 
revenue and earnings, brought 300-millimeter technology to the market and raised Infineon to 
a new level with our strategic approach “Product to System”. All of this was achieved by the 
employees at Infineon. The Management Board wishes to express its wholehearted thanks to you 
all. In the coming years we will be reaping the benefits of the groundwork laid for 300-millimeter 
technology and “Product to System” and we add to our strength by integrating International 
Rectifier into the Infineon family. In order to do so, we continue to rely on the motivation, 
dependability and skills of our workforce. 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
MANAGEMENT BOARD AND SUPERVISORY BOARD
8

Expectations for the 2015 fiscal year
What awaits us in the 2015 fiscal year? Orders received and order backlog developed well 
during the 2014 fiscal year. Business will, however, be affected by the usual seasonal slowdown 
at the beginning of the fiscal year. If the underlying sentiment in the global economy remains 
positive, we expect – based on an assumed exchange rate of US$1.30 to the euro – year-on-year 
revenue growth in the current fiscal year of 8 percent, plus or minus 2 percentage points. For 
the mid-point in this range, we forecast a Segment Result Margin of approximately 14 percent. 
This does not take into account any additional contributions to revenue and earnings from 
International Rectifier following the acquisition, probably at the end of the 2014 calendar year 
or at the beginning of 2015. We hope that all of you will accompany us on this journey.
Dr. Reinhard Ploss
Chief Executive Officer
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Letter to shareholders
9

THE MANAGEMENT BOARD
DR. REINHARD PLOSS
Chief Executive Officer (CEO), 
Labor Director
Doctorate in chemical ­engineering (Dr.-Ing.); ­
Member of the Management Board 
since June 2007
ARUNJAI MITTAL
Member of the Management Board, Regions, 
Sales, Marketing, Strategy Development and M&A
Studies in electrical ­engineering at 
Shivaji University, Kohlapur, India (Dipl.-Ing.); 
Member of the Management Board 
since January 2012
DOMINIK ASAM
Chief Financial Officer (CFO)
Mechanical engineer (Dipl.-Ing.), 
Master of Business Administration (MBA); 
Member of the Management Board 
since January 2011 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
MANAGEMENT BOARD AND SUPERVISORY BOARD
10

» The integration of International Rectifier will bring together 
the combined forces of two successful companies and enable 
us to extend our competitive lead.  «
 
  ARUNJAI MITTAL
» Our strategic approach “Product to System” is proving 
its worth. We are making our customers more successful 
and are developing the right technologies for today, 
tomorrow and beyond.  «
 
  DR. REINHARD PLOSS
» We are now reaping the benefits of the strategic groundwork 
performed in recent years and are generating sustainable, 
profitable, systematic growth.  «
 
  DOMINIK ASAM
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
The Management Board
11

The 2014 fiscal year was once again a highly successful one for Infineon. Under the three 
banners of energy efficiency, mobility and security, Infineon’s focus of activities remains very 
much on the key trends shaping the future. With unwavering innovative strength, Infineon is 
serving these trends and remains firmly on track for sustainable growth. This strategy benefits 
not only Infineon’s customers and employees, but also you as its shareholders. Indeed, 
Infineon’s inclusion in the Dow Jones Sustainability Index for the fifth year in succession 
demonstrates that economic success and growth on the one hand and sustainability on the 
other are eminently compatible aims – a further trend which Infineon is not only following, 
but also playing a decisive role in shaping. 
During the year under report, the Supervisory Board again performed all of the duties incumbent 
upon it, in a highly conscientious manner and in accordance with the law, the Company’s 
statutes, and its own terms of reference. It assisted the Management Board in an advisory 
capacity, continually monitoring its governance of the enterprise. At the ordinary meetings 
of the Supervisory Board and its committees, the Management Board reported in depth on 
Infineon’s financial condition and business performance. The Management Board discussed 
strategies and any major specific measures with the Supervisory Board. Legal transactions 
requiring approval were submitted to the Supervisory Board, the most important of these, of 
course, being the acquisition of International Rectifier. The Supervisory Board was always 
given ample opportunity to thoroughly examine any reports and resolutions proposed by the 
Management Board. In this context, it undertook the measures necessary to assure itself that 
the governance of Infineon’s affairs was lawful, compliant and appropriate. 
The Supervisory Board was regularly informed by means of written quarterly reports on 
topics that included business performance in the previous quarter, financial data, risks and 
oppor­tunities, significant issues and major areas of litigation. Between quarterly reports, 
the Management Board also informed the Supervisory Board of current developments in the 
form of reports presented on a monthly basis. 
The Chairman of the Supervisory Board, the Chairman of the Investment, Finance and Audit 
Committee and the Chairwoman of the Strategy and Technology Committee were in continual 
contact with the Management Board. In addition, the Chairman of the Supervisory Board was 
informed by the Chief Executive Officer without delay of any events of significance to Infineon. 
REPORT OF THE 
SUPERVISORY BOARD TO THE 
ANNUAL GENERAL MEETING
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
MANAGEMENT BOARD AND SUPERVISORY BOARD
12

Main activities of the Supervisory Board 
The full Supervisory Board held five ordinary meetings and three extraordinary meetings 
during the 2014 fiscal year. The ordinary meetings were attended by all members of the 
Supervisory Board. One shareholder representative was unable to participate in two of the 
three extrordinary meetings, which were held in the form of telephone conferences, and was 
excused accordingly. Attendance at the meetings of the full Supervisory Board was therefore 
at a level of 97.9 percent. The Supervisory Board committee meetings were in each case 
attended by all their respective members.
Current situation, business performance and strategy 
The Management Board reported regularly to the Supervisory Board on Infineon’s current 
situation, particularly the market situation, significant transactions and key financial perfor­
mance indicators. It also provided in-depth assessments of Infineon’s business performance. 
The Supervisory Board was also kept up to date regarding production capacity utilization 
issues as well as current and planned investments. Infineon’s financial and investment budget 
(including the overall investment budget) for the 2014 fiscal year, as presented by the Manage­
ment Board, was approved at the Supervisory Board meeting held on November 19, 2013 
and a borrowing limit was set.
Even though the various facets of business strategy are a regular item on the agenda for its 
meetings, the Supervisory Board sets great store in dealing once a year – exclusively and 
in-depth – with strategic aspects. At the meeting held on August 4, 2014, detailed discussions 
were therefore held on Infineon’s future – ranging from general trends in its business segments, 
specific growth potential in new markets through to the implementation of the strategic 
approach “Product to System”. 
WOLFGANG MAYRHUBER, Chairman of the Supervisory Board
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Report of the Supervisory Board to the Annual General Meeting
13

The strategic discussions conducted by the Management Board and the Supervisory Board 
included, as usual, the question of the extent to which, alongside organic growth, acquisition 
and participation in other business entities could constitute an appropriate instrument to 
implement Infineon’s strategy. These discussions were stepped up during the 2014 fiscal year 
and various acquisition opportunities carefully analyzed by the Management Board. During 
several Supervisory Board meetings, the Management Board reported on its findings and 
the progress in discussions. These finally led to the Management Board deciding in favor of a 
takeover of the US semiconductor manufacturer International Rectifier. During various Super­
visory Board meetings, detailed reports were given on this plan and its inherent opportunities 
and risks, and explanations provided on why the acquisition is a logical step for Infineon 
and its shareholders. The Supervisory Board shares the opinion of the Management Board 
that the takeover of International Rectifier will boost Infineon’s competitiveness. It therefore 
approved the acquisition plan at an extraordinary meeting held on August 19, 2014. 
Capital repayment and dividend strategy
Both the Supervisory Board and the Management Board are convinced that the shareholders, 
as owners of Infineon, should participate appropriately in its economic success. Against this 
background, the Supervisory Board approved the new capital repayment program during the 
year under report. It also supports the Management Board’s dividend strategy, based on a 
future lower investment intensity and which already envisages payment of a higher dividend 
for the 2014 fiscal year than in previous years. 
Personnel matters
At its meeting on February 13, 2014, the Supervisory Board decided to extend Mr. Mittal’s first 
term of office as member of the Management Board by five years, and, accordingly, to extend 
his service contract through December 31, 2019.
Moreover, the Supervisory Board reached agreement in spring that Dr. Ploss’ term of office as 
member of the Management Board, Chief Executive Officer and Labor Director – due to expire on 
September 30, 2015 – should be extended by five years, and hence through September 30, 2020, 
and that his service contract should be extended accordingly. The formal resolution to this 
end was passed at the Supervisory Board meeting held on November 17, 2014. 
These two personnel decisions were taken by the Supervisory Board in consideration of the 
outstanding work of Dr. Ploss and Mr. Mittal on Infineon’s Management Board and reflect our 
commitment to continuity. 
Management Board compensation
The German Corporate Governance Code (Deutscher Corporate Governance Kodex) recom­
mends that the Management Board compensation system should be subject to regular review. 
This review was last conducted during the 2012 fiscal year. During the year under report, the 
Supervisory Board again assigned the task of reviewing Infineon’s compensation system to an 
independent external compensation expert. The review was set in motion at the beginning of 
the 2014 fiscal year with the identification of a so-called “peer group”. Companies comparable 
to Infineon were selected, thus providing a basis for assessing whether the compensation of 
the Infineon Management Board is consistent with current market practice. The Executive 
Committee dealt with this aspect of the review during its meetings held on October 28, 2013 and 
on April 23, 2014. The actual assessment of appropriateness was then performed on this basis. 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
MANAGEMENT BOARD AND SUPERVISORY BOARD
14

The compensation expert came to the conclusion that the compensation system complies 
with both the legal requirements and the recommendations set out in the Code. In particular, 
it was concluded that the Management Board compensation is commensurate with market 
conditions and appropriate and that the variable compensation is oriented toward sustainable 
growth of the enterprise. The results of the compensation expert’s review, presented in a final 
report in autumn, were then discussed in detail during the Executive Committee meeting held 
on October 23, 2014 and by the full Supervisory Board on November 17, 2014. The Supervisory 
Board concurs with the opinion of the compensation expert.
In addition to the Management Board compensation system, the Supervisory Board also reg­
ularly reviews the target annual incomes of the individual active members of the Management 
Board. This review, which was conducted in spring 2014, concluded that – in comparison with 
other enterprises – there is a need for action. In reaching this conclusion, the Supervisory Board 
also considered the provisional results of the external compensation expert’s review of the 
Management Board compensation, which was still in progress at that time. At its meeting held 
on May 6, 2014, the Supervisory Board decided on a moderate increase to the Management 
Board compensation as of October 1, 2014. The aforementioned final report of the compen­
sation expert, presented in autumn, takes this increase into account and therefore confirmed 
its appropriateness.
Detailed information concerning the Management Board’s compensation is provided in the 
Compensation Report. 
Litigation
The Supervisory Board was kept well informed of the progress of major legal disputes during 
the 2014 fiscal year, consulting with the Management Board and deliberating internally about 
subsequent strategy. The principal matters to be dealt with were the antitrust proceedings 
instigated by the EU Commission against Infineon and other chip card manufacturers and 
disputes with the insolvency administrator managing the assets of Qimonda AG. During an 
extraordinary meeting held on September 8, 2014, the Supervisory Board discussed in detail 
a partial settlement negotiated between Infineon and the insolvency administrator to settle 
all litigation – with the exception of the pending court proceedings on the activation of a shell 
company and the liability for impairment of capital – and the acquisition of all patents 
belonging to Qimonda AG, and gave its approval to this. 
Corporate governance
The Supervisory Board continues to follow closely the development of corporate governance 
standards within Infineon, focusing in particular on the implementation of the recommenda­
tions of the German Corporate Governance Code.
Declaration of Compliance 2014
The Supervisory Board and the Management Board decided to issue the 2014 Declaration of 
Compliance – as in the two previous years – with a deviation from the Code’s recommendation 
with respect to Supervisory Board compensation. The two boards continue to consider that 
the compensation regulation resolved at the Annual General Meeting adequately takes account 
of Infineon’s long-term success. With the exception of the recommendation with respect to 
Supervisory Board compensation, Infineon complies with all recommendations contained 
in the Code. The most recent Declaration of Compliance was published on the Company’s 
website in November 2014. 
P   see page 177 ff.
@ www.infineon.com/cms/en/ 
about-infineon/investor/ 
corporate-governance/ 
declaration-of-compliance/
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Report of the Supervisory Board to the Annual General Meeting
15

Efficiency review for Supervisory Board activities
The Supervisory Board reviews the efficiency of its work once a year, including the efficiency 
of its interaction with the Management Board. The latest efficiency review took place in 
summer 2014. The members of the Supervisory Board were requested to complete a ques­
tionnaire, which had proven its worth in the previous reviews, to provide critical feedback 
on their work and the level of cooperation between the two boards. The results of this survey 
were subsequently discussed at the meeting of the Supervisory Board on August 5, 2014. 
No significant shortcomings were identified.
Potential conflicts of interest
No conflicts of interest arose among the members of either the Management Board or the 
Supervisory Board in the 2014 fiscal year. Nevertheless, brief reference is made to the follow­
ing facts: 
In 2010, a contract was concluded with the Technical University of Munich (in this instance the 
chair held by Prof. Dr. Schmitt-Landsiedel) on development services for the Automotive segment. 
Under the German Stock Corporation Act (Aktiengesetz), service and work contracts between 
the company and a member of the Supervisory Board require the approval of the Supervisory 
Board. Even though the contract to which reference is made was not concluded with Prof. Dr. 
Schmitt-Landsiedel personally, the Supervisory Board approved the contract as a precaution. 
The contract expired at the end of September 2013. At its meeting of May 6, 2014, the Super­
visory Board gave its agreement to the continuation of cooperation arrangements. 
In 2011, a consultancy contract was concluded with former member of the Supervisory Board 
Prof. Dr. Wucherer. The advisory mandate ended on December 31, 2013. 
The German Corporate Governance Code requires prior approval to be given by the Supervisory 
Board before members of the Management Board take on mandates on external supervisory 
boards. In the year under report, the Supervisory Board gave its approval to Mr. Mittal’s mandate 
on the supervisory board of tesa SE. Conflicts with Infineon’s interests do not arise from hold­
ing this mandate. 
Other comments relating to corporate governance at Infineon can be found in the Corporate 
Governance Report issued jointly by the two boards. 
Composition of the Supervisory Board
During the year under report, changes were made to the composition of the Supervisory 
Board. Mr. Eibl, who as employee representative was already a member of the Supervisory 
Board since the beginning of 2000, retired at the close of March 31, 2014 and therefore also 
resigned from the Supervisory Board. The Supervisory Board would like to express its thanks 
to Mr. Eibl for his many years of committed, constructive cooperation and wishes him all the 
best for this new stage in his life.
As employee-elected alternate member, Mr. Gottinger has automatically succeeded Mr. Eibl 
on the Supervisory Board. The Supervisory Board elected Mr. Gottinger to the Strategy and 
Technology Committee and Mr. Scholz to the Mediation Committee to fill the vacant positions 
on these committees resulting from Mr. Eibl’s retirement.
P   see page 167 ff. 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
MANAGEMENT BOARD AND SUPERVISORY BOARD
16

Report on the work of the Supervisory Board’s committees
As in the previous fiscal year, the Supervisory Board has five committees. The first two of these 
are the Nomination Committee and the Mediation Committee pursuant to section 27, para­
graph 3 of the German Co-Determination Act. The remaining committees are the Executive 
Committee, the Investment, Finance and Audit Committee, and the Strategy and Technology 
Committee. The committees draw up resolutions or prepare topics that are required to be 
dealt with by the full Supervisory Board. Certain decision-making powers have been delegated 
to committees to the extent permitted under German law. The chairpersons of each committee 
routinely report on committee meetings at the next relevant full Supervisory Board meeting.
All Supervisory Board committees have an equal number of employee representatives and 
shareholder representatives, with the exception of the Nomination Committee, which consists 
exclusively of shareholder representatives. Mr. Mayrhuber remains Chairman of the Nomination 
Committee, the Mediation Committee and the Executive Committee, and Dr. Sünner Chairman 
of the Investment, Finance and Audit Committee. Prof. Dr. Schmitt-Landsiedel continues to serve 
as Chairwoman of the Strategy and Technology Committee.
Nomination and Mediation Committee
The Nomination Committee convened once during the year under report in order to discuss 
the election of the shareholder representatives to be held at the 2015 Annual General Meeting 
and the nominations necessary for this purpose. It was also necessary to take account of the 
fact that the Supervisory Board will in future be increased from 12 to 16 members. The under­
lying reason is the growth in size of the workforce at Infineon’s German companies to over 
10,000 employees on average: In this case, the German Co-Determination Act requires the 
Supervisory Board to be composed of 16 members. 
The Mediation Committee did not need to convene.
Executive Committee
The Executive Committee convened for one ordinary and two extraordinary meetings during 
the year under report, with both of the extraordinary meetings taking place in the form of 
telephone conferences. 
The focus of meetings was on preparing the resolutions relating to Management Board com­
pensation, namely the assessment of appropriateness on the one hand and the increase in 
the compensation of the active members on the other. 
The committee also drew up resolutions for the full Supervisory Board with respect to the 
extension of Mr. Mittal’s term of office and the intended extension of Dr. Ploss’ term of office on 
the Management Board and to determining the level of variable compensation to be given to 
the members of the Management Board. Important aspects of this work were to determine 
the degree to which targets for the 2013 fiscal year were achieved and to set new target levels 
for the 2014 fiscal year.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Report of the Supervisory Board to the Annual General Meeting
17

Investment, Finance and Audit Committee
The Investment, Finance and Audit Committee convened four times during the year under report. 
Its activities centered on monitoring the financial reporting process, reviewing the half-year and 
quarterly financial statements, conducting the preliminary audit of the separate financial state­
ments, consolidated financial statements and Management Report of Infineon Technologies AG 
and of the Infineon Group, and discussing the audit report with the auditor. Another important 
task was to examine and discuss Infineon’s financial and investment plans and to set a borrowing 
limit for the 2014 fiscal year. The committee also considered the effectiveness of the internal 
control system, internal audit system and risk management system. The Compliance Officer 
reported regularly to members of the committee. The committee was also kept informed about 
significant litigation matters, in particular with regard to the antitrust proceedings instigated 
by the EU Commission against Infineon and other chip card manufacturers and the disputes 
with the insolvency administrator managing the assets of Qimonda AG.
Other duties performed by the committee included specifying key areas to be examined by 
the external auditor, monitoring the auditor’s independence and considering the additional 
services performed by the auditor. The committee prepared the Supervisory Board’s proposal 
to the Annual General Meeting regarding the selection of the auditor to audit the separate and 
consolidated financial statements and to review the half-year financial statements. It subse­
quently engaged the auditor to perform these tasks and, in addition, to review the quarterly 
financial statements. The relevant fee arrangements were also considered. 
The auditor attended all of the meetings of the Investment, Finance and Audit Committee and 
reported in detail on its audit activities.
Strategy and Technology Committee
The Strategy and Technology Committee convened three times during the period under report.
The committee received detailed reports with respect to the Automotive and Industrial Power 
Control segments. It also looked in depth at technological and manufacturing strategies as 
well as at the corresponding roadmaps. The committee also considered a host of other issues, 
such as recruitment at Infineon.
Company and Consolidated Financial Statements
KPMG AG Wirtschaftsprüfungsgesellschaft, Munich, audited the separate financial statements of 
Infineon Technologies AG and the consolidated financial statements as of September 30, 2014 
as well as the Management Report of Infineon Technologies AG and that of the Infineon Group 
and issued unqualified audit opinions. The half-yearly and quarterly financial reports were 
subjected to a review by KPMG. 
The separate financial statements, the consolidated financial statements prepared in 
accordance with IFRS, the Management Report and the Management Board’s proposal for the 
appropriation of unappropriated profit – all prepared by the Management Board – and the 
long-form reports prepared by KPMG pertaining to the audits of the separate financial state­
ments, the consolidated financial statements, and the Management Report, were discussed 
thoroughly with KPMG at the meeting of the Investment, Finance and Audit Committee held 
on November 11, 2014. At the meeting, the aforementioned committee resolved to propose 
approving the two sets of financial statements by the Supervisory Board. 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
MANAGEMENT BOARD AND SUPERVISORY BOARD
18

The Chairman of the Investment, Finance and Audit Committee reported on the committee’s 
recommendations at the meeting of the Supervisory Board held on November 17, 2014. At the 
meeting of the Supervisory Board held on November 26, 2014, the financial statements were 
examined thoroughly in the presence of the auditor and scrutinized by the Supervisory Board 
to ensure, in particular, that they were lawful, compliant and adequate.
At the aforementioned Supervisory Board meeting, the scope, key areas and cost of the audit 
were also reported on, and the risk management system was explained. The Management 
Report of Infineon Technologies AG as well as that of the Infineon Group were also examined 
and found, in the opinion of the Supervisory Board, to be consistent with legal requirements. 
The Supervisory Board concurs with the statements on Infineon’s future development. The 
Supervisory Board has examined and endorses the Management Board’s proposal for the appro­
priation of unappropriated profit, which provides for a dividend of €0.18 per qualifying share. 
The result of the audit is that the Supervisory Board has no objections to the financial state­
ments and the audit performed by the auditor. The Supervisory Board therefore concurred 
with the results of the audit on November 26, 2014 and approved the separate and consolidated 
financial statements of Infineon Technologies AG as well as those of the Infineon Group. The 
separate financial statements have thus been adopted.
The Supervisory Board would like to express its thanks to the Management Board and to the 
entire staff for their outstanding commitment and excellent achievements in the 2014 fiscal 
year and to the employee representatives for their valued cooperation. 
Neubiberg, November 2014
On behalf of the Supervisory Board
Wolfgang Mayrhuber
Chairman of the Supervisory Board
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Report of the Supervisory Board to the Annual General Meeting
19

This report combines the Group Management Report of the Infineon 
Group (“Infineon” or “Group”), comprising Infineon Technologies AG 
(or “the Company”) and its consolidated subsidiaries, and the 
Management Report of Infineon Technologies AG. It should be read 
in conjunction with the audited Consolidated Financial Statements, 
including the information provided in the Notes to the Consolidated 
Financial Statements, which appear elsewhere in this Annual Report. 
The Consolidated Financial Statements have been prepared on the 
basis of a number of accounting policies and assumptions more fully 
explained in note 1 (Basis of Preparation) and note 2 (Summary of 
Significant Accounting Policies) to the Consolidated Financial State­
ments. The Group Management Report contains forward-looking 
statements about the business, financial performance and earnings 
performance of the Infineon Group. These statements are based on 
assumptions and projections which reflect currently available infor­
mation and present estimates. They are subject to a wide range of 
uncertainties and risks. Actual business developments may therefore 
differ materially from what has been expected. Beyond disclosure 
requirements stipulated by law, Infineon does not undertake any 
obligation to update forward-looking statements.
GROUP 
MANAGEMENT
REPORT
The Infineon Group
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
20

GROUP MANAGEMENT REPORT
The Infineon Group
→
GROUP MANAGEMENT REPORT
Our 2014 fiscal year
→
CONSOLIDATED
FINANCIAL STATEMENTS
→
  22	
FINANCES AND STRATEGY
	
23  Strong 2014 fiscal year
	
26  Group strategy
  38	
THE SEGMENTS
	
40  Automotive
	
46  Industrial Power Control
	
52  Power Management & Multimarket
	
58  Chip Card & Security 
  64	
RESEARCH & DEVELOPMENT
  72	
OPERATIONS
  76	
R&D AND MANUFACTURING SITES
  78	
INTERNAL MANAGEMENT SYSTEM
  82	
SUSTAINABILITY AT INFINEON
  96	
OUR EMPLOYEES
104	
NOTABLE EVENTS 2014
106	
THE INFINEON SHARE
110	
AWARDS
112	
INFINEON WORLDWIDE
21
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP

The expected reduced investments in proportion to revenue 
allow for a proposal of a dividend of €0.18 per share to the 
Annual General Meeting for the 2014 fiscal year.
Dividend per share for the fiscal years 2010 to 2014 
in €-cent
10
2010
2011
2012
2013
2014
12
12
12
18*
FINANCES AND STRATEGY 
* proposal
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
22

Revenue and Segment Result exceed expectations
Capital returns: €164 million returned or distributed to 
capital markets in the 2014 fiscal year
Lower capital intensity enables payment of significantly 
higher dividend for the 2014 fiscal year
Revenue and earnings better than originally expected
At the beginning of the 2014 fiscal year, based on an assumed exchange rate of US$1.35 to 
the euro, Infineon forecast a rise in revenue of between 7 and 11 percent compared with 
the previous year. Despite a slight fall in segment revenue in the first quarter compared to the 
fourth quarter of the 2013 fiscal year, all segments were able to increase revenue over the 
course of the 2014 fiscal year. Actual revenue was slightly higher than forecast, thanks in 
particular to the strong performances of the Automotive and Industrial Power Control 
segments. Overall, revenue of €4,320 million was recorded for the 2014 fiscal year, a 12 per-
cent increase on the previous year’s figure of €3,843 million. (For the revenue by segment 
in the 2014 fiscal year, see graph 03).
The Segment Result in the 2014 fiscal year amounted to €620 million and was, therefore, 
64 percent up on the previous fiscal year’s figure of €377 million. The Segment Result Margin 
came in at 14.4 percent, compared with 9.8 percent one year earlier. Here too, Infineon 
was slightly ahead of the range of between 11 and 14 percent forecast at the beginning of 
the 2014 fiscal year. 
Net income, earnings per share, free cash flow, Return on Capital Employed and 
cash position increased
The sharp rise in Segment Result also contributed to a significant increase in net income, 
which, at €535 million for the 2014 fiscal year, was 97 percent higher than one year earlier 
(€272 million). 

Basic and diluted earnings per share amounted to €0.48 in both cases for the 2014 fiscal year 
and were, therefore, 92 percent higher than the previous year’s figure of €0.25 each.
ATV  ¹
1  Automotive
2  Industrial Power Control
3  Power Management & Multimarket
4  Chip Card & Security
IPC  ²
PMM  ³
CCS  ⁴
15 %
20 %
7 %
7 %
G 02
Revenue development of the  
individual segments in the 2014 fiscal 
year compared to the previous year
G 03
Revenue by segment in the 2014  
fiscal year
45 %
18 %
25 %
11 %
1 %
  Automotive: €1,965 million
  Industrial Power Control: €783 million
  Power Management & Multimarket:  
€1,061 million
  Chip Card & Security: €494 million
  Other Operating Segments, 
Corporate and Eliminations: €17 million
STRONG 2014 FISCAL YEAR 
23
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FINANCES AND STRATEGY
Strong 2014 fiscal year

Free cash flow from continuing operations (for definition: see the chapter “Internal Manage­
ment System”) totaled €317 million in the 2014 fiscal year, an increase of 35 percent compared 
to the €235 million generated one year earlier. This significant improvement came about 
primarily as a result of a sharp rise in net cash provided by operating activities from continuing 
operations. At €988 million, the amount generated in the 2014 fiscal year was 62 percent up 
on the previous year (€610 million) and well in excess of the €668 million invested in intangible 
assets and property, plant and equipment, which itself represented a significant increase 
compared to the previous year (€378 million). 
The Return on Capital Employed (RoCE) in the 2014 fiscal year amounted to 20.3 percent and 
was thus well up on the previous year’s figure of 14.1 percent. The steep rise was attributable 
to significantly improved operating income from continuing operations after tax, whereas 
the capital employed increased only moderately. (For a definition of, and details relating to, 
the calculation of RoCE, see the chapters “Internal Management System” and “Review of 
financial condition”.)
The gross cash position (for definition: see the chapter “Internal Management System”) 
totaled €2,418 million as of September 30, 2014, 6 percent higher than the previous year’s 
reported figure of €2,286 million. The positive free cash flow from continuing operations con­
tributed to an increase in the gross cash position, whereas the payment of the dividend for 
the 2013 fiscal year and repurchases of the convertible bond due 2014 worked in the opposite 
direction. The net cash position (for definition: see the chapter “Internal Management System”) 
increased by 13 percent to stand at €2,232 million at the end of the reporting period (Septem­
ber 30, 2013: €1,983 million). The main positive impact came from the decrease in financial 
liabilities as a consequence of the conversion of the remaining part of the convertible bond 
due 2014 since there was no corresponding cash outflow.
Significantly higher dividend payment planned for the 2014 fiscal year; 
new capital returns program started 
In line with our dividend policy, which is aimed at enabling shareholders to participate appro­
priately in growing earnings or, in times of flat or declining earnings and/or with negative free 
cash flows, to at least keep the dividend at a constant level, once again we maintained the 
dividend for the 2013 fiscal year at a stable level of €0.12 per share. On February 14, 2014, one 
day after the Annual General Meeting, a total amount of €129 million was disbursed to the 
shareholders.
A proposal will be made to the shareholders at the Annual General Meeting on February 12, 2015 
for a dividend payment of €0.18 per share, 50 percent higher than one year earlier (see graph 
on page 22). The increase is possible as a result of the sustained improvement in free cash flow 
that will result from reducing the target ratio for investments as a percentage of revenue over 
the economic cycle from previously approximately 15 percent to approximately 13 percent 
in the future. For further information on the reduction of capital intensity and its drivers, please 
see the chapter “Group strategy”.
On November 19, 2013 the Supervisory Board authorized a new capital returns program for 
an amount of up to €300 million, which can be used up to September 30, 2015. Infineon started 
to make use of this program in December 2013 and, during the 2014 fiscal year, repurchased 
parts of the convertible bond due 2014 with a nominal value of €11 million for €35 million and 
issued put options on 14 million Infineon shares (of which put options on 8 million shares 
expired prior to the end of the 2014 fiscal year).
P   see page 80
P   see page 80
P   see page 125
P   see page 81
P   see page 81
P   see page 22
P   see page 36
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
24

Developments in the semiconductor industry during 
the 2014 fiscal year
Infineon recorded a revenue growth of 12 percent in the 2014 fiscal year compared to one year 
earlier. During the same period, semiconductors with a value of US$328 billion were sold 
worldwide (2013: US$300 billion), corresponding to an increase of 9.3 percent (source: WSTS, 
November 2014). The worldwide semiconductor sales by region are as follow: the largest market 
now is China, which accounts for 27.9 percent of sales (US$91 billion). 11.4 percent (US$37 bil­
lion) of all semiconductors were sold in Europe. Germany accounts for 4.6 percent of sales 
(US$15 billion), putting it in seventh place worldwide.
The growing importance of China is also reflected in the regional split of Infineon’s revenue. 
For the first time ever, China was the country with highest revenue accounting with €868 million 
(20 percent of revenue) just ahead of Germany with €859 million (20 percent of revenue as well).
The German semiconductor industry is characterized by strong demand from the automotive 
and industrial electronics sectors. In the 2013 calendar year, the automotive electronics sector 
on its own accounted for approximately 40 percent of all semiconductors sold in Germany 
(source: ZVEI). Two of the world’s largest automotive suppliers, Bosch and Continental, are 
based in Germany. The machinery industry is similarly important in Germany. In the 2013 
calendar year, the industrial electronics sector accounts for approximately 25 percent of all 
semiconductors sold in Germany (source: ZVEI). As a result of its history, its customer base and 
its product portfolio, Infineon is a major supplier to both of these key industries in Germany.
China has completely different industrial structures. The market there is dominated by con­
tract manufacturers – also known in this sector as EMS (Electronic Manufacturing Services) – 
which manufacture electronic products predominately for Western customers. This business 
model plays an important role particularly in the consumer electronics sector, as reflected in 
the comparatively high proportion of sales revenue generated in the Asia-Pacific region, in 
particular by our Power Management & Multimarket segment.
The semiconductor market is highly fragmented. According to calculations of the market 
research firm IHS Inc., the world’s largest semiconductor manufacturer, Intel – with annual 
revenue of US$47 billion – accounted for 14.5 percent of the world market in the 2013 
calendar year. Infineon achieved 12th place with revenue of US$5.2 billion, corresponding 
to a 1.6 percent share of the world market. 
G 05
Infineon revenue by region
19 %
20 %
23 %
20 %
7 %
11 %
  Europe (excluding  
Germany),  
Middle East, Africa 
  Germany
  Asia-Pacific (excluding 
China, excluding Japan)
  China
  Japan
  Americas
G 04
Worldwide Semiconductor revenue 
by region in the 2014 fiscal year 
(adjusted to the Infineon fiscal year)
  Europe (excluding  
Germany),  
Middle East, Africa 
  Germany
  Asia-Pacific (excluding 
China, excluding Japan)
  China
  Japan
  Americas
Source: WSTS, November 2014
4.6 %
30.0 %
27.9 %
10.7 %
20.0 %
6.8 %
2.8
3.4
3.7
4.0
4.5
4.6
4.7
5.2
5.2
5.8
8.0
8.1
8.2
9.4
11.4
12.8
14.1
17.2
32.9
47.0
G 06
Top 20 semiconductor manufacturers for 2013 calendar year
Revenue in billion US$
50
40
30
20
10
0
Intel
Samsung
Qualcomm
Micron
SK Hynix
Texas Instr.
Toshiba
Broadcom
STMicro
Renesas
SanDisk
Infineon
AMD
NXP
MediaTek
Sony
Freescale
nVidia
Marvell
ON Semi
Source: IHS Inc., “Annual 2001 to 2013 Competitive Landscaping Tool”, Q3 2014 updated, August 2014
25
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FINANCES AND STRATEGY
Strong 2014 fiscal year

GROUP STRATEGY
The three global megatrends – energy efficiency, mobility and security – not only remain 
pertinent, but have also gained in importance in the recent years, and continue to offer 
enormous growth potential. This is where we see our chance: by embracing innovation and 
achieving the right combination of costs and benefits, not only by offering the lowest prices 
possible. This insight opens up a wealth of opportunities to a player with our innovative 
strength and technological expertise to exploit its areas of differentiation in the market. If we 
fully capitalize on these opportunities, we will be able to achieve sustainable and profitable 
growth. We have fought our way into a leading position in many of the markets in which we 
operate. It is now up to us to hold on to or extend that lead. As in the past, we want our cus­
tomers to think of Infineon first when it comes to solving problems and implementing ideas 
for the future. With this in mind, it is our aim to grow at least as fast as our markets. This 
desire is reflected in our growth target: We intend to continue to achieve an annual average 
revenue growth rate of 8 percent.
However, growth is only one of the prerequisites for achieving success on a sustainable basis. 
The other is profitability. In this respect, the margin achieved by our products is a good indicator 
of the added value these products create for our customers. In order to work at sustainable 
levels of profitability, we have to direct our development efforts precisely to the areas which 
generate the greatest benefits for our customers. In addition, we want to be able to maintain 
our development efforts at a high level also in more challenging market environments. For 
the ability to do so will help secure sustainable competitive advantages. However, in order to 
have this ability also in more challenging market phases, requires solid profitability during 
the good times. An appropriate level of profitability, therefore, reflects the efficient use of our 
resources on the one hand and is the prerequisite for achieving long-term competitive advan­
tages on the other. With our 300-millimeter technology, we intend to use our size to realize 
economies of scale. With our strategic approach “Product to System”, we aim to identify and 
exploit market opportunities to translate our broad technological and product expertise into 
competitive advantages and ensure that we develop the right technologies and expertise 
for the future. In this way, we realize economies of scope. We are, therefore, confident that we 
will be able to generate the right level of profitability in the long term: our goal is to achieve 
an average Segment Result Margin of 15 percent over the economic cycle.
In order to grow profitably, we have to invest. In order to employ our resources in an optimal 
way, we only invest in manufacturing facilities, where it makes a significant contribution 
towards differentiating our products from those of the competition. At the same time, we are 
keen to achieve as much growth as possible in return for a given investment budget. One good 
example of this is Infineon’s development of 300-millimeter technology for power semicon­
ductors. Compared to 200-millimeter technology, 300-millimeter technology enables substan­
tial productivity and output improvements for a given level of investment. By contrast, we 
have been able to generate growth without employing additional capital by outsourcing an 
increasing portion of our wafer processing (frontend) and component packaging (backend) 
to manufacturing partners. And last but not least, we are improving productivity across all 
manufacturing processes by achieving better yields. This is what we focus on with our “Next 
Level of Productivity” program. Taking all these factors into consideration, these various 
approaches are bringing us closer to the target of achieving an average ratio of investments 
to revenue over the economic cycle of 13 percent.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
26

The planned acquisition of International Rectifier, announced on August 20, 2014,  fits perfectly 
with the strategic principles stated above. The technologies and products offered by Inter­
national Rectifier largely complement Infineon’s range of technologies and products. Combining 
the research and development activities and technologies of the two Groups will enable us to 
achieve continued high levels of growth. Similarly, the sales and regional strongholds of Inter­
national Rectifier complement Infineon’s – a factor that will also help maintain the pace of 
growth. In terms of profitability, we will generate, at a minimum, our Segment Result target 
margin of 15 percent at International Rectifier in the second year after the transaction takes 
legal effect (“Closing”) by achieving synergies in manufacturing as well as in the areas of 
research and development, sales and administration. In terms of investments, we will be able 
to bring International Rectifier into the Infineon organization without having to adjust our 
target level of keeping investments at 13 percent of revenue.
All of the strategic approaches described above are reflected in three financial targets which 
are key for Infineon’s business:
•	 Our markets are growing and we are growing with them: at an average annual revenue 
growth rate of 8 percent.
•	 Having the right products for the customer and being able to continue to invest in difficult 
times: an average Segment Result Margin of 15 percent.
•	 “Systematic” investing helps preserve resources and differentiates us from the competition: 
investments at an average level of 13 percent of revenue.
Infineon’s workforce is a crucial factor in implementing this strategy. We therefore pay great 
attention to appreciating the dedication and performance of our employees and to creating a 
corporate culture that encourages commitment and personal responsibility, builds trust and 
takes the interests of individuals into account. Our economic targets are also aligned with the 
social and ecological requirements in general, as we operate our business on a sustainable basis.
Our markets are growing and we are growing with them: 
at an average annual revenue growth rate of 8 percent
Infineon achieved a compound annual revenue growth rate of about 9 percent from fiscal 
year 1999 through 2014 with its current portfolio of products. We continue to operate in 
the same markets and, with our four segments, continue to focus on the three central chal­
lenges to modern society: energy efficiency, mobility and security. These focus areas are 
the source of the continued increase in demand for our products. We, therefore, expect that 
we will be able to achieve growth in line with our historic growth track record of about 
8 percent per annum.
G 07
Growth, profitability and investments 
are interdependent
Investments
Profitability
Growth
G 08
Infineon is focused with its  
four segments on the three central 
challenges to modern society
Energy 
efficiency
Automotive
Industrial Power Control 
Power Management & Multimarket
Chip Card & Security
Mobility
Security
27
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FINANCES AND STRATEGY
Group strategy

Energy efficiency as growth driver
Unless CO2 emissions are reduced further and unless vehicles, equipment and machinery 
are designed to become even more efficient in the future, it will not be possible to offset rising 
energy requirements sustainably, neither in economic nor ecological terms. Given that the 
best source of energy is to save energy, our focus is on making the generation, transmission 
and conversion of electrical energy more efficient. At the same time, our products are making 
a significant contribution to the process of moving away from fossil-based to renewable 
energy sources.
Regulatory requirements around the globe aimed at reducing CO2 emissions in individual 
regions and/or countries have an impact on multiple industries, for example fuel consump­
tion limits permitted for vehicles, the required degree of efficiency of electrical industrial 
motors, as well as on the targets set for expanding renewable energy sources. One example 
of this is the regulation approved by the European Commission in October 2013 requiring 
fleet average CO2 emissions for passenger cars to be reduced from today’s 130 grams of CO2 
per kilometer to 95 grams of CO2 per kilometer by the year 2021. In order to achieve this 
target, electricity-consuming applications in cars will become more efficient, and hydraulic, 
mechanical and/or electromechanical solutions will be displaced by more efficient semicon­
ductor-based solutions. Moreover, the proportion of electric and hybrid vehicles in car manu­
facturers’ fleets will also increase. Both of these trends will result in a higher semiconductor 
content per vehicle, particularly in terms of power semiconductors, but also microcontrollers 
and sensors.
G 09
Revenue in the fiscal years 1999 to 2014 compared to the global semiconductor market
€ in millions
5,000
4,000
3,000
2,000
1,000
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
~1,200  ²
4,303
1 CAGR = Compound Annual Growth Rate
2 Based on market development assumptions the 1999 fiscal year’s revenue figures for some smaller product categories have been derived from the 2000 fiscal year’s revenue figures.
Source: Infineon; WSTS, November 2014
  Revenue of Infineon based on today’s portfolio (excl. Other Operating Segments and Corporate)
  Semiconductor world market (adjusted to the Infineon fiscal year)
CAGR  ¹ (1999 – 2014): ~ 9 %
CAGR  ¹ (1999 – 2014): + 4.4 %
241,561
126,895
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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28

Approximately two thirds of worldwide electricity consumption in industry is attributable to 
electric drives. The scope for leveraging savings through efficiency improvements is, therefore, 
substantial. The first phase of the EU Electric Motors Regulation (EC 640/2009) came into 
effect in 2011, stipulating a new efficiency level for the new electric industrial drives. The second 
phase commences in September 2015, the third in 2017. Similar regulations have already 
been approved for other regions.
One option to reduce the amount of energy consumed by an electric motor is to control the 
rotation speed electronically. Market penetration of electronic motor controls for variable 
speed drives is, therefore, set to increase. We will benefit from this trend: Controlling variable 
speed drives electronically requires a large number of power semiconductors of the type 
Infineon offers. The actual number and value depends on the motor’s performance class. 
Infineon provides the right solutions for the full range.
Another factor that will boost demand for our components is the need to raise productivity. This 
is not only relevant for developed countries, but also for countries with emerging economies. 
Unit labor costs – measured in labor costs in relation to productivity – play an important role 
in terms of an economy’s international competitiveness. Rising wages do not have a negative 
impact on competitiveness as long as they can be compensated by corresponding productivity 
benefits. Advances in productivity are achieved among others by means of increased levels 
of automation. And for every robot, conveyor belt, lift, fan, pump or compressor built, there is 
an increasing number of electronically controlled electric motors required.
Source: The International Council for Clean Transportation. www.theicct.org
G 10
Emission targets of different regions
in gram CO₂ per kilometer
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
200
180
160
140
120
100
  80
  North America   
  China   
  Europe   
  Japan
29
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FINANCES AND STRATEGY
Group strategy

The world population is growing – and fortunately in most regions, the standard of living, too. 
All this is contributing to an increase in consumption of electric power. However, generation 
of electric power from fossil fuels on the same scale as in the past is not feasible either ecolog­
ically or economically. Europe, the U.S., China and Japan have, therefore, set targets for 
expanding renewable energy resources, in order to abate CO2 emissions to the new target levels 
in the coming years. Infineon profits from the construction of wind and photovoltaic power 
stations. For each gigawatt of power generated, depending on the reference size, the need for 
power semiconductors is up to 50 times higher than for conventional power plants. In contrast 
to coal, gas or nuclear power plants, solar and wind power plants do not require a turbine, 
which – with its steady rotation – generates a constant 50-hertz alternating current, which can 
be fed into the grid directly. In the case of solar cells, the direct current initially generated needs 
to be converted to the grid’s alternating current. The alternating current generated in the 
case of wind power plants also has to be brought into line with the grid current in terms of 
frequency, amplitude and phase. These transformations require a number of power semicon­
ductors, in case of both solar as well as wind power plants. Thus, the drive for better energy 
efficiency and a reduction in CO2 emissions is boosting demand for our products.
Growth trends in the field of mobility
Human mobility requirements represent a major challenge for modern society. This is true for 
both individual mobility and mass transit systems. Infineon supplies semiconductor solutions 
for the automotive industry as well as for various train systems, thus facilitating low-emission 
mobility of people within and between urban centers.
As a result of increasing prosperity in the emerging economies, more and more people are 
able to afford their own car. This trend is particularly evident in Asia’s emerging economies 
and in particular in China. Local car markets and exporting countries all benefit from this 
trend. Overall, worldwide car production is expected to rise by an annual average rate of 
3.5 percent in the period from 2013 to 2017.
In addition to the number of vehicles, the features built into the vehicles play a major role in 
determining the scale of demand for semiconductors and hence, the average semiconductor 
content per vehicle. An increase in features in vehicles can be observed across all regions. 
The migration of safety and comfort features from premium-class vehicles to mid-range vehicles 
is increasing the average semiconductor content per vehicle, and the emergence of new 
active safety features and advanced driver assistance systems is also playing its part. These 
systems are significantly more complex compared to the previous passive safety functions 
and, therefore, require a higher semiconductor content.
G 11
Value of power semiconductors (minimum to maximum) per gigawatt of electric power generated
€ in millions per gigawatt of electric power generated (logarithmic scale)
Source: Infineon
100.0
10.0
1.0
0.1
Photovoltaic 
rooftop systems
Coal-fired-  
and nuclear power 
stations
Wind turbines
Solar plants
4 – 26
3 – 14
3 – 9
0.1 – 0.2
97.3
93.7
90.4
87.4
84.7
CAGR  ¹ (2013 – 2017):
+ 3.5 %
21.7
20.8
20.3
20.0
19.5
18.3
17.9
17.4
17.0
16.2
28.1
26.7
25.0
23.1
21.3
14.7
13.9
13.2
12.4
12.7
8.1
6.4
8.1
6.3
8.6
5.9
9.2
5.7
9.0
6.0
G 12
Expected worldwide car production 
by region
in million vehicles
  Europe
  North America
  China
  Asia excluding China
  Japan
  Other countries
2017 e
2016 e
2015 e
2014 e
2013
1 CAGR = Compound Annual Growth Rate
Source: IHS Inc., “Annual Light Vehicle Production 
2007 – 2019”, October 2014
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
30

Safety standards for vehicles are constantly becoming more stringent. Car manufacturers 
are, therefore, adding more and more safety features to their vehicles, in order to, for example, 
receive the highly-sought-after five-star ranking issued in conjunction with the Euro NCAP 
(New Car Assessment Program). From 2016, the full number of points will only be attainable 
for vehicles with an active pedestrian protection system, which in many cases will involve 
deployment of a radar system.
Improved safety on roads benefits all road users. All countries are interested in bringing 
down the number of people involved in accidents. Rear-end collision accidents due to lack 
of concentration during monotonous journeys can be significantly reduced with the help of 
technical assistance. Automated driving in traffic jams on highways or in stop-and-go condi­
tions in inner city areas during peak traffic hours can, therefore, be found on the wish list of 
many drivers. The likely outcome is that the market penetration of advanced driver assistance 
systems will increase.
About 90 percent of all automobile-related innovations during the past 20 years are related to 
electronics and software. Based on the assessment of market experts, the proportion is likely 
to stay at this high level in the coming years. Market researchers are predicting that rising 
safety and comfort requirements on the one hand and stricter CO2 limits on the other will 
result in an average growth in semiconductor content per vehicle of approximately 2 percent 
per annum (source: Strategy Analytics). Combined with the effect of higher production vol­
umes, the automotive semiconductor market is expected to grow at a rate of approximately 
5 to 6 percent per year.
One of the consequences of industrialization is that more and more people are moving from 
rural areas to cities in order to reap the benefits of living and working in this environment. 
The resulting megacities are the growth engines for a whole region, as well as centers of pro­
ductivity. All megacities are, therefore, confronted with the problem of ever-growing traffic 
volumes. Sustainable mobility both within and between the megacities is the driving force for 
the expansion of public transportation systems. Train systems – including high-speed trains, 
as well as metro, regional train and tram systems – are one of the fields of application benefit­
ting from this trend.
Growth trends in the field of security
In the past, it was mainly end-user devices such as PCs, notebooks, smartphones and tablets 
that were linked to the information network. In the meantime, many more devices and func­
tions have become integrated in what has become the “Internet of Things”, a catchword for all 
“things” that are able to exchange data and work via the Internet. This includes machines, 
robots, vehicles, containers or medical equipment, as well as everything that is called “smart” 
these days: smart grid, smart factory, smart home, smart meter.
This means that it is not only people, but also objects that now communicate with each other 
via the “Internet of Things”. According to a market research firm, it is expected that between 
50 and 100 billion devices will be networked via the Internet in the coming 10 to 15 years. 
Most of these devices will be designed to exchange electronic data with other devices in what 
has come to be known as M2M (machine-to-machine) communication. These developments 
will open up a whole new world of services which, ultimately, will change people’s everyday 
lives. Secure storage and transfer of data will be absolutely essential for many of these billions 
of networked “things”.
G   see glossary, page 280
31
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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Group strategy

One interesting aspect of the “Internet of Things” is the role it plays in “Industrial Internet” 
also referred to as “Industry 4.0”. The idea behind Industrial Internet is to develop a brand new 
approach to organizing and controlling the value chain over the life-cycle of products. At the 
heart of this future scenario is the ability of devices to communicate with each other via wired 
or wireless connections. Industrial Internet will see the emergence of new devices capable 
of sending production data or signals measured by sensors to a business partner or a cloud 
computer. Connecting the supply and value-added chain in this way requires secure commu­
nication between business partners, as well as between the machines, devices and IT systems 
of the business partners involved. Industrial Internet will only have a chance of succeeding if 
process know-how can be reliably protected against hacking attacks. Transferring product- and 
production-related data within an open architecture will, therefore, be at the top of the agenda.
Autonomous driving – including partially autonomous driving systems already developed – is 
another manifestation of the Internet of Things. The “things” in this case are the vehicles which 
communicate directly with each other (car-to-car communication), as well as with centralized 
systems (car-to-infrastructure communication). Vehicles will be able to make contact with 
control systems, which, in turn, will provide a real-time picture of the current traffic situation. 
The use of web applications in vehicles will increase sharply. Here, again, it is essential that 
communication is secure. The origin and correctness of the data must be proven, otherwise 
vehicles may be given the wrong commands.
Whether we are talking about automation technology in production, logistics, traffic guidance 
systems, building or home automation, in all cases the same base technologies are required. 
In this context, we see good potential in hardware-based security similar to the one we offer 
with our broad range of security controllers. This can take the form of an individual component 
or the incorporation of the relevant function in our automotive or industrial microcontrollers.
Alongside the Internet of Things with all its different facets, the so-called “classic” applica­
tions also offer opportunities for further growth. China and the USA, for instance, are currently 
going through the process of migrating from a magnet-strip-based credit card system to a 
chip-based system as chip-based cards increase the security of cashless payment systems. 
About four billion chip-based credit cards will be shipped to customers in these two countries 
in the coming years (see also “Introduction of chip-based credit cards in China and the USA” 
in the “Chip Card & Security” section of “The segments” chapter).
Ensuring the integrity of a computer is another field of application for our security chips. A 
broad spectrum of solutions is employed to protect products, ranging from the simple secure 
memory on a plastic card to sophisticated solutions based on security controllers. Moreover, 
suitable security components can also check the authenticity of original parts and/or compo­
nents, such as batteries or industrial control equipment.
Summary
The three central challenges to modern society – energy efficiency, mobility and security – are 
driving growth in each of our segments in a different way. International Rectifier fits seamlessly 
into our three segments, Automotive, Industrial Power Control and Power Management & 
Multimarket, and is already benefitting from the same growth trends as Infineon. Based on all 
of the factors discussed above, we forecast the following average growth rates for our four 
segments in the coming years:
•	 Automotive: approximately 8 percent per annum,
•	 Industrial Power Control: approximately 10 percent per annum,
•	 Power Management & Multimarket: approximately 10 percent per annum,
•	 Chip Card & Security: 6 – 9 percent per annum.
Overall, this gives rise to an annual average revenue growth rate of approximately 8 percent 
for the Group.
G   see glossary, page 280
P   see page 61
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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32

Having the right products for the customer and being able to continue to invest 
in difficult times: an average Segment Result Margin of 15 percent
As briefly discussed at the beginning of this chapter, achieving adequate profitability reflects 
the efficient use of resources and is also the prerequisite for having sufficient reserves available, 
even in difficult times, so that we do not have to cut back on research and development or 
selling and marketing activities that will benefit us in the future. For this reason, we are target­
ing an average Segment Result Margin of 15 percent over the economic cycle.
Over the past five fiscal years, the accumulated average Segment Result Margin of Infineon 
was 14.4 percent. We have, therefore, almost reached our target. We remain committed to this 
target, and are convinced that we will be able to achieve it in the future. Our confidence is 
based on the benefits we expect to derive from two factors:
•	 the realization of economies of scale, primarily from 300-millimeter manufacturing and 
•	 the realization of economies of scope, particularly as a result of our strategic approach 
“Product to System”.
Realization of economies of scale
As a global technology leader, Infineon is the only company in the world so far to manufacture 
power semiconductors on 300-millimeter thin wafers. This manufacturing technology is 
available at our sites in Villach (Austria) and Dresden (Germany). In our implementation of 
300-millimeter thin-wafer production for power semiconductors, we are guided by three 
strategic targets:
1.	Laying the foundation for long-term growth.
Investment in 300-millimeter thin-wafer manufacturing directly increases manufacturing 
capacities for power transistors. Indirectly, however, investment in 300-millimeter thin-
wafer manufacturing also creates additional capacities for other products. This is because 
transferring manufacturing of high-volume components from 200-millimeter lines to the 
300-millimeter lines frees up capacities for other components at Infineon’s existing 200-milli­
meter power semiconductor frontend sites in Villach (Austria) and Kulim (Malaysia).
2.	Reducing the amount of capital employed per chip.
Manufacturing capacities can be expanded with lower investment amounts using 300-milli­
meter technology. Experience shows that it takes 30 percent less investment on average to 
build up additional manufacturing capacity to a desired level on a 300-millimeter manufac­
turing line than it does on a 200-millimeter manufacturing line. There is also the advantage 
that less cleanroom space is necessary due to the smaller number of cleanroom machines 
required.
3.	Increasing productivity.
We expect to achieve a 20 to 30 percent reduction in frontend unit costs when facilities are 
running at full capacity, thus ensuring long-term competitiveness.
25 %
20 %
15 %
10 %
5 %
0 %
G 13
Segment Result Margin in the fiscal years 2010 to 2014
2014
2010
2011
2012
2013
14.4 %
19.7 %
13.5 %
9.8 %
14.4 %
Average 14.4 %
33
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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Group strategy

Technological change of this magnitude – in this case the move to larger wafers, particularly 
for power semiconductors – only takes place once every 10 to 15 years in the semiconductor 
industry. Only the largest providers will be able to achieve the high volumes required to 
operate such frontend manufacturing facilities at the scale and utilization levels necessary to 
secure unit cost advantages. As the undisputed market leader in the field of power semicon­
ductors, Infineon is optimally positioned in this respect.
We benefit from the fact that we have a comprehensive portfolio of power semiconductors 
that can be manufactured on 300-millimeter wafers: This includes low-voltage and high-voltage 
power MOSFET devices on the one hand, and IGBT products used in discrete IGBT devices and 
IGBT modules on the other. These power semiconductor components are used in applications 
in both the industrial and automotive electronics sectors. Our broad range of products can be 
sold to a variety of markets, thus enabling us to manufacture in high volumes. It is for this very 
reason that we are confident we will be able to achieve good utilization levels of the enormous 
capacity of our 300-millimeter plant within a reasonable time frame. 
The planned acquisition of International Rectifier fits perfectly with this strategy. After com­
pletion of this transaction, we will transfer production of some of International Rectifier’s 
products to our own plants, in particular to our 300-millimeter plants in Dresden (Germany) 
and Villach (Austria). The most likely candidates are low-voltage MOSFET and IGBT devices. 
We will increase utilization levels and, therefore, achieve lower unit costs earlier than would 
have been possible on our own. 
At present, at the start of the ramp-up phase of volume production, costs are dominated 
by high levels of expense for research and development, and by investments in production 
buildings and machinery. Over the coming years, however, it will be possible to achieve the 
productivity improvements as discussed above. The gross margin will rise more and more 
as capacity utilization of our 300-millimeter manufacturing equipment increases.
Realization of economies of scope
With our strategic approach “Product to System”, we seek to extract the maximum benefit 
from our broad portfolio of technologies and products. It enables us to put our comprehensive 
know-how in product and process technologies to even better use in the market. Thinking in 
system terms helps us to understand the success factors and markets that are relevant for our 
customers, giving us the opportunity to create additional value and identify new market 
trends at an early stage. We can advise our customers during the problem-solving phase and 
propose solutions that will make them more successful. We can reduce the development 
G 14
Infineon is the only supplier operating in the market for power semiconductors that has reached  
critical size for manufacturing on 300-millimeter wafers
US$ in millions in the 2013 calendar year
2,000
1,600
1,200
800
400
0
#2
Mitsubishi
#1
Infineon
#3
International 
Rectifier
#4
Fairchild
#5
Toshiba
Source: IHS Inc., “Power Semiconductor Discretes & Modules Report – 2014”, September 2014
469
497
655
159
742
60
106
104
239
137
43
797
626
  MOSFETs   
  Discrete IGBTs   
  IGBT modules
Revenue of “300-millimeter-feasible products”
89
1,607
956
802
740
618
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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34

efforts incurred by customers and shorten the time-to-market of their products. “Product to 
System” is, therefore, a strategic concept that we are employing to maximize the opportunities 
to improve existing products and to identify and subsequently enter into markets with com­
pletely new products. We create additional value for our customers through both of these routes, 
and, at the same time, achieve a higher margin on our own products, thus benefitting from 
economies of scope.
Economies of scope in the field of research and development:
We have a multitude of process technologies at our disposal which can be deployed in a broad 
range of products. However, going forward we will be able to achieve even greater product 
diversity in the various application fields that we address. We will, then, be able to develop 
and manufacture new products with low additional unit costs, thus, benefiting our margin.
One good example of this is our product range of discrete IGBT devices for induction cooking 
hobs. Using a base technology as the starting point, we cater to the different requirements for 
induction heating systems (e.g. induction or microwave ovens) with a customized range of 
product variants. Having the right IGBT device for the relevant application makes it easier for 
our customers to design their products and to reduce system costs (see “Success through 
application-specific IGBT transistors in induction cooking” in the “Industrial Power Control” 
section of “The segments” chapter).
A similar development is taking place in the field of power supply units with digital control 
capability. Power supply units of this kind are increasingly found in tablet chargers, flat screen 
televisions and LED lighting systems. Developing the base technology requires slightly more 
resources, but is a one-time investment. Fine-tuning this technology for each specific application 
can now be achieved with significantly less effort and also flexibly by programming the rele­
vant parameters (see “Meeting the growing requirements for power supply with digital control 
concepts” in the “Power Management & Multimarket” section of “The segments” chapter).
Economies of scope in sales and marketing:
One example of how we are achieving economies of scope in sales and marketing is Japan, 
where we are currently using the existing sales infrastructure to boost our sales of Automotive 
segment products. The sales initiative set in motion a few years ago is now bearing benefits. 
The fact that we gained market share in Japan during the 2013 calendar year (see the “Market 
position” in the “Automotive” section of “The segments” chapter) is attributable to a large 
extent to Infineon’s sales infrastructure there.
Another good example comes from the Chip Card & Security segment. We are now at a stage 
where we want to strengthen the distribution channel in order to take advantage of the greater 
sales volume potential for security controllers offered by this channel. Using our existing dis­
tribution infrastructure, we are now exploiting this potential. In the future, we will increase 
sales of existing and new products – aimed specifically at distribution customers – via our 
distribution channel.
The planned acquisition of International Rectifier also represents an excellent fit with our 
strategy of realizing economies of scope, given that many of its products and technologies 
complement our own focus areas. International Rectifier offers IGBT modules and IGBT driver 
ICs for the low-power range, whereas we focus on high-power modules. International Rectifier 
has special expertise in the field of gallium nitride as a new material for power semiconductors, 
whereas we have garnered years of experience with silicon carbide. In terms of digital power 
management, we focus on servers whereas International Rectifier has a strong footing in 
games consoles, graphic cards and in the network and cellular infrastructure sector. Our main 
focus is on selling directly to customers whereas International Rectifier’s strength lies with sales 
through the distribution channel. In regional terms, we are particularly strong in Europe due 
to our origins, whereas International Rectifier complements us in its home country, the USA, 
and in Asia too. We intend to combine these complementary strengths and to generate further 
economies of scope.
P   see page 50
P   see page 55
P   see page 45
35
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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Group strategy

Summary
Infineon has invested heavily in recent years in manufacturing processes of technology and 
capacities for 300-millimeter thin-wafer technology, in research and development for product 
and process technologies and in sales and marketing structures. These investments provide a 
solid foundation for us to realize economies of scale and economies of scope in the future, and 
so improve profitability. The planned acquisition of International Rectifier fits perfectly with 
this strategy. We are, therefore, confident of achieving our target of a 15 percent Segment Result 
Margin over the economic cycle.
“Systematic” investing helps preserve resources and differentiates us from the 
competition: investments at an average level of 13 percent of revenue
Over the period covered by the fiscal years from 2009 to 2014, our investments as a percentage 
of revenue were 15.1 percent. This figure includes the impact of “catch-up” investments made 
in the 2011 and 2012 fiscal years, which we had not been able to realize during the two pre­
ceding economically more difficult fiscal years 2009 and 2010. It also reflects the fact that we 
commenced investing in 300-millimeter thin-wafer manufacturing in Dresden (Germany) and 
Villach (Austria) in 2011.
Capital intensity at Infineon continued to be driven by the use of 200-millimeter technology.
Investments in capacities for this technology are reflected in the historical average of 
15.1 percent.
We pursue a strategy of only investing in in-house manufacturing facilities, where we can 
differentiate significantly in terms of costs and/or performance. If this is not the case, we 
rather outsource. This principle is applied equally to frontend and backend manufacturing.
Based on this conviction, we have put in place a range of measures that enable us in the 
future to achieve our targeted annual average revenue growth rate of 8 percent with invest­
ments at an average level of only 13 percent of revenue. Our reduction of the target rate is 
being driven primarily by the following factors:
1. Infineon is beginning to reap the benefits of 300-millimeter thin-wafer technology for power 
semiconductors. The manufacturing technology enables Infineon to achieve growth with a 
substantially lower level of capital employed than was previously possible with 200-millimeter 
wafer technology. Whereas it was previously necessary to invest about one euro in manu­
facturing capacities for every additional euro of revenue, it will only be about 70 to 80 cents 
in the future. The level of investments required to boost manufacturing capacities for power 
semiconductors in order to achieve the targeted growth rate is, therefore, decreasing.
25 %
20 %
15 %
10 %
5 %
0 %
G 15
Investments as a percentage of revenue in the fiscal years 2009 to 2014
2014
2010
2009
2011
2012
2013
5.3 %
9.9 %
22.2 %
22.8 %
9.8 %
15.5 %
Average 15.1 %
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
36

2. Infineon is in the early stages of a growth curve for products manufactured using standard-
CMOS-based technologies with 65-nanometer and smaller feature sizes. Since the main 
differentiating factor for these products lies in the design and less in the process technology, 
we will no longer use this technology for in-house manufacturing and, instead, will out­
source the relevant manufacturing volumes to contract manufacturers (so-called foundries), 
thus obviating the need in the future to invest in in-house facilities to process these wafers.
3. Infineon will also continue to expand cooperation arrangements with contract manufacturers 
for backend work (so-called subcontractors) for which there are no major differentiating 
features from a manufacturing perspective. Therefore, lower investments in the fields of 
packaging, assembly and test can be expected.
4. Infineon has made great strides over the course of the 2014 fiscal year to improve both 
current and future productivity by means of a whole raft of measures implemented in 
conjunction with the dedicated “Next Level of Productivity” program. These improvements 
enable greater manufacturing volumes at given investments.
A detailed analysis of the medium- to long-term impact of these factors showed that the 
target ratio for investments to revenue can be reduced sustainably for future fiscal years by 
2 percentage points to an average of approximately 13 percent over the economic cycle.
Lower investments result in a higher return in capital
As a result of a lower level of investments in relation to revenue, capital intensity is decreasing. 
Capital turnover increases alongside with the Return on Capital Employed (RoCE). Lower 
investment intensity also gives rise to a sustained improvement in free cash flow and, conse­
quently, a higher free cash flow margin as a percentage of revenue. 
The resulting higher free cash flow can be used to pay a dividend. Thus, a significant rise in 
dividend of 6 cents per share to then 18 cents per share will be proposed at the Annual General 
Meeting already in respect of the 2014 fiscal year. Our stated dividend policy continues to be 
valid at this higher level: we intend to pay a dividend each fiscal year that is at least at the 
previous fiscal year’s level. Our financial targets and our dividend policy will not change as a 
result of the planned acquisition of International Rectifier.
Highly-qualified and highly-motivated employees and running the business 
on a sustainable basis are the prerequisites for our success
The fast-moving semiconductor industry is characterized by continually rising expectations 
in technology, quality, speed and efficiency and is, thus, a very challenging sector. The dedica­
tion and reliability of our entire staff enable us time and again to successfully master these 
challenges. We believe that our highly-motivated and highly-qualified employees are a key to 
our continued success. Along with pay commensurate with performance, other important factors 
are a strong culture of leadership, the promotion of talent and a continuous engagement 
to employees. You can read how we do this and about the relevant targets we have set in the 
chapter “Our Employees”.
In order to achieve lasting growth with adequate profitability, we have to run our business on 
a sustainable basis and ensure that our economic targets are aligned with social and ecological 
requirements. We do this by pursuing responsible business practices and taking account of 
the expectations of relevant stakeholders. In the chapter “Sustainability at Infineon”, we have 
explained in detail as to why and how sustainability – just like the attainment of economic 
targets – is key to the way we run our business.
P   see page 96 ff.
P   see page 82 ff.
37
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FINANCES AND STRATEGY
Group strategy

THE SEGMENTS
AUTOMOTIVE
INDUSTRIAL POWER CONTROL
POWER MANAGEMENT & MULTIMARKET
CHIP CARD & SECURITY
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
38

Revenue
Segment 
Result
Segment Result 
Margin
Revenue 
growth
€ 1,965 million
€ 259 million
13.2 %
14.6 %
€    783 million
€ 144 million
18.4 %
20.3 %
€   1,061 million
€ 172 million
16.2 %
  7.5 %
€    494 million
€   43 million
  8.7 %
  6.7 %
39
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS

2

Radar-based distance warning
Radar-based distance warning systems are being 
increasingly used to help prevent rear-end collisions. 
They are, in turn, an integral part of advanced driver 
assistance systems such as autonomous braking sys­
tems. Radar is a key technology on the road to achiev­
ing the ultimate goal of fully autonomous driving.
 1

77-gigahertz silicon germanium radar chips 
Our second generation of radar chips, integrated in 
a specially designed, extremely compact package, 
has been on the market since 2012. The “MRR plus” 
radar sensor from Bosch is equipped with two 
chips: On the right the receiver chip (see red circle) 
and on its left the transmitter chip.
 1
 2
8 mm
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
40

The Automotive segment in the 2014 fiscal year
Revenue
Infineon recorded revenue of €1,965 million for the Automotive segment in the 2014 fiscal 
year, an improvement of 15 percent on the previous year’s figure of €1,714 million. The 
segment generated 45 percent of Infineon’s revenue.
The upturn in the automotive industry, which began at the end of the 2013 fiscal year, 
continued throughout the fiscal year under report. 
Demand for new vehicles in China again rose sharply compared with the previous year. In 
addition, the market in North America has gathered momentum since the spring. There were 
also encouraging indications of recovery on the European market, where vehicle registration 
figures began to increase for the first time after six years of decline.
Vehicles made in Germany, particularly premium brands, were in very high demand, both in 
China and North America. Dynamic demand for upper-range medium-sized cars equipped 
with a broad array of additional safety and convenience features provided a significant boost 
to our business. Semiconductor content per car in this segment exceeded expectations.
The sharp rise in demand for semiconductor-based solutions designed to reduce CO2 emis­
sions also contributed towards the excellent revenue performance.
Robust growth in the Chinese automotive industry was also evident in the regional revenue 
split. The percentage attributable to Asia-Pacific (including Japan) rose to 38 percent 
(2013 fiscal year: 35 percent). Revenue in Germany fell by 2 percentage points to 23 percent. 
At 24 percent, the share attributable to Europe (excluding Germany) remained virtually 
unchanged (2013 fiscal year: 23 percent). The percentage for the Americas fell to 15 percent 
(2013 fiscal year: 17 percent).
Segment Result
The Segment Result totaled €259 million, 55 percent up on the €167 million recorded one 
year earlier. The Segment Result Margin amounted to 13 percent of revenue.
The improvement in Segment Result was mainly due to higher revenue. However, expenses 
for the ramp of volume production for various products had a somewhat dampening effect on 
the improved figure.
G 16
Revenue and Segment Result of the 
Automotive segment
€ in millions
  Revenue   
  Segment Result
1,965
259
2014
1,714
1,660
167
219
2013
2012
G17
Automotive segment revenue  
by region
23 %
24 %
15 %
38 %
  Germany
  Europe (excluding  
Germany),  
Middle East, Africa
  Americas
  Asia-Pacific, 
Japan
AUTOMOTIVE
Revenue: 
€1,965 million
Segment Result:
€259 million
Highlights:
Additional safety and convenience functions as well as 
CO2 reduction measures lead to marked growth in demand
Market share gains in all main regions; Infineon number 3 
in Japan for first time
41
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Automotive

Business strategy and fields of application
Infineon is one of the few semiconductor manufacturers for automotive applications that 
covers the most important established applications in vehicles, with a broad product portfolio 
of microcontrollers, sensors, radio-frequency and particularly radar components as well as 
both discrete and integrated power semiconductors: powertrain, body and convenience 
electronics as well as safety applications. The field of data and IT security will also gain signifi­
cantly in importance going forward. In this area, we will benefit from the knowledge and 
expertise of our Chip Card & Security segment.
Our activities in the Automotive segment focus on the following topics:
Environmental friendliness: Together with our lead customers, we are developing microcon­
trollers, sensors and power electronics for control systems, in particular for drive systems of 
the future and with the necessity to comply with increasingly stringent emissions standards 
in mind. We are contributing to CO2 emission reductions by designing increasingly efficient 
control systems for conventional combustion engines. In addition, Infineon is playing a leading 
role in the increasing electrification of the powertrain (for example automatic transmissions 
and start-stop systems) as well as of the many auxiliary units (for example pumps).
Safety: We design products for a large number of active and passive safety applications that 
help reduce both the number and the severity of traffic accidents, the long-term goal being 
zero traffic accidents and related injuries. We are currently working on new functions that will 
help to avoid accidents with the aim of protecting passengers, pedestrians and other road 
users alike. Moreover, we are developing technologies building the base for the autonomous 
driving of tomorrow.
Security: In order to guarantee the functioning of the above-mentioned safety applications in 
increasingly connected vehicles, encryption technologies will be needed to an ever greater 
degree. Our globally leading security expertise provided by the Chip Card & Security segment 
is helping us to address these trends.
Regions: Apart from our above-mentioned activities in vehicle applications, we are stepping 
up efforts to enhance our regional presence, particularly in China and Japan. Above all, we 
see promising opportunities for growth in Japan, as its automotive supply industry strives to 
procure its components on an increasingly global scale.
Similar to all of the markets we address, in the automotive field too, our aim is to recognize 
local requirements and swiftly implement the corresponding measures. Particularly in China 
it is highly important to identify the local champions of the future as the automotive industry 
in that region is growing rapidly and is also severely fragmented.
Fields of application
Security
•  Digital tachograph
•  Communication  
(car-to-car, car-to-in-
frastructure)
•  Manipulation  
protection (tuning, 
tachometer)
•  Original spare parts 
authentication
Chassis and  
comfort electronics
•  Air conditioning
•  Door electronics
•  Electronic control units
•  Electronic seat  
adjustment
•  Hatchback
•  Lighting
•  Power windows
•  Steering
•  Sunroof
•  Suspension
•  Windshield wipers
Electric and  
hybrid vehicles
•  Battery management
•  Battery fast-charging 
control
•  Motor control
Powertrain
•  Alternator control
•  Engine control
•  Start-stop system
•  Transmission control
Safety
•  ABS
•  ADAS (Advanced 
Driver Assistance  
Systems)
•  Airbags
•  Electronically  
controlled chassis 
suspension
•  Electronic power 
steering 
•  ESC (Electronic  
Stability Control)
•  Radar-based  
distance warning
•  Tire pressure  
monitoring system
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
42

Markets, trends and solutions
For the years or even decades to come, we see three major trends emerging which will deter­
mine the development of automotive technology – and which we are strongly supporting with 
our products. First, low-emission vehicles, second, safe vehicles with particular focus on 
advanced driver assistance systems and third, to a growing degree, security in increasingly 
connected vehicles.
Evidently, the main business of our Automotive segment is in automotive electronics. Apart 
from that, we provide a broad range of industrial electronics components. For microcon­
trollers in particular, we have launched a 32-bit family of products to meet the requirements 
of industrial control systems, which is providing us with new opportunities to grow.
Electrification of main and auxiliary power units continues to advance
In the major automotive regions of Europe, North America, Japan and China, legislators 
have introduced binding CO2 emission targets that will come into effect from 2020 (see “Group 
strategy” in the chapter “Finances and Strategy”). The targets require a further reduction in 
CO2 fleet averages of at least 25 percent below today’s emission levels. These targets are 
unlikely to be met solely by improving the efficiency of the conventional combustion engine. 
A number of years ago, an important development was introduced in the electrification of 
power units (i.e., pumps and small electric motors). The electrical power of these units can 
be adapted via electronic control to suit the varying load. One example in particular is the 
transition from electromechanical and hydraulic power steering systems to their electronic 
equivalents. This changeover in some applications from mechanical and hydraulic to elec­
tronic functions not only boosts vehicle efficiency, but also reduces CO2 emissions.
This trend towards the electronic control of automotive power units continues to gather pace. 
In addition to the high-power motors needed to drive power steering and automatic start-
stop systems, the small, previously uncontrolled electric motors powering auxiliary power 
units are now also variable speed controlled. Examples are water and gasoline pumps as 
well as motors controlling air flow and ventilators in blower and air conditioning systems. 
Most small electric engines in this category are so-called “brushless” DC motors, which are 
more efficient than conventional brush-type DC motors and exhibit less wear and tear. In 
addition to power components and microcontrollers, these motors require magnetic field 
sensors and switches to efficiently control rotation speed and commutation.
For premium carmakers, these improvements alone will still not be sufficient to achieve their 
emission targets. It will be essential to increase the absolute number of electric and hybrid 
vehicles, in order to reduce the fleet average to meet the required target levels. Plug-in hybrid 
electric vehicles (PHEVs) will play a key role in achieving this aim. They differ from purely 
hybrid vehicles in that they are equipped with larger batteries. Not only do they feature braking 
energy recuperation to recover additional energy, they can also be charged using mains 
electricity. PHEVs are capable of covering some 50 kilometers purely on electrical power, 
giving them very low CO2 emission values in accordance with regulatory assessment methods. 
We see a highly promising alternative in this type of hybrid vehicle. The high-power semi­
conductor components we have developed especially for the field of electromobility will also 
be used in PHEVs.
Advanced driver assistance systems gaining ground: radar-based distance 
warning indispensable for semi-autonomous driving
Accident statistics show a very encouraging trend: The number of severe injuries or fatalities 
caused by road accidents has been steadily decreasing for many years. The improvement 
began with the introduction of passive safety systems such as seat belts (1971), ABS (1978), 
airbags (1980), seat belt tensioners (1983) and side airbags (1996). These passive safety 
systems, designed to minimize the severity of an accident, have meanwhile become highly 
sophisticated. The next major growth market is that of active safety systems, which are 
capable of either completely avoiding an accident or at least significantly minimizing its 
negative consequences through active intervention. Examples of active safety systems are 
pedestrian recognition, distance warning systems and blind spot detection. Radar is a key 
technology in many of these systems.
P   see page 28
The TLE4961-1M magnetic field switch 
determines the exact position of the 
motor axis – essential for the commu-
tation of brushless DC motors
G   see glossary, page 278
G   see glossary, page 281
  Semiconductor value per vehicle based 
on internal combustion engine
  Incremental semiconductor value per 
vehicle dedicated to electromobility
Source: Strategy Analytics, “Automotive Semi­
conductor Demand Forecast 2012 – 2021”, May 2014
G 18
Average semiconductor content of 
various types of vehicle (2013)
in US$
EV
719
PHEV
720
315
405
HEV
703
315
388
Internal 
combustion 
engine
315
43
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Automotive

Active safety systems are being augmented to form advanced driver assistance systems 
(ADAS), which are becoming increasingly important in road safety because of the great help 
they provide to motorists while driving. For example, they help in critical situations or, if 
necessary, even correct a driving error, thereby reducing the risk of accidents. Good examples 
of ADAS are autonomous brake systems for pedestrian protection, or overtaking assistants 
and lane departure warning systems which are a great help when driving on highways. ADAS 
constitute an elementary part of semi-autonomous driving. They will be continually improved 
until they finally accomplish the long-term aim of fully autonomous driving. Demand for 
driver assistance applications is growing fast. For example, demand for radar-based distance 
warning systems is forecast to rise at a compound annual growth rate of 40 percent. Several 
radar sensors could even be installed per vehicle – either centrally front and back or one at 
each corner.
The market for radar-based safety systems is divided into two fields of application:
1.	Warning systems that merely provide visual feedback when the vehicle is too close to the 
one in front or if an object is detected in the blind spot, providing the driver with greater 
perception of surrounding events.
2.	Advanced driver assistance systems that include an active function, i.e., they are capable of 
independently intervening in the steering, the engine’s functions or the braking system. 
Systems of this type require extremely high distance and angular resolutions. The safety 
requirements (for example ISO 26262) for systems of this type are also far stricter.
For distance measurement systems, Infineon supplies 77-gigahertz radar components for 
transmitting and receiving the signal. Manufactured in silicon germanium technology and 
subsequently embedded in a highly compact radar-capable package, they greatly reduce 
system costs and, thereby, bringing radar-based distance measurement to the mass market. 
Today, Infineon has lead customers for this product in all technologically leading automotive 
markets: in Europe, North America, Japan and Korea.
AURIX™: apart from powertrain, increasing use in safety-critical applications
So far, Infineon’s 32-bit automotive microcontrollers have been used mainly in powertrain 
applications. After their resounding success in the field of engine and transmission control, 
our customers are now using them increasingly for safety-critical applications. Particularly 
with our AURIX™ family of 32-bit multicore microcontrollers, we are gaining a growing number 
of customer projects for applications such as electric power steering, brakes, airbags and 
distance warning systems. Around half of the new projects in which AURIX™ is planned to be 
designed-in by our customers are attributable to these types of safety-critical application. 
Furthermore, the AURIX™ product family is not only being used in passenger cars, but also 
increasingly in construction and agricultural vehicles.
The cryptographic functions for security provided by our Chip Card & Security segment are 
among the main reasons for the success of the AURIX™ family. The hardware security modules 
are integrated in various types of microcontroller, helping to safeguard the intellectual prop­
erty of our customers, such as the program code for an engine control system.
Moreover, we see further demand for discrete security controllers in the fields of infotainment, 
emergency call systems and car-to-car communication. One example is Infineon’s SIM card, 
which has been qualified in accordance with the strict requirements of the automotive industry. 
This SIM card is used in the vehicle cellular network modules. Moreover, suitably certified 
security controllers are already being installed in digital tachographs.
Fields of application for our XMC industrial microcontrollers significantly enlarged
In the field of industrial microcontrollers, with our XMC family, two years ago we introduced a 
new strategy with the decision to license an ARM® core, allowing us to offer our customers 
a combination of a 32-bit quasi-industry standard processor core and application-optimized 
peripheral elements developed by Infineon. This step has enabled us to increase its acceptance 
G 19
Expected number of systems for 
radar-based distance warning
in units
1 CAGR = Compound Annual Growth Rate 
Source: Strategy Analytics, “Automotive Semi­
conductor Demand Forecast 2012 – 2021”, May 2014
14,499
2017 e
11,029
2016 e
7,777
2015 e
5,473
2014 e
3,755
2013
CAGR  ¹ (2013 – 2017):
+ 40.2 %
G   see glossary, page 280
Several members of the XMC1000 
industrial microcontroller family
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
44

and, therefore, the number of possible applications. With our earlier industrial microcontrollers 
we were mainly involved in automation, transportation and electricity supply. Now, however, 
with our ARM®-based XMC family we are also adding the fields of building automation and 
electric power tools.
Previously, our applications were mainly developed with traditional industrial customers in 
mind, mainly in Europe. Our new applications, however, provide us with opportunities to 
grow, particularly in America and Asia-Pacific. Along with the expansion of our fields of appli­
cation and our customer base, we expect a moderate acceleration in the speed of our growth 
in the field of industrial microcontrollers.
Time-to-market is a key factor for our XMC customers. We support them with the easy-to-use 
DAVE™ (Digital Application Virtual Engineer) development environment. The DAVE™ apps provide 
developers with a whole range of easy-to-combine, application-oriented software components, 
greatly simplifying software development for microcontrollers and, therefore, helping our cus­
tomers shorten their time-to-market. We consider the wide variety of application-optimized 
peripheral functions, combined with the support of our customers in developing software, as 
an area of differentiation in this product segment.
Market position
According to analyses performed by the market research experts at Strategy Analytics, the world 
market for automotive semiconductors grew by 5.1 percent, from US$23.883 billion in the 
2012 calendar year to US$25.111 billion in 2013. Infineon recorded the largest gain among the 
five major competitors with an increase by 0.5 percentage points. Infineon’s market share rose 
from 9.1 percent to 9.6 percent. The five largest competitors held 44.7 percent of the market.
With a market size of US$8.696 billion, Europe is still by far the most important region for auto­
motive semiconductors. Infineon remained market leader in Europe with 13.1 percent market 
share (2013: 13.0 percent). In North America (market size: US$4.804 billion), Infineon continued 
to occupy second place with 8.6 percent market share (2013: 8.4 percent). The Japanese market 
showed the most favorable change (market size: US$4.896 billion). Gaining 0.6 percent market 
share, at 4.3 percent Infineon achieved its highest percentage of market share in Japan to date, 
advancing to third place for the first time (2012: 5th place). However, Infineon recorded its 
largest market share gain in China, the fastest growing region of all (market size: US$3.451 bil­
lion). While the market in this region grew by 22 percent, at 40 percent Infineon grew faster 
than any other competitor, resulting in a 1.2 percentage point improvement in market share. 
At 8.2 percent market share in China, Infineon remains in fifth place. In Korea, the fifth largest 
region (market size: US$2.018 billion), Infineon remained market leader by far with a market 
share of 13.3 percent (2013: 13.7 percent).
Looking at the automotive semiconductor market by product category, the following picture 
emerges: Infineon is a prominent player with its portfolio of products in the largest and fastest 
growing product groups. Power semiconductors accounted for 26 percent of the market 
(size: US$6.675 billion). As market leader, Infineon managed to grow its market share in this 
category by 0.3 percentage points to 21.3 percent. In the second largest category, microcon­
trollers (market size: US$6.233 billion), comprising 25 percent of the market, Infineon gained 
0.7 percentage points of market share and remained in third place with 8.7 percent. In the 
third largest category, sensors (market size: US$3.708 billion), comprising 15 percent of the 
market, Infineon gained 1.0 percentage points of market share, thereby securing second place 
with 11.4 percent. In the remaining product categories, Infineon is barely present, if at all 
(other: market size US$8.495 billion). These include memory devices, optical components and 
non-power analog ICs.
G 20
World automotive semiconductor 
market share
Renesas
Infineon
STMicro-
electronics
Freescale
NXP
13.3 %
9.6 %
7.9 %
7.4 %
6.5 %
Source: Strategy Analytics, “Automotive Semi­
conductor Vendor Market Shares”, April 2014
G 21
Japan automotive semiconductor 
market share; Infineon in third place 
for the first time
Renesas
Toshiba
Infineon
Sanken
STMicro-
electronics
33.2 %
14.1 %
4.3 %
3.9 %
3.8 %
Source: Strategy Analytics, “Automotive Semi­
conductor Vendor Market Shares”, April 2014
1 Other include memory devices, optical 
components and non-power analog ICs.
Source: Strategy Analytics, “Automotive Semi­
conductor Vendor Market Shares”, April 2014
G 22
World automotive semiconductor 
market by product category
25 %
15 %
34 %
26 %
  Power semiconductor
  Microcontroller
  Sensors
  other 1
45
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Automotive

2

Frequency inverters for gas compressors
The most powerful electric motors in the world are used, 
for example, in the chemicals industry for air separation 
applications. The inverter needed for variable-speed 
drive control fills entire control cabinets with several 
hundred of our IGBT modules.
 1

6.5-kilovolt IGBT module in industrial applications
Infineon’s most powerful IGBT modules switch voltages 
of 6.5 kilovolts and currents of over 100 amps. Among 
other uses, they are key components in energy-efficient 
motor controls for drives, pumps, compressors, fans, 
mixers and grinders.
140 mm
 1
 2
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
46

The Industrial Power Control segment 
in the 2014 fiscal year
Revenue
Infineon recorded revenue of €783 million in the Industrial Power Control segment in the 
2014 fiscal year, 20 percent up on the previous year’s figure of €651 million. The segment 
generated 18 percent of Group revenue.
We recorded a positive development in all applications during the 2014 fiscal year. Revenue 
growth was attributable in particular to a sharp rise in demand in the fields of renewable 
energy and rail transportation, as well as to a slow, but steady recovery in industrial drives.
We generated about half of segment revenue in the Asia-Pacific region and especially China, 
where infrastructure program decisions had a quite significant impact on our business. The 
country’s relaunched projects for high-speed rail links and light rail systems (urban railway, 
tram and metro lines) led to increased revenue in the field of traction. In addition, we bene­
fited from the implementation of national expansion plans for renewable energy. China is 
also by far our largest market for home appliance components.
Compared to the previous year, there were shifts in the regional revenue split in favor of Asia. 
The share attributable to the Asia-Pacific region (including Japan) at 50 percent (2013 fiscal 
year: 44 percent) was for the first time larger than that of Europe at 41 percent (2013 fiscal 
year: 44 percent). The share for the Americas region declined from 12 percent the previous 
year to 9 percent in the 2014 fiscal year. 
Segment Result 
The Segment Result amounted to €144 million, an increase by 279 percent compared to the 
previous year’s €38 million. The Segment Result Margin amounted to 18 percent of revenue.
The previous year’s Segment Result was negatively impacted in particular by high costs 
incurred as a result of under-utilization of manufacturing capacities. The higher revenue 
generated in the fiscal year under report led to significantly lower under-utilization costs and 
also to improved earnings. Revenue rose considerably more quickly than the additional 
costs of capital arising in the form of depreciation and amortization, another reason for the 
improvement. In addition, various initiatives to boost manufacturing productivity contrib-
uted to the improved Segment Result.
G 23
Revenue and Segment Result of the 
Industrial Power Control segment
€ in millions
  Revenue   
  Segment Result
783
144
2014
651
728
38
118
2013
2012
G 24
Industrial Power Control segment  
revenue by region
41 %
9 %
50 %
  Europe, Middle East, Africa
  Americas
  Asia-Pacific, Japan 
INDUSTRIAL POWER CONTROL
Revenue: 
€783 million
Segment Result:
€144 million
Highlights:
Number of derivatives based on existing technology increased
Growth potential by extending the range of applications
47
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Industrial Power Control

Business strategy and fields of application
Electric power needs to be generated, transmitted to the consumer and then converted. Each 
of these steps has to be carried out as efficiently as possible. The Industrial Power Control 
segment offers semiconductor products for all of these power transmission stages. 
Power semiconductors are often not only the determining factor for the functioning of our 
customers’ products and systems, but they also have an impact on their efficiency, size, weight 
and cost. In particular, the increase in power density – i.e., the electrical power converted 
within a certain space – is the driving force behind the progress in IGBT power devices. It plays 
a key role in differentiating us from competitors and can be achieved only with technologi­
cally leading products. We aspire and strive to remain innovation leader in the field of power 
semiconductors.
Our wide array of products we manufacture enables us to cover practically the entire power 
range from a few hundred watts to several megawatts. Our product portfolio comprises 
discrete IGBT devices, IGBT modules and IGBT stacks, as well as driver ICs and driver boards 
for controlling IGBT modules.
Currently, we already operate in a very large number of markets, applications and regions. 
In the coming years we see scope for growth primarily in the following areas:
New applications: Examples of newly emerging power electronics applications include energy 
storage devices, agricultural, construction and mining vehicles, electric and hybrid buses and 
charging infrastructure for electric vehicles.
Driver ICs: We intend to extend our driver IC portfolio firstly, by further development of our 
existing product families and secondly, through the planned takeover of International Rectifier, 
which will provide us with access to a complementary IGBT driver portfolio.
IGBT modules: We are developing our IGBT module portfolio selectively with applications 
in the lower power range from 100 to 2,000 watts, as used, for example, in air conditioners, 
washing machines and industrial drives. In order to strengthen our position in this market, 
we increased our share in the Korean joint venture LS Power Semitech Co., Ltd. (LSPS) in 
June 2014 to a majority interest of 66.4 percent. LSPS currently operates mainly in Korea in 
the home appliance sector. Our aim is to use our worldwide distribution infrastructure to 
sell LSPS IGBT products in other countries too. In addition, as a result of the planned acquisi­
tion of International Rectifier, we stand to benefit from its compact IGBT modules, which 
are used mainly in industrial applications.
Fields of application
Traction
•  High-speed trains
•  Locomotives
•  Metro trains
•  Trams
Uninterruptible 
power supplies
Charging stations 
for electric vehicles 
Energy transmission
•  FACTS (Flexible  
AC Transmission  
Systems)
•  Offshore wind 
farm HVDC lines
Home appliances
•  Air conditioning
•  Induction cooking
•  Induction  
rice cooker 
•  Microwave ovens
•  Washing machines
Industrial drives 
(motors, pumps, 
fans, compressors)
•  Air conditioning
•  Automation  
technology
•  Conveyor  
technology
•  Drives
•  Elevators
•  Escalators
•  Materials handling
Industrial vehicles
•  Agricultural  
vehicles
•  Forklifts
•  Heavy construc-
tion vehicles
•  Hybrid buses
•  Mining vehicles
Renewable energy 
generation
•  Photovoltaic  
systems
•  Wind turbines
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
48

Markets, trends and solutions
IGBT power components are found in a wide variety of applications. Their power range extends 
from the largest electric motors in the world, rated at several megawatts, to small motors 
rated at only a few hundred watts. The number of applications and hence the importance of 
electricity are still growing. Electric vehicles are being used even more frequently for trans­
portation and mobility. Railways meanwhile run almost exclusively on electrified lines. 
Renewable energy is gaining in importance due to climate change and the resulting legal 
requirements to reduce CO2 emissions.
We are constantly developing new products for this broad range of applications: IGBT modules, 
discrete IGBT devices and driver ICs, with the latter including an interesting variant that we 
presented this year.
Most powerful pumps and compressors driven by up to more than 
one hundred IGBT modules
Electric motors are used in drives, pumps, compressors and fans. The largest examples of such 
motors are found in locks, cement mills, trains, urban waterworks pumps, air compressors 
for the manufacture of technical gases, and compressors for gas pipelines. Our 6.5-kilovolt 
IGBT module is often installed in these applications. Electric motors with power outputs rang­
ing from 100 kilowatts to over 10 megawatts are driven in some cases by over one hundred 
components of this voltage class. Many motors are in service for 20 years and more. The high­
est requirements are demanded with regard to reliability and quality of both the motors 
themselves and their control systems, and, therefore, to our products.
The traditional voltage classes for high-performance IGBT modules are 3.3 kilovolts and 
6.5 kilovolts. In the 2014 fiscal year, however, we presented the first IGBT module for the 
4.5-kilovolt class. This voltage class is prevalent mainly in Asia, but is increasingly becoming 
generally accepted globally for high-voltage direct current (HVDC) power transmission lines. 
The first variant of our 4.5-kilovolt IGBT module was developed for the Asian railway sector. 
The second variant of this voltage class is due to appear in the 2015 fiscal year and is intended 
for the HVDC sector to connect for example offshore wind farms to the onshore power grid.
Renewable energy: China and the USA are the new growth regions;
increasing importance of “repowering” in Europe
We are observing that the renewable energy sector is currently undergoing structural changes. 
Whereas in the past 20 years the demand for both wind power and photovoltaic energy came 
mainly from Europe, business has since shifted more towards Asia and the USA. With its very 
broad international base, Infineon is currently benefiting above all from the growth of Chinese 
inverter manufacturers, driven by both the expansion of the photovoltaic sector in China itself 
and the export of inverters to other regions.
In addition to the regional shift, the size of installations is also changing. Whereas in Europe 
the installation of rooftop systems for low and medium output up to 50 kilowatts is common 
place, in China and the USA mainly large solar plants rated at several megawatts are in use. 
As far as our products are concerned, the focus is shifting from discrete IGBT devices to IGBT 
modules (for example, EconoDUAL™ 3, EconoPACK™ 4 and PrimePACK™).
Structural changes are taking place in the wind turbine sector too. In Europe, the replacement 
of older, smaller wind turbines by modern, more powerful types is gaining importance. Although 
this trend, known as “repowering”, is now in its infancy, it is likely to continue for many more 
years. The first wind turbines rated at around 100 kilowatts, installed many years ago in loca­
tions with high wind strengths, are now being replaced by models rated at about 3 megawatts. 
With the rise in turbine output, power semiconductor content per installation rises accordingly. 
For example, our EconoPACK™ and EconoDUAL™ type IGBT modules as well as to an increas­
ing extent our IGBT stacks (for example, ModSTACK™ HD1) are installed in wind farm inverters.
New trains for the Munich metro:  
Siemens’ new C2 model series 
Converter platform for wind farm  
SylWin1, where the alternating  
current generated by the wind  
turbines is converted into direct  
current and transmitted onshore  
by sea cable with low power loss
G   see glossary, page 282
49
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Industrial Power Control

The situation is entirely different in China and the USA. In these regions, which are the 
most dynamic as far as the expansion of wind power is concerned, it is new business 
that dominates.
EiceDriver™ 1EDS-SRC: new driver component with slew rate control boosts motor 
control efficiency and reduces system costs
Although IGBT modules are controlled by microcontrollers, they cannot be connected 
directly to them. The output signals of a microcontroller are far too weak to connect them 
directly to the input lines of an IGBT module. An intermediate step is, therefore, necessary. 
Driver ICs perform this adjustment of the different voltages and supply the necessary 
control currents.
In May 2014, Infineon presented the IGBT driver component “EiceDRIVER™ 1EDS-SRC”. “SRC” 
stands for slew rate control, which refers to the slope of the signal edges of a switching signal, 
expressed, for example, in volts per millisecond. This new component, therefore, allows 
adjustments to be made to the speed at which the connected IGBT device switches from the 
“off” to the “on” state.
The slew rate control has advantages, given that different applications require different 
switch-on behavior. Fast switch-on or switch-off of the IGBT power transistors with a high 
slew rate ensures low switching losses. Conversely, slow switch-on with a low slew rate 
reduces electromagnetic interference and overvoltage peaks occurring in the motor. This 
means less strain on the isolation of the electric motor, which in turn has a favorable impact 
on the life cycle and service costs of the motor.
Generally speaking, the slew rate control of a motor control unit is fixed during the development 
phase by means of a resistor and cannot be changed during operation. The new component 
EiceDRIVER™ 1EDS-SRC now breaks this paradigm and permits dynamic adjustments to be made 
to the slew rate to adapt it to changing operating conditions. This innovation helps reduce power 
loss from the motor control unit. With the new EiceDRIVER™ 1EDS-SRC, the system costs are 
reduced by saving on cooling efforts. Its application is in motor control units for industrial drives, 
such as, for example, inverters and servo drives with output in the 22 to 200 kilowatt range.
Success through application-specific IGBT devices in induction cooking
When designing power transistors, physical constraints render it impossible to optimize all 
characteristics independently of one another. In the case of IGBT technology in particular, it 
is not possible to minimize the switching losses independently from the conduction losses. 
Using the TRENCHSTOP™ 5 IGBT technology, we have nevertheless succeeded in achieving 
a considerable reduction in both switching and conduction losses.
TRENCHSTOP™ 5 was developed especially for typical 650-volt applications such as photo­
voltaic inverters, uninterruptible power supplies, electronically controlled welding equipment 
and induction cooking. TRENCHSTOP™ 5 constitutes the technological basis for many IGBT 
products, allowing us to achieve wider diversity of IGBT types and enabling us in turn to serve 
a larger market. We, therefore, ensure manageable complexity in manufacturing technology 
and benefit from the economies of scale due to the high number of units.
A good example of the successful implementation of this strategy is our outstanding position 
in the field of induction cooking. In close cooperation with our lead customers, we have spent 
many years developing IGBT devices to meet the specific needs of the respective application – 
single-field induction cookers or multiple-field stoves. The most recent product is the IGBT 
transistor type RC-H5. It is based on TRENCHSTOP™ 5 technology and will be used in the induc­
tion cookers of Chinese manufacturer Midea.
Driver component EiceDRIVER™  
1EDS-SRC with slew rate control
Midea induction cooker
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
50

New applications: charging infrastructure for electric vehicles and 
energy storage systems
The field of electromobility with its many 
facets provides us with a further field of 
application for power electronics. The largest 
market for electric and hybrid buses is now 
China. Some 10,000 such low-emission utility 
vehicles are manufactured there each year. 
Our EconoPACK™+ type IGBT modules are 
used in the electric buses of China’s largest 
manufacturer, Yutong.
The proliferation of electric vehicles, whether 
private cars or utility vehicles, increases the 
need for a charging infrastructure. Here we are 
represented, for example, in the charging station 
of US electric vehicle manufacturer Tesla.
Battery-based energy storage systems to store surplus renewable energy during times of high 
wind or intensive sun constitute a further new application. We have received the first orders 
for IGBT modules for such energy storage systems from Korea.
Market position
World market for discrete power semiconductors and modules
During the early months of 2013, the world market for power semiconductors – including 
discrete power semiconductors and modules, but excluding power ICs – continued to see the 
downturn that began in 2012. Although it was followed by a continuous recovery throughout 
the remainder of 2013, the market nevertheless contracted slightly during the 2013 calendar 
year by 0.3 percent to US$15.373 billion (2012: US$15.422 billion). Infineon not only managed 
to buck the trend and increase its revenue, but also achieved the largest gain in market share 
(0.9 percentage points) of any competitor. Infineon now holds a market share of 12.3 percent 
and a 5.1 percentage-point lead (2012: 3.7 percentage points) over its nearest competitor. 
The five largest competitors together held 36.8 percent of the market.
World market for IGBT modules
In the 2013 calendar year, the world market for IGBT modules contracted by 3.3 percent to 
US$3.053 billion (2012: US$3.155 billion). Among the ten largest competitors, Infineon recorded 
the highest growth in revenue and improved its market share by 1.1 percentage points to 
20.5 percent. Infineon, therefore, remained in second place, but reduced the gap with the market 
leader to 5.6 percentage points (2012: 8.3 percentage points). The five largest competitors 
together held 74.0 percent of the market.
Infineon remained market leader in three key markets: in EMEA (Europe, Middle East and Africa) 
with a market share of 30.4 percent (plus 0.4 percentage points), in Americas with a market 
share of 36.1 percent (plus 1.3 percentage points) and in China with a market share of 26.9 per­
cent (plus 0.9 percentage points).
World market for discrete IGBT devices
In the 2013 calendar year, the world market for discrete IGBT devices grew by 0.6 percent to 
US$968 million (2012: US$962 million). Of all competitors, Infineon achieved by far the largest 
growth in market share, which rose by 3.7 percentage points to 24.7 percent. The five largest 
competitors together held 78.4 percent of the market.
Infineon managed to increase its market share in all regions and to retain market leadership 
in EMEA and China. The greatest progress was made in the Americas, where our market share 
rose from 5.0 percent in the previous year (6th place) to 15.2 percent now (2nd place). 
Charging station at electric vehicle manufacturer Tesla
G 25
World discrete power semiconductors 
and modules market share
Infineon
Mitsubishi
Toshiba
STMicro-
electronics
Fairchild
12.3 %
7.2 %
6.0 %
5.8 %
5.5 %
Source: IHS Inc., “Power Semiconductor Discretes 
& Modules Report – 2014”, September 2014
G 27
World discrete IGBT power semi­
conductors market share
Infineon
Mitsubishi
Fuji Electric
Fairchild
International 
Rectifier
24.7 %
16.4 %
15.6 %
11.0 %
10.7 %
Source: IHS Inc., “Power Semiconductor Discretes 
& Modules Report – 2014”, September 2014
G 26
World IGBT modules market share
Mitsubishi
Infineon
Fuji Electric
Semikron
Fairchild
26.1 %
20.5 %
12.2 %
10.7 %
4.5 %
Source: IHS Inc., “Power Semiconductor Discretes 
& Modules Report – 2014”, September 2014
51
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Industrial Power Control

2

Power supply for processors in servers
Our system solution provides outstanding efficiency for the 
power stage of server CPUs, regardless of load conditions, 
helping reduce power consumption in data centers with 
thousands of servers.
 1

DrBlade™ 2 integrated power stage 
DrBlade™ 2 combines two power transistors and a driver IC 
in a compact package only 0.6 millimeters high. Combined with 
our digital controller IC, DrBlade™ 2 is our solution for digital 
power management.
6.6 mm
 1
 2
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
52

The Power Management & Multimarket segment 
in the 2014 fiscal year
Revenue
The Power Management & Multimarket segment generated revenue totaling €1,061 million 
in the 2014 fiscal year, 7 percent up on the previous year’s figure of €987 million. The segment 
accounted for 25 percent of Infineon’s total revenue.
The growth in revenue is due to three fundamental drivers. First, the growing demand for 
discrete power semiconductors and power ICs. In particular, the introduction of digital power 
management concepts for DC/DC power management in servers had a highly positive impact 
on sales. Demand for controller ICs, driver ICs and low-voltage power MOSFET transistors all 
rose on the back of this trend. Second, demand for semiconductors in mobile devices increased, 
due to higher unit sales and a higher semiconductor contribution from Infineon per device, 
which had a positive effect mainly on radio-frequency (RF) components and silicon micro­
phones. Apart from growth in the actual number of units sold, strategically important customer 
projects, such as the design-in of our components in the flagship models of an Asian smart­
phone manufacturer, also helped boost revenue figures. Third, the worldwide introduction of 
the fourth generation (the so-called LTE standard), led to revenue growth for our RF power 
transistors, particularly in China.
There were no significant changes in the regional revenue split compared with the previous 
year. At 72 percent (2013: 74 percent), the high percentage attributable to Asia-Pacific (includ­
ing Japan) was due to the fact that most subcontractors producing electronic devices are based 
in this region and consequently manufacture there. The percentage attributable to Europe 
increased from 19 percent last year to 22 percent in 2014. At 6 percent, the share attributable 
to the Americas remained virtually unchanged (2013: 7 percent).
Segment Result
The Segment Result totaled €172 million, 19 percent up on the figure of €144 million recorded 
one year earlier. The Segment Result Margin corresponded to 16 percent of revenue.
The improvement in Segment Result was mainly driven by the increase in revenue. The strong 
revenue performance led to increased earnings and better utilization of manufacturing capac­
ities. The considerable cost attributable to manufacturing capacities not being fully utilized 
in the previous fiscal year was, therefore, sharply reduced. By contrast, increased expenses 
for platform developments, such as new concepts for digital power management or new 
materials for power semiconductors, had a negative impact. Both research and development 
expenses and the cost of selling activities increased.
G 28
Revenue and Segment Result  
of the Power Management  
& Multimarket segment
€ in millions
  Revenue   
  Segment Result
1,061
172
2014
987
929
144
142
2013
2012
G 29
Power Management & Multimarket 
segment revenue by region
22 %
6 %
72 %
  Europe, Middle East, Africa
  Americas
  Asia-Pacific, Japan
POWER MANAGEMENT & MULTIMARKET
Revenue: 
€1,061 million
Segment Result:
€172 million
Highlights:
Change in strategic direction from “product thinking” to 
“system understanding” well underway
Infineon market leader for standard power MOSFET devices for the first time
53
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Power Management & Multimarket

Business strategy and fields of application
The Power Management & Multimarket segment has three major fields of application:
1.	Discrete and integrated power semiconductors for supplying power to a variety of devices 
in the field of information and telecommunications infrastructure, consumer electronics 
and mobile devices (smartphones and tablets);
2.	Components for smartphones and tablets: Chips for silicon microphones as well as 
radio-frequency (RF) and small-signal components; 
3.	Radio-frequency power transistors for the cellular network infrastructure.
The Power Management & Multimarket segment offers all of the main components for the 
power supplies mentioned in the first item above: Low-voltage OptiMOS™ power transistors, 
high-voltage CoolMOS™ power transistors, driver ICs and control ICs. The power range we 
address spans from 10 watts for a smartphone charger through to 3 kilowatts for the power 
supply of a server.
Further optimization of individual power semiconductor components is unlikely to result in 
higher efficiency or compactness. This is where our strategic approach “Product to System” 
comes in. The combination of highly efficient power transistors and ICs in the most advanced 
packaging technology on the one hand, together with system understanding on the other, 
makes it possible to manufacture new semiconductor products with a completely new level 
of efficiency and compactness.
In view of the planned acquisition of International Rectifier, we will be extending the Power 
Management & Multimarket segment’s product portfolio in several areas. First, with low-voltage 
power transistors in largely complementary fields of application; second, with solutions for 
DC/DC conversion, and third, with highly reliable components used for example in aircraft, 
satellites and medical devices.
For mobile devices we supply special components such as chips for silicon microphones, 
RF antenna modules, LNAs (low-noise amplifiers) for satellite navigation and small-signal com­
ponents such as TVS (transient voltage suppressor) diodes that protect against electrostatic 
discharges. With our RF knowledge, comprehensive system understanding and our packaging 
technology oriented towards miniaturization, we help our customers gain a competitive 
advantage. We are conducting research on new architectures, materials and manufacturing 
technologies to ensure that – going forward – our components will meet the increasing 
requirements in terms of functionality, level of integration, ruggedness and signal quality.
RF technology is also an important factor in cellular network infrastructures. We supply 
RF power transistors for base stations that are used both when transmitting signals to cell 
phone users and for backhaul network management.
Additional fields of application in the Power Management & Multimarket segment are conven­
tional light management as well as LED lighting systems and micro inverters for photovoltaic 
rooftop systems.
Fields of application
Power supply for:
•  Consumer electronics
•  IT and telecommunications
•  PCs and notebooks
•  Servers
•  Smartphones
•  Tablets
Light management systems 
and LED lighting systems
Micro inverters for  
photovoltaic rooftop  
systems
Mobile devices
•  Navigation devices
•  Smartphones
•  Tablets
Mobile phone network  
infrastructure
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
54

Markets, trends and solutions
Requirements for supplying power to individual devices are increasing. Firstly, legal regulations 
require power supplies (including adapters and chargers) to be increasingly efficient. Secondly, 
power supplies are expected to be made more compact for practical reasons. Thirdly, users 
want smartphones and tablets to charge at ever faster rates. All of these customer requirements 
place new demands on the efficiency and size of power supplies. The power density, i.e., the 
electrical power converted within a certain component size, is becoming a decisive parameter.
Meeting the growing requirements for power supplies with 
digital power management concepts
Supplying power to electrical devices basically comprises two stages. First, the so-called 
AC/DC conversion converts the alternating current (AC) to direct current (DC). Second, the 
direct current is precisely adapted to the requirements of the point of load, for example the 
processor of a server. This second step is known as DC/DC conversion.
Two trends have been identified in the field of power supplies:
1.	Their efficiency is expected to increase, despite the simultaneously growing complexity 
of load profiles. However, there is a transition happening, from maximum efficiency at 
one single point of load to optimized efficiency across an entire operating range, such as 
at stand-by with practically 0 percent load, to a low load of 20 percent, an average load 
of 50 percent and finally maximum load of 100 percent.
2.	Over the last few years, apart from an increase in efficiency, the main focus has been on 
the size and weight of power supplies. Notebook adapters and chargers for mobile devices 
needed to be made increasingly smaller and lighter. Whereas there is still a demand for 
smaller notebook adapters, in the meantime most adapters for tablets and smartphones 
have been fully integrated in the plug, much to the satisfaction of customers. Over the next 
few years, shortening the charging time of these devices will become the most important 
factor. Mobile devices are being equipped with ever more powerful batteries in order to 
extend operating times. However, this leads to adapters taking a comparatively long time 
to charge. Shorter charging times are an advantage for the customer, and, therefore, an 
important differentiating factor for the device manufacturer. However, shorter charging 
times require a higher charging current, which usually involves a larger form factor. As 
larger chargers are not accepted by customers, the power density of the charger needs to 
be increased.
Infineon will play a key role in these two development trends – high efficiency across a broad 
operating range and higher power density – due to its innovative digital power management 
concepts. Developers of power supplies appreciate our digital power management concepts, 
as they make it possible to implement functions that would be technically highly complex to 
implement using analog design concepts. Using digital power management concepts, the 
functionality can be adapted by means of software and firmware modifications. The resulting 
success factors for our customers are shorter development cycles and a high degree of flexibility.
.dp: Our digital power management solution for AC/DC conversion
Our digital power management solution for AC/DC conversion is known as “digital platform”, 
or “.dp” for short. It consists out of a digital signal processor, memory for code and drivers 
for high-voltage power transistors. Trimmed to suit this highly integrated solution, we are also 
offering high-voltage CoolMOS™ power transistors in increasingly compact packages. In the 
2014 fiscal year we presented a CoolMOS™ power transistor in the smallest package ever, thus 
combining functionality with high electrical power in a minimum of space.
G   see glossary, page 277
G   see glossary, page 278
Chargers for smartphones and tablets 
have been fully integrated in the plug
G   see glossary, page 279
A CoolMOS™ power transistor 
in the smallest packaging ever 
presented – the ThinPAK 5x6
6 mm
5 mm
55
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Power Management & Multimarket

A .dp solution for chargers is always a customer-specific solution. As it is implemented by 
software, it can be quickly realized and the wide range of derivatives is easy to control. 
In collaboration with our customers in the area of mobile devices, flat screen TV sets and 
LED lighting systems, we are developing a solution to specifically meet the requirements of 
the customer application. The properties of the power supply are adjusted optimally via 
the firmware as well as application-specific system parameters. The products that make up 
today’s “.dp” family cover the power range from 30 to 300 watts.
Together with a digital controller IC, the new DrBlade™ 2 power stage enables 
complete, highly efficient digital DC/DC conversion
For DC/DC conversion, too, the digital power management concept is becoming increas­
ingly the solution of choice. Infineon is now offering the fourth generation of digital control 
ICs. The DrBlade™ 2 power stage contributes towards a complete, highly efficient solution 
for DC/DC conversion. DrBlade™ 2 is an integrated power stage that combines two low-
voltage OptiMOS™ power transistors and a driver IC integrated in a compact package only 
0.6 millimeters high.
During its development, DrBlade™ 2 was adapted to the digital controller IC. Apart from 
the power stage, DrBlade™ 2 also includes current and temperature sensors. The measured 
data are evaluated by the digital control IC, which simplifies the system design and enables 
developers of servers and datacom applications to shorten their development cycles. 
Infineon’s digital DC/DC system solution can be quickly adapted to the load, which is sub­
stantially more difficult and complex, and, therefore, more costly to achieve with an analog 
system design. Regardless of load conditions, the digital system solution offers the utmost 
efficiency and achieves an efficiency of more than 95 percent, leading to an improvement 
in system performance with significantly reduced losses, and, therefore, less cooling efforts. 
End users, such as data center operators, benefit from reduced energy costs and, thereby, 
lower total operating cost across the entire life cycle.
Mobile devices: higher sensitivity required for radio-frequency components and 
for chips for silicon microphones; data volume is driving network expansion
The demand for smartphones and tablets is growing rapidly. In addition to 
chargers for these devices, we are well positioned in the supply of components 
for certain functions within the devices themselves. RF switches in CMOS 
technology for switching between various signal paths and LNAs (low-noise 
amplifiers) for satellite navigation with high signal sensitivity are two 
examples of our RF expertise in these applications. 
We are continuously adapting our product portfolio to meet the chang­-
ing market requirements. The next significant step in the field of 
CMOS RF switches is to integrate all relevant functions in one module 
(system-in-package) or, as far as possible, monolithically on one chip 
(system-on-chip). This integration step is only feasible with a profound 
understanding of the RF system.
We are also focusing on chips for silicon microphones, for which we provide two core 
components: the MEMS sensor with the microphone membrane and the application-specific 
IC for signal conversion (see also the chapter “Research & Development”). The objective 
behind manufacturing the membranes is to increase sensitivity and at the same time improve 
resilience to vibrations and shock.
G   see glossary, page 281
P   see page 69
Silicon microphone: the round 
membrane is on the left. The IC for 
signal conversion is located under 
the molded casing on the right
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
56

The latest generation of mobile devices requires several, partly different types of microphone of 
ever higher sensitivity. These higher-quality microphones are not only a differentiating feature 
of the smartphone manufacturer, but open up completely new options for application. For 
instance, voice control is then possible in environments with a high level of background noise. 
Additional microphones as well as microphones with higher quality have made a noticeable 
improvement in voice control. The quality of telephone calls made via the Internet (VoIP calls) 
is also improving and becoming a more important factor.
The growing number of mobile devices entails a need to adapt the mobile communications 
network infrastructure to cope with the increasing data volumes, which is evident in two 
aspects. First, the continually more advanced transmission standards (LTE for example) are 
raising the speed and throughput of data transmission. In this field, our RF power transistors 
are installed in the base stations to downstream data to the mobile devices. The second aspect 
is the sheer number of cellular network users within a small space, for example in pedestrian 
zones or at trade shows, where the cells are being configured ever smaller in order to avoid 
overloading the network. For this reason, over the next few years cellular network operators 
will have to invest in infrastructures with so-called micro and pico cells in order to offer cell 
phone users fast Internet access and full network coverage. In the 2014 fiscal year, Infineon 
presented its first components for cellular network backhaul systems.
Market position
Standard power MOSFET devices
In the 2013 calendar year, the world market for standard power MOSFET devices (low-voltage 
and high-voltage MOSFETs) reached a size of US$5.457 billion, an increase of 1.5 percent 
compared to the previous year’s figure of US$5.374 billion (source: IHS Inc.). Infineon gained 
market share in all of its regions and, at 1.6 percentage points, recorded the largest growth in 
market share of all competitors. With market share of 13.6 percent, Infineon became market 
leader for the first time. The five largest competitors held 53.6 percent of the market.
Chips for silicon microphones
Market research company IHS Inc. estimates that 2.630 billion chips for silicon microphones 
were sold worldwide in the 2013 calendar year, compared with 1.924 billion in the previous 
year, a growth rate of 36.7 percent.
Infineon succeeded in increasing its sales volume at faster-than-market-average rate of 
53.9 percent from 510 million to 785 million units, thus adding a further 3.3 percentage points 
to our market share, which increased from 26.5 percent in the 2012 calendar year to 29.8 per­
cent in the 2013 calendar year. Infineon, therefore, gained far more market share than any of 
its competitors. The five largest competitors held 96.5 percent of the market.
In 2013, some 79 percent of all silicon microphones produced were installed in cell phones 
and tablets. In the future too, the majority of silicon microphones will be absorbed by these 
two product categories. Headsets accounted for 9 percent of all silicon microphones sold, 
notebooks for 6 percent. The remaining 6 percent were installed in set-top boxes, cameras, 
gaming consoles, medical and automotive applications as well as fitness measurement 
devices and watches. The last two applications are known as “wearable electronics”.
 
The membrane of a silicon  
microphone is less than 1 millimeter 
in diameter
G 30
World standard power MOSFET  
market share
Infineon
International 
Rectifier
Renesas
Fairchild
Toshiba
13.6 %
12.0 %
10.3 %
9.1 %
8.6 %
Source: IHS Inc., “Power Semiconductor Discretes  
& Modules Report – 2014”, September 2014
G 31
World silicon microphone ICs  
market share by units
Knowles
Infineon
Omron
Analog 
Devices
Wolfson
59.1 %
29.8 %
3.8 %
2.6 %
1.2 %
Source: IHS Inc., “MEMS Microphones Report – 2014”, 
April 2014
57
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Power Management & Multimarket

2

Chip-based credit card in China
Magnetic-strip-based credit cards are currently being replaced 
by chip-based solutions throughout China and the USA. Several 
billion cards will be shipped to customers during the next few 
years. The CoM package technology is now also available for use 
in government identification documents.
 1

“Coil on Module” (CoM) package technology
CoM package technology is an innovative chip package for 
dual-interface cards, i.e., for cards with both contact-based and 
contactless interface. The chip (center of picture) has an RF link 
to the card’s antenna instead of the previously widespread 
mechanical-electrical connection.
20 mm
 1
 2
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
58

The Chip Card & Security segment
in the 2014 fiscal year 
Revenue
The Chip Card & Security segment generated revenue totaling €494 million in the 2014 fiscal 
year, 7 percent higher than the previous year’s figure of €463 million. The segment generated 
11 percent of Group revenue.
In the first half of the 2014 fiscal year, the increase in revenue was attributable mainly to 
business in electronic payment cards, government identification and authentication solu­
tions. The trend continued throughout the second half of the year, reinforced by good sales 
of security controllers for SIM cards with NFC functionality.
At 54 percent, the most significant revenue increase compared to the previous year was with 
payment cards, the decisive factor being the introduction of chip-based credit cards in China 
and the USA.
A particularly striking feature of the regional revenue split is the significant growth in the 
percentage attributable to the Asia-Pacific region (including Japan), which rose to 48 percent 
(2013: 41 percent). There are several reasons for this: firstly, the introduction of chip-based 
credit cards in China, secondly, the positive business trend in both SIM cards with NFC func­
tionality and security chips for authentication solutions, and thirdly, projects in the field of 
government identification in several Asian countries. Correspondingly, Europe’s 50 percent 
share in revenue recorded one year earlier has now fallen to 44 percent. The Americas region 
accounted for 8 percent of revenue (2013: 9 percent), with the largest project in this region 
being the electronic passport in the USA.
Segment Result
The Segment Result amounted to €43 million, an increase of 10 percent compared to the 
previous year’s €39 million. The Segment Result Margin amounted to 9 percent of revenue.
The improved Segment Result was mostly due to the rise in revenue and a higher gross margin, 
resulting from a changed product mix. On the other hand, the fact that expenses for selling 
activities rose even faster than revenue had a negative impact. The increase in research and 
development and administrative costs was more or less proportional to revenue.
G 32
Revenue and Segment Result  
of the Chip Card & Security segment
€ in millions
  Revenue   
  Segment Result
494
43
2014
463
457
39
56
2013
2012
G 33
Chip Card & Security  
segment revenue by region
44 %
8 %
48 %
  Europe, Middle East, Africa
  Americas
  Asia-Pacific, Japan
CHIP CARD & SECURITY
Revenue: 
€494 million
Segment Result:
€43 million
Highlights:
High growth rates for electronic payment cards resulting from introduction 
of chip-based credit cards in China and the USA
Connected devices drive demand for authentication solutions
59
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Chip Card & Security

Business strategy and fields of application
The Chip Card & Security segment sees its core competencies mainly in the fields of security, 
contactless communication and embedded microcontroller solutions (embedded control). 
We have created innovations in these fields, some of which are multi-award-winning: Integrity 
Guard for security, Coil on Module for contactless communication and SOLID FLASH™ for 
security controller solutions. With these three base technologies and further security solutions, 
we offer a broad portfolio of semiconductor-based security products for a wide range of chip 
card and security applications. With its extensive expertise, Infineon is providing greater security 
in an increasingly connected world, such as for mobile payments, secure cloud computing 
and secure, electronically readable governmental identification documents.
More than 25 years of experience in the largest and most sophisticated security projects in the 
world have enabled us to become market leader in technology for security ICs. Alongside 
major projects in payment and government identification, we see increasing growth potential 
in smaller and regional security projects. We shall offer our worldwide leading security exper­
tise to a wider clientele going into the future: 
•	 We are diversifying our customer portfolio and enlarging our sales structure, which has 
hitherto focused more on large-scale customers. We see potential in gaining a growing 
percentage of smaller regional customers on the one hand and in bolstering our distribution 
channels on the other. As a result of broadening our product portfolio in recent years, we 
are now able to service these customer groups appropriately. The expansion of our port­
folio includes not only hardware-based products but also design support as well as soft­
ware solutions.
•	 We are building up our presence in the various regions in order to improve our service to 
locally based customers and better cater to their specific requirements. Our aim is to obtain 
an even greater understanding of the factors that make our customers successful in each 
of their regions. Often, it is not only a technically superior product which is in demand, but 
a solution that offers the best value for money, i.e., it fulfills the specific security require­
ments for the application at the lowest possible system cost.
•	 We are extending our range to include software and services in order to satisfy the diverging 
requirements of our customers in a broad range of countries. We offer support for certifying 
security solutions, provide reference designs and offer software closely related to our security 
controllers (such as firmware, driver software or hardware-related application software). 
These services help minimize our customers’ time-to-market.
G   see glossary, page 279
Fields of application
Ticketing,  
access control
Trusted Computing
Authentication
•  Accessories
•  Games consoles
•  Industrial controllers
•  Spare parts
Governmental identifi-
cation documents
•  Driver’s licenses
•  Electronic passports
•  ID cards
Healthcare cards
Mobile communications
•  High-end SIM cards 
(NFC-based)
•  Machine-to-machine 
communication
•  Standard SIM cards
Near field  
communication (NFC)
Payment systems
•  Credit/debit cards
•  NFC-based, contact-
less payments
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
60

Markets, trends and solutions
Infineon continues to operate in the conventional chip card application fields. These include, 
for example, payment cards, SIM cards for mobile communication and security solutions for 
electronic governmental applications, such as, for example, passports and ID cards. Alongside 
these activities, we shall also be focusing more and more on new and rapidly growing applica­
tions in which the security aspect is of increasing importance. These applications include mobile 
payments with NFC technology, the protection of electronic devices in connected systems 
and the diverse field of authentication. Authentication is used in accessories and spare parts, 
as well as in industrial controllers, among other applications. Overall, we are expecting higher 
business growth in the total of these applications than in our traditional markets.
Introduction of chip-based credit cards in China and the USA
Chip-based cards enhance security for cashless payments. Europe had already embarked 
on the replacement of magnetic strip-based cards by chip-based payment cards years ago. 
This con­version is now also taking place in China and the USA. Both countries currently offer 
the biggest market potential in the field of payment: Several billion chip-based credit cards 
will be deployed to customers over the next few years. For the period from 2014 to 2018, 
market researchers forecast the delivery of over 2.9 billion cards in China and over one billion 
in the USA.
Our technology enjoys a high level of acceptance, attributable not only to our many years 
of excellent customer support and relations, but also to our extensive, renewed and custom­
ized product port­folio. We have secured orders from nearly all main card manufacturers 
supplying the US market. As a result, the majority of platforms offered by card manufacturers 
are based on our SLE 7x family of security controllers (source: VISA). We are currently achieving 
similar market success in China, where we serve the local market via several well-known 
card manufacturers.
The success of our security technology is reflected in the above-average growth in revenue of 
54 percent recorded for our payment business in the 2014 fiscal year compared to the previous 
year. In the coming years too, our payment business will be among the most rapidly growing 
fields within the Chip Card & Security segment.
Continued worldwide growth in governmental identification documents 
and ID projects
Governmental identification documents include passports, national ID cards, driver’s licenses 
and, in the wider sense, also healthcare cards. Such documents are increasingly equipped 
with a security chip. Infineon’s products offer digital, durable, hardware-based security and, 
thereby, comply with the multitude of requirements necessary for electronic governmental 
identification documents. As they are often valid for ten years or more, it is essential that 
they are secure enough to withstand hacker attacks over such a long period of time. We 
developed Integrity Guard, our multi-award-winning security technology, precisely to meet 
these specifications. 
Infineon meanwhile supplies over 70 percent of all government ID projects in Europe. In addi­
tion, according to the US Government Printing Office, Infineon is one of the main suppliers 
of security technology for the USA’s electronic passports. It is the largest electronic passport 
project in the world. Infineon has been supplying the US Government Printing Office since 
the project began in 2005. Up to the end of the 2014 fiscal year, Infineon had delivered approxi­
mately 90 million units to the US Government Printing Office.
G   see glossary, page 277
  USA   
  China
Source: IHS Inc., “Payment & Banking Cards 
Report – 2014”, May 2014
G 34
Expected growth in chip-based  
payment cards in the USA and China
in millions of cards
2018 e
987
307
680
2017 e
916
259
657
2016 e
825
208
617
2015 e
675
145
530
2014 e
510
84
426
Government ID projects in  
Europe based on Infineon’s  
security controllers
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Ireland
Italy
Kosovo
Luxembourg
Netherlands
Norway
Poland
Portugal
Serbia
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom
61
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Chip Card & Security

NFC: Contactless payment with mobile devices
Mobile devices (cell phones, tablets and wearables) are gradually being transformed into 
wallets. By means of NFC (near field communication) technology, numerous functions and 
applications can be implemented in mobile devices, such as, for example, vouchers, tickets 
and, of course, payment services. As a result, demand is growing for the secure storage and 
protection of confidential information on these devices.
Infineon provides the security chip for this purpose, the so-called embedded Secure 
Element (eSE). The eSE can either be integrated in the SIM card controller, incorporated in 
a microSD card, or mounted onto the printed circuit board of the mobile device. In contrast 
to most competitors, Infineon offers dedicated solutions for all three security concepts. For 
our eSE solution, for example, we managed to secure orders from leading smartphone and 
tablet manufacturers during the 2014 fiscal year. We also forecast growing demand for our 
security solutions in these product groups going into the future.
Standard SIM cards less in demand; new applications requiring 
high-end SIM cards becoming increasingly popular
The total market for SIM cards is currently stable. The usage of standard SIM card with memory 
capacity from 64 to 128 kilobytes without additional functionality is declining. In addition, there 
is a contraction in the use of prepaid SIM cards due to a necessity of registration in order to 
prevent anonymous use. This change has brought about a sharp decline in the sale of such cards.
Nevertheless, there are further subsectors that still hold out prospects of high growth for many 
years to come and on which Infineon is focusing to a great extent. These subsectors are:
•	 SIM cards for mobile payment. These cards are becoming more popular because the smart­
phone is being used increasingly as an electronic wallet. These cards tend to have a larger 
memory capacity of 1 to 1.5 megabytes.
•	 SIM cards with NFC functionality. This SIM card segment is growing, especially in China, 
fuelled by the roll-out of the 3G and 4G cellular network standard.
•	 SIM cards for machine-to-machine (M2M) communication. M2M communication will gain 
greatly in importance by virtue of the Internet of Things. M2M communication enables 
automatic exchange of data from devices to other devices or service centers. Examples of 
M2M applications include: infotainment applications in cars, toll systems, smart meters in 
the energy sector and telematics systems for emergency calls, maintenance and navigation.
Tailor-made end-to-end solutions for authentication with OPTIGA™ product series
In order to safeguard electronic systems, it is essential to connect only authorized devices 
to one another. In view of the growing number of connected devices being used by both 
businesses and consumers, this aspect is rapidly growing in importance. It is a matter of pro­
tecting the connected devices against piracy, data manipulation, hacking and cyber attacks. 
Security, therefore, needs to be introduced whenever possible at each end point.
NFC functionality enables contactless 
payment by smartphone
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
62

With the OPTIGA™ product family, Infineon supplies various security chips and security solutions 
for electronic systems: from a complex IT infrastructure with numerous servers and computers 
to a system consisting of an end device and appropriate accessories, such as, for example, an 
MP3 player and headphones. The chips are integrated in the electronic devices and authenti­
cate the individual system components.
Security requirements for the chip solution vary according to the application. Infineon, 
therefore, offers various product families for authentication and brings them together in the 
OPTIGA™ product family. These include the OPTIGA™ TPM, which ensures the system integrity 
of IT networks, and the OPTIGA™ Trust authentication chip, which helps to protect electronic 
accessories and spare parts against product piracy.
Infineon is enlarging the OPTIGA™ Trust product family to include a programmable version: 
the hardware-based OPTIGA™ Trust P security solution. Since the OPTIGA™ Trust P is pro­
grammable, individual security functions can be selectively adjusted to suit the security level 
of the application.
We see a very large market potential in authentication chips. With each security chip we offer 
a tailor-made, end-to-end solution with the best security level in its class. For all products in 
the OPTIGA™ family we provide our customers with system development support, thereby 
shortening the time-to-market of their products. In addition to the security chip, Infineon also 
supplies firmware and management software for the end device.
Market position
According to the latest study by market research company IHS Inc., in the 2013 calendar year 
Infineon held a 21.7 percent share of the world market for microcontroller-based chip card ICs. 
This market comprises contact-based and contactless microcontroller-based chip card ICs for 
applications in SIM cards, payment cards, access control, transportation and government ID, 
which means Infineon holds a leading position in all security applications.
This market grew by 9.7 percent from US$2.26 billion in 2012 to US$2.48 billion in 2013. In 
the 2013 calendar year, 7.83 billion microcontroller-based chip card ICs were sold worldwide 
(2012: 7.50 billion). The five largest competitors held 94.8 percent of the market.
OPTIGA™ Trust: Thanks to the minimal 
package size of only 2 millimeters  
by 3 millimeters this security chip will 
fit into small devices such as in-ear 
headphones
G 35
World microcontroller-based  
chip card ICs market share
NXP
Infineon
STMicro- 
electronics
Samsung
SHHIC
32.3 %
21.7 %
17.9 %
16.5 %
6.4 %
Source: IHS Inc., “Smart Cards Semiconductors 
Report – 2014”, July 2014
63
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
THE SEGMENTS
Chip Card & Security

RESEARCH & DEVELOPMENT
In order to detect defective components as 
early as possible, fully processed chips are 
tested prior to sawing the wafer. For this 
purpose, the future environment of the 
application is electrically simulated, i.e., the 
bonding pads of the chips are contacted 
with probe heads literally as fine as a hair, 
in order to feed in the electrical test signals 
and read out the output signals. Any failed 
chip is then marked and rejected after the 
wafer has been sawn.
The electromechanical interface between the 
chip and the test equipment, which differs for 
each individual chip design, is known as a 
probe card (see picture). The probe heads are 
located on the back of the printed circuit 
board. The miniscule dimensions of today’s 
chips and the reliability necessary for volume 
production require solutions that border on 
the technically feasible, making probe cards 
highly specialized hardware items that can 
cost five-digit amounts.
64

Investments in research and development increased to 
€550 million in 2014 fiscal year
Further technology transfers from 200- to 300-millimeter 
wafers completed on schedule
Next step in silicon microphone innovation finalized: 
dual backplate technology for distortion-free recording 
of high sound levels 
Innovation plays a significant role as a key differentiating factor in our strategic approach 
“Product to System”. Leading technologies are a major contributor to Infineon’s success, 
helping to safeguard and retain our position as a leading semiconductor manufacturer going 
into the future. We are focusing our research and revelopment activities on the following 
key points:
•	 Power semiconductor products,
•	 Radio-frequency components,
•	 Analog/mixed-signal designs,
•	 MEMS (micro-electromechanical systems) and sensors,
•	 Microcontrollers for automotive, industrial and security applications,
•	 Frontend and backend manufacturing technologies.
Research and development expenses amounted to €550 million in the 2014 fiscal year, com­
pared with €525 million in the previous fiscal year; an increase of 5 percent. As a percentage 
of revenue, we spent 12.7 percent on research and development during the 2014 fiscal year, 
compared with 13.7 percent one year earlier. We, therefore, remain within our desired target 
corridor of a low- to mid-teens percentage.
At the end of the 2014 fiscal year, 4,822 people, or 16 percent of Infineon’s total workforce, 
were employed in our research and innovation network worldwide. At the end of the 2013 fiscal 
year, Infineon employed 4,472 people in that field (17 percent of the total workforce). Our 
research and development sites are situated at 21 locations in 11 different countries (see map 
in the chapter “R&D and Manufacturing Sites”,  P   page 76/77). 
Capitalized development costs totaled €92 million in the 2014 fiscal year, significantly higher 
than one year earlier (€51 million). Amortization of capitalized development costs for the 
2014 fiscal year totaled €25 million (2013: €19 million). Subsidies and grants for research and 
development increased from €52 million in the 2013 fiscal year to €66 million in the fiscal year 
ended September 30, 2014.
Research and development expenses are not only being incurred for developing new 
products, but also increasingly on entire platforms, giving rise to completely new product 
families. These include, for instance, the “Blade” chip-embedded packaging technology 
(see “Power Management & Multimarket” in the chapter “The segments”), the digital power 
management concepts (see “Power Management & Multimarket” in the chapter “The segments”), 
and power semiconductors based on the new materials silicon carbide and gallium nitride 
(see section below).
G   see glossary, page 281
11.7 %
12.7 %
13.7 %
G 36
R&D expenses
€ in millions
  R&D expenses
  Percentage of revenue
525
455
550
2013
2012
2014
P   see page 56
P   see page 67
65
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Research & Development

Patents
Infineon’s innovative strength and long-term competitiveness are also apparent in both 
the quantity and the quality of our patents. We applied for some 2,100 patents worldwide 
in the course of the 2014 fiscal year, compared with around 1,700 patents one year earlier. 
The Infineon patent portfolio worldwide comprised approximately 21,000 patents and patent 
applications at the end of the 2014 fiscal year, compared with around 19,000 patents and 
applications at the end of the previous year.
As a result of the planned acquisition of International Rectifier, our patent portfolio will 
increase by a further 1,800 patents and patent registrations.
In conjunction with the extra-judicial settlement with the insolvency administrator of 
Qimonda AG in September 2014, in October 2014 Infineon acquired, among other things, 
approximately 8,800 patents and patent registrations, most of which relate to DRAM (Dynamic 
Random Access Memory) memory technology. Under the agreement reached, the disputes 
relating to the rights of Infineon and its licensees to continue to use the Qimonda patents 
have been settled. Since Infineon does not have any DRAM memory operations of its own, 
it plans to resell these patents and patent registrations.
Principal in-house research and development activities
Advances in 300-millimeter thin-wafer technology
In the 2014 fiscal year, Infineon continued to ramp up volume production of the high-voltage 
CoolMOS™ power transistors on 300-millimeter thin-wafer manufacturing lines in both Dresden 
(Germany) and Villach (Austria), as scheduled. The planned technology transfers from 200- to 
300-millimeter wafer technology were all completed on time: the base technologies SFET4 and 
SFET5 for low-voltage OptiMOS™ power transistors and also the IGBT3 base technology for 
1,200-volt IGBT devices (see the chapter “Operations”).
Moreover, further technology transfers are now planned with the aim of enlarging our 
300-millimeter product portfolio step by step. First, the IGBT4 base technology is due to be 
transferred in the course of the 2015 fiscal year, and second, SMART7 is the first development 
project for a power IC technology for automotive applications that has been started directly 
based on 300-millimeter thin-wafer technology.
Expansion at the Villach plant: Pilot space planned for Industry 4.0
In June 2014, Infineon announced plans to expand the Villach (Austria) site. Between 2014 
and 2017, a state-of-the-art cluster of buildings is to be erected that will accommodate 
around 200 workplaces in research, manufacturing and measurement technology. In addition, 
during the same period, the existing logistics and infrastructure areas as well as the plant 
facilities are to be expanded to keep up with future requirements. These steps are designed 
to boost productivity and increase automation, which is necessary to stay ahead in an inter­
nationally competitive environment.
The main focus of the expansion is on building on our existing expertise to meet the manufac­
turing needs of the future as well as on research and development. “Pilot Space Industry 4.0” 
stands for the implementation of an innovative concept of connected, knowledge-driven 
manufacturing. Infineon is creating the pilot operation of a manufacturing facility based on 
a cyber-physical system with the latest manufacturing control and automation systems, 
featuring utmost data security and data integrity in which the interaction of man and machine 
is destined to enter a new dimension.
The second fundamental factor in the site expansion is a broad research program investi­
gating innovations in material, processes, technology and system expertise. The research 
program is powering the development of the next generation of energy-efficient products. 
The main focus is on the utilization of new materials such as silicon carbide and gallium 
nitride, sensor technologies, the development of new MEMS (micro-electromechanical 
systems) and the advancement of 300-millimeter thin-wafer technology.
P   see page 74
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
66

New development center opened in Malacca
In December 2013, a new development center was opened at our site in Malacca (Malaysia). 
Over time, laboratories and offices will be built to accommodate up to 400 employees on 
3,000 square meters of floor space. Research and development activities have been conducted 
in Malacca since 2005. Previously, the site had been used mainly for backend manufacturing. 
Today, about 300 research and development staff members are engaged in developing new IC 
packaging technologies, chip tests, product characterization and test methodologies.
New materials for power semiconductors
The ideal power transistor needs to be small in size, sufficiently robust to withstand high tem­
peratures and transient voltage, and show very little electrical resistance as well as minimal 
switching losses when switched on. It should also be capable of handling high switching frequen­
cies, as this means the passive components used in the circuit (such as resistors and inductors) 
can be made even smaller. These factors not only reduce costs for the customer, but also 
the size and weight of the systems, which in turns means savings on expensive raw materials.
In the continuous search for even more efficient power semiconductors for increasingly 
compact power supplies and controls, new materials are becoming more and more important. 
Particularly silicon carbide (SiC, a combination of silicon and carbon) and gallium nitride 
(GaN, a combination of gallium and nitrogen) are the latest materials of choice. These new 
semiconductor materials are capable of switching higher voltages than silicon-based compo­
nents with fewer losses, while offering greater compactness. 
The fields of application suitable for SiC and GaN components are largely determined by their 
voltage classes. Whereas there is a distinct trend towards the use of SiC technology in applica­
tions over 1,000 volts, GaN technology is better suited for use at 650 volts and lower. When 
introduced to the market, GaN power transistors in the 650-volt class will be key components 
in terms of outstanding efficiency and extreme power density, such as in power supplies for 
servers and telecommunications systems. With increasing technological maturity, however, 
we also see GaN technology establishing itself in the lower voltage range (down to 100 volts).
150-millimeter silicon carbide wafer
150-millimeter gallium nitride wafer
67
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Research & Development

Silicon carbide: product portfolio expanded – focus on best-value customer solution
As the market participant offering the most comprehensive range of power semiconductors, 
Infineon’s focus is on the analysis of customer applications. Based on this analysis, we endeavor 
to provide customers with best-value solutions. Nowadays, solutions of this nature often 
rely on a coordinated combination of silicon and silicon carbide (SiC) components. It is the 
balance between the cost and performance benefits of the various components that ulti­
mately leads to a sustainable improvement in customers’ systems. These can relate to effi­
ciency, costs, size, weight or time-to-market.
In 2001, Infineon was the first semiconductor manufacturer worldwide to market a SiC diode. 
In May 2014 we presented what is meanwhile the fifth generation of our 1,200-volt SiC diode, 
which features improved characteristics in terms of both static and switching losses.
Apart from our range of SiC diodes, which has become increasingly broad over the last 
few years, our SiC Easy modules are also enjoying ever-greater market success. Apart from 
SiC diodes, we also incorporate traditional silicon diodes and high-voltage CoolMOS™ power 
transistors as well as IGBTs in our SiC Easy modules. Together with our other power semi­
conductors in various packaging technologies, we help customers to individually optimize 
their systems in terms of cost, efficiency and size.
In the meantime, we also offer a SiC transistor, a so-called SiC-JFET (Junction Field Effect 
Transistor), including driver IC. The transistor enables our customers to retain their familiar 
circuit design and replace their previous power transistors with our SiC-JFET, including driver 
IC. The entire know-how required to control a SiC-JFET is integrated in this one driver IC. From 
the customers’ point of view, the SiC-JFET works together with the driver IC like a “normal” 
transistor, but with greatly improved characteristics. Infineon received the “2014 Compound 
Semiconductor Industry Innovation Award” for this overall concept of easy-to-handle SiC-JFET 
and driver IC (see the chapter “Awards”).
At present, the main fields of application for SiC components are photovoltaic inverters, switch 
mode power supplies for servers over 600 watts and uninterruptible power supplies, in which 
the degree of efficiency plays a decisive role. Going forward, we also see inverters for variable 
speed drives and, in the long term, traction as potential fields of application for SiC compo­
nents. The most important factor here is the power density. Last but not least, electrically 
powered vehicles are also a possible field of application for SiC components, where they are 
most likely to be used in battery charging equipment, but also, under certain conditions, in 
the control systems of electric motors in the future.
Gallium nitride: power supplies more efficient and compact
The volume production of gallium nitride (GaN)-based components still lies somewhat further 
in the future. GaN transistors, however, offer completely new properties that are of interest, 
for example, to developers of power supplies. We believe that GaN transistors will lead to far 
greater efficiency in the field of power conversion, as they combine extremely low on-state 
resistance with minimal switching losses. They are, therefore, ideally suited for use at higher 
frequencies (compared with standard silicon transistors) and can be exploited to reduce the 
size of the overall system. However, this does not mean that a standard silicon-based power 
transistor will be simply replaced by a GaN power transistor. The full benefit will only be 
achieved when used with new power supply topologies, where they provide maximum effi­
ciency and increased compactness for the overall system.
Fifth generation of 1,200-volt  
SiC diodes
P   see page 111
SiC Easy module with silicon carbide 
and traditional silicon components
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
68

In Villach (Austria), where our competence center for power electronics responsible for devel­
oping the GaN technology is located, we have already implemented the first complete frontend 
pilot line for processing 150-millimeter GaN wafers. Fully functioning GaN-HEMTs (High Electron 
Mobility Transistors) are being manufactured on this line. As part of the site expansion in Villach, 
research on GaN technology is being further intensified (see also the section “Expansion at 
the Villach plant: Pilot space planned for Industry 4.0” earlier in this chapter).
We expect the planned acquisition of International Rectifier to significantly strengthen our 
position in the field of GaN power semiconductors as it will accelerate product development 
and shorten time-to-market. It will also give us access to a valuable portfolio of patents for 
manufacturing GaN transistors, particularly for the crucial epitaxy processes for the monocrys­
talline application of the GaN layer on a silicon wafer as a substrate, which has a completely 
different crystal lattice.
High-speed innovation in developing chips for silicon microphones: 
Next stage of innovation – dual backplate technology for distortion-free 
recording of high sound levels
Our market share for silicon microphone chips grew from 1.5 percent in 2007 to 29.8 percent 
in 2013. This success story is mainly due to three fundamental factors. The first of these is 
customer proximity. In very close, in-depth technical collaboration with our customers, we 
succeeded in gaining an understanding of their problems and challenges at an early stage in 
order to achieve an ideal product specification. The second factor has been our innovative 
strength. The standards for microphone signal-to-noise ratios and distortion factors are 
becoming increasingly stringent from year to year, and it is necessary to be innovative and 
keep up with the requirements. So far we have always managed to do so and launched a new 
generation of technology every year. Thirdly, quality and deliverability of our products has 
also helped us. Manufacturers of mobile devices appreciate our ability to swiftly ramp a new 
product in large volumes. Flexibility in manufacturing coupled with the quality assurance 
systems adapted from our Automotive segment has been an additional competitive advantage.
P   see page 66
G   see glossary, page 278
Source: IHS Inc., “MEMS Microphone Report – 2014”, April 2014
G 37
Development of Infineon’s market share for silicon microphone ICs from 2007 to 2013
40
30
20
10
0
2010
2011
2012
2013
2009
2008
2007
7.3 %
5.2 %
1.5 %
8.8 %
16.1 %
26.5 %
29.8 %
69
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Research & Development

Our latest innovation step is the fully differential microphone, consisting of a differential 
MEMS sensor and a differential chip that can be calibrated for signal conversion. The sensor, 
which is manufactured using the so-called dual backplate technology, uses for the first time 
a membrane mounted between two signal electrodes for recording high sound levels without 
distortion. We are currently the only manufacturer capable of producing a fully differential 
microphone in high volumes.
Cross-segment development of pressure sensors: barometric sensors in 
automotive and smartphone applications
For many years, Infineon has been highly successful in the field of pressure sensors for auto­
motive applications. Examples include sensors to measure barometric air pressure in order 
to optimize the fuel-air mixture in the combustion chamber. Another application is the side 
airbag, where the momentary increase in air pressure in the door is used to detect a side-impact 
collision and trigger the airbag. This pressure sensor technology, which we have utilized with 
great success in automotive applications, is now to be transferred to the consumer electronics 
and communications industry.
In an initial step, the Power Management & Multimarket segment is developing a pressure 
sensor for smartphones based on this technology. The standards for pressure sensors in smart­
phones differ from those used in the car industry in terms of size, measuring precision and 
power consumption, but also in terms of less obvious characteristics, such as signal conversion, 
type of interface, operating voltage and quality. For this reason, both the membrane and the 
IC for signal conversion need to be adapted to the new requirements.
A barometric pressure sensor in a smartphone can, for instance, be used to recognize the right 
floor in a multi-story building, making it possible to navigate within large buildings where 
no GPS signals can normally be received. This technology is known as indoor navigation. For 
instance, a customer could utilize this new function to be guided to a certain section within 
a large department store. It could also be used to direct people to the office they are looking 
for in a large administrative complex.
The first samples of pressure sensors for smartphones should be available by March 2015. 
Thus, we consistently use our cross-segment expertise to develop additional innovative uses 
of our previously tested and proven technologies such as use of security functions developed 
by the Chip Card & Security segment in automotive and industrial microcontrollers, and use 
of the pressure sensors in smartphones.
G   see glossary, page 281
G 38
Schematic illustration of a silicon microphone based on dual backplate technology; the membrane  
is positioned between two signal electrodes
signal electrode 1
membrane
signal electrode 2
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
70

Key project “eRamp” to strengthen the European electronics industry, 
started under the leadership of Infineon
In April 2014, one of the most significant European research projects on the topic of energy 
efficiency has been initiated at the Infineon site in Dresden (Germany). The “eRamp” project, 
which is scheduled to run over a three-year period, has been initiated with the aim of further 
strengthening and enlarging Germany and Europe as locations of expertise for manufacturing 
power electronics. The project involves 26 partners from six countries: Germany, the Nether­
lands, Austria, Romania, the Slovak Republic and the United Kingdom. As world market leader 
in the field of power semiconductors, Infineon is heading the €55-million project.
The “eRamp” project partners are taking an in-depth look at the entire value-added chain in 
the power electronics industry, covering the generation, transmission and consumption of 
electrical energy. The research work is focusing principally on the faster introduction of new 
manufacturing technologies and on improving packaging technologies for power semicon­
ductors. The project is aimed at gaining new knowledge to be leveraged in products that will 
be economically and ecologically beneficial for Europe as a whole.
The principal task of Infineon and its German project partners is to research and develop new 
methods for accelerating the ramp of manufacturing lines. In addition, Infineon, Osram and 
Siemens will set up testing facilities and demonstrators for evaluating a new chip-embedding 
technology.
In order to test the research results for their usability precisely where the new manufacturing 
techniques will be utilized, the research partners are making ideal use of existing pilot lines 
and their extensive production know-how at various sites, including Dresden (Infineon: power 
semiconductors based on 300-millimeter wafers), Villach (Infineon: semiconductor and system 
solutions), Reutlingen (Bosch: power semiconductors, Smart Power and sensors based on 
200-millimeter wafers) and Regensburg (Infineon: packaging technology for power semicon­
ductors).
Cooperation with industrial partners, universities and non-university research institutions 
plays a considerable role in augmenting Infineon’s innovation strength. The objectives of this 
collaboration are to intensify the communication between Infineon and the world of science, 
and to broaden our understanding of customer requirements and thereby to establish greater 
system understanding.
Three Infineon sites contribute their knowhow to the European research project “eRamp”:
Dresden:  
300-millimeter thin-wafer technology
Villach:  
Semiconductor and system solutions
Regensburg:  
Package technology
71
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Research & Development

OPERATIONS
In order to register the conditions in a clean­
room at any time, theoretically the best solu­
tion would be to install hundreds of sensors 
generating simultaneous measurements. 
However, the cost and effort involved would 
be far too high. Our engineers have, therefore, 
developed a mobile, low-cost solution: auto­
matic cleanroom monitoring using a self-navi­
gating robot that moves freely throughout 
the work space. A commercially available robot 
was used as the basis.
The robot patrols the cleanroom without 
collision, measuring trace gas concentrations, 
particles, air humidity and temperature. It 
then sends the results and the position at 
which it took the measurements to a database 
system via radio signal. The data are then 
analyzed and, if any of the values are abnor­
mal, the required measures are automatically 
initiated.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
72

Investments in 2014 fiscal year increased to €668 million
Strong demand for automotive semiconductors necessitates 
manufacturing capacity expansion 
Manufacturing infrastructure prepared for further growth
Our investments during the 2014 fiscal year totaled €668 million. The figure represents an 
increase of €290 million (equivalent to 77 percent) on the previous year’s investment figure of 
€378 million. The reasons for the higher level of investment are firstly that investments in the 
2013 fiscal year were comparatively low, due to the relatively modest revenue performance at 
that stage, coupled with sufficient available manufacturing capacity. In addition, the economic 
upturn witnessed in the 2014 fiscal year – as well as our expectations of continued expansion 
in the coming years – called for new investment in additional manufacturing capacity.
Investments expressed as a percentage of revenue rose from 9.8 percent in the 2013 fiscal 
year to 15.5 percent in the 2014 fiscal year. The total investments of €668 million in the 2014 
fiscal year were made up by €567 million related to property, plant and equipment (2013: 
€315 million) and €101 million related to intangible assets, including capitalized R&D costs 
(2013: €63 million). 
By far the largest part of the investments in property, plant and equipment were spent in 
manufacturing sites. Of those, around 60 percent were invested in our frontend sites and 
the remainder in backend sites. Most of the investments in property, plant and equipment 
at our frontend and backend sites were attributable to the following:
•	 expansion of 300-millimeter frontend capacity,
•	 expansion of 200-millimeter frontend capacity,
•	 expansion of backend manufacturing capacity,
•	 expansion of chip-testing capacity,
•	 adaptation and re-equipping of production lines due to changes in the product portfolio, 
i.e., the commencement of volume production for new manufacturing technologies 
and products.
Above all, the high demand for products in the Automotive segment, particularly in the field 
of power semiconductors, had to be taken into account. Every link in the value chain was 
involved: frontend manufacturing, particularly in Kulim (Malaysia), backend manufacturing, 
particularly in Malacca (Malaysia) and chip-testing, predominantly in Singapore.
Overall, the level of investment in establishing new manufacturing capacities during the 
2014 fiscal year was significantly higher than in the previous year. As a result, revenue grew by 
12 percent during the 2014 fiscal year and in addition, we created a potential for further growth.
We operate a total of twelve manufacturing sites in eight countries: Dresden, Regensburg and 
Warstein (all in Germany), Villach (Austria), Cegléd (Hungary), Morgan Hill (USA), Beijing and 
Wuxi (both in China), Malacca and Kulim (both in Malaysia), Singapore, and Batam (Indonesia) 
(see map in the chapter “R&D and Manufacturing Sites”). As of 30 September 2014, our manu­
facturing sites employed a workforce of 21,959 people (30 September 2013: 19,458 people).
22.8 %
15.5 %
9.8 %
G 39
Investments  ¹
€ in millions
  Investments        Percentage of revenue
378
890
668
2013
2012
2014
1 Property, plant and equipment and  
intangible assets
P   see page 76/77
73
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Operations

The main areas of investment in the 2014 fiscal year
200-millimeter frontend site Dresden (Germany): increased automation and 
expansion of copper-based manufacturing capacity
We have invested in our European sites with a view to maintaining their competitiveness in 
the long term. In order to secure the future of the 200-millimeter frontend site in Dresden 
(“Dresden 200”) we continued our program of raising the level of automation by implement­
ing the third stage, which we will complete in the course of the 2015 fiscal year.
Furthermore, in “Dresden 200” we have continued to expand manufacturing capacities for 
copper-based CMOS technologies for microcontrollers and chip card ICs, achieving target 
capacity in the third and final stage during the 2014 fiscal year.
Product portfolio for 300-millimeter thin-wafer manufacturing expanded
In the 2013 fiscal year, Infineon began volume production of the high-voltage CoolMOS™ power 
transistors on the 300-millimeter thin-wafer manufacturing line. The two sites involved in the 
300-millimeter frontend manufacturing network, in Villach (Austria) and Dresden (Germany), 
successfully obtained the required customer approvals. During the 2014 fiscal year, further 
technology transfers from 200- to 300-millimeter wafers were completed on schedule, namely 
the base technologies, SFET4 and SFET5, for low-voltage OptiMOS™ power transistors and the 
IGBT base technology, IGBT3.
The first volume production lot with power transistors featuring the IGBT base technology 
IGBT3 on the 300-millimeter thin-wafer manufacturing line was launched on January 27, 2014. 
These wafers will be used for discrete 1,200-volt IGBT devices, such as those used in induction 
cookers as well as inverters for photovoltaic systems.
In line with the increased number of technology transfers, during the 2014 fiscal year invest­
ments were made at cleanroom manufacturing facilities for the 300-millimeter manufacturing 
network, in order to further expand capacity for the high-voltage CoolMOS™ power transistors 
and to commence volume production of the low-voltage OptiMOS™ power transistors.
We have received customer approval for the low-voltage OptiMOS™ power transistors as well 
as for the IGBT power semiconductors, both of which are manufactured in Dresden (Germany).
Following completion of the planned acquisition of International Rectifier, we will relocate 
the manufacturing of several of its products to our own sites, particularly to our 300-millimeter 
sites in Dresden (Germany) and Villach (Austria). Low-voltage and IGBT power semiconduc­
tors will be considered for relocation. These additional manufacturing volumes will enable us 
to reach some cost-per-chip milestones earlier than it would have been possible on our own. 
Both our own products and those of International Rectifier will become more competitive by 
capitalizing on these economies of scale.
Majority of innovations expected in the field of packaging technology: 
long-term expansion of backend sites, therefore, of great strategic significance 
As a leading manufacturer of semiconductors with a high percentage of in-house manufactur­
ing, Infineon sees innovations in packaging, assembly and bonding technologies just as 
important as progress in the field of wafer processing. The same is true for high-voltage power 
semiconductors (such as IGBT modules), for low-voltage power semiconductors (such as 
MOSFETs) and also for radio-frequency components (such as low-noise amplifiers for GPS 
navigation). For this reason, our backend sites play a crucial role in our long-term strategy.
In Regensburg (Germany), with “Chip Embedding” we have developed an extremely flat 
package technology over the last few years and have prepared it for volume production. In 
the meantime, “DrBlade™ 2”, the second generation of this technology, is available. During 
the 2014 fiscal year we began volume production of this innovative package (see also 
“Together with a digital control IC, the new DrBlade™ 2 power stage enables complete, highly 
efficient digital DC/DC conversion” in the section “Power Management & Multimarket” in the 
chapter “The segments”).
At the 200-millimeter frontend site  
in Dresden: the manufacturing line  
for components with copper-based 
metal layers
First discrete IGBT device manufac-
tured on 300-millimeter thin wafers
P   see page 56
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
74

The Warstein (Germany) site is our competence center for package and connection technology 
for IGBT modules. A new multistory building was completed and inaugurated there in May 2014. 
The highly automated cleanroom manufacturing facilities take up two of the floors. Among 
other products, the HybridPACK™ modules for hybrid and electric vehicles and the technolog­
ically similar IGBT modules for industrial applications are now being manufactured there. The 
laboratories and development areas are located on the two additional floors.
In Malacca (Malaysia), Infineon’s largest site in terms of number of employees, manufacturing 
capacity was ramped up to keep pace with the high demand for power semiconductors coming 
from the automotive industry. These types of packages are tested in our competence center 
for chip and wafer testing in Singapore, where testing capacities were subsequently increased 
to accommodate the higher production volumes.
Manufacturing cooperation arrangements: volume production of the first automotive 
microcontrollers on 65-nanometer manufacturing technology started
Our manufacturing strategy follows the principle that in-house manufacturing must generate a 
differentiation potential in terms of costs and/or performance. If that is not the case, external 
manufacturing is preferable. The principle applies to both frontend and backend manufacturing.
The application of this principle for wafer processing (frontend manufacturing) has resulted in 
a preference for manufacturing power semiconductors and sensors at Infineon manufacturing 
sites. The same is also true for many products that combine analog and digital circuit compo­
nents on one chip (so-called analog/mixed-signal components), particularly if the analog circuit 
elements are required to control high voltages and currents. One example for the differentiation 
through in-house production is our 300-millimeter thin-wafer manufacturing technology with 
its main application in power semiconductors.
When it comes to CMOS-based process technologies, however, we prefer to collaborate with 
frontend manufacturing partners, so-called foundries. This strategy applies to the majority of 
our products manufactured using 90-nanometer manufacturing technology and all those 
made using 65- and 40-nanometer manufacturing technology.
We have entered into development and manufacturing cooperation arrangements with the 
company Taiwan Semiconductor Manufacturing Company, Ltd. (“TSMC”), Taiwan, for the 
65-nanometer embedded Flash process technology. The agreement covers the joint develop­
ment of manufacturing technology based on Infineon’s embedded Flash cells and the manu­
facturing of microcontrollers for automotive, industrial, chip card and security applications. 
Volume production of the 32-bit multi-core automotive microcontrollers of our AURIX™ family 
was commenced with TSMC at the end of the 2014 fiscal year.
We have entered into development and production cooperation arrangements for the 
40-nanometer embedded Flash process technology with Globalfoundries. The cooperation 
arrangements with Globalfoundries are similar to those with TSMC.
When it comes to backend manufacturing (including packaging, assembly and chip testing), 
we collaborate with market-leading partners for certain package types in order to ensure 
sufficient capacity growth and to better deal with phases of strong fluctuation in demand.
New building inaugurated in Warstein: 
laboratories, development areas  
and highly automated cleanroom 
manufacturing on four floors
G   see glossary, page 279
G   see glossary, page 277
G   see glossary, page 278
G   see glossary, page 277
Volume production on 65-nanometer 
manufacturing technology started: 
AURIX™ automotive microcontroller 
family
75
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Operations

Dresden
 Technology 
development
 CMOS, analog/mixed-
signal technologies, 
embedded flash
Regensburg
 Competence centers 
for technology, preas­
sembly and package 
development; manu­
facturing innovation
 Analog/mixed-signal, 
power semicon­ductors, 
center of competence 
for sensors and 
metallization
 Chip cards, power 
semi­conductors, 
discrete semiconduc­
tors, sensors, wafer-
level packaging, center 
of competence for 
package development
Warstein
 Product development 
Power Modules, 
package assembly 
technology and 
package technology 
for IGBT modules 
and IGBT stacks
 High-power semi­
conductor modules, 
R&D for modules
Augsburg
 Software for chip card 
applications
Duisburg
 ASIC and technology 
development
Linz
 Radio-frequency ICs 
and software 
development for 
sensor products
Bristol
 Microprocessor sys­
tems for automotive 
applications
Padua
 Power semiconduc-
tors for mixed-signal 
applications
Cegléd
 High-power semicon­
ductor modules
Bucharest
 Power semiconductors 
for mixed-signal appli­
cations; chip card ICs
Graz
 Chip card applications 
and contactless 
systems; power 
semiconductors for 
automotive; sensor 
products
Villach
 Power semiconduc­
tors, mixed-signal ICs 
for automotive and 
industrial applica­
tions; development 
center for thin-wafer 
technology
 Power semicon­
ductors, center of 
competence for thin-
wafer technology
Munich, Neubiberg, 
Germany
 Technology integration; 
design flow devel­
opment environment; 
library development; 
IC, software and sys­
tem development for 
microcontrollers, 
ASICs, chip card ICs 
and power elec­tronics 
for auto­motive and 
industrial applications; 
development of manu­
facturing processes
		 Research & Development
		 Frontend manufacturing 
		 Backend manufacturing
R&D AND MANUFACTURING SITES
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
76

Morgan Hill
 Radio-frequency 
amplifier components 
for base stations
 Center of competence 
for radio-frequency 
power transistors
Seoul
 Automotive electronic 
system solutions
Shanghai
 Application develop­
ment; radio-frequency 
technology for cellular 
network infrastructure
Torrance
 Controller ICs 
for digital power 
management
Bangalore
 Software and system 
development for auto­
motive, industrial and 
chip card applications; 
design flow and library 
development
Wuxi
 Chip cards, discrete 
semiconductors
Beijing
 Application 
development
 IGBT stack assembly
Batam
 Power semiconductors
Kulim
 Technology 
development
 Power semiconductors
Malacca
 Package technology
 Power semiconductors, 
discrete semiconduc­
tors, sensors, ICs, 
package development
Singapore
 IC, software and 
system develop­ment 
for automotive and 
industrial applications; 
package technology 
development; 
development of test 
concepts
 Center of competence 
for chip and wafer 
testing
77

INTERNAL 
MANAGEMENT SYSTEM
The internal management system at Infineon is designed to assist in implementing the Group 
strategy described earlier in this report in the chapter “Group strategy”. Accordingly, perfor­
mance indicators are used which allow profitable growth and efficient employment of capital 
to be measured. Infineon has set itself the targets of
•	 achieving an average revenue growth rate of 8 percent per fiscal year; 
•	 thereby generating an average Segment Result Margin of 15 percent over the cycle;
•	 and limiting investments to an average level of 13 percent of revenue.
In sum, attaining these financial targets results in a sustained increase in the value of the 
business, brought about by achieving a premium on the cost of capital in the long term. 
In this context, growth, profitability and investments are all interdependent. Profitability is 
the prerequisite for being able to finance operations internally, which, put another way, means 
opening up potential opportunities for growth. Growth, in turn, requires continual investment 
in research and development and manufacturing capacities, which also represent the basis 
for achieving leading market positions and generating economies of scale. The determining 
factor in this interplay is the efficient employment of financial resources.
Infineon uses a comprehensive controlling system to manage its business with respect to the 
strategic targets it has set. The system involves the use of financial and operating key perfor­
mance indicators. Information for controlling purposes is derived from annual long-term 
planning, quarterly forecasting, orders received per week and actual monthly financial results, 
allowing management to base its decisions on sound information with respect to the current 
situation and future expected financial and operational developments. Sustainable business 
practices and the consideration of forward-looking qualitative factors are important for 
Infineon’s long-term success. As an enterprise that is very much aware of its responsibilities 
towards society, Infineon also takes account of non-financial factors, mainly in the fields of 
sustainability (see the chapter “Sustainability at Infineon”) and human resources (see the 
chapter “Our employees”). Although these factors do not relate to the internal management 
system, they nevertheless contribute to enabling Infineon to achieve its financial targets.
P   see page 26 ff.
P   see page 82 ff.
P   see page 96 ff.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
78

Performance indicators
Key performance indicators and figures
In order to measure its success in implementing its strategy, Infineon uses the following 
three overarching performance indicators:
•	 Segment Result to measure the operating profitability of the different businesses and of 
the portfolio as a whole,
•	 free cash flow to measure the amount of cash generated or used excluding financing 
activities, and
•	 Return on Capital Employed (RoCE) to measure capital efficiency.
Segment Result is the key figure for measuring operating performance. Expressed as a per­
centage of revenue (Segment Result Margin), it measures profitability of revenue and shows how 
well operations are being managed. The operating performance of Infineon’s segments is 
managed on the basis of Segment Result. Responsibility for optimizing Segment Result rests 
directly with the management of the relevant segments.
Free cash flow enables us to measure how well operating profitability is being converted into 
cash inflows. This key figure also provides information about the efficient use of working capital 
and property, plant and equipment.
Infineon also compares the actual as well as planned Return on Capital Employed (RoCE) 
against the cost of capital, in order to ensure value creation.
The three performance indicators described above are also the cornerstones of the system for 
variable compensation within Infineon. Most of the variable salary components for employees 
and management are directly linked to these performance indicators. Since revenue growth 
correlates with all three performance indicators and is heavily dependent on external market 
circumstances and cyclical developments, it is not used as a key performance indicator in 
its own right.
Segment Result
Segment Result is defined as operating income (loss) excluding: asset impairments (net of 
reversals); the impact on earnings of restructuring and closures; share-based compensation 
expense; acquisition-related depreciation/amortization and other expenses; gains (losses) 
on sales of assets, businesses, or interests in subsidiaries as well as other income (expense), 
including litigation costs (see note 35 to the Consolidated Financial Statements for a compu­
tation of the relevant figures). Court and legal fees arising in conjunction with the licens-
ing of Infineon’s patents are included in Segment Result, as is the related income. Segment 
Result is the indicator that Infineon uses to evaluate the operating performance of its seg­
ments (for an analysis of Group and individual segment performance in the 2014 fiscal year, 
see the chapter “The segments” and the section “Strong 2014 Fiscal year” in the chapter 
“Finances and Strategy”).
P   see page 260
P   see page 38 ff.
P   see page 23 ff.
79
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Internal Management System

Free cash flow
An important key performance indicator for Infineon is free cash flow, defined as net cash pro­
vided by/used in operating activities and net cash provided by/used in investing activities, both 
from continuing operations, after adjusting for cash flows related to the purchase and sale of 
financial investments. Free cash flow measures the ability to generate sufficient cash flows 
to finance day-to-day operations and fund required investments out of the ongoing business. 
It is Infineon’s stated target to sustainably generate positive free cash flow (see the chapter 
“Review of financial condition” for an analysis of free cash flow in the 2014 fiscal year).
The main levers for generating free cash flow are profitability, the ability to manage working 
capital efficiently and the levels of investments. 
Infineon manages working capital levels stringently by focusing continuously on optimizing 
levels of inventories, trade receivables and trade payables. 
Effective investment management plays a key role in optimizing free cash flow, which is 
matched by our objective of systematically controlling levels of investment. Free cash flow 
is considered by Infineon only at Group level and not at segment level. 
Return on Capital Employed (RoCE)
RoCE measures the ability of capital to provide a return and is defined as the operating result 
after tax from continuing operations divided by capital employed. Capital employed consists 
of fixed assets and net working capital. RoCE shows the correlation between profitability and 
the capital resources required to operate the business. 
RoCE  =
Operating result after tax from continuing operations
Capital employed
This key performance indicator describes how efficiently a company manages its resources. 
RoCE is also only analyzed by Infineon at Group level and not at segment level. A comparison 
of a company’s RoCE and its weighted cost of capital provides information on the extent to 
which returns have been generated in excess of shareholders’ and debt holders’ expectations. 
Thus RoCE serves as an instrument for value-based management.
Apart from profitability, RoCE is also influenced by asset intensity, of both fixed assets and net 
working capital. Asset intensity describes the amount of assets necessary to generate a certain 
level of revenue. For an analysis of the derivation of and change in RoCE in the 2014 fiscal year, 
see the chapter “Review of financial condition”. 
Other performance indicators
The principal performance indicators described above are supplemented by others that 
provide information about growth potential, cost efficiency by functional area, and liquidity.
Growth and profitability performance indicators
The revenue growth rate is measured continuously by reference to the growth of the relevant 
target markets. This ties in directly with our strategic target of continuously profiting from the 
growth of our target markets. A further indicator for future revenue growth is the number of 
design wins, whereby we regularly measure actual outcomes against targets. 
P   see page 127
P   see page 125
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
80

As part of the process of analyzing operating profitability in detail, Infineon considers earnings 
and costs above the Segment Result line. This involves a review of gross profit, research and 
development expenses, selling, general and administrative expenses and the ratio of these 
items to revenue. These performance indicators are used to manage the business both at Group 
and at segment level. For an analysis of changes in the fiscal year under report, see the chapter 
“Review of results of operations”.
Liquidity performance indicators
A rolling cash flow forecast helps to ensure that Infineon has appropriate levels of liquidity 
and an optimal capital structure. Liquidity is solely managed at Group level, not at segment 
level and is using the following key performance indicators:
•	 Gross cash position: cash and cash equivalents plus financial investments.
•	 Net cash position: gross cash position less short-term and long-term debt.
•	 Net working capital: current assets less cash and cash equivalents, less financial invest­
ments, less assets classified as held for sale, less current liabilities excluding short-term 
debt and current maturities of long-term debt and excluding liabilities classified as held 
for sale.
•	 Investments: the total amount invested in property, plant and equipment and intangible 
assets, including capitalized research and development costs.
For an analysis of changes in these key performance indicators during the previous fiscal year, 
see the chapter “Review of liquidity”.
Moreover, in order to avoid costs of overcapacity and/or capacity bottlenecks, the key 
operational figures for capacity utilization and forecast capacity requirements are analyzed. 
The results of this analysis are used in determining investment requirements.
Operational early indicators
The analysis of current and future performance is rounded off by using the following opera­
tional early indicators:
•	 Orders received: the aggregate of all orders received by the Group from customers during 
the relevant reporting period.
•	 Orders received as a percentage of revenue: the ratio of orders received and revenue 
recognized during the same accounting period (book-to-bill ratio).
The book-to-bill ratio gives a good indication of future trends in demand. If orders received 
are greater than revenue recognized in a period, it is seen as an indication of future 
revenue growth. 
For an analysis of orders received and the book-to-bill ratio in the previous fiscal year, see 
the chapter “Review of results of operations”.
Actual and target values for performance indicators
The “Outlook” in the chapter “Report on expected developments, together with associated 
material risks and opportunities” contains a table showing the actual values achieved in the 
2014 fiscal year for the key performance indicators, along with expectations for the 2014 
and 2015 fiscal year.
P   see page 120
P   see page 128 f.
P   see page 119
P   see page 131
81
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Internal Management System

SUSTAINABILITY 
AT INFINEON
In addition to the statutory audit of the Group Management Report, KPMG AG Wirtschafts­
prüfungsgesellschaft, Munich, has provided independent assurance (“limited assurance”) 
regarding the sustainability performance information provided in this chapter in accordance 
with the International Standard for Assurance Engagements 3000 and the International 
Standard on Assurance Engagements 3410, the pertinent standards for assuring sustainability 
information. Further information, including the independent assurance report issued, can be 
found in the Corporate Social Responsibility section of Infineon website.
We understand Corporate Social Responsibility (CSR) as our voluntary responsibility towards 
society, both internationally and locally. Our commitment is based on compliance with current 
legal requirements, the ten Principles of the UN Global Compact as well as our understanding 
of sustainability – the symbiosis between economy, ecology and social engagement. Based on 
these principles, we have identified six fields of activity:
In 2014, Infineon again qualified to be listed in key sustainability indices, which assess 
companies according to environmental, social and governance criteria. Among other indices, 
Infineon is listed in the “Dow Jones SustainabilityTM Europe Index ”, the “STOXX® Global ESG 
Leaders Indices” and the “FTSE4Good Indices”. Furthermore, in the 2014 fiscal year Infineon 
qualified for inclusion in the Sustainability Yearbook for the fourth consecutive time.
 
@ www.infineon.com/csr_reporting
G 40
Corporate Social Responsibility
Corporate  
Social Responsibility  
at Infineon
Occupational Health  
and Safety
Human Resources  
Management,  
Human Rights
CSR Supply Chain  
Management
Environmental  
Sustainability
Corporate  
Citizenship  
Activities
Business Ethics
P   see the chapter “Awards”,  
page 110 f.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
82

Materiality analysis and stakeholder engagement
In our materiality analysis we evaluate the expectations and requirements of our internal and 
external stakeholders in the field of CSR in various topics contained in the six fields of activity 
described above. We analyzed 19 topics in accordance with the Sustainability Reporting 
Guidelines set out by the Global Reporting Initiative GRI 3.1 with regard to their relevance for 
our business model. In the course of this process, we took into account factors such as the 
requirements of the capital market, laws and regulations, media and trend analyses, specific 
studies for the semiconductor industry and also internal evaluations.
As a result of our analysis we have prioritized the following topics as material: “Economic 
performance”, “Energy”, “Talent attraction and retention”, “Health and occupational safety”, 
“Emissions, wastewater and waste” and “Corporate Citizenship”. Infineon has been addressing 
these topics for many years. The result of the materiality analysis is, therefore, a confirmation 
of our strategy to date. 
Based on our continuous improvement approach, we identified and implemented further 
measures, such as our new framework for corporate citizenship as well as our worldwide 
reporting of information and performance indicators in the field of sustainability. 
With the adaptation of our sustainability reporting in line with the Sustainability Reporting 
Guidelines set out by the Global Reporting Initiative GRI 4, in future we will perform our 
materiality analysis on the basis of these guidelines.
As part of our continuous development, in addition to the materiality analysis, we maintain a 
sustained dialog with our stakeholders, which is of primary importance in order to understand 
their expectations. The numerous sectors and departments of Infineon utilize various channels 
of communication, engaging in conferences, forums, associations and surveys with the aim 
of fostering targeted communication with the respective stakeholder groups. 
We give due consideration to the expectations of our stakeholders in the definition of our strategy 
and leverage them to identify possible improvement measures and to focus our reporting. 
•  Updating and enhancement of  
our materiality analysis with special  
consideration of GRI 4.
Materiality analysis
Target for the 2015 fiscal year
Cus
tom
ers
Po
li
tic
s
Emp
loy
ees
Sup
plie
rs
So
ci
al
 s
ta
ke
ho
ld
er
s
Inv
esto
rs
G 41
Stakeholders
–  Political dialogs
–  Employees involved in  
industry associations
–  Workshops
–  “Great Place  
to Work” survey
–  Quarterly “All Hands Meetings”
–  Daily internal news
–  Compliance hotline 24/7
–  Diversity projects
–  Trainings
–  Society and NGOs
–  Citizenship activities
–  Conferences and workshops
–  Annual General Meeting
–  Roadshows and conferences
–  Quarterly presentation  
of segments
–  Quarterly reporting
–  Suppliers’ assessments
–  Awareness raising campaigns 
about “Business Conduct Guide­
lines” and “water-stress areas”
–  Principles of Purchasing
–  Audits
–  Services provided by experts
–  Infineon Service Center 24/7
–  Product requirements
–  Roadshows
Stakeholders
83
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Sustainability at Infineon

Enhancing sustainability reporting
Transparency is becoming an increasingly important factor in the reporting of sustainability 
information. With our chapter “Sustainability at Infineon”, which is reported under GRI 3.1, 
as well as our revised sustainability website, we are complying with these increasingly 
stringent requirements.
Responsibility for our employees
One of our primary objectives is to create a safe working environment. Our approach in the 
fields of occupational safety and health protection is based on the principle of prevention. 
Our occupational safety and health management system has been certified in accordance with 
OHSAS 18001 standard at all of our main production sites as well as at our corporate head­
quarters, and is designed to ensure that the required measures are taken to minimize the risks 
in the working environment that could endanger our employees.
Our worldwide experts in the areas of occupational safety and health protection as well as 
fire prevention invested 45,443 hours in training and further education measures during the 
2014 fiscal year. 
Furthermore, our management and employees were informed and sensitized to the topic of 
occupational safety through regular training and seminars.
The recording and evaluation of work-related accident figures in the course of our data collec­
tion process is performed in accordance with the GRI requirements on the basis of the stan­
dardized Injury Rate (IR) and the Lost Day Rate (LDR). All work-related accidents that have led 
to more than one lost day have been taken into account. 
Our low Injury Rate of 0.34 and the low Lost Day Rate of 4.20 in the 2014 fiscal year are presented 
in graphs 42 and 43:
Targets achieved: 
•  Independent verification  
“with limited assurance”  
conducted by an accounting firm.
•  Implementation of a status analysis 
and evaluation of GRI 4 requirements. 
Sustainability reporting
Target achievement and summary  
of results in the 2014 fiscal year
Target achieved: 
•  The reporting of accidents  
was done in accordance with  
the GRI definition of the Injury Rate.
Experts worldwide carried out  
45,443 hours for training in the areas  
of occupational safety and fire  
prevention.
Target for the 2015 fiscal year
•  Our target is to maintain an Injury Rate 
below 0.4 (reported in accordance 
with the GRI definition).
 45,443 
  hours
IR < 0.4
Occupational safety
Target achievement and summary  
of results in the 2014 fiscal year
G 42
Injury Rate (IR)  ¹
1 The Injury Rate is calculated as follows: total number of injuries/total hours worked x 200,000.  
Holidays and public holidays are included in the working hours.
0.5
0.4
0.3
0.2
0.1
0
2014
2010
2011
2012
2013
G 43
Lost Day Rate (LDR)  ¹
10
8
6
4
2
0
2014
2010
2011
2012
2013
1 The Lost Day Rate is calculated as follows: total number of lost days/total hours worked x 200,000.  
Holidays and public holidays are included in the working hours.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
84

Environmental sustainability in our manufacturing
Our global management system IMPRES (Infineon Integrated Management Program for 
Environment, Energy, Safety and Health) integrates targets and processes relating to ecological 
sustainability (including energy management) as well as occupational safety and health pro­
tection. IMPRES has been certified in accordance with ISO 14001, OHSAS 18001 worldwide. 
Additionally it has been certified in accordance with ISO 50001 energy management standard 
at our main European manufacturing sites as well as our Campeon corporate headquarters.
Sustainable use of resources
The growing scarcity of natural resources is one of today’s greatest global challenges. Optimizing 
efficiency in the use of resources offers both ecological and economic benefits and is a key 
component in our sustainability strategy worldwide. 
Water management 
Efficient water management is an integral part of our environmental management. We 
emphasized the high priority of this topic in the 2014 fiscal year by endorsing the UN’s “CEO 
Water Mandate”. This is a special initiative of the UN Secretary-General that aims to promote 
the sustainable use of water on a global scale. 
Infineon’s Communication on Progress on the UN’s “CEO Water Mandate” has been published 
on our website.
Our sustainable water management system in place at our manufacturing sites ensures the 
efficient use of water resources. 
According to the definition of the WBCSD (World Business Council for Sustainable Develop­
ment), a water shortage exists when the total volume of renewable water resources available 
in a given area per capita is lower than 1,700 cubic meters per year. Seen in this light, only one 
of Infineon’s manufacturing sites, that is Singapore, is located in an area affected by water 
shortages. The Singapore site accommodates mainly office and testing areas with low levels 
of water demand, which means only 0.62 percent of the entire volume of water consumed 
by Infineon during the 2014 fiscal year. Nevertheless, water efficiency measures have been 
undertaken at the site, such as the installation of water-saving systems, in order to guarantee 
the efficient use of water in the long term. As a result of our efforts, one of the buildings at 
Infineon’s Singapore site was awarded the “Water Efficient Building” certificate.
Our entire water consumption for frontend and backend production, including our Campeon 
corporate headquarters, totaled 19,897,515 cubic meters (m3) in the 2014 fiscal year. We 
obtain our water from various sources, as shown in the graph 44.
As a global organization of semiconductor manufacturers, the WSC (World Semiconductor 
Council) has defined water consumption in liters per square centimeter manufactured wafer, 
as an internationally recognized reference parameter for water management. In calendar 
year 2013, Infineon’s frontend manufacturing sites consumed approximately 20 percent less 
water than the global average to manufacture one square centimeter of wafer. 
@ www.infineon.com/csr_reporting
G 44
Water consumption
in cubic meters
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2014
2010
2011
2012
2013
  Groundwater   
  Drinking water   
  Non-drinking water
G 45
Standardized water consumption
per square centimeter manufactured wafer
Infineon  ¹
WSC
80 %
100 %
1 Frontend sites worldwide
85
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Sustainability at Infineon

The comparatively low specific water consumption at Infineon is the result of our consistent 
efforts in the area of water management. The schematic diagram for water management at 
Infineon in the 2014 fiscal year is shown in the chart 46.
Infineon sources water either from its own supply facilities (such as groundwater wells) or 
from local suppliers (either drinking or non-drinking water). 
If water fails to meet our purity standards, then it is treated and afterwards used in our manu­
facturing processes, either for cooling purposes, or to produce ultrapure production water. 
In some cases, water can be re-used several times. For example, cooling water can also be 
used to produce ultrapure water. Moreover, ultrapure water for manufacturing purposes can 
be reused in some cases before being discharged. 
609,266 cubic meters (9.12 percent) of ultrapure water and 971,866 cubic meters (10.37 percent) 
of wastewater were reused during the period under report.
If production water is no longer usable, it is either directly or indirectly discharged, depending 
on its degree of purity, local conditions and official permissions. The percentages of water 
discharged are shown in chart 47.
Water use
G 46
Water balance
Water withdrawal:  
19,897,515 m³
Groundwater:  
13,055,293 m³
Drinking water:  
4,207,798 m³
Non-drinking water: 
2,634,424 m³
Production
Non-ultrapure water
Sanitary systems, canteen area
Cooling water: 
10,099,125 m³
Ultrapure water:  
6,683,798 m³
Water discharge after production: 18,466,374 m³
Municipal wastewater
Evaporation
Wastewater: 9,368,500 m³
Internal wastewater treatment
Compliance  
with limit values
Discharge to river:  
4,403,044 m³
Wastewater treatment 
plant: 4,965,456 m³
Indirect discharge
Direct discharge
Compliance  
with limit values
Discharge to river:  
9,097,874 m³
G 47
Water discharges 2014
23.8 %
26.9 %
49.3 %
  Wastewater – direct discharge
  Wastewater – indirect discharge
  Other water discharges 
(excluding wastewater)
Target achieved:
•  Infineon consumed approxi-
mately 20 percent less water 
than the WSC global average to 
manufacture one square centimeter 
of wafer.
9.12 percent of ultrapure water is either 
recycled or reused in other processes. 
Targets for the 2015 fiscal year
•  Regardless of growing product com­
plexity, our aim is to keep our water 
consumption per square centimeter 
manufactured wafer below the WSC 
specific water consumption value.
•  To establish and revise the website 
for publishing the Communication 
on Progress to the UN’s “CEO Water 
Mandate”.
–  20 %
Water management
Target achievement and summary 
of results in the 2014 fiscal year
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
86

Energy, climate protection and carbon footprint
Efficient energy management
Energy is used mainly in the form of electricity in all stages of semiconductor manufacturing. 
Primary energy sources, such as oil and gas, play only a minor part. 
In the 2014 fiscal year, Infineon’s indirect energy consumption worldwide totaled around 
1,274 gigawatt hours (GWh) and consisted of the indirect energy sources electricity 
(91.50 percent) and district heating (8.50 percent).
Infineon consumes the majority of its energy in its frontend manufacturing sites. There, energy 
is needed to operate the production equipment, and also to maintain highly sophisticated 
physical conditions, such as the particularly demanding stable climatic conditions in Infineon’s 
cleanrooms. Due to their nature, backend processes require far less energy than frontend pro­
cesses, followed by the development and office sites, which consume the smallest percentage. 
Direct energy consumption in the 2014 fiscal year is shown in the table “Direct energy 
sources”.
Based on the relevance of the total amount of energy consumed by frontend manufacturing 
sites and local requirements, we have implemented the systematic of the energy management 
system standard ISO 50001 at our main manufacturing sites. We are continually analyzing 
options to further improve energy efficiency. Improving energy efficiency means reducing 
specific energy consumption, this is the energy consumed per manufactured production unit. 
According to WSC definitions, the specific energy consumption used to measure energy 
efficiency in frontend manufacturing, is defined as energy consumption per square centimeter 
manufactured wafer. Based on this definition, the WSC provides companies every year with 
an international value, which serves as a benchmark. 
In calendar year 2013, Infineon’s frontend manufacturing sites consumed approximately 
32 percent less electricity per square centimeter manufactured wafer than the worldwide 
average of the semiconductor industry in accordance with WSC.
Climate protection – greenhouse gases
The semiconductor industry uses greenhouse gases in the form of so-called “Perfluorinated 
Compounds” (PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3). 
These gases are primarily used in the etching processes needed to structure wafers as well as 
for the cleaning of production equipment and cannot be substituted. 
G 48
Energy consumption
in gigawatt hours
  Direct energy consumption   
  Indirect energy consumption
2014
2013
2012
2011
2010
1,500
1,250
1,000
750
500
250
0
•  Target partially achieved and  
the four largest European  
manufacturing sites as well as  
our corporate headquarters were  
successfully certified in accordance 
with ISO 50001 standard. 
Target for the 2015 fiscal year
•  Our target is to implement projects 
and measures at our frontend manu-
facturing sites worldwide which are 
capable of saving a total of 35 GWh of 
energy within the next three years.
35 GWh
Energy efficiency
Target achievement and summary  
of results in the 2014 fiscal year
Direct Energy Sources
GWh
Natural gas
37
Other
11
G 49
Standardized electricity consumption
per square centimeter manufactured wafer
Infineon  ¹
WSC
68 %
100 %
1 Frontend sites worldwide
87
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Sustainability at Infineon

As part of its commitment to climate protection, Infineon made an early start in developing 
particularly efficient processes to reduce the use of these greenhouse gases to the absolute 
minimum technically required. Infineon mainly achieves this reduction by increasing process 
efficiency and optimizing abatement concepts. Moreover, in some cases it is possible to use 
alternate gases with less impact on the climate. The aforementioned measures contribute 
towards minimizing the emissions caused by greenhouse gases.
In the 2014 fiscal year, Infineon’s PFCs emissions totaled 184,864 tons of CO2 equivalents. Due 
to technical changes in processes the emissions were 27.26 percent higher than the emissions 
of the previous year. Corresponding reduction measures have already been implemented.
However, the continually growing complexity of semiconductor products entails a growing 
number of process steps, which in turn, may lead to an increased use of greenhouse gases. 
Nevertheless, Infineon is adhering to its total PFCs emissions target – to not exceed 200,000 tons 
of CO2 equivalents in the 2015 fiscal year. 
Furthermore, we will continue to report our PFCs emissions at German and European levels 
within the framework of the semiconductor industry’s voluntary agreement.
Carbon footprint
Our products and innovations are the key to energy-efficient end products and applications, 
and thereby make an important contribution towards minimizing carbon footprint.
Complex processes and a multitude of influencing factors need to be considered when draw­
ing up an entity’s carbon footprint. By nature, carbon footprint calculations are subject to a 
certain degree of imprecision. However, in order to further minimize the resulting imprecision, 
Infineon has continued to refine its approach during the 2014 fiscal year.
Due to technical changes in processes, 
the target level for the 2014 fiscal year 
was not met. Corresponding reduction 
measures have already been imple-
mented.
Target for the 2015 fiscal year
•  Our target is to keep total PFCs emissions 
below 200,000 tons of CO2 equivalents 
in the 2015 fiscal year.
< 200,000  
   
 
   tons
PFCs emissions
Target achievement and summary  
of results in the 2014 fiscal year
G 50 
PFCs emissions
in tons CO₂ equivalents
250,000
200,000
150,000
100,000
50,000
0
2014
Target 2015
2011
2010
2012
2013
  Estimated emissions  
(annual volume growth of 7.5 %)
  Worldwide real PFCs emissions
  Target (maximal PFCs emissions in 2015)
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
88

The calculation of CO2 emissions is based on the ISO 14000 standard, which is concretized 
by the PAS (Public Available Specification) 2050 guideline issued by the BSI (British Standards 
Institution) for determining the ecological impact of various products, as well as by the principles 
of the Greenhouse Gas Protocol for determining carbon footprints (relevance, completeness, 
consistency, transparency and accuracy). In calculating Infineon’s carbon footprint, we have 
considered the first three of the five relevant steps in accordance with PAS 2050. These steps 
embrace the provision of the raw materials and supplies as well as processing and finally 
distribution to customers. In the 2014 fiscal year we also included in our calculation Infineon 
function cars as well as business flights. 
The following emissions and immission have been included in the calculation:
We base the calculation of our carbon footprint on the classification of direct and indirect 
emissions set out in the “Greenhouse Gas Protocol” in Scope 1, 2 and 3. Accordingly, “Scope 1” 
includes our PFC emissions, direct energy consumption and function cars. “Scope 2” emis­
sions derived from our electricity consumption and heating and “Scope 3” comprises other 
emissions generated throughout the entire value-added chain. 
Including the impact of all significant sources of emission relevant from our perspective, taking 
materials used and logistics into consideration, Infineon’s manufacturing sites accounted for 
a carbon footprint of approximately 1.4 million tons of CO2 equivalents in the 2014 fiscal year. 
This figure comprises “Scope 1 emissions” amounting to 193,884 tons of CO2 equivalents, 
“Scope 2 emissions” of 505,246 tons of CO2 equivalents and “Scope 3 emissions” of 703,256 tons 
of CO2 equivalents. These emissions differ only slightly from those recorded in the 2014 fiscal 
year. The main reason for this difference were changes in production volumes, changes in 
technical processes and the consideration of additional factors such as test equipment and 
business flights (6,748 tons of CO2 equivalents).
Scope 1 – Direct
Scope 2 – Indirect
Scope 3 – Indirect  
(further emissions along the value chain)
PFCs
Gas
Diesel
Fueloil
Petrol
Firewood
Infineon function cars
Fuel and  
energy supply
Water consumption
Wastewater
Waste
Materials
Raw materials  
and supplies
Flights
Transport
G 51
Calculation of the CO₂-Burden
1,402,386 t CO₂-Equivalents (CO₂e)
193,884 t CO₂e
505,246 t CO₂e
703,256 t CO₂e
Electricity
Remote heat
89
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Sustainability at Infineon

The products manufactured by Infineon are used in a broad range of applications and con­
tribute towards improving the ecological efficiency of end products and applications during 
their use-phase. For example, our high-performance products make it possible to operate 
large-scale wind farms and photovoltaic facilities. They are also used in industrial applications, 
such as drive systems and motor control units and make it possible, for instance, to reduce 
power losses. 
Our products are also widely used in the automotive industry. Infineon’s innovative semicon­
ductor solutions contribute towards sustainable mobility by reducing fuel consumption, 
thereby reducing emissions and by optimizing safety. In addition to their application in con­
ventional combustion engines, they are also key components in the field of control engineer­
ing for hybrid and electric vehicles as well as for small electronic vehicles including e-bikes 
and e-motorcycles. 
Products manufactured by Infineon, alone in the fields of automotive electronics, industrial 
drive systems, servers, lighting and photovoltaics as well as wind power, enabled approxi­
mately 14.4 million tons of CO2 equivalents savings during their use-phase.
Therefore, with its products and innovations and coupled with an efficient production, Infineon 
achieved a positive net benefit round about 13 million tons of CO2.
P   see page 28 f.
Target achieved:
•  The CO2 saved by Infineon  
products included in end  
products over their use-phase was  
10 times higher than the CO2 emissions 
generated while manufacturing those 
products.
We refined our methodology for the  
carbon footprint calculation and 
included function cars as well as busi-
ness flights in it.
Target for the 2015 fiscal year
•  The CO2 saved by Infineon products 
included in end products over their 
use-phase should be at least 10 times 
higher than the CO2 emissions  
generated while manu­facturing  
those products.
Ecological net benefit
Target achievement and summary  
of results in the 2014 fiscal year
CO₂ emissions reduction around 13 million tons
Around 
1.4 million  
tons
Around  
14.4 million  
tons
Net ecological benefit: 
1 This figure considers manufacturing, transportation, function cars, flights, materials, chemicals, waste/waste water, direct emissions, energy consumption, waste, etc. 
and is based on internally collected data and externally available conversion factors. All data relates to the 2014 fiscal year.
2 This figure is based on internally established criteria, which are explained in the explanatory notes. The figure relates to the calendar year 2013 and considers the  
following fields of application: automotive, lamp ballast control, PC power supply, renewable energy (wind, photovoltaic) and rives. CO₂ savings are calculated on  
the basis of potential savings of technologies in which semiconductors are used. The CO₂ savings are allocated on the basis of Infineon’s market share, semiconductor 
content and lifetime of the technologies concerned, based on internal and external experts’ estimations. Despite CO₂ footprint calculations are subject to imprecision 
due to the complex issues involved, the results are nevertheless clear.
G 52
Carbon footprint
CO₂ burden  ¹
CO₂ savings  ²
Ratio 1 : 10
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
90

Waste management
The objective of waste management at Infineon is not only to minimize the volume of waste 
generated, but also to dispose the remaining waste properly. 
In the 2014 fiscal year, waste totaled 26,228 tons, comprising 16,445 tons of non-hazardous 
waste and 9,783 tons of hazardous waste. Increases in production compared to the previous 
year played a significant role in the increase in waste volumes.
In waste treatment Infineon prefers recovery methods rather than disposal methods. Among 
the different recovery methods, recycling is ecologically the most effective. The percentages 
of the various waste management methods are illustrated in chart 54. In the 2014 fiscal year, 
49.82 percent of non-hazardous waste and 53.96 percent of hazardous waste were recycled.
In the 2014 fiscal year our manufacturing site in Regensburg (Germany) began the process 
of no longer sending mixtures of acetone and water for disposal, but instead, in the future, will 
use a process which recovers the acetone. 
Even waste disposal methods already in use can be improved upon. Cooperation between 
Infineon’s site in Regensburg (Germany) and a local waste disposal company demonstrated 
that it is possible to considerably reduce transportation costs for the treatment of galvanic 
sludge containing palladium and gold.
In calendar year 2013, the volume of waste generated to manufacture a square centimeter 
wafer at Infineon frontend sites was 47 percent lower than the WSC global average. 
Chemical safety
A wide variety of chemicals is required in the manufacturing of semiconductors, some of 
which are hazardous. At Infineon, we responsibly manage the handling of hazardous materials 
to safeguard human health and the environment. 
Complying with all currently applicable legal regulations is self-evident for us. The European 
chemicals regulation REACH (Registration, Evaluation, Authorization and Restriction of Chem­
icals, regulation (EC) No 1907/2006) provides a key regulatory framework for the registration, 
evaluation, authorization and restriction of chemical substances on the European market and, 
therefore, exerts considerable influence on the procurement and usage of chemicals. As com­
pliance with REACH requirements is mandatory within our supply chain for ensuring reliable 
delivery, these requirements have been fully integrated in Infineon’s procurement processes. 
Furthermore, the CLP regulation (EC) No 1272/2008 (Classification, Labeling and Packaging) 
has great significance for the handling of chemicals. This regulation sets out the classification, 
labeling and packaging of materials and mixtures and replaces the previously applicable 
classification and labeling system contained in the directives 67/548/EEC and 1999/45/EC.
Target achieved:
•  Compared with the WSC  
global average, Infineon sites  
generated approximately 47 percent 
less waste to manufacture one square 
centimeter of wafer.
Target for the 2015 fiscal year
•  Regardless of growing product com-
plexity, our aim is to keep the waste 
generated per centimeter of wafer 
manufactured below the specific 
waste level determined by the WSC.
–  47 %
51.36 percent of waste generated at 
Infineon sites was recycled.
Waste management
Target achievement and summary  
of results in the 2014 fiscal year
1 Frontend sites worldwide
G 55
Standardized waste generation
per square centimeter manufactured wafer
Infineon  ¹
WSC
53 %
100 %
G 54
Waste management methods  
in the 2014 fiscal year
51.36 %
11.08 %
26.84 %
8.68 % 2.04 %
  Recycling
  Landfill
  Chemical treatment
  Incineration
  Composting
G 53
Waste generation
in tons
20,000
16,000
12,000
8,000
4,000
0
2014
2010
2011
2012
2013
  Hazardous waste   
  Non-hazardous waste
91
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Sustainability at Infineon

As the changeover involves transition periods (up to the 2015 calendar year in some cases) and 
our suppliers have adopted individual implementation strategies, Infineon has decided to utilize 
both classification systems simultaneously worldwide until the end of the transition periods.
Product-related environmental sustainability
We implement our sustainability approach, both at our manufacturing sites and in our prod­
ucts. This approach is demonstrated in the CO2 savings enabled by our products and solutions 
as well as in handling the substances and materials used in our products.
All Infineon products fulfill the criteria for articles in accordance with the REACH regulation. 
For this reason, we are not required to register the substances contained in our products.
If substances are specified on the so-called REACH candidate list (list of substances of very high 
concern that may be subject to authorization), and are present in an article in a portion of 
0.1 percent by weight or more, European customers must be notified accordingly. Infineon com­
plies with this obligation by publishing the REACH statement and by including a corresponding 
passage in its dispatch notes.
The European directives 2000/53/EC governing end-of-life vehicles (ELV Directive: End-of-Life 
Vehicles) and 2011/65/EU to restrict the use of certain hazardous substances in electrical and 
electronic devices (RoHS Directive), regulate the use of certain substances classified by legis­
lators as hazardous in the end products. None of Infineon’s products are in the scope of these 
regulations. However, our customers expect Infineon’s products to meet the requirements in 
their applications. 
Infineon’s products comply with these requirements and conform to the material restrictions 
in all applicable legal regulations, including those applicable in countries outside Europe. 
Furthermore, we work continually on methods of replacing materials such as lead to a greater 
degree than currently required by legislation.
In addition, if required, we provide our customers with comprehensive information regarding 
the materials contained in our products in accordance with international standards.
Business Ethics
The Infineon Business Conduct Guidelines reflect our ethical principles and are the funda­
mental basis for our daily activities. They apply to all employees worldwide – in dealing with 
each other, or with our customers, shareholders, business partners and the public. 
Infineon Technologies AG and selected major subsidiaries commissioned an independent audit 
firm to confirm the appropriateness, implementation and effectiveness of their Compliance 
Management System in accordance with the IDW PS 980 standard. This audit, which focused 
on anti-corruption and anti-trust law, was completed in the course of the 2014 fiscal year. 
You will find more information on this topic in the chapter “Corporate Governance”.
P   see page 90
P   see page 167 ff.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
92

As a UN Global Compact participant, Infineon has made a commitment to abide by the stated 
principles and reports below in an exemplary manner in its Communication on Progress on 
the measures implemented:
UN Global Compact
 
Measures implemented
Human Rights
Principle 1:	 Support for human rights
Principle 2:	 Non-complicity in 
human rights abuses
•	 Training for all employees on Business Conduct Guidelines, 
which reflect our self-commitment to respect and to uphold 
international human rights. The training is supplemented 
with video sequences showing case studies from day-to-day 
working situations at Infineon that are descriptive and easy 
to grasp for employees at every level.
•	 Firmly defined rules in our CSR policy as well as the Principles 
of Purchasing, which require our suppliers and service providers 
to fulfill the obligations described therein.
Labor
Principle 3:	 Uphold freedom of 
association
Principle 4:	 Elimination of all forms 
of forced labor
Principle 5:	 Abolition of child labor
Principle 6:	 Elimination of discrimination
•	 Our Business Conduct Guidelines reflect our self-commitment 
to comply with international human rights. We do not tolerate 
discrimination and reject every form of forced labor. 
•	 In addition to the usual in-house methods of reporting viola­
tions, such as to the Management, to the Human Resources 
department or to Compliance, employees and business partners 
can also contact an anonymous whistleblower hotline or an 
external ombudsman. Access and information are available on 
the Infineon website.
•	 79.36 percent of our employees work at sites that have entered 
into collective agreements and where independent employee 
representatives are in place.
•	 Persons under 15 years of age are not allowed to work at Infineon. 
Exceptions apply for certain developing countries covered by 
International Labor Organization (ILO) convention 138 (minimum 
age lowered to 14 years), or for job training and vocational training 
programs that are authorized by the governments of the coun­
tries involved and who demonstrably promote those participating.
Environment
Principle 7:	 Precautionary approach 
to environmental protection
Principle 8:	 Support initiatives for greater 
awareness of environmental 
responsibility
Principle 9:	 Development and 
diffusion of environmentally 
friendly technologies
•	 Our IMPRES is globally certified in accordance with ISO 14001 
and OHSAS 18001 standards and underscores our commitment 
to efficient resources management, environmental protection 
and ecological innovation. 
•	 Efficient energy management is particularly important for saving 
energy and reducing greenhouse gas emissions worldwide and 
is integrated in our IMPRES.
•	 All of our EU frontend sites as well as Campeon, our corporate 
headquarters, are additionally certified in accordance with 
ISO 50001 standard.
•	 The development of products that enable energy-efficient 
applications and solutions is a key part of our business.
Anti-corruption
Principle 10:	Action against corruption
•	 The introduction of a specific web-based training on anti-
corruption. The rollout started mid of the 2014 fiscal year and 
has already reached a large number of employees. The training 
is mandatory for a group of selected employees.
•	 Regular “Best Practice Sharing” with other companies and 
Transparency International on topics concerning the prevention 
of corruption (for example, purchasing processes, in-house 
information campaigns).
•	 Formalized risk assessment as part of the Compliance Manage­
ment System and the definition of measures for those risks 
not yet addressed.
Targets achieved: 
•  With 28,800 participants,  
the number of employees  
who took part in compliance training 
was even slightly higher than in the 
previous year. During the last two years, 
all of our employees have received  
video-based training on our Code  
of Conduct. Infineon also provided 
regular training on antitrust law as 
well as a newly introduced specific 
training on anti-corruption. The roll-
out of the anti-corruption training 
started mid of the 2014 fiscal year.
Targets for the 2015 fiscal year
•  Revision of the Business Conduct 
Guidelines.
•  Continuation of regular training  
on compliance at defined intervals.
28,800 
participants
Business ethics
Target achievement and summary  
of results in the 2014 fiscal year
93
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Sustainability at Infineon

Our responsibility along the supply chain
We expect our suppliers to comply with applicable legal requirements and laws and to respect 
other cultures. Furthermore, we expect them to support the principles of the UN Global Compact 
Initiative. We have set out our requirements in the Principles of Purchasing, which are based 
on our Business Conduct Guidelines and designed to help our suppliers understand and comply 
with our requirements.
Conflict minerals
In July 2010 the USA’s Dodd-Frank Act (Dodd-Frank Wall Street Reform and Consumer Protec­
tion Act) was adopted. Section 1502 (“Conflict Minerals Provision”) contains disclosure and 
reporting obligations for companies listed in the USA concerning the utilization of certain raw 
materials that originate from the Democratic Republic of Congo (DRC) or its adjoining countries, 
so-called “conflict minerals”. The term currently applies to tantalum, tin, gold and tungsten. 
Infineon is not listed on US stock exchanges and, therefore, not legally required to comply with 
the requirements of the U.S. Securities and Exchange Commission (published in August 2012) 
nor to publish a report on conflict minerals. 
Nevertheless, Infineon is aware of the fundamental problem and, as a responsibly acting 
enterprise, has defined a Group wide approach with the aim of guaranteeing the required 
transparency within its own supply chain. 
The approach adopted at Infineon is based on the process of the “OECD Due Diligence Guid­
ance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”. 
Moreover, Infineon has joined the so-called “Conflict-Free Sourcing Initiative”. We have set 
out our targets in the Infineon “Conflict Minerals Policy”, which we have published on our 
CSR website.
Target achieved: 
•  Questionnaire and assess- 
ment criteria for suppliers in  
the field of CSR were defined and 
determined for a new supplier  
management tool.
Target for the 2015 fiscal year
•  Implementation of the new  
CSR supplier evaluation.
CSR in the supply chain
Target achievement and summary  
of results in the 2014 fiscal year
G 56
Principles of Purchasing
Occupational  
safety and health
Human rights
Conflict  
of interest
Fair business  
practices
Business gifts
Security
Environmental  
protection
Business continuity  
planning
Labor standards
Principles  
of purchasing
Target achieved: 
•  The publishing of a  
“Conflict Minerals Policy” in  
the CSR website. 
Performance of a “Due Diligence” in 
accordance with the OECD Guidelines. 
Membership in the “Conflict-Free  
Sourcing Initiative”.
Target for the 2015 fiscal year
•  To establish a system in accordance 
with OECD Guidelines in order to 
improve and maintain a supply chain 
free of DRC-conflict minerals.
Conflict minerals
Target achievement and summary  
of results in the 2014 fiscal year
@ www.infineon.com/csr-supply-chain/
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
94

Corporate Citizenship
We understand Corporate Citizenship as our voluntary social commitment for the communities 
in which we operate. In the field of Corporate Citizenship, Infineon has defined four areas of 
activity: “Environmental Sustainability Initiatives”, “Addressing local social needs”, “Education 
for future generations” and help in case of “natural and humanitarian disasters”. In addition 
to monetary and material donations, the commitment of our employees can be expressed in 
voluntary activities. 
The above-mentioned areas of activity and engagement possibilities are contained in our 
Corporate Citizenship Guidelines. These guidelines ensure that our Corporate Citizenship 
activities are performed transparently and in line with our ethical principles. 
Human resource management, human rights
It goes without saying that compliance with the international proclaimed human rights and 
labor standards is a must. Our employees receive regular training on Business Contact Guide­
lines, reflecting Infineon’s commitment in this field.
For more information, please see “Business Ethics” in this chapter, as well as the chapters 
“Corporate Governance” and “Our Employees”.
Target achieved: 
•  Planning of projects that can  
be supported worldwide in  
the 2015 fiscal year in order to better 
coordinate our activities.
Target for the 2015 fiscal year
•  To increase in-house awareness of  
citizenship activities and employee 
volunteering in this field.
Corporate Citizenship
Target achievement and summary  
of results in the 2014 fiscal year
G 57
Corporate Citizenship expenditure
•  Donations
•  In-kind giving
•  Sponsoring
•  Employee volunteering
747,539
301,853
219,414
4,536
1,273,342
Engagement possibilities 
Expenditure 
in €
•  Flood relief for Romania
•  Flood relief for Balkan
•  Flood relief for Germany
•  Help for the survivors of the typhoon Haiyan, Philippines 
•  National Undergraduates Electronics Design Contest in China
•  “Deutscher Zukunftspreis” of the Association for the Promotion of Humanities  
  and Sciences in Germany
•  Endowed Chair for microcontrollers and embedded systems
•  Donation of 400 High Power Modules for research purposes
•  Tree planting activity in Batam (Indonesia)
•  Naturindianer-kids in Munich
•  Green hiking in China
•  “Learn for Life” project in China
•  “Campus for Change” in Munich
•  Foundation “Global Compact Network Germany”
•  “Project Hope” of China Youth Development Foundation
G 58
Examples of the Corporate Citizenship activities of Infineon in the 2014 fiscal year
Education for  
future generations
Environmental  
sustainability
Natural and  
humanitarian disasters
Local social needs
P   see page 92 f.
P   see page 167 ff. and 96 ff.
95
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Sustainability at Infineon

OUR EMPLOYEES
Our human resource work focuses on the development of our employees and recruitment 
of new colleagues. We are convinced that, in order to meet our growth and profitability 
targets set out at the beginning of this report, successful human resource management is key 
to business success, since only content and successful employees make long term peak 
performance possible. The three pillars of “Leadership excellence”, “Promoting talent” and 
“Our workforce” combine all the activities that we use on a daily basis which promote the 
performance and potential of our employees in the best possible way.
Leadership excellence 
Open and honest feedback
We believe that without honest and open feedback, it is not possible for an organization to 
develop. This basic premise is reflected in our values, collectively defined and epitomized in 
the “High Performance Behavior Model”. These values are not purely theoretical. The High 
Performance Behavior Model converts the corporate strategy and values into concrete behav­
ioral descriptions, which help us each and every day to become a High Performance Company.
These behavioral descriptions play a role in the annual dialogs with employees under the 
overall STEPS process (abbreviation for “Steps To Employees’ Personal Success”). During 
the dialog, managers provide feedback not only on the results that employees have already 
achieved and should achieve in the future, but also on the behavior shown or desired to 
attain these results. In this way, STEPS enables our managers and employees to carry out 
a differentiated review of achievements and indicates pathways towards the fulfillment of 
personal and corporate targets.
The fundamental culture of openness does not stop here. Feedback from teams to their 
managers is just as important as feedback from managers to staff. We have, therefore, 
established the format of the “leadership dialog”, which is carried out every two years as 
a supplement to the STEPS dialogs.
The leadership dialog enables managers to obtain structured feedback from their staff, 
which helps them to reflect on their individual leadership style, identify strengths and poten­
tial areas for improvement, and hence increase cooperation within the team. By the end of the 
2013 calendar year, all senior managers worldwide and the entire Management Board had 
already performed this dialog with their staff. In the coming years, the leadership dialog will 
be carried out by all managers in charge of five or more staff.
Open feedback is always important to us in constructive dialog with our employees’ represen­
tatives of the sites. Co-determination is a key factor in our human resources work. Together, 
and in a spirit of trust, we build the basis for successful implementation of our key topics in 
the respective bodies, and especially in the Central Works Council and the Management Staff 
Representation Committee.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
96

Management development
Good leadership by managers helps employees to achieve peak performance and to be suc­
cessful. Leadership is therefore a key starting point for the development of our organization, 
which we promote through various training programs. 
With the training program “Leading People in a High Performance Company” the Company 
ensures further development of leadership skills, with which the staff is motivated to achieve 
Infineon’s challenging targets and their performance is promoted in a targeted way. Communi­
cating a uniform understanding of leadership is the prime goal here. More than 1,900 managers 
from various levels worldwide had participated in this training program by the end of the 
2014 fiscal year. 
Leadership also implies looking after your own resources and those of employees. The 
“Leadership & Health” training program therefore focuses on the responsibility of managers 
for their own health and for the well-being of employees. The “Leadership & Health” training 
program is designed for top managers, in their capacity as role models. In one-day courses, 
they learn to identify stress factors at the workplace more effectively and to mitigate them. 
By the end of the 2014 fiscal year, some 80 percent of top managers in Germany had partici­
pated. “Health & Care” computer-based training was also introduced in February 2014 for 
new managers.
As an international company, we wish to offer our staff development prospects beyond 
organizational and national boundaries. The worldwide Development Conferences, during 
which managers discuss the further development of our talents with the Human Resources 
Department, are an important instrument for this.
The results of our leadership and feedback culture activities confirm that we are on the right 
track. A relevant indicator of our progress is the survey “Great Place to Work”, which we carry 
out every two years. The autumn 2013 results show that improvements have occurred in 
all categories compared to the prior survey. We are particularly pleased that 75 percent of all 
employees questioned indicated that “All in all Infineon is a very good employer”.
Promoting talent
Talent marketing and management
At Infineon, development opportunities are available to employees in a variety of careers, 
depending on their individual knowledge and talents. At present, we offer three different career 
paths: The professional careers as “Individual Contributor” focus on expertise in a traditional 
business field, such as finance, purchasing or sales. Technical experts gravitate to our 
“Technical Ladder”. Junior managers opt for the Management career path. A further career 
path – that of project leader – is in preparation.
In the Asia-Pacific region, we take specific action to promote our employees through our 
talent management programs “ENGINE” for management careers and “TechStar” for technical 
careers. Top management has an essential role to play, firstly in the selection of employees 
and then in development measures, such as mentoring. Both programs focus on the key areas 
of training, interaction with management and practical application of what has been learnt in 
specific projects. The advantages for participants can already be seen from the career develop­
ments: in the 2014 fiscal year, 33 percent of participants of the “ENGINE” program and 25 per­
cent of the participants of the “TechStar” program took their next step up the career ladder.
97
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Our Employees

The employment market is in a continuous state of flux. Demographic change and shortage 
of skilled professionals make it increasingly difficult to find suitable applicants. Our reaction 
to these changes is to adapt our recruitment measures to the current challenges. For example, 
since February 2014, applicants from Germany and Austria can submit direct applications 
quickly and easily via the business networks XING and LinkedIn. 
Since, given the competition to attract the best possible people, staff recruitments from the 
jobseekers’ pool are no longer sufficient, “passive” candidates – i.e., those who are not currently 
seeking work at all – are becoming increasingly important. Through our talent managers, we 
are always on the lookout for suitable potential candidates and contact them directly. In this 
way, we extend our circle of good contacts and exchange information with them on an ongoing 
basis. As a result, we can make suitable offers to applicants and fill job vacancies more rapidly 
and successfully.
Encouraging diversity 
As an international company, the diversity of our staff is particularly important to us. Our 
global diversity management provides the framework for a corporate culture which values the 
individuality of each staff member and promotes equal opportunities – irrespective of age, 
disability, ethnic-cultural origin, gender, religion or belief, or sexual identity. The focal points 
of our commitment to diversity may vary from one location to another and are tailored to 
local needs. 
Infineon employs staff with a total of 83 different nationalities. The five most prevalent nation­
alities represent a total of 84.1 percent of the workforce, with Malaysian nationals accounting 
for 31.0 percent and German nationals for 28.3 percent. A further 71 nationalities have a share 
of the total workforce of less than 1 percent each. 
 
Employees 
Total
Under 30 years ¹
30 to 50 years ¹
Over 50 years ¹
Middle and senior level management 2
4,530 
– 
74.8 
25.2 
Entry level management 2
4,950 
3.4 
84.5 
12.1 
Non-management staff
20,327 
39.5 
51.0 
9.5 
Total
29,807 
27.5 
60.2 
12.3 
1	Figures expressed in percentages based on the workforce at September 30, 2014, in the respective comparison group.
2	At Infineon, the management function includes not only the leadership of employees but also leadership through specialist 
expertise as defined in the internal job evaluation system.
Of 11,058 female employees, 39.6 percent are under 30 years of age, 51.4 percent in the middle 
age group and 9.0 percent are over 50. Of 18,749 male employees, 20.4 percent are under 
30 years of age, 65.4 percent in the middle age group and 14.2 percent are over 50.
 
Employees 
Total
Female ¹
Male ¹
Middle and senior level management 2
4,530 
12.5 
87.5 
Entry level management 2
4,950 
24.3 
75.7 
Non-management staff
20,327 
45.7 
54.3 
Total
29,807 
37.1 
62.9 
1	Figures expressed in percentages based on the workforce at September 30, 2014, in the respective comparison group.
2	At Infineon, the management function includes not only the leadership of employees but also leadership through specialist 
expertise as defined in the internal job evaluation system.
The promotion of women in management positions is an important aspect of our diversity 
management. We have succeeded in raising the proportion of women in the middle and 
senior management level from 9 percent in 2006 to over 12 percent in 2014. Although we have 
not yet reached our targets, we are adhering to our self-imposed plan in the long term: the 
proportion should rise to 15 percent by 2015 and to 20 percent by 2020.
G 59
Nationalities  
(Infineon worldwide 2014)
31.0 %
28.3 %
8.9 %
8.8 %
7.1 %
15.9 %
  Malaysia
  Germany
  Indonesia
  Austria
  China
  Other nationalities (78)
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
98

A change within the organization supporting the successful career development of female 
managers is a prerequisite in order to meet our targets. One of the ways in which we wish to 
facilitate this organizational change is through networks. For instance, the “Gender Diversity 
Network” consists of managers (both women and men) from Germany and Austria. It has 
two functions: firstly, it contributes to ensuring that the topic of “Gender Diversity” receives 
the necessary attention within the organization and, secondly, it receives impetus from 
the organization. As a result, a large number of concrete proposals have already been made 
and “satellites” have been installed at specific sites that can address specific local topics 
more directly.
Fostering and reconciling work and family life, which is of crucial importance for our employees’ 
professional success, has also been on Infineon’s agenda for many years now. Since 2010, all 
sites in Germany have been awarded the “audit berufundfamilie” certificate. In 2013, a further 
audit of the German sites was successfully completed and a first audit was carried out of the 
Austrian sites. Since the involvement of staff is a key component of this process, concrete 
objectives and measures to implement a family-conscious human resources policy are drawn 
up with a representative group before an audit. The results of the measures are reported 
each year. Every three years, a further audit is carried out, during which the attainment of the 
objective is reviewed and new objectives are set. The return from parental leave process was 
awarded particularly high marks at Infineon. Consultations before and after the leave are a key 
component of this process. Likewise, it is possible to stay in touch with Infineon through Intranet 
access and parent-child meetings with the Company during the parental leave. The large sites 
in Germany and Austria offer their own day care center or contracted kindergarten facilities. 
At the Neubiberg site near Munich, the child care center with 180 places is currently being 
extended, which will bring the total number of places available to 220 from September 2015.
The diversity team in the Asia-Pacific region concentrates in particular on ethnic-cultural 
diversity and the demographic trend. For example, our Indian site has set itself the target of 
achieving a structural change by ensuring that approximately 30 percent of newly recruited 
employees are university graduates. A “Silver Workforce” agreement is in place in Singapore, 
Malaysia and Taiwan, enabling older staff to continue working, if they wish, after the statutory 
retirement age.
Cooperation and research arrangements with universities
Infineon sets great store by close contacts with students and academics to recruit young 
professionals. Activities range from excursions to European Infineon sites, training laboratories 
at Chinese universities to Infineon’s doctoral program. There are currently over 100 doctoral 
students who are not only conducting research on important topics, but are also creating a 
valuable, cross-departmental network within Infineon and beyond.
Infineon’s university marketing team participates in specialist conferences – such as the 
“European Microwave Week 2014” – to recruit experts for Infineon. Infineon provides a global 
framework for university cooperation arrangements, but leaves the necessary flexibility for local 
implementation. For example, internships are offered by the regions directly. During the 2014 
fiscal year, in Singapore alone, more than 100 students successfully completed an internship.
25
20
15
10
5
0
G 60
Women in management positions (Infineon worldwide)
Target 
2020
2012
2011
2013
2014
Target 
2015
12.3 %
11.4 %
12.1 %
12.5 %
15.0 %
20.0 %
99
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Our Employees

Qualifications and training
In the field of qualification and training, the main focus is on a broad range of training pro­
grams. Infineon invested €8.5 million (2013: €7.3 million) in staff training during the period 
under report. Our focus in this area was on professional training aimed at developing the 
know-how and innovation skills of our workforce, project-management training and programs 
concentrating on improving the leadership and feedback culture within the organization. 
In addition, increased importance was given to additional training measures, including web-
based training sessions, a range of in-house training opportunities, mentoring programs, 
innovation events and technical symposia.
Our workforce
Health management
We give high priority to the health of our staff, protecting and promoting it through our health 
management programs. Preventive programs, such as “Fit4Health” in Germany and Austria or 
“HAPPY” (“Healthy Active People Program For You”) in Singapore promote health awareness 
in our staff. Additional demand-oriented local initiatives supplement the range of measures 
on offer.
In November 2013, Infineon received the “Corporate Health Award” for its excellent occupational 
health management, recognizing it as one of the leading companies in Germany in this field.
Competence development
How do we equip ourselves optimally for the working world of the future? We endeavor to 
answer this question with our strategic competence management program. This program 
identifies the skill sets and expertise we shall need in the future and suggest the development 
paths that will lead to acquiring them. This is intended to bring about the accretion of the 
necessary competence on a targeted basis.
Our global offering of competence development is made available primarily via the “Academy 
Connect” platform. Our intention here is to support the corporate strategy through professional, 
targeted development and to boost our own productivity. Cooperation has been established 
among a total of eleven global “functional academies” operating in specific segments and 
fields, with a view to making coordinated learning available to build up professional expertise. 
The Finance Academy was newly established in midway through the 2014 fiscal year. The 
webinars developed by our finance experts and other training opportunities draw on examples 
from daily life at Infineon and refer to Infineon financial guidelines. Further academies exist, 
for example, in the fields of purchasing, manufacturing, quality management and the supply 
chain. The learning available from the “PMM Power & RF Academy” has been devised espe­
cially for the Power Management & Multimarket segment and covers sales, marketing and 
application development, among other fields.
In addition to the global offerings, there are also local initiatives, such as the structured compe­
tence development program, which was launched at Infineon’s largest manufacturing site 
in Malacca (Malaysia) already in 2011. The success of these initiatives has also inspired other 
sites and parts of the business to strengthen their own competence management.
G 61
Training expenses 
€ in millions
7.6
7.3
8.5
2012
2013 
2014  ¹
1 Including training expenses of the so-called  
“Academies” in the different functional areas
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
100

Fringe benefits
Fringe benefits are a longstanding tradition at Infineon and are also offered in various forms. 
All benefits form an integral part of the overall remuneration concept and reflect Infineon’s 
responsibility to its staff. The scale and nature of the benefits are determined in accordance 
with the relevant regional statutory and standard market requirements. No distinction is made 
in this respect between full-time and part-time staff. 
In Germany and the Asia-Pacific region, for example, in addition to employer and employee-
financed pension plans, benefits granted include the items listed below (the exact arrangements 
are specific to each location).
 
 
Industrial accident insurance
Company car for work or as additional benefit
Paid sick leave beyond the statutory minimum
Private car leasing from gross deferred compensation
Continued wage payment to surviving dependants 
in the event of death
Long-service awards
Sabbatical
Preventive health program
Flexible transition to retirement pension


Family-friendly services, such as for example in-house 
kindergartens or working together with local organi­
zations offering day-care facilities for children, vacation 
activities for children
In the Asia-Pacific region, in addition to these benefits, life and hospital group insurance policies, 
are also offered, which extend beyond the statutory provisions.
Infineon also encourages various work-time models aimed at keeping working hours flexible, 
depending on individual employees’ circumstances, such as in the form of trust-based working 
hours, part-time work or teleworking arrangements. In the Asia-Pacific region, for example, 
90 percent of all sites already offer flexi-time and 60 percent of all sites allow teleworking. 
Compensation
Infineon wishes to attract the best possible staff, so we consider attractive, market conform 
remuneration and appropriate participation in the Company’s success to be self-evident. The 
performance bonus for the employees covered by the Bavarian (Germany) collective agreement 
was developed according to plan, as provided for in the collective tariff agreement in place 
with IG Metall Bavaria. We, therefore, increased the variable part of the remuneration for the 
employees covered by this agreement. This affords greater cost flexibility in economically 
difficult periods and enables staff to benefit to an even greater extent from Infineon’s success 
in periods of economic prosperity.
We pay our staff on the basis of work-related criteria, such as job requirements and performance. 
No pay differentials for men and women exist at Infineon. Each employee shall receive appro­
priate remuneration which is open to scrutiny for his or her work, subject to compliance with all 
legal standards.
For top management, a new long-term incentive (LTI) plan, the Performance Share Plan, was 
introduced at the beginning of the 2014 fiscal year. Essentially, the conditions of this plan are 
identical to those of the LTI plan, which also came into force for the Management Board with 
effect from the 2014 fiscal year (see section “Components of the Management Board compen­
sation system” within the chapter “Compensation report”). The LTI plan is designed to align 
the interests of our managers, our investors and our company as a whole.
P   see page 177 ff.
101
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Our Employees

Number of employees
Employee reporting was prepared in accordance with the requirements of the global reporting 
initiative (GRI). Reporting in accordance with GRI covers all active, internal employees.
Employees and personnel expense
As of September 30, 2014 Infineon had a worldwide workforce of 29,807 employees, com­
pared to 26,725 employees one year earlier. The increase in the workforce is the result of the 
expansion of production especially at the Asian sites, the development of R&D activities and 
the conversion of temporary employees into permanent in-house staff. In addition, at Sep­
tember 30, 2014, Infineon employed a total of 280 apprentices and dual students, 104 interns 
and 668 working students in Germany, Austria and Malaysia. 81 new apprentices and dual 
students were hired in the 2014 fiscal year in Germany, Austria and Malaysia.
Employees by geographical region

2014
2013
Total
Female
Male
Total
Female 
Male
Europe
13,179 
3,136 
10,043 
12,587 
2,971 
9,616 
	
Therein: Germany
8,888 
2,265 
6,623 
8,520 
2,159 
6,361 
Asia-Pacific
15,936 
7,715 
8,221 
13,517 
6,299 
7,218 
	
Therein: China
1,748 
813 
935 
1,615 
700 
915 
Japan
136 
24 
112 
122 
20 
102 
Americas
556 
183 
373 
499 
156 
343 
Total
29,807 
11,058 
18,749 
26,725 
9,446 
17,279 
The regional distribution of employees has remained stable compared to the 2013 fiscal year. 
More than half of the entire workforce was employed in the Asia-Pacific region (15,936). 
44 percent of all employees were employed in Europe (13,179), with the majority working in 
Germany (8,888).
In the workforce as a whole, at September 30, 2014, 1,541 female employees and 1,340 male 
employees had fixed-term contracts and 9,517 female employees and 17,409 male employees 
had permanent contracts. A total of 1,181 employees were working part-time at that date.

 
2014
2013
Total
Full-Time
Part-Time
Total
Full-Time
Part-Time
Employees on permanent contracts
 
Male
17,409 
17,028 
381 
16,222 
16,056 
166 
Female
9,517 
8,734 
783 
8,669 
8,006 
663 
Employees on fixed-term contracts
 
Male 
1,340 
1,335 
5 
1,057 
1,054 
3 
Female
1,541 
1,529 
12 
777 
770 
7 
Total
 
29,807 
28,626 
1,181 
26,725 
25,886 
839 
 
Employees, who were, for example, on parental leave or in the non-working phase of early-
retirement part-time working arrangements, are not active employees and, therefore, not 
included in the tables above. Similarly, temporary employees are not included. At September 30, 
2014, 2,838 temporary employees worldwide were working for Infineon, of whom 1,497 were 
women and 1,341 men. Approximately 81 percent of the external workers were employed in 
manufacturing. This enables us to ensure the flexibility of manufacturing capacities. 
The worldwide personnel cost for current, internal Infineon employees in the 2014 fiscal year 
was €1,490 million (2013 fiscal year: €1,367 million). This amount includes wages and salaries, 
including overtime and allowances, as well as social costs (pension and similar costs).
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
102

Employee recruitment and turnover
In total 4,991 new employees were hired worldwide during the 2014 fiscal year, of whom 2,529 
were women and 2,462 men. 3,676 employees were under 30 years of age, 1,232 belonged to 
the 30-50 year age group and 83 were over 50 years of age.
 
Total
Europe
Therein:
Germany
Asia-
Pacific
Therein:
China
Japan
Americas
Newly hired employees
4,991 
838 
527 
4,047 
378 
17 
89 
Rate of newly hired 
employees¹
16.7 
6.4 
5.9 
25.4 
21.6 
12.5 
16.0 
Staff departures
2,511 
464 
298 
2,009 
255 
5 
33 
Rate of staff departures ²
8.9 
11.1 
3.4 
13.6 
15.2 
3.9 
6.3 
1	Figures expressed in percentages based on the workforce at September 30, 2014, in the respective region.
2	Figures in percent, calculated on the basis of the monthly workforce in the 2014 fiscal year.
There were 2,511 staff departures from Infineon in the 2014 fiscal year. Of these, the majority 
(2,009 employees) were in the Asia-Pacific region, where the majority of new recruitments 
also occurred (4,047 employees).
Of the departures, 1,205 were women and 1,306 men. 1,472 employees were in the under 
30 years age group, 816 in the middle age group (30-50 years) and 223 in the over 50 years age 
group. The worldwide employee turnover rate during the 2014 fiscal year was 8.9 percent, 
which represents a slight increase of 0.2 percentage points compared to 8.7 percent in the 
previous year. In Germany, the employee turnover rate was 3.4 percent (previous year: 2.1 per­
cent). The percentage figure includes voluntary terminations and other reasons for leaving.
Age structure and length of service
The average age of employees worldwide in the 2014 fiscal year is 37.1 years, marginally 
lower than one year earlier (2013 fiscal year: 37.7 years). The proportion of employees below 
30 years of age rose (2014 fiscal year: 27.5 percent, 2013 fiscal year: 24.2 percent). The propor­
tion of the middle age group (2014 fiscal year: 60.2 percent, previous year: 63.6 percent) 
is lower, whereas the share of the group over 50 years of age rose slightly (2014 fiscal year: 
12.3 percent, 2013 fiscal year: 12.2 percent). 
The lower average age of employees is reflected in a small decrease in the average length 
of service of Infineon employees worldwide, which fell from 9.9 years in the previous year to 
9.4 years in the 2014 fiscal year. The average length of service of employees in Germany was 
14.4 years, marginally higher than the previous year’s 14.3 years.
Outlook
Our human resources-related work is focused on sustaining successful initiatives and programs 
and developing new measures in response to present requirements. The long-term human 
resources strategy contributes to Infineon’s further development into a high-performance 
company: our aim is for our staff to be deployed competently and correctly, and to be moti­
vated through personal success to contribute to Infineon’s overall success. 
To this end, our human resources work focuses on the pillars “Leadership excellence”, “Pro­
moting talent” and “Our workforce”. The “HR Operational Excellence” initiative also improves 
our key processes in human resources. With stable processes and efficient instruments, in our 
role as strategic partners and advisers to management and staff, we accompany Infineon on 
the path to becoming a high-performance company. 
With the planned acquisition of International Rectifier, we have a significant task ahead of 
us in the coming fiscal year. The US semi-conductor manufacturer has a workforce of over 
4,000 employees in 20 countries. Our human resources work will focus on structuring and 
guiding the transition process, especially with regard to organization, talent and culture, in 
order to ensure that the integration process is successful and adds value.
G 63
Age structure  
(new entries worldwide 2014)
Under 30 years
30 to 50 years
Over 50 years
73.6 %
24.7 %
1.7 %
G 62
Female/male employees 
(new entries worldwide 2014)
  Female   
  Male
49.3 %
50.7 %
G 64
Age structure  
(Infineon worldwide 2014)
Under 30 years
30 to 50 years
Over 50 years
27.5 %
60.2 %
12.3 %
103
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Our Employees

15 years 
of Infineon
On April 1, 1999, 
Siemens AG’s semicon­
ductor division became 
Infineon Technologies AG.
Shareholding in LSPS 
increased
Infineon increased its shareholding in the Korean joint venture LS Power 
Semitech Co., Ltd. (LSPS) from 46.4 percent to 66.4 percent, thereby 
giving Infineon control of the entity. LSPS develops, pro­duces and sells 
compact IGBT power modules for household appliances and small 
industrial drives.
January 2014
April 2014
April 2014
June 2014
NOTABLE EVENTS 2014
First lot of IGBTs on 300-millimeter thin-wafer 
manufacturing technology started in Dresden
In January 2014 the first lot of IGBT devices produced on the 300-millimeter thin-wafer manufacturing 
line was started in Dresden (Germany). These components will go into discrete 1,200-volt IGBT power 
transistors, such as those used in induction cookers.
P   see also the chapter “Operations”, page 74
Graz development center enlarged to 
include a new building
In April 2014 Metahof IV became the latest new 
building to be opened in conjunction with the 
expansion of the development center at Infineon’s 
site in Graz (Austria). This fourth stage of expansion 
increases the center’s office and laboratory space 
by an additional 1,700 square meters to an approxi­
mate total of 6,300 square meters. Metahof IV pro­
vides space for around 100 additional work places.
Apart from its role as Infineon’s competence center 
worldwide for contactless chip technologies in secu­
rity applications, the Graz development center will 
be a base for performing key research, particularly 
in the field of automotive electronics.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
104

June 2014
August 2014
Contract to planned 
acquisition of International 
Rectifier signed
On August 20, 2014, Infineon and International Rectifier signed a contract 
for the acquisition of International Rectifier. Infineon offers US$40 in cash 
per outstanding International Rectifier share and is, thereby, paying approx­
imately US$3 billion for the share capital or approximately US$2.4 billion 
(net of cash acquired) to acquire International Rectifier’s business.
20 years of Infineon 
Dresden site
It was one of the first major industrial projects to 
be implemented after the reunification of Germany, 
as Siemens laid the cornerstone for a semiconduc­
tor manufacturing plant in Dresden (Germany) on 
6 June 1994. Exactly 20 years later to the day, the 
Infineon site in Dresden celebrated the anniversary 
of its founding, together with partners and friends 
from politics, commerce and science.
Back in 1994, 10 months were needed to build what 
was the most modern semiconductor plant in 
Europe at the time, consisting of two large produc­
tion buildings. In 2000, Infineon laid the foundation 
for the world’s first production center capable of 
manufacturing on 300-millimeter silicon wafers. 
Today, Infineon is establishing in Dresden the first 
manufacturing line worldwide for power semicon­
ductors on 300-millimeter thin wafers.
From left to right: 
Dr. Reinhard Ploss, CEO of Infineon; Helma Orosz, 
Mayoress of Dresden; Prof. Johanna Wanka, Federal 
Minister of Education and Research; Stanislav Tillich, 
Minister President of Saxony; Pantelis Haidas, Manag-
ing Director of the Dresden plant; Helmut Warnecke, 
Commercial Managing Director of the Dresden plant.
Infineon Dresden site: 
Europe’s most modern 
semiconductor plant 
emerging out of the 
ground in 1994.
After signature of the contract: Dr. Reinhard Ploss (left), CEO of Infineon, 
and Oleg Khaykin, President and CEO of International Rectifier.
105
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notable events 2014

THE INFINEON SHARE
Share information
Share types
Ordinary registered shares in the form of shares or American Depositary 
Shares (ADS) with a notional value of €2 each (ADS : shares = 1 : 1)
Share capital
€2,255 million (as of September 30, 2014)
Shares issued
1,128 million (as of September 30, 2014)
Own shares
6 million (as of September 30, 2014)
Listings
Shares: Frankfurt Stock Exchange (FSE) 
ADS: over-the-counter (OTC) market (OTCQX)
Option trading
Options issued by third parties: inter alia Eurex
Ticker symbol
IFX, IFNNY
ISIN Code
DE0006231004
German Security Identifi­
cation Number (WKN)
623100
CUSIP
45662N103
Bloomberg
IFX GY (Xetra trading system), IFNNY US
Reuters
IFXGn.DE
Index membership 
(selected)




DAX 30
Dow Jones STOXX Europe 600
Dow Jones Euro STOXX TMI Technology Hardware & Equipment
Dow Jones Germany Titans 30
MSCI Germany
S&P-Europe-350
Dow Jones SustainabilityTM Europe Index
Infineon Technologies AG share capital, shares issued and market capitalization
As of
September 30, 
2014
September 30, 
2013
Change
Share capital € in millions
2,255 
2,162 
+ 4.3 %
Shares issued in millions 
1,128 
1,081 
+ 4.3 %
Market capitalization ¹ € in millions
9,190 
7,950 
+ 15.6 %
Market capitalization ¹ US$ in millions
11,554 
10,729 
+ 7.7 %
1	The calculation is based on unrounded figures. Own shares were not taken into consideration 
for calculation of market capitalization.
Infineon share statistics
Fiscal year ending September 30
2014
2013
2012
Germany: Xetra closing in €
 
 
 
Fiscal year closing (end September)
8.19 
7.40 
4.94 
Year high
9.42 
7.61 
7.88 
Year low
6.88 
4.96 
4.94 
Daily average shares traded on 
regulated German stock exchanges
7,294,896 
8,134,049 
9,925,683 
	
Thereof: Xetra trading in %
94 
94 
94 
 
 
 
 
USA: OTCQX closing in US$
 
 
 
Fiscal year closing (end September)
10.30 
9.98 
6.44 
Year high
12.84 
10.35 
10.49 
Year low
9.24 
6.47 
6.17 
Daily average ADS traded
66,501 
80,678 
101,319 
@ A full overview of other major indices,  
in which the Infineon share is repre- 
sented, can be found on Infineon’s  
website at www.infineon.com/cms/en/
about-infineon/investor/infineon-share/
index-membership/
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
106

Shareholder structure ¹
 
 
Dodge & Cox Investment Managers
9.95 % (as per August 5, 2009)
	
Thereof: Dodge & Cox International Stock Fund
9.88 % (as per August 5, 2009)
The Capital Group Companies, Inc.
8.02 % (as per September 1, 2012)
	
Thereof: Capital Research and Management Company
5.06 % (as per July 28, 2011)
	
	
Thereof: EuroPacific Growth Fund
	
5.04 % (as per September 13, 2012)
BlackRock Inc. 
5.57 % (as per September 25, 2014)
	
Thereof: BlackRock HoldCo 2, Inc.
5.48 % (as per September 25, 2014)
	
	
Thereof: BlackRock Financial Management, Inc.
	
5.47 % (as per September 25, 2014)
Allianz Global Investors Europe GmbH
5.03 % (as per July 24, 2014)
1	The number of shares held by, or attributable to, the investors listed above has been taken from the most recent 
mandatory notification received by Infineon Technologies AG from each of the relevant entities in accordance with 
sections 21 and 22 WpHG. The percentage disclosures are based on the share capital or number of shares at the 
date of receipt of each notification. Details of voting rights notified to the Company in accordance with sections 25 
and 25a WpHG which, in addition to shares actually held and to attributable shares, also take account of financial or 
other instruments which give an entitlement to acquire further shares, are published regularly on Infineon’s website.
Performance of the Infineon share and worldwide indices through September 30, 2014 since:
 

September 30, 
2013
September 30, 
2012
September 30, 
2011
Infineon (Xetra)
+ 10.8 %
+ 65.9 %
+ 46.6 %
DAX
+ 10.2 %
+ 31.3 %
+ 72.2 %
Philadelphia Semiconductor Index (SOX)
+ 30.1 %
+ 67.0 %
+ 88.4 %
Dow Jones US Semi­conductor Index
+ 37.0 %
+ 65.6 %
+ 74.2 %
Positive share price development in 2014 fiscal year
The Infineon share price rose by 11 percent over the course of the 2014 fiscal year and stood 
at €8.19 at September 30, 2014. Its closing price at the end the 2013 fiscal year was €7.40. The 
share price initially moved sideways during the first months of the fiscal year, with the low 
for the year of €6.88 recorded in mid-November 2013. A continuous upwards trend commenced 
in February 2014 and lasted into July. At the beginning of July, the share price stood at €9.42, 
its highest level during the 2014 fiscal year. By the end of the fiscal year – and accompanied 
by significant volatility – the general trend of the share price was downwards.
G 65
Development of the Infineon Technologies AG share compared to Germany’s DAX Index and Philadelphia Semiconductor Index (SOX)  
and the Dow Jones US Semiconductor Index from the beginning of the 2014 fiscal year (daily closing prices)
Infineon share price in €
September 30, 2013 = 100
  Infineon
  DAX
  SOX
  Dow Jones US Semiconductor Index
10.35
140
09 | 2014
04 | 2014
06 | 2014
02 | 2014
11 | 2013
07 | 2014
08 | 2014
03 | 2014
12 | 2013
05 | 2014
01 | 2014
10 | 2013
9.61
130
8.87
120
8.13
110
7.40
100
6.66
90
@ www.infineon.com/cms/en/about-
infineon/investor/infineon-share/
shareholder-structure/
107
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
The Infineon share

The relevant comparable indices also gained in value during the 2014 fiscal year. The DAX 
finished 10 percent above its level at September 30, 2013. Over the same period, the Philadel­
phia Semiconductor Index (SOX) rose by 30 percent and the Dow Jones US Semiconductor 
Index by 37 percent.
Trading volumes and membership in indices
The average number of Infineon shares traded per day, in the Xetra system, on the Frankfurt 
trading floor and on German regional stock exchanges, fell from daily 8.1 million shares in 
the previous fiscal year to 7.3 million shares in the 2014 fiscal year. The average daily trading 
volume in euros was increasing from €51.3 million in the 2013 fiscal year to €59.3 million per 
day in the 2014 fiscal year.
The Infineon share is traded in the USA in the form of American Depositary Shares (“ADS”) on 
the OTCQX International over-the-counter market under the ticker symbol “IFNNY”. With an 
average trading volume of 67 thousand ADS per day, the number of ADS traded was down on 
the previous fiscal year’s figure of 81 thousand ADS per day. The number of ADS outstanding 
dropped to a total of 10.2 million at September 30, 2014, compared to the 15.0 million ADS 
in circulation at the end of the previous fiscal year.
The criteria applied for testing membership in the DAX are the average market capitalization 
and the trading volume in euro. Essential for the calculation of market capitalization are on 
the one hand the number of shares outstanding and on the other hand the number of free-float 
shares. As a result of the conversion of the convertible bond and the exercise of stock options, 
the number of shares in issue increased during the 2014 fiscal year by 46,656,196 shares to 
stand at 1,127,739,230 shares at September 30, 2014. The corresponding figure at the end of 
the previous fiscal year was 1,081,083,034 shares. With the exception of 6 million own shares 
held by Infineon, all shares are deemed to be free float and hence taken into account in the 
calculation of the average market capitalization, which rose from €8.0 billion in the 2013 fiscal 
year to €9.9 billion in the 2014 fiscal year. Despite the higher market capitalization, Infineon 
remained in 24th place in the DAX ranking.
The second relevant criterion is the euro volume of shares traded during the past 12 months 
in the Xetra system and on the Frankfurt trading floor. The total trading volume of the Infineon 
share climbed from €12.3 billion in the previous fiscal year to €14.2 billion in the 2014 fiscal 
year, resulting in an improvement from 21st to 20th place in the DAX ranking.
The Infineon share was included in the Dow Jones SustainabilityTM Europe Index for the first 
time in September 2010. There is an annual test for each company included to confirm that 
the criteria for retention in the index have been met. Infineon’s compliance with these criteria 
was confirmed in September 2014 for the fifth year in succession. This index currently com­
prises the shares of 154 entities, including another 22 German companies in addition to Infineon. 
Further information on the topic of sustainability can be found in the chapter “Sustainability 
at Infineon”.
Dividend, capital returns and conversion of convertible bond
At the Annual General Meeting held in Munich on February 13, 2014 the Company’s share­
holders approved the dividend proposal jointly put forward by Infineon’s Management Board 
and Supervisory Board. As a consequence, a dividend of €0.12 per share was distributed, 
unchanged from the previous year, and an amount of €129 million disbursed to the share­
holders on February 14, 2014. On May 6, 2014 Infineon announced a reduction in the expected 
level of capital intensity and, consequently, of the ratio of investments to revenue from the 
previous 15 percent to 13 percent. In view of the resulting sustainable improvement in free 
cash flow, the intention is to pay a significantly increased level of dividend already for the 
2014 fiscal year. It will, therefore, be proposed at the Annual General Meeting which will take 
place in Munich on February 12, 2015 to raise the dividend by 50 percent to €0.18 per share.
G   see glossary, page 275
G   see glossary, page 276
P   see page 82
Dividend for  
fiscal year
Dividend  
per share
2010
€0.10
2011
€0.12
2012
€0.12
2013
€0.12
Proposal 2014
€0.18
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
108

Infineon’s strategy is to pursue a dividend policy that enables shareholders to participate 
appropriately in growing earnings or, in times of flat or declining earnings and/or with negative 
free cash flows, to keep the dividend at least at a constant level.
Following the expiry on March 31, 2013 of the capital returns program originally initiated 
in May 2011, the Supervisory Board authorized a new capital returns program for an amount 
of up to €300 million on November 19, 2013. The new program can again be used up to Sep­
tember 30, 2015 to acquire shares and/or bonds in connection with the subordinated convert­
ible bond due 2014 or to issue put options on own shares. Infineon began in December 2013 
to repurchase parts of the convertible bond and to issue put options on Infineon shares. 
By the end of December 2013, Infineon had repurchased parts of the convertible bond with a 
nominal value of €11 million for €35 million. In addition, a total of 14 million put options on 
own shares were issued during the 2014 fiscal year, of which 8 million had expired and 6 mil­
lion remained outstanding at the end of the reporting period. Details of repurchases of the 
convertible bond and an overview of changes in the number of outstanding put options can 
be found on Infineon’s website at “About Infineon/Investor/Capital Returns/Program 2013”. 
Subject to the acquisition of International Rectifier proceeding as planned, no other repur­
chases are planned over and beyond the put options currently outstanding.
During the first quarter of the 2014 fiscal year, parts of the convertible bond due 2014 with 
a nominal amount of just under €64 million were converted into just under 29 million new 
shares. Following these conversions and repurchases described above, less than 20 percent 
of the nominal amount of the convertible bond remained outstanding in December 2013. 
On December 23, 2013, Infineon announced its intention to repay all outstanding parts of the 
convertible bond – prior to its due date – in accordance with the terms of the bond. As a result, 
all outstanding bonds with a nominal amount of €39 million were converted into about 
18 million shares until the expiry of the conversion period on January 31, 2014.
Communication with capital markets
The prime objective of our communications with the capital markets is to provide regular and 
detailed information to current and future shareholders, investors and analysts about Infineon’s 
economic and technological developments.
The Annual Report, Quarterly Reports and telephone conferences held in conjunction with 
the release of financial data plus a whole range of detailed information, figures and tables 
made available on the Infineon website, form the basis for our communication with capital 
market participants.
A further component of our Investor Relations activities is communication with analysts and 
investors at conferences and roadshows. During the 2014 fiscal year, the three members of the 
Management Board as well as the segment Heads, supported by the Investor Relations team, 
were all involved in capital market communication activities. We participated in eight investor 
conferences in Europe and the USA and organized six roadshows. Three telephone confer­
ences were held to provide detailed information on the business of the Automotive, Industrial 
Power Control and Power Management & Multimarket segments. The strategic benefits result­
ing from the planned acquisition of International Rectifier were discussed by Infineon’s CFO in 
a further telephone conference, held on August 21, 2014. All presentations and webcasts can 
be viewed and downloaded from the Investor Relations section of the Infineon website via 
“Reporting/Download Center”. In addition to the events described above, a whole host of dis­
cussions were held with analysts and investors at group meetings, on a one-to-one basis or in 
telephone conference calls. More than 30 analysts continuously monitor Infineon’s business 
performance and publish analyses on a regular basis.
@ www.infineon.com/investor
@ We use our Financial Calendar to inform 
interested parties of forthcoming reports 
and of our attendance at investor confer-
ences: www.infineon.com/investor
@ Interested parties are able to participate  
in telephone conferences via a webcast  
in the Investor Relations section of the  
Infineon website:  
www.infineon.com/investor
@ www.infineon.com/investor
I   Retail investors can reach 
us via e-mail or telephone hotline 
with their questions: 
Phone: + 49 89 234  - 26655
Fax: + 49 89 234  - 955 2987
E-mail: investor.relations@infineon.com
109
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
The Infineon share

Infineon among the 
100 most innovative 
companies in the world
Every year, the financial news agency 
Thomson Reuters draws up a list of the 
world’s 100 most innovative companies. 
Infineon was one of only three German 
enterprises to be included in the list. 
Selection depends on the activities of 
companies regarding patents, which are 
judged on the strength of four criteria: 
number, success rate, range and influence.
Prime rating 
received 
from oekom
The rating agency oekom research AG 
assesses the sustainability performance 
of various companies. It awarded 
Infineon the prime rating in this ranking, 
which comprises over 100 individual 
criteria in the areas of economy, ecology 
and social responsibility.
Renewed receipt of Sesames Award
In a repeat of last year’s performance, 
Infineon was again recipient of a Sesames 
Award, which was presented at Cartes, 
the international trade fair for smart cards 
held annually in Paris (France). This time 
Infineon received the award in the Best 
Innovation in the Field of ID and Health 
Cards category for its passport with the 
highest data transfer rate.
Being at the forefront of technology, Infineon is the recipient of numerous awards and prizes – 
in the fields of research and development, production and quality on the one hand, as well as for 
its accomplishments in organization and processes on the other. The following overview shows 
a selection of the awards Infineon received during the course of the 2014 fiscal year.
November 2013
October 2013
December 2013
January 2014
Coil on Module acknowl­
edged with award
For its Coil on Module packaging tech­
nology, Infineon was presented with 
the New Product Innovation Leadership 
Award by management consulting 
experts Frost & Sullivan. The technology 
simplifies the production of security 
cards with combined interfaces (both 
contact-based and contactless).
Best Quality 
Supplier Award
Emerson Network Power 
China (ENPC) honored Infineon 
with the presentation of its 
Best Quality Supplier Award.
Best Strategic 
Partnership Supplier
Taiwan-based Actron Technology 
Corporation is a global leader in the 
manufacture of diodes for automotive 
electronics. Actron recognized Infineon 
as best strategic supplier and partner 
for its outstanding collaboration in the 
manufacturing of diodes that feature 
extremely low power losses.
AWARDS
Corporate Health Award
A committee consisting of Handelsblatt (a German business newspaper), TÜV SÜD 
(a technical standards organization) and EuPD Research Sustainable Management 
(a market researcher) acknowledged Infineon’s German-wide leading operational 
health management system with an award.
Innovation prize for ESiP
The ESiP project, (Efficient Silicon Multi-chip System-in-Package 
Integration), which is headed by Infineon, was awarded the 
Innovation Prize 2013 by ENIAC JU (European Nanoelectronics 
Initiative Advisory Council Joint Undertaking), a public-private 
partnership that focuses on nanoelectronics.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
110

Strategic Supplier Award
Longood Intelligent Electric Co., Ltd, 
Shenzhen (China), a leading manufac­
turer of control panels for induction 
cookers, presented an award to Infineon 
in recognition of its role as particularly 
important partner for strategic coopera­
tion in the field of IGBTs.
2014 Compound
Semiconductor Industry 
Innovation Award
At the CS International Conference, an 
annual event organized by the magazine 
Compound Semiconductor for members 
of the compound semiconductor industry, 
Infineon received an award in the cate­
gory Innovation for its “CoolSiC™ 1,200V 
SiC JFET & Direct Drive Technology” tran­
sistor family, which is based on the new 
material silicon carbide.
Dow Jones 
Sustainability 
Index
Infineon has been listed in the 
Dow Jones SustainabilityTM 
Europe Index (DJSI Europe) 
for the fifth consecutive 
time. In the 2013/2014 listing, 
the DJSI Europe comprises 
154 European companies, 
only 22 of which are German. 
Furthermore, in January 2014 
Infineon was again included 
in the Sustainability Yearbook. 
The international investment 
company RobecoSAM awards 
this entry to companies 
belonging to the 15 percent 
most sustainable companies 
in the world.
Singapore 
Sustainability Award
Infineon is among the winners of the Singapore 
Sustainability Award 2014 in the large organi-
zation category. The Singapore chamber of 
commerce bestows this award on companies or 
organizations for their innovative and sustainable actions 
in the fields of economy, social responsibility and 
environmental protection.
Best Companies 
for Mums
In Singapore, the National Trades Union 
Congress (NTUC) and the organization 
Women’s Development Secretariat and 
Tripartite Alliance for Fair and Progres­
sive Employment Practices (TAFEP) hon­
ored Infineon with the Best Companies 
for Mums award for its flexible working 
time model and its parent-friendly work­
ing environment.
International Business 
Award
The magazine Singapore Business Review 
presented Infineon with the Interna­
tional Business Award in the electronics 
category in recognition of its growth 
initiative in the Asian region.
March 2014
September 2014
August 2014
July 2014
Best Quality 
Supplier Award
Sungrow Power, China’s largest manufac­
turer of photovoltaic inverters, presented 
Infineon with the Best Quality Supplier 
Award for the third consecutive time.
Editor’s Choice
In its February issue, the US-based maga­
zine Embedded Computing Design awarded 
the Editor’s Choice prize to the develop­
ment platform and the accompanying 
software development tool for the use of 
the XMC4500 industry microcontroller.
Logistics Award 2014
Siemens Motion Control presented 
Infineon with the Our Stars for MC – 
Logistics award for its excellent, reliable 
procurement management.
May 2014
February 2014
111
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Awards

Infineon sites
   		
Headquarters
   		
Regional headquarters
Dc	
Distribution center
M		
Manufacturing
R&D	 Research & Development
Sa	
Sales
Sf		
Service function
Porto  Sf
Madrid  Sa
Barcelona  Sa
Padua  R&D
Milan  Sa
Zürich  Sa
Stuttgart  Sa
Karlsruhe, Hitex Development Tools  M  R&D  Sa
Saint-Denis  Sa
Bristol  R&D  Sa
Dublin  Sa
Rotterdam  Sa
Warstein  M  R&D  Sa
Moscow  Sa
Kista  Sa
Espoo  Sa
Hanover  Sa
Duisburg  R&D  Sa
Augsburg  R&D  Sa
Munich, Neubiberg 
  R&D  Sa
Dresden  M  R&D
Erlangen  Sa
Grossostheim  Dc
Regensburg  M  R&D
Villach  M  R&D  Sa
Klagenfurt  Sf
Linz, DICE  R&D
Graz  R&D
Vienna  Sa
Cegléd  M  Sa
Bucharest  R&D
INFINEON WORLDWIDE
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – THE INFINEON GROUP
112

Shanghai  Dc  R&D  Sa
Hong Kong  Sa
Taipei  Sa
Nagoya  Sa
Tokyo 
  Sa
Osaka  Sa
Beijing  M  R&D  Sa
Seoul  R&D  Sa
Shenzhen  Sa
Wuxi  M
Bangalore  R&D  Sa
Blackburn  Sa
Malacca  M  R&D
Kulim  M  R&D
Singapore 
  Dc  M  R&D  Sa
Batam  M
Torrance  R&D
Milpitas 
  Sa
Livonia  Sa
Durham  Sa
Lebanon  Sa
Kokomo  Sa
Morgan Hill  M  R&D
Hayward  DC
São Paulo  Sa
113

Our 2014 fiscal year
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
114

116	
GROUP PERFORMANCE
	
116  Review of results of operations
	
123  Review of financial condition
	
126  Review of liquidity
130	
REPORT ON EXPECTED DEVELOPMENTS, TOGETHER WITH 
ASSOCIATED MATERIAL RISKS AND OPPORTUNITIES
	
130  Outlook
	
137  Risk and opportunity report
149	
TREASURY AND CAPITAL REQUIREMENTS
154	
OVERALL STATEMENT OF THE MANAGEMENT BOARD 
WITH RESPECT TO INFINEON’S FINANCIAL CONDITION 
AS OF THE DATE OF THIS REPORT
156	
INFINEON TECHNOLOGIES AG
159	
SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD
160	
CORPORATE GOVERNANCE
	
160  Information pursuant to section 289, paragraph 4, and section 315, 
paragraph 4, of the German Commercial Code (HGB)
	
167  Corporate Governance Report
	
177  Compensation Report
GROUP MANAGEMENT REPORT
The Infineon Group
→
GROUP MANAGEMENT REPORT
Our 2014 fiscal year
→
CONSOLIDATED 
FINANCIAL STATEMENTS
→
115
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR

GROUP PERFORMANCE
REVIEW OF RESULTS OF OPERATIONS
The consolidated statement of operations
€ in millions, except earnings per share
2014
2013
Revenue 
4,320 
3,843 
Gross profit 
1,647 
1,323 
Research and development expenses 
(550) 
(525) 
Selling, general and administrative expenses 
(496) 
(440) 
Other operating income and expense, net
(76) 
(33) 
Operating income 
525 
325 
Net financial result (financial income and expense, net)
(9) 
(21) 
Income from investments accounted for using the equity method
3 
2 
Income tax
(31) 
(23) 
Income from continuing operations 
488 
283 
Gain (loss) from discontinued operations, net of income taxes 
47 
(11) 
Net income
535 
272 
Basic earnings per share (in euro)
0.48 
0.25 
Diluted earnings per share (in euro)
0.48 
0.25 
Significant improvement in net income
Net income for the 2014 fiscal year amounted to €535 million. Despite the fine of €83 million 
imposed on Infineon by the EU Commission in conjunction with antitrust proceedings against 
semiconductor manufacturers (see note 33 to the Consolidated Financial Statements), the 
result is almost double the previous year’s figure of €272 million. The increase mainly reflects 
higher revenue and as a result a noticeably increased profitability achieved during the 2014 
fiscal year due to significantly improved utilization of manufacturing capacities and the bene­
fits of production efficiency improvements. Segment Result improved to a similar degree 
(see the chapter “Finances and Strategy” for a detailed analysis). Improved earnings also 
gave rise to a sharp increase in earnings per share.
Sharp revenue growth
Despite currency-related headwinds, revenue grew year-on-year by 12 percent or €477 million 
to €4,320 million (2013: €3,843 million). All four operating segments reported higher revenue: 
Automotive (up by 15 percent or €251 million), Industrial Power Control (up by 20 percent 
or €132 million), Power Management & Multimarket (up by 7 percent or €74 million) and Chip 
Card & Security (up by 7 percent or €31 million) (see detailed comments in the respective 
sections to the individual segments in chapter “The segments”. 
P   see page 254
P   see page 22 ff.
P   see page 38 ff.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
116

Higher negative currency impact on revenue in the 2014 fiscal year
Almost 50 percent of revenue in the 2014 fiscal year was generated in foreign currencies, 
of which the US dollar accounted for the largest proportion. 
The average euro/US dollar exchange rate for the year changed from 1.31 in the 2013 fiscal year 
to 1.36 in the 2014 fiscal year. The average exchange rate during the 2012 fiscal year was 1.30.
The impact of the change in the value of the US dollar was correspondingly high, a fact 
compounded by the high volumes recorded. The weakness of the Japanese yen also had 
a negative impact on revenue. Across all currencies and over the full year, revenue was 
negatively impacted by approximately €82 million due to exchange rate factors. This exchange 
rate impact is measured by applying the previous fiscal year’s average exchange rates to 2014 
fiscal year revenue. 
€ in millions, except percentages
2014
2013
Revenue
4,320 
3,843 
	
Changes year-on-year
12 %
(2 %)
Exchange rate impact compared to previous fiscal year
(82) 
(28) 
	
Percentage of revenue
(2 %)
(1 %)
Revenue increase not significantly influenced by acquisition of control over LSPS
Further shares were acquired in LS Power Semitech Co., Ltd. (“LSPS”), Korea, in June 2014, 
since which time LSPS has been fully consolidated (further information is provided in note 3 
to the Consolidated Financial Statements). Revenue generated by LSPS over the remainder 
of the fiscal year amounted to €13 million and therefore only contributed marginally to the 
revenue increase recorded by Infineon. Revenue in the 2014 fiscal year was not influenced by 
business disposals.
Revenue in the 2013 fiscal year was not impacted by any business acquisitions or disposals. 
1,965
1,714
783
1,061 987
463
26
2
494
22
(5)
45 %
18 % 
25 %
11 %
1 %
Share of Group Revenue 2014
  Automotive
  Industrial Power Control
  Power Management & Multimarket
  Chip Card & Security
  Other Operating Segments
G 66
Revenue by segment
€ in millions
2,000
1,600
1,200
800
400
0
Corporate and  
Elimininations
Industrial  
Power Control
Automotive
Power  
Management  
& Multimarket
Chip Card & 
Security
Other Operating 
Segments
  2014   
  2013
651
P   see page 218
117
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Group performance
Review of results of operations

Importance of Asia-Pacific continues to grow
€ in millions, except percentages
2014
 
2013
Europe, Middle East, Africa
1,707 
39 %
1,567 
41 %
	
Therein: Germany
859 
20 %
795 
21 %
Asia-Pacific (excluding Japan)
1,845 
43 %
1,560 
40 %
	
Therein: China
868 
20 %
710 
18 %
Japan
284 
7 %
227 
6 %
Americas
484 
11 %
489 
13 %
Total
4,320 
100 %
3,843 
100 %
All regions except for the Americas contributed to revenue growth in the 2014 fiscal year. More 
than half of the increase (€285 million) related to the Asia-Pacific region (excluding Japan). 
The Europe, Middle East and Africa region made a €140 million contribution (29 percent) to 
the improved figure. 
For the first time, revenue generated in the Asia-Pacific region (excluding Japan) amounting 
to €1,845 million surpassed revenue recorded for the Europe, Middle East and Africa region 
(€1,707 million) and, with a share of 43 percent (3 percentage points more than one year earlier), 
accounted for the largest share of Infineon’s revenue in the 2014 fiscal year. The growing 
importance of the Asia-Pacific region for Infineon mainly reflects the fact that it is the base 
for contract manufacturers specializing in producing electronic components, predominantly 
for Western customers (see section “Developments in the semiconductor industry during 
the 2014 fiscal year” in “Strong 2014 fiscal year” in the chapter “Finances and Strategy”). With 
a combined share of 82 percent of revenue, Europe, Middle East, Africa and the Asia-Pacific 
region represent Infineon’s major markets. Within the Asia-Pacific region (excluding Japan), 
the highest share was recorded in China, which, with 20 percent of Infineon’s worldwide 
revenue, accounted for a similar proportion to that generated in Germany. For the first time, 
revenue generated in China (€868 million) was higher than the corresponding figure for 
Germany (€859 million).
The share attributable to the Americas fell by 2 percentage points to 11 percent, mainly due to 
exchange rate factors.
Stable customer structure again in the 2014 fiscal year
As in previous years, Infineon worked very closely with a host of major customers. In the 
2014 fiscal year, business with its 25 largest customers accounted for 73 percent of revenue 
(2013: 72 percent). 
P   see page 25
G 67
Revenue by region
€ in millions
39 %
43 % 
7 %
11 %
Share of Group Revenue 2014
  Europe, Middle East, Africa
  Asia-Pacific (excluding Japan)
  Japan
  Americas
2,000
1,600
1,200
800
400
0
1,707 1,567
Europe,  
Middle East,  
Africa
284 227
Japan
489
484
Americas
  2014   
  2013
1,845
Asia-Pacific  
(excluding 
Japan)
1,560
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
118

Book-to-bill ratio improved due to higher levels of orders received
The volume of incoming orders increased by 20 percent from €4,052 million to €4,857 million 
in the 2014 fiscal year. Thanks to the faster growth of orders received compared to revenue, 
the book-to-bill ratio improved from 1.05 to 1.12.
Gross margin improved at higher rate than revenue due to better capacity utilization 
and efficiency improvements
Cost of goods sold in the 2014 fiscal year amounted to €2,673 million, an increase of €153 million 
or 6 percent compared to the previous year’s figure of €2,520 million.
Cost of goods sold comprises mainly: 
•	 costs of materials – in particular for raw wafers, 
•	 personnel expenses, 
•	 depreciation and amortization,
•	 overheads, including the maintenance of production facilities, operational supplies and 
license fees, 
•	 foundry as well as assembly and test costs charged by subcontractors, and
•	 manufacturing support, including buildings, supply facilities, quality control and 
management costs. 
In addition to volume-related factors, the cost of goods sold is also influenced by the following: 
•	 capacity utilization level of production facilities and related idle costs,
•	 amortization of purchased and internally generated intangible assets, 
•	 product warranty costs, 
•	 inventory risks and
•	 government grants received that are spread over the useful lives of production plants.
Gross profit (revenue less cost of goods sold) amounted to €1,647 million, an improvement of 
24 percent over the €1,323 million recorded one year earlier. Infineon manufactures a large 
percentage of its products in-house and therefore has a relatively high level of fixed costs. For 
this reason, many elements of the cost of goods sold do not react in proportion to rises and 
falls in revenue. Greater business volumes in the 2014 fiscal year resulted in higher capacity 
utilization at manufacturing facilities. Whereas frontend and backend manufacturing capacities 
were utilized at a level of 91 percent and 79 percent respectively in the 2013 fiscal year, the 
corresponding figures for the 2014 fiscal year were 99 percent and 85 percent respectively, as a 
result of which idle costs decreased accordingly. This fact, combined with benefits derived from 
manufacturing efficiency improvements, led to gross profit growth exceeding revenue growth. 
A number of other factors, such as increased personnel costs – partially due to the larger 
workforce and also to pay rises, including higher variable remuneration based on an improved 
target achievement level – worked in the opposite direction. The gross margin improved 
year-on-year from 34.4 percent to 38.1 percent. 
A part of the cost of goods sold is incurred in currencies other than the euro. To some extent, 
the effects of exchange rates on the cost of goods sold offset a similar impact on revenue. 
Exchange rates had a net negative impact of €32 million on gross profit in the 2014 fiscal year.
€ in millions, except percentages
2014
2013
Cost of goods sold
2,673 
2,520 
	
Change year-on-year
6 %
2 %
	
Percentage of revenue
61.9 %
65.6 %
Gross profit
1,647
1,323 
	
Percentage of revenue (gross margin)
38.1 %
34.4 %
G 68
Orders received and revenue
€ in millions, except Book-to-Bill ratio
  Orders received   
  Revenue
  Book-to-Bill ratio
4,052 3,843
4,857
4,320
2013
2014
1.05
1.12
34.4 %
38.1 %
G 69
Gross profit and gross margin
€ in millions
  Gross profit
  Percentage of revenue (gross margin)
1,323
1,647
2013
2014
119
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Group performance
Review of results of operations

Research and development expenses higher; selling, general and 
administrative expenses at similar level 
Research and development expenses (R&D expenses)
R&D expenses consist primarily of personnel expenses, cost of materials, depreciation and 
amortization and the cost of maintaining laboratory facilities required for R&D activities. 
R&D projects include technology and product development projects. R&D expenses also cover 
third-party costs related to technology and product development, as well as the cost of joint 
product and technology development arrangements with partners. Grants received in con­
junction with R&D projects and capitalized development costs reduce the reported expense.
€ in millions, except percentages
2014
2013
Research and development expenses
550 
525 
	
Change year-on-year
5 %
15 %
	
Percentage of revenue
12.7 %
13.7 %
Therein included grants received
66 
52 
	
Percentage of revenue
1.5 %
1.4 %
For information: Capitalized development costs
92 
51 
	
Percentage of research and development expenses
16.7 %
9.7 %
R&D expenses in the 2014 fiscal year increased by €25 million or 5 percent compared to the 
previous year. Expressed as a percentage of revenue, they decreased year-on-year from 
13.7 percent to 12.7 percent. 
Additional staff were recruited – including for the new development center in Malacca 
(Malaysia) – with the aim of creating the basis for further growth. A total of 4,822 employees 
worked in R&D functions at the end of the reporting period (2013: 4,472 employees). Higher 
personnel expenses (due to higher headcount, pay rises and higher expenses for variable 
remuneration based on an improved target achievement level) as well as additional non-
personnel costs incurred in conjunction with R&D activities, contributed to the increase in 
R&D expenses. 
At €66 million, grants and subsidies received were significantly higher than one year earlier 
(2013: €52 million). Capitalized development expenses amounted to €92 million in the 2014 
fiscal year, compared to €51 million in the previous year, with the increase primarily attributable 
to development projects in the Automotive segment.
The principal R&D activities undertaken during the 2014 fiscal year are described in more detail 
in the chapter “Research and development”. 
Selling, general and administrative expenses
Selling expenses primarily comprise personnel and non-personnel expenses related to selling 
activities as well as the cost of marketing, customer samples, marketing incentives and other 
marketing activities. 
General and administrative expenses primarily consist of personnel costs for administrative 
staff, non-manufacturing-related overhead costs, as well as consultancy, legal and other fees 
for professional services.
€ in millions, except percentages
2014
2013
Selling, general and administrative expenses
496 
440 
	
Change year-on-year
13 %
(7 %)
	
Percentage of revenue
11.5 %
11.4 %
13.7 %
12.7 %
G 70
R&D expenses 
€ in millions
  R&D expenses
  Percentage of revenue
525
550
2013
2014
P   see page 64 ff.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
120

At 11.5 percent of revenue, selling, general and administrative expenses were practically 
unchanged from the previous fiscal year (11.4 percent). Comparing the absolute figures, 
there was a year-on-year increase of 13 percent caused by revenue-related factors and higher 
personnel expenses.
We incur only minor marketing expenses for advertising and trade fairs due to our sales and 
customer structure. In the 2014 fiscal year they accounted for about than 1 percent of selling, 
general and administrative expenses.
Fine imposed by the EU Commission in conjunction with antitrust proceedings results 
in sharp increase in negative net amount of other operating income and expenses
Net other operating income and expenses gave rise to a net expense of €76 million for the 
2014 fiscal year, compared to a net expense of €33 million one year earlier. The increase in net 
expense was mainly due to the fine of €83 million imposed on Infineon by the EU Commission 
(meanwhile Infineon has brought an action against this decision before the European Court 
of Justice in Luxembourg). Lower restructuring expenses and impairment losses partially 
offset this effect.
Further details relating to other operating income and expenses are provided in note 7 to the 
Consolidated Financial Statements.
Improvement in net financial result 
The net financial result (financial income less financial expenses) for the 2014 fiscal year 
was a net expense of €9 million, an improvement of €12 million compared to the net expense 
of €21 million recorded one year earlier. The better figure was mainly attributable to the fact 
that interest expense decreased following the repurchase and conversion of parts of the 
subordinated convertible bond due 2014.
Effective tax rate of 6 percent in 2014 fiscal year
The income tax expense, comprising current and deferred taxes, totaled €31 million in the 
2014 fiscal year.
In Germany, Infineon’s current tax expense is based on the applicable “minimum taxation” 
rules, under which only 40 percent of taxable profits arising in Germany are subject to current 
tax as a result of utilizing tax loss carry-forwards. The current tax expense outside Germany 
benefited from lower statutory tax rates and tax credits.
Deferred tax assets, which in Infineon’s case relate primarily to tax loss carry-forwards and 
unused tax credits, have to be assessed at the end of each reporting period in order to 
determine whether future utilization is probable. As in the previous year, in the 2014 fiscal year 
the reassessment of the valuation allowance on deferred tax assets gave rise to a deferred 
tax benefit, which partially offset the current tax expense. 
11.4 %
11.5 %
G 71
Selling, general and  
administrative expenses 
€ in millions
  Selling, general and  
administrative expenses
  Percentage of revenue
440
496
2013
2014
P   see page 221
121
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Group performance
Review of results of operations

Income from continuing operations before income taxes and the income tax expense/benefit 
were as follows:
€ in millions, except percentages
2014
2013
Germany
259 
101 
Foreign
260 
205 
Income from continuing operations before income taxes
519 
306 
 
 
 
Current tax expense:
 
 
	
Germany
(34) 
(9) 
	
Foreign
(42) 
(30) 
 
(76) 
(39) 
Deferred tax benefit (expense):
 
 
	
Germany
36 
21 
	
Foreign
9 
(5) 
 
45 
16 
Income tax
(31) 
(23) 
Effective tax rate
6 %
8 %
Further details regarding income tax are provided in note 10 to the Consolidated Financial 
Statements.
Positive result from discontinued operations
The result from discontinued operations, net of income taxes, for the 2014 and 2013 fiscal years 
comprised the following:
€ in millions
2014
2013
Qimonda
29 
(15) 
Wireline Communications business
10 
–
Wireless mobile phone business
8 
4 
Result from discontinued operations, net of income taxes
47 
(11) 
The result from discontinued operations, net of income taxes, was a positive amount of 
€47 million in the 2014 fiscal year, compared to a negative amount of €11 million in the 
previous year. In addition to income arising on the reversal of provisions in connection with 
the sale (in previous years) of the Wireline Communications and the Wireless mobile phone 
businesses, the most significant item was the earnings impact of the partial settlement signed 
on September 11, 2014 with the Qimonda insolvency administrator.
Further details regarding the result from discontinued operations, net of income taxes, can be 
found in note 4 to the Consolidated Financial Statements.
Sharp rise in earnings per share
As described above, net income of €535 million for the 2014 fiscal year was significantly higher 
than in the previous fiscal year (€272 million). 
This, in turn, resulted in a correspondingly sharp improvement in earnings per share. Basic and 
diluted earnings per share for the 2014 fiscal year amounted to €0.48, in both cases, compared 
to basic and diluted earnings per share of €0.25, in both cases, for the 2013 fiscal year.
P   see page 221 ff.
P   see page 219
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
122

REVIEW OF FINANCIAL CONDITION
€ in millions, except percentages
2014
2013
Change
year-on-year
Current assets
3,934 
3,623 
9 %
Non-current assets
2,504 
2,282 
10 %
Total assets
6,438 
5,905 
9 %
Current liabilities
1,603 
1,594 
1 %
Non-current liabilities
677 
535 
27 %
Total liabilities
2,280 
2,129 
7 %
Total equity
4,158 
3,776 
10 %
 
 
 
 
Statement of Financial Position Ratios:
 
 
 
	
Return on assets  ¹
8.3 %
4.6 %
 
	
Equity ratio ²
64.6 %
63.9 %
 
	
Return on equity ³
12.9 %
7.2 %
 
	
Debt-to-equity ratio ⁴
4.5 %
8.0 %
 
	
Inventory intensity   ⁵
11.0 %
10.3 %
 
	
RoCE   ⁶
20.3 %
14.1 %
 
1	Return on assets = Net income/Total assets
2	Equity ratio = Total equity/Total assets
3	Return on equity = Net income/Total equity
4	Debt-to-equity ratio = (long-term and short-term debt)/Total equity
5	Inventory intensity = Inventories (net)/Total assets
6	Calculation see following section about RoCE in this chapter
Total assets increased
Compared to September 30, 2013, total assets increased by €533 million from €5,905 million 
to €6,438, with current and non-current assets up by €311 million and €222 million respectively. 
On the equity and liabilities side, liabilities increased by €151 million and equity by €382 million. 
The significantly higher net income reported for the 2014 fiscal year resulted in improved 
key performance indicators. The return on equity for the 2014 fiscal year was 12.9 percent 
(2013: 7.2 percent) and the return on assets increased to 8.3 percent (2013: 4.6 percent). RoCE 
improved from 14.1 percent to 20.3 percent.
Increases in gross cash position, trade receivables and inventories result 
in higher level of current assets
Current assets went up by 9 percent to €3,934 million as of September 30, 2014 compared 
to €3,623 million as of September 30, 2013. The main reason for the rise was the €132 million 
increase in gross cash position (sum total of cash and cash equivalents and financial invest­
ments), which resulted primarily from the surplus of free cash flow over disbursements for the 
dividend, the repurchase of the subordinated convertible bond and the repayment of loans. 
In addition, trade receivables and inventories were €63 million and €98 million respectively 
higher than their levels at September 30, 2013, in line with the positive business trend. A trans­
action-related euro/US dollar forward foreign currency contract (“Deal Contingent Forward”) 
for a total amount of US$1.5 billion was concluded to hedge part of the exchange rate risks 
related to the purchase price due for the acquisition of International Rectifier. The positive 
fair value of the Deal Contingent Forward (€39 million) is included in other current assets at 
September 30, 2014.
G 72
Assets
38 %
39 %
9 %
9 %
11 %
10 %
30 %
30 %
6 %
6 %
6 %
6 %
6,438
5,905
2014
2013
€ in millions
2014
2013
  Gross cash position
2,418 
2,286 
  Trade and  
other receivables
581 
518
  Inventories
707 
609 
  Property, plant  
and equipment and 
intangible assets
1,950 
1,770 
  Deferred tax assets
378 
325 
  Other assets
404 
397
6,438
5,905 
10 %
  3 %
6 %
  10 %
  6 %
65 %
G 73
Liabilities and equity
10 %
  5 %
4 %
  12 %
  5 %
64 %
6,438
5,905
2014
2013
€ in millions
2014
2013
  Trade and  
other payables 
648
569
  Debt
186
303 
  Pension plans and 
similar commitments
379
246
  Provisions
660
721 
  Other liabilities
407
290
  Equity
4,158
3,776 
6,438
5,905 
123
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Group performance
Review of financial condition

Higher investments in property, plant and equipment and intangible assets cause 
non-current assets to increase
Non-current assets rose by €222 million (10 percent) from €2,282 million as of September 30, 
2013 to €2,504 million as of September 30, 2014. The amount invested in property, plant and 
equipment (€567 million) was higher than the depreciation expense (€481 million). Investments 
related among others to the production sites in Dresden and Regensburg (both Germany), 
Villach (Austria), Malacca and Kulim (both Malaysia) as well as Batam (Indonesia). Intangible 
assets increased overall by €80 million over the course of the 2014 fiscal year, mainly due to 
the fact that capitalized development costs were higher than the corresponding amortization 
expense. Deferred tax assets went up by €53 million in the fiscal year ended September 30, 2014.
Increase in liabilities mainly due to higher pension obligations and a fine 
in conjunction with EU antitrust proceedings
Current liabilities stood at €1,603 million as of September 30, 2014, €9 million (1 percent) 
higher than at September 30, 2013 (€1,594 million). Within those figures, other current liabilities 
increased by €107 million, of which €83 million relates to the fine imposed on Infineon by the 
EU Commission in conjunction with antitrust proceedings against semiconductor manufacturers 
of chip card applications. In addition, trade payables increased by €79 million due to higher 
business volumes. At the same time, current financial liabilities went down by €99 million, 
mainly as a result of the conversion and repurchase of the convertible bond (which was due 
2014) and a €85 million decrease in current provisions.
Compared to September 30, 2013 (€535 million), non-current liabilities increased by €142 mil­
lion or 27 percent to stand at €677 million as of September 30, 2014. Pension plans and similar 
commitments increased by €133 million, mainly as a result of lower discount rates used. 
Current and non-current liabilities consist predominantly of liabilities in euro.
Equity rises due to net income for the year
Equity increased by €382 million (10 percent) to stand at €4,158 million at the end of the 
reporting period (September 30, 2013: €3,776 million). The rise was mainly attributable 
to the fact that net income of €535 million for the 2014 fiscal year exceeded the dividend of 
€129 million paid for the 2013 fiscal year. 
Furthermore, the conversion of remaining parts of the convertible bond increased equity by 
€99 million. The repurchase of parts of the bond reduced equity by €21 million, net of taxes. 
As a result of such repurchases, conversion rights attached to more than 4.7 million shares 
were acquired. The issuance of put options reduced equity by €40 million. 
The cash flow hedge recognized in conjunction with the Deal Contingent Forward described 
above had the effect of increasing equity by €39 million. By contrast, actuarial losses arising 
in conjunction with pension plans and similar commitments, net of taxes, reduced equity by 
€130 million. 
The equity ratio improved to 64.6 percent as of the end of the reporting period (Septem-
ber 30, 2013: 63.9 percent). 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
124

Increase in earnings gives rise to higher RoCE
As part of the year-on-year increase in operating profit from €325 million to €525 million, the 
operating profit from continuing operations in the 2014 fiscal year, net of taxes, rose from 
€304 million to €497 million, as a result of which the Return on Capital Employed (RoCE) also 
increased from 14.1 percent to 20.3 percent, despite the fact that capital employed went up 
from €2,159 million as of September 30, 2013 to €2,452 million as of September 30, 2014. 
These figures show that Infineon generated a return significantly above its cost of capital in 
the 2014 fiscal year.
The reported RoCE was calculated using actual capital employed, without adjustment for 
exceptional factors, such as provisions recorded in connection with the Qimonda insolvency 
and current liabilities arising from the issue of put options on own shares in conjunction with 
Infineon’s capital returns program, both of which had the effect of reducing capital employed. 
RoCE for the 2014 and 2013 fiscal years is calculated as follows:
€ in millions
2014
2013
Operating income
525 
325 
Plus:
 
 
	
Financial income excluding interest income  ¹
–
–
	
Gain from investments accounted for using the equity method
3 
2 
Less:
 
 
	
Income tax
(31) 
(23) 
	
Financial expense excluding interest expense  ²
–
–
Operating income from continuing operations after tax 1
497 
304 
 
 
 
Assets
6,438 
5,905 
Less:
 
 
	
Cash and cash equivalents
(1,058) 
(527) 
	
Financial investments
(1,360) 
(1,759) 
	
Assets classified as held for sale
–
–
	
Total current liabilities
(1,603) 
(1,594) 
Plus:
 
 
	
Short-term debt and current maturities of long-term debt
35 
134 
	
Liabilities classified as held for sale
–
–
Capital employed 2
2,452 
2,159 
RoCE 1 / 2
20.3 %
14.1 %
1	Financial income in the 2014 and 2013 fiscal year amounted to €10 million and €30 million, respectively, and consisted 
exclusively of interest income (see note 8 to the Consolidated Financial Statements).
2	Financial expense in the 2014 and 2013 fiscal year amounted to €19 million and €51 million, respectively, and consisted 
exclusively of interest expense (see note 9 to the Consolidated Financial Statements).
G 74
RoCE
€ in millions
  Capital employed   
  RoCE
14.1 %
20.3 %
2,159
2,452
2013
2014
P   see page 221
P   see page 221
125
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Group performance
Review of financial condition

REVIEW OF LIQUIDITY
Cash flow
€ in millions
2014
2013
Net cash provided by operating activities from continuing operations
988 
610 
Net cash used in investing activities from continuing operations
(272) 
(328) 
Net cash used in financing activities from continuing operations
(179) 
(165) 
Net decrease in cash and cash equivalents from discontinued operations
(8) 
(10) 
Net increase (decrease) in cash and cash equivalents
529 
107 
Effect of foreign exchange rate changes on cash and cash equivalents
2 
(5) 
Change in cash and cash equivalents
531 
102 
Higher income from continuing operations causes increase in net cash provided by 
continuing operations
Net cash provided by operating activities from continuing operations amounted to €988 mil­
lion, and was thus €378 million higher than in the previous fiscal year (2013: €610 million). 
Taking income from continuing operations before the expense for depreciation, amortization 
and impairment losses, interest and taxes as the starting point (€1,045 million), the principal 
items reducing net cash provided by operating activities from continuing operations in the 
2014 fiscal year were increases in inventories and trade receivables (in aggregate amounting 
to €147 million) and income taxes paid (€52 million). Increases in trade payables and changes 
in other assets and liabilities (€173 million in total) worked in the opposite direction. This figure 
also includes the €83 million fine imposed on Infineon by the EU Commission.
In the 2013 fiscal year, taking income from continuing operations before depreciation, amorti­
zation and impairment losses, interest and taxes as the starting point (€812 million), the 
principal items reducing net cash provided by operating activities from continuing operations 
were decreases in trade payables and provisions and increases in inventories and trade 
receivables (in aggregate amounting to €155 million) and income taxes paid (€53 million).
Net cash used in investing activities from continuing operations reflects higher level 
of investments in property, plant and equipment
Net cash used in investing activities from continuing operations in the 2014 fiscal year 
totaled €272 million. A total of €567 million was invested in property, plant and equipment, 
with the primary focus on expanding frontend capacities in Dresden (Germany), Villach (Austria) 
and Kulim (Malaysia). In addition to frontend capacities, Infineon also continued to expand 
backend manufacturing capacities in Malacca (Malaysia), Regensburg (Germany) and Batam 
(Indonesia). A total of €101 million was invested in intangible assets, primarily relating to 
in-house product and technology developments (€92 million). A further €7 million (net of cash 
acquired) was used to increase Infineon’s investment in LSPS (see note 3 to the Consolidated 
Financial Statements). The sale of financial investments – comprising mainly money deposits 
with terms of between three and six months – gave rise to a net inflow of €399 million. Financial 
investments do not influence Infineon’s gross cash position, since they form part of it along 
with cash and cash equivalents. In order to ensure that the necessary cash is available on 
completion of the International Rectifier acquisition, the process of converting financial 
investments into cash has already been started. 
P   see page 218
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
126

In the previous fiscal year, net cash used in investing activities from continuing operations 
amounted to €328 million, of which €315 million related to investments in property, plant and 
equipment and €63 million to investments in intangible assets. A net amount of €47 million 
was provided by the sale of financial investments.
Dividend payment and repurchases of the convertible bond result in net cash used 
in financing activities from continuing operations
Net cash used in financing activities from continuing operations totaled €179 million in the 
2014 fiscal year, of which €129 million was used to pay the dividend for the 2013 fiscal year 
and €35 million to repurchase parts of the convertible bond which fell due 2014. A net amount 
of €25 million was used to repay long-term debt.
In the previous fiscal year, net cash used in financing activities from continuing operations 
amounted to €165 million, which included the dividend payment of €129 million for the 2012 
fiscal year and €38 million for the repurchase of 6 million own shares via put options. 
Free cash flow
Infineon reports the free cash flow figure, defined as net cash provided by/used in operating 
activities and net cash provided by/used in investing activities, both from continuing operations, 
after adjusting for cash flows related to the purchase and sale of financial investments. Free 
cash flow serves as an additional performance indicator, since Infineon holds part of its liquidity 
in the form of financial investments. This does not mean that free cash flow calculated in this 
way is available to cover other disbursements since dividend, debt-servicing obligations and 
other fixed disbursements are not deducted. Free cash flow should not be seen as a replacement 
or superior performance indicator, but rather as an additional useful piece of information over 
and above the disclosure of the cash flow reported in the Consolidated Statement of Cash 
Flows, and as a supplementary disclosure to other liquidity performance indicators and other 
performance indicators derived from the IFRS figures. Free cash flow includes only amounts 
from continuing operations, and is derived as follows from the Consol­idated Statement of 
Cash Flows:
€ in millions
2014
2013
Net cash provided by operating activities from continuing operations
988 
610 
Net cash used in investing activities from continuing operations
(272) 
(328) 
Purchase of (proceeds from sales of) financial investments, net
(399) 
(47) 
Free cash flow
317 
235 
G 75
Cash flow
€ in millions
988
(272) (328)
(165)
(10)
610
(179)
(8)
529
107
1,000
500
0
(500)
(1,000)
(1,500)
Net increase (decrease)  
in cash and cash equivalents  ¹
Net cash used from 
discontinued operations
Net cash used in financing 
activities from  
continuing operations
Net cash used in investing 
activities from  
continuing operations
Net cash provided by  
operating activities from 
continuing operations
  2014   
  2013
1 Before effect of foreign exchange rate changes on cash and cash equivalents of €2 million and negative €5 million for the 2014 and 2013 fiscal year, respectively. 
127
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Group performance
Review of liquidity

Increase in net cash provided by operating activities from continuing operations 
leads to higher free cash flow
Free cash flow amounted to €317 million in the 2014 fiscal year compared to €235 million one 
year earlier. Net cash provided by operating activities from continuing operations amounting 
to €988 million exceeded investments in property, plant and equipment and intangible assets 
totaling €668 million. 
Free cash flow in the previous fiscal year amounted to €235 million, reflecting the fact that 
disbursements for investments totaling €378 million were lower than net cash provided by 
operating activities from continuing operations totaling €610 million.
Gross cash position and net cash position
The following table shows the gross cash position and net cash position as well as debt. Since 
some liquid funds are held in the form of financial investments, which for IFRS purposes are 
not considered to be “cash and cash equivalents”, Infineon reports on its gross and net cash 
position in order to provide investors with a better understanding of its overall liquidity. The 
gross and net cash positions are determined as follows from the Consolidated Statement of 
Financial Position:
€ in millions
Septem-
ber 30, 2014
Septem-
ber 30, 2013
Cash and cash equivalents
1,058 
527 
Financial investments
1,360 
1,759 
Gross cash position
2,418 
2,286 
Less:
 
 
	
Short-term debt and current maturities of long-term debt
35 
134 
	
Long-term debt
151 
169 
Total debt
186 
303 
Net cash position
2,232 
1,983 
G 76
Free cash flow
€ in millions
  Net cash provided by operating activities  
from continuing operations   
  Net cash used in investing activities  
from continuing operations
  Purchase of and proceeds from sales  
of financial investments, net   
  Free cash flow
2014
(272)
988
(399)
317
2013
(328)
610
(47)
235
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
128

The gross cash position as of September 30, 2014 amounted to €2,418 million, up by €132 mil­
lion on the €2,286 million reported as of September 30, 2013. The increase in the gross cash 
position mainly reflects positive free cash flow, reduced by the impact of the dividend payment, 
disbursements to repurchase the convertible bond in conjunction with the capital returns 
program and the repayment of loans. 
The net cash position, which is defined as the gross cash position less short-term and long-
term debt, increased on the other hand by €249 million to €2,232 million at the end of the 
reporting period (September 30, 2013: €1,983 million), mainly due to the decreases in debt in 
conjunction with the conversion of parts of the convertible bond, without any corresponding 
cash outflows.
G 77
Liquidity position as of September 30, 2014 and 2013 by comparison
€ in millions
  Gross cash position   
  Net cash position   
  Debt
2014
2,418
2,232
186
2013
2,286
1,983
303
129
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Group performance
Review of liquidity

REPORT ON EXPECTED DEVELOPMENTS, 
TOGETHER WITH ASSOCIATED 
MATERIAL RISKS AND OPPORTUNITIES
OUTLOOK
On August 20, 2014 Infineon announced its intention to acquire all of the shares of the 
US American semiconductor manufacturer International Rectifier for US$40 per share. At the 
Extraordinary Meeting of the shareholders of that entity on November 4, 2014, the sale was 
approved with a 99.5 percent shareholder vote. The acquisition still requires the approval of 
the relevant regulatory authorities. For this reason, the forecasts made in this chapter only 
relate to the operations of the Infineon Group. Once the acquisition has been closed, forecasts 
will be adjusted to reflect the new corporate structure.
Infineon’s target operating model
Infineon focuses on three major challenges that modern society is facing: energy efficiency, 
mobility and security. The growing importance of these trends throughout the world is gener­
ating a structural increase in demand for the products of our four segments – Automotive, 
Industrial Power Control, Power Management & Multimarket and Chip Card & Security. Revenue 
in these four segments has on average been growing at a high single-digit rate over the last 
15 years. Infineon has a leading market position in all of the segments in which it operates and 
the prospects for growth continue to be positive. Therefore, Infineon expects to be able to 
continue achieving a compound annual revenue growth rate of approximately 8 percent on 
average over the economic cycle. In terms of profitability, the aim is to achieve a gross margin 
of 40 percent or more and a Segment Result Margin of approximately 15 percent on average 
over the economic cycle. Expense ratios at a low- to mid-teen percentage of revenue for research 
and development and at a low-teen percentage for selling and administrative activities are 
being targeted. Achieving growth at the projected rate requires on investments which Infineon 
defines as the sum of purchases of property, plant and equipment, purchases of intangible 
assets, and capitalized development costs. Based on the average planned growth rate, Infineon 
expects investments of approximately 13 percent of revenue on average over the economic 
cycle. Infineon’s business model is described in detail in the section “Group strategy” in the 
chapter “Finances and Strategy”.
Actual and target values for performance indicators
The following table compares the actual values of Infineon’s key performance indicators with 
the original forecasts for the 2014 fiscal year (FY) and shows the outlook for the 2015 fiscal year:
P   see page 26 ff.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
130

€ in millions, 
except percentages
Actuals
Original Outlook
Actuals
Outlook
FY 2013
FY 2014
FY 2014
FY 2015
Principal perfor-
mance indicators
 
 
 
 
Segment Result Margin


9.8 %


Between 11 % and 14 %
of revenue

14.4 %


 
About 14 % 
(at the mid-point 
of the planned range 
for revenue growth)
Free cash flow from 
continuing operations
235
 
Equal to or exceeding 
the level of FY 2013
317
 
Between €0 and 
€100 million
RoCE
14.1 %
Increase compared
with FY 2013
20.3 %
Slight decrease 
compared to FY 2014
 
 
 
 
 
Supplementary 
performance indicators
 
 
 
 
	
Growth and 
profitability perfor­
mance indicators
 
 
 
 
	
Change in revenue 
compared to 
previous year
(2 %)

Increase between 
7 % and 11 %
 
12 %

Increase by 8 % plus/minus 
2 percentage points
	
Gross margin
34.4 %
Between 35 % and 38 % 
of revenue
38.1 %
About the same 
as in FY 2014
	
Research and 
development expenses
525

 
Increase at a rate below 
change in revenue
550
5 %
 
Growth in line with 
or slightly above 
sales growth
	
Selling, general and 
administrative expenses
440

Increase at a rate 
similar to or slightly 
above change in revenue
496
13 %
 
Growth in line with 
or slightly above 
sales growth
	
Liquidity perfor-
mance indicators
 
 
 
 
	
Gross cash position


2,286
59 %

 
Higher than actual target 
of 30 – 40 % of revenue

2,418
56 %

 
In the range of 40 – 50 % 
relative to revenue, 
therefore above the 
target of 30 – 40 %
	
Net cash position

1,983
 
Net cash position
(gross cash position 
higher than debt)
2,232 

Net cash position 
(gross cash position 
higher than debt)
	
Working capital
(123)
 
Slight increase compared 
to September 30, 2013
(52)
 
Increase to €350 
to €450 million
	
Investments
378 
About €650 million
668 
About €700 million
 
Infineon either achieved or outperformed its forecasts for its principal performance indicators. 
2014 fiscal year actuals for each of the three principal performance indicators were well up on 
the previous year. The Segment Result Margin for the 2014 fiscal year came in at 14.4 percent 
and was therefore higher than the forecast of a level between 11 and 14 percent. In the previous 
year, Infineon had posted a Segment Result Margin of 9.8 percent. Free cash flow in the 2014 
fiscal year totaled €317 million and was thus higher than the €235 million reported one year 
earlier. RoCE climbed year-on-year from 14.1 percent to 20.3 percent and therefore exceeds 
Infineon’s calculated cost of capital.
The forecast for Infineon’s supplementary performance indicators was also either achieved or 
outperformed. Revenue was forecast to grow by between 7 and 11 percent. In fact, it rose by 
12 percent from €3,843 million in the 2013 fiscal year to €4,320 million in the 2014 fiscal year. 
This rapid growth in revenue was driven in particular by strong performance in the Automotive 
and Industrial Power Control segments. At the same time, revenue increased significantly as 
well in the Power Management & Multimarket and Chip Card & Security segments for the fiscal 
year under report. Reflecting this increase in revenue, which exceeded our expectations, the 
actual gross margin of 38.1 percent was slightly above the target corridor of between 35 and 
38 percent.
131
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Report on expected developments, together with associated material risks and opportunities
Outlook

Research and development expenses rose by 5 percent and therefore – as expected – at a signifi­
cantly lower rate than revenue. At 13 percent, selling, general and administrative expenses 
went up slightly faster than revenue.
Overall, as predicted, the Infineon Group made good progress in the 2014 fiscal year. 
Infineon’s forecasts for the 2015 fiscal year are summarized in the table above and discussed 
in detail below.
Assumed euro/US dollar exchange rate
As a globally operating organization, the Infineon Group generates revenue not only in euros, 
but also in foreign currencies, predominantly in US dollars. It also incurs costs in US dollars 
and in currencies closely correlated to the US dollar, such as the Singapore dollar, the Malaysian 
ringgit and the Chinese renminbi. The impact of non-euro denominated revenue and costs does 
not always balance out. For this reason, fluctuations in exchange rates, particularly between 
the euro and the US dollar, influence the amounts reported for revenue and earnings. Excluding 
the effect of currency hedging instruments, a deviation of 1 cent in the actual exchange rate 
of the US dollar against the euro compared to the forecast rate leads to a change in Segment 
Result of approximately €1 million per quarter or approximately €4 million per fiscal year 
compared to the forecast value. These figures assume, however, that the exchange rates of 
currencies correlated with the US dollar – in which costs arise for Infineon – change in parallel 
to the euro/US dollar exchange rate. In terms of revenue, the impact of exchange rates is 
limited almost entirely to the euro/US dollar rate, where a deviation of 1 cent in the actual 
exchange rate compared to the forecast rate would have an impact on revenue of between 
€3 million and €4 million per quarter (between €12 million and €16 million per fiscal year). 
Planning for the 2015 fiscal year is based on an assumed average exchange rate for the US dollar 
against the euro of US$1.30.
Growth prospects for the global economy and the semiconductor market
The global economy grew by 2.5 percent in the 2013 calendar year. The growth rate for the 
2014 calendar year is expected to rise minimally to 2.6 percent. Economic experts from the 
International Monetary Fund (IMF) forecast a slight acceleration in growth for the 2015 calendar 
year, with gross domestic product (GDP) expected to expand by 3.2 percent worldwide.
This positive outlook is based on the assumption that the US economy continues to recover 
and that China maintains its above-average growth rate. The pace of growth of the Chinese 
economy is likely to slow down successively in the coming years, whilst still remaining at a 
higher level in relative terms. India represents another sales market of huge importance within 
the Asian continent. After the election there, the mood improved across all sectors of the 
economy, bringing with it brighter prospects for the future. The economic outlook for the 
ASEAN-5 countries – Indonesia, Malaysia, Philippines, Singapore and Thailand – is also positive. 
By contrast, the Japanese economic recovery is only expected to proceed slowly, although 
it is possible that a temporary delay in implementing the second step of the value added tax 
increase – scheduled for October 2015 – could impact the growth rate positively.
Economic growth in the Eurozone in the 2014 calendar year is less dynamic than originally 
predicted in the fall of 2013. The pace of growth has slowed down in Germany, a fact reflected 
in the ifo Business Climate Index’s downward trend in recent months. Tensions with Russia 
and sanctions imposed are having a negative impact. The forecasts for the 2015 calendar year 
were reduced accordingly by the IMF in the fall of 2014 and now point to a growth rate of 
1.3 percent.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
132

Potential risks to the global growth rate in the coming year are seen in a possible further 
escalation of the conflicts in Syria and Iraq on the one hand and the conflict with Russia on 
the other. An uncontrolled spread of the Ebola virus represents a further risk, in that it could 
result in travel and trading restrictions. Also the developments on the property market in 
China are being followed closely by the experts. So far, however, real estate prices have only 
moved down slightly.
In line with the base scenario of year-on-year global economic expansion, further growth is 
also predicted for the semiconductor sector in the 2015 calendar year. Numerous innovations 
in the fields of energy efficiency, mobility and security are set to underpin growth in the 
sector over the coming years. These factors should exert a positive influence, even if macro­
economic conditions turn out less favorable than expected. In its survey published in the fall 
of 2013, the market research company IHS forecast a dollar-based growth rate of 6 percent 
for the global semiconductor market in the 2014 calendar year. In the meantime, analysts at 
IHS are expecting the 2014 calendar year to finish with a growth rate of 9 percent. A 6 percent 
growth rate is predicted for the global semiconductor market for the 2015 calendar year.
Over the period from 2014 to 2018, the global semiconductor market is expected to grow at an 
average annual rate of 4 percent. The automotive and industrial sectors are both forecast to 
record average annual growth of about 7 percent, while the chip card semiconductor market is 
predicted to expand by an average of 5 percent over this period. Overall, the economic climate 
for the coming fiscal year is assessed as being positive, but susceptible to uncertainties.
Revenue increase of 8 percent, plus or minus 2 percentage points expected, 
compared to the previous fiscal year
In view of the economic situation described above, Infineon expects Group revenue to increase 
by 8 percent, plus or minus 2 percentage points, in the 2015 fiscal year. The Automotive, 
Power Management & Multimarket and Chip Card & Security segments are expected to grow 
in line with the average for the Group or slightly faster. Revenue growth in the Industrial 
Power Control segment is expected to be significantly lower than Group average. In absolute 
terms, slightly lower revenue is expected to be posted for Other Operating Segments in the 
2015 fiscal year, reflecting further decreases in business volumes with Lantiq and IMC.
Gross margin expected to remain stable in the 2015 fiscal year
The gross margin in the 2014 fiscal year was 38.1 percent and – at the mid-point of the planned 
range for revenue growth – is expected to remain at roughly this level in the 2015 fiscal year. 
For these purposes, it is assumed that the negative impact of annual price reductions for 
customers and the higher expense for depreciation and amortization will be compensated by 
continuous productivity improvements.
Operating expenses expected to increase
With revenue and gross profits set to rise further in the 2015 fiscal year, it will also be possible 
to allow operating expenses to be increased as part of Infineon’s “Product to System” strategy 
to lay foundation for further revenue and earnings growth. Both research and development 
expenses and selling, general and administrative expenses are forecast to grow year-on-year 
in line or slightly above sales growth. By contrast, the quarter-on-quarter increase over the 
course of the 2015 fiscal year is likely to be fairly moderate. A comparison of the expected 
increase in operating expenses in the fourth quarter of the 2015 fiscal year with the same 
quarter one year earlier, for instance, shows that the percentage rate increase should be 
significantly lower than the revenue growth of 8 percent, plus or minus 2 percentage points, 
forecast for the 2015 fiscal year.
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Alongside product, packaging and technology development innovations, one of the key areas 
of research and development expenses will be the development of completely new packaging 
and technology platforms. In terms of selling and administrative expenses, resources for 
selling activities will be increase again slightly, particularly for China, Japan and the USA.
Segment Result Margin of about 14 percent expected
Based on the forecast changes in revenue and expenses described above, the Segment Result 
Margin in the 2015 fiscal year is expected to be about 14 percent, at the mid-point of the 
planned range for revenue growth.
Non-segment result
Infineon expects the non-segment result to total approximately a negative amount of 
€50 million in the 2015 fiscal year and therefore to be better than the previous fiscal year’s 
non-segment result of negative €95 million. The result includes a fine of €83 million imposed 
on Infineon by the EU Commission for alleged antitrust violations in the chip card sector 
during the period from 2003 to 2005.
Financial result
Following the full conversion of the convertible bond in the 2014 fiscal year, Infineon still had 
long-term debt amounting to €186 million as of September 30, 2014. This figure compares 
with cash and cash equivalents and financial investments amounting to €2,418 million (gross 
cash position). Due to the low rate of interest that can be earned on short-term low-risk 
deposits, the financial result in the 2015 fiscal year is likely to be slightly negative, despite the 
low level of debt currently carried by Infineon. The financial result for the 2014 fiscal year 
was a net expense of €9 million. When the acquisition of International Rectifier is completed, 
Infineon will raise additional debt of about €1.5 billion and use some of its gross cash position 
to finance the purchase price. As a result of the ensuing higher level of debt and the lower 
level of interest-bearing liquid funds, the negative financial result would then likely increase 
significantly.
Income taxes
The cash effective tax rate for the Infineon Group in the 2015 fiscal year is forecast at approxi­
mately 15 percent. This rate comprises cash-effective foreign taxes as well as cash-effective 
taxes of the Company in Germany. In Germany, Infineon’s current tax expense is based on the 
applicable ‘minimum taxation’ rules, under which only 40 percent of taxable profits arising 
in Germany are subject to current tax as a result of utilizing tax loss carry-forwards. This leads 
to a cash-effective tax rate of approximately 12 percent in Germany. Infineon expects the rate 
to remain at this level until the tax loss carry-forwards are utilized. In Germany the company 
had tax loss carry-forwards for corporation tax purposes of €2.7 billion and for municipal 
trade tax purposes of €3.8 billion as of September 30, 2014. Changes in the valuation of deferred 
tax assets may have an additional impact on the reported rate, but are not relevant for cash 
flow purposes.
Working capital expected to increase
As of September 30, 2014, the Infineon Group’s working capital stood at a negative amount of 
€52 million. The expected increase in revenue in the 2015 fiscal year is likely to result in higher 
levels of trade receivables and inventories at the end of the reporting period, while trade 
payables are expected to fall slightly, based on the assumption that investments will be lower 
in the fourth quarter of the 2015 fiscal year than in the fourth quarter of the 2014 fiscal year. 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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134

Moreover, Infineon paid €260 million to the Qimonda insolvency administrator pursuant to 
the partial settlement and the €83 million fine to the EU commission in the first quarter 
of the 2015 fiscal year. These payments result in a significant reduction in current liabilities 
and hence a corresponding increase in working capital. Overall, therefore, working capital 
is forecast to rise to €350 to €450 million in the 2015 fiscal year.
Investments and depreciation/amortization
Despite continuous investments in property, plant and equipment over the course of the 2014 
fiscal year totaling €567 million, capacity utilization remained at a consistently high level, 
owing to the growth in business volumes. The planned revenue growth in the 2015 fiscal year 
requires further investments in manufacturing capacity. Investments in property, plant and 
equipment at already operating facilities and in intangible assets including capitalized develop­
ment costs, planned for the 2015 year are forecast at approximately 13 percent of revenue 
and therefore in line with the target level of the Group. In addition, €60 million to €70 million 
will be invested to prepare the second manufacturing building in Kulim (Malaysia) for volume 
production. Budgeted investments totaling €700 million also include payments of approxi­
mately €20 million for the purchase of Qimonda patents in conjunction with the settlement 
reached with the Qimonda insolvency administrator. Not included in this definition of invest­
ments is a projected amount of approximately €30 million for the acquisition of strategic 
minority stakes in certain companies. 
The main focus of investments will be on the continued expansion of 300-millimeter thin-wafer 
manufacturing capacities in Dresden (Germany). Investments to improve the quality and 
automation level of Infineon’s 200-millimeter facilities will also be increased. Investments will 
also be required in order to replace equipment and introduce new products.
Demand for automotive-related products is expected to keep rising in the long term. For this 
reason, and in light of the required optimization in manufacturing structures following the 
acquisition of International Rectifier, as mentioned above, the Management Board has decided 
to proceed with its plan for Infineon’s second manufacturing plant in Kulim (Malaysia) – con­
structed during the 2012 and 2013 fiscal years – to be prepared for volume production.
Another important project is the creation of a pilot space in Villach (Austria) for a new concept 
to manufacturing based on Industrie 4.0. “Pilot space Industrie 4.0” heralds the implementation 
and testing of an innovative concept of connected and knowledge-intensive manufacturing. 
In this context, Infineon is constructing a state-of-the-art complex of buildings for research, 
chip production and chip testing. Work will also be continued on logistics, infrastructure and 
equipment at the site in order to meet future needs. Moreover, Infineon remains committed 
to achieving greater energy efficiency in manufacturing.
Investments are also planned in the area of backend manufacturing, where the amounts 
involved are lower than for frontend facilities. The focus of backend-related investments 
will be replacement investments and structural improvements. Other areas of investment will 
be aimed at launching product innovations, improving quality and increasing automation 
levels. A high share of investment is aimed at enlarging the manufacturing capacity of the 
Automotive segment.
Apart from investments in property, plant and equipment, a substantial amount will also 
be invested in intangible assets, including capitalized development costs, which totaled 
€92 million in the 2014 fiscal year. A similar figure is expected for the 2015 fiscal year.
Depreciation and amortization is expected to be in the region of €600 million in the 2015 
fiscal year, compared with €514 million in the 2014 fiscal year.
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Free cash flow from continuing operations
Free cash flow from continuing operations is forecast to decrease from €317 million in the 
2014 fiscal year to an amount between €0 million and €100 million in the 2015 fiscal year. 
Higher depreciation and amortization, combined with a stable Segment Result Margin, will 
have a positive impact in principle. On the other hand, free cash flow will be negatively 
impacted by the higher level of working capital and in particular by the payment of the fine 
of €83 million in connection with antitrust proceedings against semiconductor manufacturers 
of chip card applications and the payment of €125 million relating to an extra-judicial 
settlement with the Qimonda insolvency administrator relating to patent usage rights 
and the acquisition of the Qimonda patents by Infineon.
The partial settlement with the insolvency administrator also includes a payment of a further 
€135 million in the 2015 fiscal year, which does not relate to the Qimonda patent usage rights. 
However, since this amount is part of net cash used for discontinued operations, it will not 
affect free cash flow from continuing operations.
Cash flows from financing activities
A proposal will be put forward at the Annual General Meeting to take place in Munich on 
February 12, 2015 that the dividend for the 2014 fiscal year be raised by €0.06 to €0.18. 
Assuming the Annual General Meeting approves this proposal, the total dividend will amount 
to just over €200 million. For further details concerning the proposed dividend increase, see 
“Systematic investing helps preserve resources and differentiates us from the competition”, 
included in the “Group strategy” section of the chapter “Finances and Strategy”.
6 million put options with exercise prices of between €5.59 and €8.18 were outstanding as of 
September 30, 2014 in conjunction with the capital returns program resolved in November 
2013. The cash outflow in the 2015 fiscal year that will result from these options is dependent 
on the level of the Infineon share price on the relevant exercise dates of the put options. If the 
acquisition of International Rectifier proceeds as planned, there is no intention to write any 
further put options on own shares over and above those that already existed at the end of 
the reporting period or to repurchase any further shares. For information regarding Infineon’s 
long-term dividend policy and for further details concerning the capital returns program, 
please see the section “Dividend, capital returns and conversion of convertible bond” in the 
chapter “The Infineon share”.
Infineon intends to repay bank liabilities of €25 million during the 2015 fiscal year. If the 
acquisition of International Rectifier proceeds as planned, bank loans of around €1.5 billion will 
be raised and used to pay a part of the purchase price. In addition, cash funds amounting to 
approximately €800 million will be used in this context. Cash and cash equivalents carried by 
International Rectifier as of September 28, 2014 amounted to US$659 million. The acquisition 
of International Rectifier should therefore increase liquid funds by approximately €500 million.
Infineon is pursuing the long-term target of maintaining a gross cash position of between 
30 and 40 percent of revenue. Further targets are to maintain a net cash position and to keep 
gross debt to a maximum level of two times EBITDA. After completion of the planned acquisi­
tion of International Rectifier in the 2015 fiscal year, there may possibly be a temporary 
shortfall compared to the targets for gross cash position as a percentage of revenue and the 
net cash position.
Overall statement on the expected development of the Infineon Group
Based on forecasts of global economic development in the 2015 calendar year, Infineon 
predicts year-on-year revenue growth of 8 percent, plus or minus 2 percentage points. The 
gross margin is expected to be at a similar level to the previous fiscal year. At the mid-point 
of the planned range for revenue growth, the Segment Result Margin is expected to come in 
at about 14 percent.
P   see page 36 f.
P   see page 108 f.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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136

Summary of outlook for revenue and earnings
 
2013
2014
2015
Change in revenue 
compared to 
the previous year
(2 %)

12 %

8 % plus or minus 
2 percentage points
Gross margin
34.4 % of revenue
38.1 % of revenue
About the same 
as in FY 2014
Segment Result Margin

9.8 % of revenue

14.4 % of revenue

About 14 % (at the 
mid-point of the planned 
range for revenue growth)
Investments in the 2015 fiscal year will be in the region of €700  million. This figure includes 
€60 million to €70 million for the second manufacturing facility in Kulim (Malaysia) and approxi­
mately €20 million for Qimonda patents. It does not include an amount of approximately 
€30 million which has been ear-marked for strategic investments. Depreciation and amortization 
will rise to approximately €600 million. Free cash flow from continuing operations will decrease 
to an amount between €0 million and €100 million.
Net income for the 2015 fiscal year is expected to be somewhat lower than in the preceding 
year. At the same time, capital employed is set to increase. For this reason, the Return on Capital 
Employed (RoCE) is expected to slightly decrease compared to the past year.
After completion of the planned acquisition of International Rectifier, the forecasts for the 2015 
fiscal year will be adjusted to take account of the new corporate structure.
RISK AND OPPORTUNITY REPORT
Risk policy: Underlying principles of our risk and opportunity management 
Effective risk and opportunity management is central to all our business activities and plays 
an important role in the implementation of the strategic targets described in the chapter 
“Group strategy” – namely achieving sustainable, profitable growth and preserving our financial 
resources through efficient employment of capital. Infineon’s risk and opportunity profile is 
characterized by periods of rapid growth followed by periods of significant market decline, 
a substantial need for capital investment in order to achieve and sustain our market position 
and an extraordinarily rapid pace of technological change. Gaining a leading edge through 
technological innovation also has a legal dimension. Against this background, Infineon’s risk 
policy is aimed at taking advantage of identified opportunities as quickly as possible in a way 
most appropriate to increasing the value of the business on the one hand, and at pro-actively 
mitigating risks – in particular those that could pose a threat to Infineon’s going-concern 
status – by adopting appropriate countermeasures on the other. Risk management at Infineon 
is, therefore, closely linked to forecasting and the implementation of our business strategies. 
Ultimate responsibility for risk management lies with the Infineon Management Board. 
Various coordinated risk management and control system elements are in place that enable us 
to pursue our stated risk policy in practice. Alongside the “Risk and Opportunity Management 
System” and the “Internal Control System with respect to Financial Reporting Processes” 
described below, it also includes the related forecasting, management and internal reporting 
processes as well as the Compliance Management System.
P   see page 26 ff.
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Risk and opportunity report

Risk and Opportunity Management System 
Infineon’s centralized risk management system is based on a Group-wide and management-
oriented Enterprise Risk Management (ERM) approach, which aims to cover all relevant risks 
and opportunities. This approach is based on the “Enterprise Risk Management – Integrated 
Framework” developed by the Committee of Sponsoring Organizations of the Treadway 
Commission (COSO). The objective of the system is the early identification, assessment and 
management of risks and opportunities that could have a significant influence on Infineon’s 
ability to achieve its strategic, operational, financial and compliance-related targets. We, 
therefore, define risk/opportunity as the occurrence of future uncertainties that could result 
in a negative or positive variance from forecast. We incorporate all relevant organizational 
units within the Group in this analysis, thus covering all segments, significant centralized 
functions and regions.
Responsibility for processes and systems relating to Risk and Opportunity Management 
rests with the Risk Management and Internal Control System (ICS) function within the corpo­
rate finance department and with designated Risk Officers working at segment, corporate 
function and regional levels. Responsibility for the identification, measurement, management 
and reporting of risks and opportunities lies with the management of the organizational 
unit concerned. 
In organizational terms, the Risk and Opportunity Management System is structured in a 
closed-loop, multiple-stage process, which stipulates the manner and criteria to be applied to 
identify, measure, manage and report on risks and opportunities and defines how the system 
is to be monitored as a whole. Major components of the system are a quarterly analysis of risks 
and opportunities, reporting by all consolidated entities, an analysis of the overall situation 
at segment, regional and Group level, and reporting to the Management Board on the risks 
and opportunities situation and major management measures undertaken. The Management 
Board, in turn, reports regularly to the Supervisory Board’s Investment, Finance and Audit 
Committee. Where necessary, standard processes are supplemented by the ad-hoc reporting 
of any major risks identified between regular reporting dates.
Risks and opportunities are measured on a net basis, i.e., after factoring in any risk mitigation 
or hedging measures, but without offsetting any provisions recognized. The time periods and 
the measurement categories used are closely linked to our short- and medium-term business 
forecasts and corporate targets. 
All relevant risks and opportunities are assessed uniformly across the Group in quantitative 
and/or qualitative terms based on the variables degree of impact on operations, liquidity, 
earnings, cash flows and reputation on the one hand and likelihood of occurrence on the other. 
The scales used to measure these two factors (degree of impact and likelihood of occurrence) 
and the resulting risk assessment matrix is depicted in the following table.
Likelihood of Occurrence 
1  < 10 %  Unlikely 
2  < 40 %  Possible 
3  < 60 %  Likely 
4  < 90 %  Probable 
5  > 90 %  Certain
Degree of Impact  
on Segment Result
1    < €20 million  Marginal 
2    > €20 million  Minor 
3    > €60 million  Moderate 
4  > €100 million  Significant 
5  > €250 million  Major
G 78
Risk assessment matrix
5
Degree of Impact
1
2
3
4
5
Likelihood of Occurrence
4
3
2
1
 
  Low Risk   
  Medium Risk   
  High Risk
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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138

Based on the potential degree of impact on operations, liquidity, earnings, cash flows and 
reputation as well as the estimated probability of occurrence, a risk is classified as “high”, 
“medium” or “low”. 
All reported risks and opportunities in their entirety are reviewed for the Infineon Group 
for possible correlation and overlap factors and are analyzed using an Infineon-specific 
categorization model. Regular risks and opportunities analysis and new developments in 
risk management culture are supplemented by annual, interdisciplinary workshops held at 
segment, corporate and regional levels. Important information relevant for Infineon’s Risk 
and Opportunity Management System is available to all employees via our intranet system, 
including access to ERM tools and ERM guidelines, containing job descriptions for all functions 
involved in the process as well as all information necessary for reporting purposes.
Risk and Opportunity Managers are designated at appropriate hierarchical levels to manage 
and monitor identified risks and opportunities, and are responsible for formally determining 
a set of appropriate strategies (avoidance, mitigation, transfer to other parties, acceptance). 
Working closely with corporate functions and individual managers, the Risk and Opportunity 
Manager is also responsible for defining and monitoring appropriate measures aimed at 
implementing the adopted management strategy. For our system to be successful, it is essential 
that risks and opportunities are managed and monitored pro-actively and with a great deal 
of commitment. 
Compliance with the ERM approach is monitored by the corporate Risk Management and 
Internal Control System (ICS) departments using procedures incorporated in business 
processes. Group Internal Audit also employs targeted procedures to test compliance with 
legal requirements and Infineon guidelines, and, where appropriate, rules relating to Risk 
and Opportunity management and initiates corrective measures. The Supervisory Board’s 
Investment, Finance and Audit Committee oversees the effectiveness of the Risk Management 
System. As part of the year-end audit, the external Group auditor also examines our early 
warning system pursuant to section 91, paragraph 2, of the German Stock Corporation Act to 
ascertain its suitability to detect risks that could pose a threat to Infineon’s going-concern 
status and reports thereon annually to the Chief Financial Officer (CFO) and the Investment, 
Finance and Audit Committee of the Supervisory Board.
Internal Control System with respect to Financial Reporting Process 
The principal focus of the ICS is on the financial reporting process with the aim of monitoring 
the proper maintenance and effectiveness of accounting systems and financial reporting. 
The primary objective of the ICS is to minimize the risk of misstatement in Infineon’s internal 
and external reporting and to ensure that there is reasonable assurance that the Consolidated 
Financial Statements comply with all relevant regulations. Appropriate controls must, therefore, 
be in place throughout the organization to ensure such compliance. Clear lines of responsibility 
are assigned to each of the processes.
The Internal Control System is an integral part of the accounting process in all relevant legal 
entities and corporate functions. The system monitors compliance with stated principles and 
stipulated procedures based on preventive and detective controls. Among other things, we 
regularly check that:
•	 Group wide financial reporting, measurement and accounting guidelines are continually 
updated and adhered to; 
•	 intragroup transactions are fully accounted for and properly eliminated;
•	 issues relevant for financial reporting and disclosures in connection with agreements entered 
into are recognized and appropriately presented; 
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•	 processes and controls exist to explicitly guarantee the completeness and correctness of 
the year-end financial statements and financial reporting; 
•	 processes exist for the segregation of duties and for the dual control principle in the context 
of preparing financial statements, as well as for authorization and access rules for relevant 
IT accounting systems. 
Assessment of effectiveness
We systematically assess the effectiveness of the ICS with regard to the corporate accounting 
process. An annual risk analysis is initially performed and the defined controls are revised 
as and when required. This involves identifying and updating significant risks relating to 
accounting and financial reporting in the relevant legal entities and corporate functions. The 
controls defined for the identification of risks are documented in accordance with Group-wide 
guidelines. Regular random tests are performed to assess the effectiveness of the controls. 
These tests constitute the basis for the self-assessment of the appropriate extent and 
effectiveness of the controls. The results of this self-assessment are documented and reported 
in a global IT system. Any deficiencies identified are remedied with due consideration given 
to their potential impact. 
In addition, all legal entities, segments and relevant corporate functions confirm with their 
Representation Letter that all business transactions are accounted for and all assets and 
liabilities have been reflected in the Statement of Financial Condition. 
At the end of the annual cycle, the material legal entities review and confirm the effectiveness 
of the ICS with regard to the accounting and the financial reporting process. The Management 
Board and the Investment, Finance and Audit Committee of the Supervisory Board are regu­
larly informed about any significant control deficiencies and the effectiveness of the internal 
controls.
The Risk Management and ICS are continuously reviewed to comply with internal and exter­
nal requirements. Regular improvements made to the system contribute to the continuous 
monitoring of the relevant risk areas within the responsible organizational units.
Significant risks
In the following section, we describe risks that could have a significant or materially adverse 
impact on Infineon’s operations, liquidity, earnings, cash flows and reputation. Depending 
on the potential degree of impact and the estimated likelihood of occurrence, the risk class is 
shown in parentheses for each risk (e.g. “RC: high”). 
Strategic risks
Unsettled political and economic climate (RC: high)
As a globally operating company, our business is highly dependent on global economic 
developments. A worldwide economic downturn – particularly in the markets we serve – 
may result in lower revenues than originally expected, with the consequence that we may not 
achieve our strategic target of average revenue growth of 8 percent per annum. Risks can 
also arise due to political and social changes in countries in which we manufacture and/or 
sell our products. 
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140

We continue to monitor the European debt crisis, where, under the pressure of high levels of 
public sector debt, governments are implementing a wide range of measures to consolidate 
budgetary shortfalls and cut investment expenditure. As a consequence of these develop­
ments, the level of trust of consumers and companies is characterized by uncertainty, while 
unemployment figures remain high. Added to this are the current geopolitical risks arising 
from the crises in the Ukraine and unrest in the Middle East. The US economic recovery is only 
proceeding at a slow pace, while industrial companies in China are dealing with weak export 
demand and the consequences of high credit volumes. Regardless of our assessment of 
potential scenarios and outcomes within this complex array of risks, these developments could 
have an adverse impact on Infineon’s operations, financial condition, liquidity and earnings. 
Cyclical market and sector development (RC: high) 
The worldwide semiconductor market is highly cyclical and is subject to rapid market change 
in our target markets. As a result, our own forecasts of future business developments are 
subject to a high degree of uncertainty. In the past, the cyclical pattern was fairly regular, 
at the end of which Infineon was able to participate in the upturn after a period of market 
weakness. It is, however, possible that future market downturns will follow another pattern, 
for example an L shape. The absence of market growth or its decline would make it considerably 
more difficult to attain our own growth target. In the event that we are unprepared for market 
fluctuations, or our response strategy to such fluctuations turns out to be inappropriate, 
this could have a sustained materially adverse impact on Infineon’s operations, financial 
condition, liquidity and earnings.
Market competition and commoditization of products (RC: high) 
The rapid pace of technological change in the market also leads to a greater replaceability of 
our products. Through the resulting aggressive pricing tactics we may possibly not reach our 
long-term strategic goals of increasing respectively holding market share and product pricing. 
Consequently this would have a negative impact on Infineon’s revenue and earnings, especially 
on our strategic profitability target of achieving an average Segment Result Margin of 15 percent 
over the cycle.
Operational risks
Product quality trends (RC: high) 
Product quality assurance is a key success factor for the business. Potential quality risks – 
for example due to the high utilization levels – can affect yield fluctuations and hence our 
ability to supply our customers. The smallest shortfalls in product quality can lead to product 
recalls and potential costs related to liability claims. In addition, quality risks could also 
damage Infineon’s reputation and thus have a negative impact on future revenue and results 
of operations.
Increasingly dynamic markets (RC: medium) 
The accelerating pace of events in the markets in which we operate, increased demands for 
flexibility by our customers and short-term changes in order volumes could result in rising 
costs as a consequence of under-utilization of production capacities, higher inventory levels 
and unfulfilled supplier contracts. 
Thus, despite the fact that production processes and sites have become increasingly flexible, 
fluctuations in capacity utilization levels and purchase commitments, coupled with idle costs 
at production sites pose risks related to our cost position. This may jeopardize our ability to 
attain our growth and profitability targets, which are based on cycle averages.
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This situation is exacerbated by the fact that our products are highly dependent on the degree 
of success enjoyed by individual customers in their own markets. Furthermore, there is 
a risk of losing future business and design wins if we are unable to deliver volumes over and 
above our contractual obligations if called upon by the customer to do so. We therefore face 
the challenge, in the case of unexpectedly high demand, of having to deliver increased volumes 
that require an appropriate level of upfront investment. This would put our aim to limit 
investment to 13 percent of revenue under pressure and could have an adverse impact on 
revenues and earnings. 
Product development delays (RC: medium) 
The ever-increasing complexity of technologies and products, shorter development cycles 
and greater customer expectations can cause a great deal of tension in the field of product 
development. Buffer times built into processes to compensate for potential delays are 
reduced accordingly. In the event of being unable to execute our development plans at the 
desired quality levels, the outcome could be development delays and increased development 
costs which could have an adverse impact on our financial condition, liquidity and earnings.
Data and IT systems security (RC: medium) 
The reliability and security of Infineon’s information technology systems is of crucial impor­
tance. At the same time, the world has seen a general rise in the level of threats to data security. 
This applies in increasing levels both for the application of IT systems to support business 
processes and internal and external communications. Despite the array of precautionary 
measures put in place, any major disruption to these systems could result in risks relating to 
the confidentiality, availability and reliability of data and systems used in development, 
production, selling or administration functions, which, in turn, could have an adverse impact 
on our reputation, competitiveness and operations. 
Potential virus attacks, in particular on IT systems used in production processes, present 
additional risks that could result in loss of production or supply bottlenecks.
Production cost trends – raw material prices, cost of materials and process costs 
(RC: medium)
Our medium- and long-term forecasts as well as the strategic profitability target of 15 percent 
for the Segment Result Margin are based on expected production cost trends. In this context, 
measures aimed at optimizing production costs for raw materials and supplies, energy, labor 
and automation, as well as for bought-in services from external business partners may not be 
feasible to the extent envisaged. 
Moreover, our dependence on various raw materials (such as gold and copper) used in produc­
tion and our energy requirements expose us to substantial price risks. We are also dependent 
on supplies of rare earths required for selected production processes within the process 
integration. At the time of writing, financial instruments are in place to hedge our price risk 
exposure to gold wire during the 2015 fiscal year, based on planned volume requirements. 
The prices of raw materials and energy have recently been subject to significant fluctuation, 
and there is no reason to assume the situation will change in the near future. If we are unable 
to offset cost rises or pass them on to customers, it could have an adverse impact on earnings.
Determining and adjusting production volumes (RC: medium)
Frontend and backend production need to be optimally synchronized to enable Infineon to 
develop competitive and high-quality products designed to provide customized technological 
solutions. In view of the rapid pace of technological change and increasingly stringent customer 
requirements, coordination processes have to become increasingly sophisticated. Failure in 
continuing to make progress in this area could result in quality problems, product development 
or market maturity delays as well as higher R&D expenses and hence adversely impact 
revenue and earnings performance.
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One risk that semiconductor companies operating in-house production facilities typically face 
is that of delays in the ramping-up of production volumes at new production sites, coupled 
with the required transfer of technology. One good example of this arises in the Automotive 
segment, where customers’ product approval and testing processes can take place over an 
extended period of time, thus influencing our global production strategy as well as short- and 
medium-term capacity utilization. Failure to anticipate necessary production changes in good 
time could result in capacity shortages and hence lower revenue on the one hand and costs 
caused by under-utilization on the other.
Dependence on individual production sites (RC: medium)
Our South East Asian manufacturing sites are of critical importance for our production. If, for 
example, political upheavals or natural disasters in the region were to impede our ability to 
manufacture at these sites on the planned scale or to export products manufactured at those 
sites, it would have a negative impact on our financial condition, liquidity and earnings. Our 
current production capacities in this region are to a large extent not insured against political 
risks such as expropriation of assets. The transfer of manufacturing capacities from these 
sites would, therefore, not only involve a great deal of time and technical effort, Infineon would 
also be required to bear the necessary cost of investment.
Dependence on individual suppliers (RC: medium)
We cooperate with a number of different suppliers who provide us with materials and services, 
or who take over parts of our supply chain. We do not always have alternative sources for some 
of these suppliers and, therefore, depend on their ability to deliver products of the required 
quality. Failure of one or more of these suppliers to meet their obligations to Infineon could 
have an adverse impact on our revenue and earnings performance.
Need for qualified staff (RC: medium)
One of our key success factors is the availability of the required number of qualified employees 
at all times. There is, however, a general risk of losing qualified staff or not being able to 
recruit, train and retain sufficiently qualified staff within the business. A lack of technical or 
management staff could, among other things, restrict future growth and hence adversely 
impact our earnings performance.
Financial risks
Risk of default by banking partners (RC: medium)
The relatively high level of our holdings of liquid funds exposes us to the potential risk of 
a default by one of our chosen banking partners. We counter this risk – which could still arise 
despite various state-insured deposit protection mechanisms – by a combination of risk 
avoidance analyses and risk spreading measures. If these measures were to be ineffective, 
there could be a materially adverse impact on Infineon’s financial condition and liquidity.
Currency risks (RC: medium)
Our involvement and participation in various regional markets around the world creates cash 
flows in a number of currencies other than the euro – primarily in US dollars. A significant 
share of revenue on the one hand and operating costs and investments on the other is 
denominated in US dollars and correlated currencies. For the most part, Infineon generates 
a US dollar surplus from these transactions.
Specified currencies are hedged Group-wide by means of derivative financial instruments. 
Depending on how exchange rates develop, these hedging contracts could have a significant 
influence on cash flows. In these circumstances, exchange rate fluctuations could also have 
an impact on earnings.
Further information regarding the management of financial risks is provided in note 32 to the 
Consolidated Financial Statements.
P   see page 251 ff.
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Risk and opportunity report

Legal and compliance risks
Qimonda insolvency (RC: medium) 
Due to the insolvency proceedings relating to Qimonda and claims brought against Infineon, 
we are exposed – even after the partial settlement reached on September 11, 2014 – to 
a substantial amount of potential liabilities, which are described in detail in note 33 to the 
Consolidated Financial Statements.
Provisions are recognized in connection with these matters as of September 30, 2014. The 
provisions reflect the amount of those liabilities that management believes are probable and 
can be estimated with reasonable accuracy at that time. There can be no assurance that such 
provisions recorded will be sufficient to cover all liabilities that may ultimately be incurred 
in relation to these matters.
Intellectual property rights and patents (RC: medium)
As with many other companies in the semiconductor industry, claims are made against us 
from time to time that we have infringed other parties’ protected rights. Regardless of the 
prospects of success of such claims, substantial legal defense costs can arise. 
Whilst we often benefit from cross-licensing arrangements with major competitors and are 
keen to broaden the protection offered in this area by entering into new agreements, no such 
opportunities exist to safeguard against risks of this nature in the case of companies specializing 
in the exploitation of patent rights.
We cannot rule out that patent infringement claims will stand in court, thus resulting in 
significant claims for damages or restrictions in selling the products concerned. Any such 
outcome could in turn have an adverse impact on our earnings performance.
Further information is provided in note 33 to the Consolidated Financial Statements.
Impact of our global operations (RC: medium)
Our global business strategy envisages that we maintain R&D locations and manufacturing 
sites across the globe. The location of such facilities is determined by market entry hurdles, 
technology and cost factors. Risks could, therefore, arise based on adverse economic and 
geo-political developments in our regional markets, changes in legislation and policies affecting 
trade and investment aimed at limiting free trade and varying practices of the regulatory, tax, 
judicial and administrative bodies in the jurisdictions where we operate. These risks could 
restrict our business activities in those countries. We could also be exposed to fines, sanctions 
and loss of reputation.
Asian markets are particularly important to our long-term growth strategy. Our operations in 
China are impacted by the fact that the legal system in that country is still going through a 
phase of development and change. One example of this is the fact that local regulations could 
make it mandatory to enter into partnerships with local companies. These circumstances 
could lead to Infineon’s intellectual property no longer being sufficiently protected and that 
intellectual property developed in China could not be freely transferred to other countries 
and locations, thus impairing revenue and profitability.
Acquisitions and cooperation arrangements (RC: medium)
In order to develop or expand our business, we may seek to acquire other businesses or enter 
into various forms of cooperation arrangements. In the case of acquisitions, there is a risk 
that these activities prove to be unsuccessful, particularly regarding the integration of people 
and products in existing business structures. These issues could adversely impact our financial 
condition and earnings performance. 
P   see page 255 ff.
P   see page 254 ff.
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In the case of smaller acquisitions or portfolio decisions, there is always a risk of non-
com­pliance with anti-trust regulations due to lack of knowledge or failure to make the people 
involved in such deals adequately aware of the issues. This can lead to high levels of cost 
(e.g. significant time spent by management, assignment of attorneys) and fines. Infineon’s 
reputation may also suffer under these circumstances.
Based on the offer price, the planned acquisition of International Rectifier represents 
approximately 25 percent of Infineon’s market capitalization as of September 30, 2014 and is, 
therefore, of great significance for our future success. The risks described above, especially 
in terms of assimilating the two businesses, will be highly relevant once this specific transaction 
goes ahead.
If the regulatory authorizations and approvals necessary for transaction completion are not 
in place by June 22, 2015 and the acquisition does not go ahead, we will be obliged – provided 
further conditions are also met – to pay US$70 million to International Rectifier. Furthermore, 
in the event that the acquisition is not completed, the financial costs already incurred would 
not be recoverable.
Tax, fair trade and capital market regulations can all entail additional risks. In order to mitigate 
these risks, we rely upon the advice of both in-house and external experts and provide suitable 
training to our employees.
Measures to implement our risk management strategy 
At a strategic risk level, we endeavor to mitigate the typical risks that arise in the semi­
conductor sector from economic and demand fluctuations and the risks related to Infineon’s 
operations, financial condition, liquidity and earnings by closely monitoring changes in early 
warning indicators and by developing specific response strategies appropriate to the current 
position within the economic cycle. This can be done, for instance, by rigorously adjusting 
capacities and inventory levels at an early stage, initiating cost-saving measures and making 
flexible use of external production capacities, both at frontend and backend facilities. 
Under the “Next Level of Productivity” program, a number of measures to improve manu­
facturing productivity were introduced during the 2014 fiscal year.
At an operational level, we have adopted various quality management strategies aimed at 
avoiding quality risks (such as “Zero Defects” and “Six Sigma”), to prevent or solve problems 
and to improve our business processes. Our company-wide quality management system has 
been certified on a worldwide basis in accordance with ISO 9001 and ISO/TS 16949 for a number 
of years and encompasses supplier development as well. Our processes and initiatives to 
ensure continuous quality improvement incorporate procedures aimed at identifying and 
eliminating the reasons for quality-related problems at an early stage.
A structured project management system is in place to handle development projects, including 
customer-specific projects. Clear project milestones and verification procedures required to 
be carried out during a project as well as clearly defined limits of authority help us to identify 
potential project risks at an early stage and counter these risks with specific measures. 
We seek to minimize procurement-related risks through appropriate purchasing strategies and 
techniques, including constant product and cost analysis (“Best Cost Country Sourcing” and 
“Focus-on-Value”). These programs consist of cross-functional expert teams responsible for 
the standardization of purchasing processes with respect to material and technical equipment. 
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Risk and opportunity report

In response to the general increase in threats to data security and the high degree of pro­
fessionalism applied these days in the area of cybercrime, we have initiated a data security 
program to provide the greatest possible protection against hacking attacks and related risks 
to our IT systems, networks, products, solutions and services. After measures are defined, 
they are implemented successively.
We are subject to legislation in the field of the environment, climate protection and energy. 
Present or future environmental legislation or other government regulations, or amendments 
thereto, could require an adjustment to our operating activities and result in higher costs. 
Infineon keeps up to date with planned legislative changes and engages with this issue in 
various asso­ciations and organizations on an ongoing basis. 
Energy prices have in the past been subject to fluctuations and at times to increases as a 
result of regulations. For this reason too, high energy efficiency has for years been part of our 
sustainability strategy. 
We minimize legal risks relating to intellectual property rights and patents by pursuing a 
well-defined patent strategy, including thorough patent research, targeted development and 
registration of Infineon patents as well as precautionary protective measures in the form of 
agreements with major competitors. We aim to increase the number and scope of such cross-
license agreements with leading competitors in order to reduce patent-related risks. However, 
no such opportunities exist to safeguard against risks of this nature in the case of companies 
specializing in exploiting patent rights.
We have established a Group-wide compliance management system, the objective of which is 
to manage compliance-related risks on a systematic, comprehensive and sustainable basis. 
Under this system, major preventive procedures are continuously developed, other elements 
of the system revamped or strengthened and appropriate responses worked out for possible 
or actual incidences of non-compliance with internal or external regulations. 
In certain cases insurance policies have been taken out as protection against potential claims 
and liability risks in order to avoid or at least minimize any adverse impact on Infineon’s 
financial condition and liquidity. 
Overall statement by Group Management on risk situation
The overall risk assessment is based on a consolidated view of all significant individual risks. 
At the date of this report we are not aware of any substantial risks which jeopardize Infineon’s 
going-concern status. 
Opportunities
The principal opportunities are described in the following section. The list is not exhaustive 
and represents only a cross-section of opportunities available. Our assessment of these 
opportunities is subject to continuous change, reflecting the fact that our business, our mar­
kets and the technologies we use are continuously subject to new developments, bringing 
with them new opportunities, causing others to become less relevant or otherwise changing 
the significance of an opportunity for us. Depending on the potential degree of impact and 
the estimated probability of occurrence, each of these opportunities is classified to an 
“opportunities class” in the same way that risks are allocated to a risk class. This classification 
is shown in parentheses (e.g. “OC: medium”). 
New technologies and materials (OC: high)
We are constantly striving to develop new technologies, products and solutions and to 
improve existing ones, both on our own and in collaboration with our customers. We, there­
fore, continue to invest in research and development relating to the use of new technologies 
and materials. It is possible that technologies and materials in current use lose their 
predominance in the foreseeable future, such as silicon, which could reach its physical limits 
in some areas of application.
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146

We see numerous opportunities for using new materials such as those associated with 
gallium nitride or silicon carbide, to develop new and more powerful lower-cost products. 
These materials could have a positive influence on our ability to attain our strategic growth 
and profitability targets. 
Strategic initiative “Product to System” (OC: high)
With our extended “Product to System” strategy, we seek to identify additional benefits for our 
customers – in system terms – from within our broad portfolio of technologies and products. 
In this way, we are able to exploit available revenue potential to a greater degree and, thereby, 
achieve our growth and margin targets. This approach also enables us to reduce the level 
of development costs incurred by customers and shorten the lead-time required to bring 
their products to market.
Support for change in energy policies and consideration of climate change issues 
(OC: medium)
Population growth and increasing industrialization in all parts of the world are resulting in 
ever-greater global demand for energy. Electricity is becoming the most important energy 
carrier of the 21st century. Fossil fuel sources used to cover energy and electricity requirements 
are likely to become increasingly scarce and could even run out entirely one day. Alternative 
energy sources such as renewable energy need to be tapped further. At the same time, CO₂ 
emissions must be reduced or any increase in them kept to a minimum. If this is to be achieved, 
it is essential to increase the efficiency of electrical consumers. 
Infineon’s semiconductors enable electricity to be generated from renewable energy sources. 
They also boost energy efficiency and offer efficiency gains at all stages of the energy industry’s 
value-added chain: in generation, transmission, and especially in the use of electrical power. 
They form the basis for intelligent and efficient use of energy in industrial applications, in 
power supply for computers and consumer electronics and in vehicles. These might enable 
us to gain growth of revenue above our strategic target of 8 percent.
Ability to supply due to available capacities (OC: medium)
Our own in-house frontend and backend capacities, the availability of external production 
capacities and the options available to expand production capacities at our sites in Dresden 
(Germany) and Kulim (Malaysia) puts us in a flexible position to cover required production 
volumes. The availability of additional capacities, combined with the pro-active strategic and 
operational planning of internal and external resources, enable us to cover rising demand from 
existing and new customers in the event of a market upturn. This, in turn, could have a positive 
impact on Infineon’s future market share and earnings performance, with the consequence 
that the actual Segment Result Margin could be higher than the targeted level of 15 percent.
Market access and activities in China (OC: medium) 
Our activities in China – considered by us to be a highly significant market for the future – 
are currently on a scale that leaves much potential for expansion. This relates to the following 
markets: 
Vehicle production in China is still expanding with the fastest growth rate in the world. 
China is also pressing ahead with expansion of its high-speed railway infrastructure and is, 
meanwhile, one of the world’s largest markets for rail vehicles.
New wind turbines are being built with increasingly powerful generators, resulting in greater 
semiconductor content per turbine.
Our starting position with photovoltaic systems in China is a highly promising one: we collab­
orate with several leading Chinese inverter manufacturers and this year in particular have 
expanded the scope of collaboration with the Chinese market leader. We also have a strong 
presence in China in the solar energy systems market, which has become the most important 
single market in the world. 
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Risk and opportunity report

If we were to succeed in positioning Infineon in China as an integral part of Chinese industry 
(and hence Chinese society), that could open up a multitude of new opportunities that would 
have a positive impact on the growth and profitability of our business.
Further growth in semiconductor content in vehicles (OC: medium)
We expect semiconductor content per vehicle to increase further. The primary driving force 
for this expected trend is the rising demand for active safety features und for driver assistance 
systems.
We are also convinced that the currently valid CO2 targets cannot be achieved without further 
electrification. In this context, electrification not only relates to just hybrid and electric drives, 
but also to items such as electric power steering and electronic power brakes.
IT security within the vehicle is also gaining in significance. Thanks to its expertise in the field 
of security controllers, Infineon is extremely well positioned for opportunities in this area.
Growth from mobile applications (OC: medium) 
The ongoing trend towards mobility is also reflected in the boom in sales of smartphones and 
tablets. We are benefitting from this trend in two ways: firstly, through the components we 
supply for mobile devices (silicon-MEMS microphones, TVS diodes, GPS amplifiers, CMOS-RF 
switches), and secondly, through power semiconductors, which form the key components 
for energy-efficient chargers (high-voltage and low-voltage power transistors, driver ICs and 
control ICs).
Security applications (OC: medium) 
The trend towards electronic identity documents is having a positive impact on Chip Card 
& Security segment revenue. Paper-based documents are increasingly being replaced by 
chip-based documents thanks to the security offered by the latter. The story is similar with 
credit cards: chip-based credit cards are replacing magnetic stripe cards. The migration to 
chip-based passports, electronic identity documents and credit cards will continue over the 
coming years and will take place in various regions.
Liquidity position (OC: medium)
Our current liquidity position, which we describe in the chapter “Review of liquidity”, enables 
us to obtain favorable refinancing conditions. This fact gives Infineon financial headroom and 
entrepreneurial flexibility to implement our business strategies and initiatives.
The opportunities arising from the planned acquisition of International Rectifier are described 
in detail in the chapter “Group strategy”.
P   see page 126 ff.
P   see page 26 ff.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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148

TREASURY AND CAPITAL REQUIREMENTS    
Structure and principles of Infineon’s treasury
Our principal objective for Group-wide treasury activities at Infineon is ensuring financial 
flexibility on the basis of a solid capital structure. It is of prime importance for all companies 
in the semiconductor industry that sufficient cash funds are available to finance operating 
activities and planned investments throughout all phases of the business cycle. Furthermore, 
debt should only constitute a modest proportion of the financing mix. Based on these 
principles, Infineon has defined the following three key objectives for capital management:
•	 Gross cash position of between 30 and 40 percent of revenue
•	 Positive net cash position
•	 Gross debt at 2 x EBITDA at most (earnings from continuing operations before interest and 
tax plus scheduled depreciation and amortization)
These capital management objectives will also continue to be pursued by Infineon after the 
acquisition of International Rectifier. As a result of this transaction, as well as of the payments 
totaling €343 million made by Infineon in October 2014 in connection with the Qimonda 
partial settlement and the fine imposed by the European Commission (for detailed information 
see note 33 to the Consolidated Financial Statements), Infineon’s gross cash position in the 
2015 fiscal year is likely to temporarily lie outside the communicated target ranges, and could 
even temporarily register a net debt position. 
We are not subject to any statutory or legal capital requirements, nor are any defined in the 
Articles of Association.
Treasury principles and responsibilities
Group-wide treasury principles are in place regarding all issues relating to liquidity and 
financing, such as banking policies and strategies, execution of financing agreements, 
liquidity and investment management worldwide, currency and interest rate risk management 
and the handling of external and intragroup cash flows. Treasury principles, which apply 
throughout Infineon, are set out in the corresponding “Treasury Policy” and are regularly 
reviewed and updated. Three levels of responsibility play a key role for treasury principles:
•	 The CFO is responsible for setting treasury principles and after consultation with the CEO, 
for approving the Treasury Policy. The Treasury Committee, consisting of the CFO and 
selected members of senior management, decides on treasury-related matters, including 
exchange rates for planning purposes and currency hedging strategies, and issues the 
appropriate guidelines to ensure that these strategies are implemented.
•	 The Group Finance and Treasury department is responsible for specific corporate treasury 
transactions and for ensuring that Infineon’s treasury principles are implemented worldwide.
•	 At subsidiary company level, responsibility for treasury matters lies with local financial 
executives and heads of finance, or, in the case of larger entities, with dedicated treasurers. 
Controlling functions at Group level ensure that transactions undertaken by individual 
business entities are in line with treasury principles.
P   see page 255 ff.
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Corporate treasury function
Treasury at Infineon is based on a highly centralized approach in which the Group Finance 
and Treasury department is responsible for all significant tasks and processes worldwide 
relating to financing and treasury matters. Starting point is the creation of a multi-year busi­
ness plan with various scenarios for free cash flow. For the purposes of short-term liquidity 
management at operational level, all consolidated subsidiaries are included in a monthly 
rolling cash flow forecast. Simultaneously, a cash flow forecast is drawn up using a bottom-up 
approach based on the operating segments’ forecasts. At the end of each quarter, the two 
forecasts are reconciled during a quarterly liquidity management meeting and checked for 
plausibility and possible deviations.
Cash pooling structures are in place for liquidity management purposes. To the extent 
permitted by law and economically feasible, subsidiaries are required to transfer all surplus 
cash to corporate bank accounts in order to ensure the best possible allocation of liquidity 
within the Group and cover financing requirements of other Group companies. In this way 
we are able to minimize external financing requirements and maintain an optimal capital 
structure with a correspondingly positive impact on financing costs. Settling intragroup trans­
actions via internal bank accounts set up in accordance with our in-house banking approach, 
we are also able to reduce the volume of external banking transactions and hence bank fees. 
Liquidity accumulated at Group level is managed centrally by the central Finance & Treasury 
department and invested in accordance with asset management principles, based on a 
conservative approach to investments, in which security takes precedence over rates of return. 
The central Finance & Treasury department is also responsible for the efficient management 
of currency and interest rate risks. These risks are determined on the basis of consolidated cash 
flow forecasts, since only foreign currency cash flows not offset within the Group are hedged 
externally (for further information see note 32 to the Consolidated Financial Statements). 
Furthermore, to the extent permitted by law, all financing activities and credit lines worldwide 
are arranged, structured and managed either directly or indirectly by the Group Finance 
and Treasury department in accordance with stipulated treasury principles. Debt is normally 
unsecured and based on customary market terms and conditions.
A crucial factor for the reliable implementation of treasury responsibilities is the use of capable 
and financially sound financial institutions. The selection of partner banks worldwide is based 
on the Finance and Treasury department’s banking principles. Infineon maintains business 
relationships with various international and local commercial and investment banks and avoids 
becoming dependent on individual banks. Partner banks must demonstrate a high level of 
creditworthiness. Infineon assesses the creditworthiness of banks using a methodology that 
establishes daily investment limits for individual banks, based on current ratings (Standard & 
Poor’s, Moody’s or Fitch) and credit default swap premiums. Any breaches of stipulated thresh­
olds must be reported and risk exposures reduced. Infineon has spread its excess liquidity 
investments across more than ten banks. At September 30, 2014 no financial institution was 
responsible for more than 14 percent of Infineon’s liquidity investments. 
P   see page 251 ff.
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150

Capital requirements for the 2015 fiscal year
We require capital for the 2015 fiscal year amongst others to: 
•	 finance the acquisition of International Rectifier,
•	 finance our operations, 
•	 finance planned investments, 
•	 make scheduled debt and interest payments, 
•	 settle provisions and contingent liabilities, when they become payable or arise, in particular 
the payments totaling €343 million made in October 2014 in connection with the Qimonda 
partial settlement and the fine imposed by the European Commission, 
•	 service our capital returns program, to the extent that outstanding put options are 
in-the-money and
•	 pay the proposed dividend.
We expect to meet these requirements through: 
•	 cash flows generated from operations, 
•	 available cash and our cash reserves in the form of financial investments and
•	 available credit lines, including credit lines committed specifically for the acquisition 
of International Rectifier.
Financing our operations 
Based on our forecast for the 2015 fiscal year, we anticipate being able to finance operating 
activities out of cash flows provided by operating activities. Further information regarding 
fixed contractual obligations as of September 30, 2014 (such as leasing arrangements, fixed 
service and supply agreements for commodities, input materials, electricity, gas and other 
similar items) is provided in note 34 to the Consolidated Financial Statements.
Investments
Semiconductor production is very capital-intensive. Infineon’s target ratio for future fiscal years 
for expected investments as a percentage of revenue over the cycle (for definition see the 
chapter “Internal Management System”) is approximately 13 percent. Depending on the 
business situation, Infineon is currently planning investments of approximately €700 million 
for the 2015 fiscal year, a level similar to the previous fiscal year (for details see “Outlook” in 
the chapter “Report on expected developments, together with associated material risks and 
opportunities”). Firm investment commitments as of September 30, 2014 totaled €124 million. 
Not included in this figure are €21 million related to the acquisition of Qimonda’s patents as 
agreed in the Qimonda partial settlement.
Debt repayment and interest payments 
As of September 30, 2014 Infineon’s debt totaled €186 million, of which an amount of 
€35 million is due for repayment in the 2015 fiscal year. 
Provisions and contingent liabilities
Infineon issues guarantees in the normal course of business, primarily for the payment of 
import duties, the rental of buildings and contingent obligations related to government grants 
received. As of September 30, 2014, the undiscounted amount of potential future payments 
arising from guarantees was €110 million, of which a maximum of €13 million could have 
a cash flow impact in the 2015 fiscal year. 
P   see page 258 f. 
P   see page 81
P   see page 130 ff.
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In addition, provisions and contingent liabilities exist for various risks which could result 
in a further cash outflow if these risks materialize (for detailed information see “legal and 
compliance risks” in the “risk and opportunity report” and in note 33 to the Consolidated 
Financial Statements). The settlement reached with Qimonda’s insolvency administrator in 
September 2014, including the acquisition of Qimonda’s patents and the related payment of 
€260 million, as well as the fine of €83 million imposed by the European Commission, were 
paid in October 2014 out of available cash and were recorded as of September 30, 2014 at an 
amount of €322 million within current provisions and current payables respectively. The 
amount related to Qimonda’s patents (€21 million) was not recognized on the balance sheet 
prior to completion of the settlement on October 9, 2014 (see notes 4 and 33 to the Consoli­
dated Financial Statements).
Capital returns program and proposed dividend
In November 2013 Infineon announced that it intends to use up to €300 million of funds to 
return capital to shareholders. Details regarding the structure and status of these measures 
as of September 30, 2014 are disclosed in notes 23 and 25 to the Consolidated Financial 
Statements. The unused volume of the capital returns program as of September 30, 2014 
amounted to €265 million, including €40 million relating to the exercise value of put options 
on own shares outstanding as of September 30, 2014. Subject to the acquisition of Inter­
national Rectifier proceeding as planned, no other repurchases are planned over and beyond 
the put options currently outstanding.
It is planned to propose a dividend of €0.18 per share to Infineon’s shareholders for the 2014 
fiscal year. Subject to shareholder approval, this would result in a distribution of approximately 
€202 million (for the previous fiscal year: €129 million). For further information, see note 25 
to the Consolidated Financial Statements. 
Acquisition of International Rectifier
Infineon intends to acquire International Rectifier for US$40 per share in cash, which 
corresponds to a fully diluted enterprise value for International Rectifier of approximately 
US$2.4 billion. The acquisition is subject to regulatory approvals in the relevant jurisdictions 
and customary closing conditions. Infineon will finance the transaction using cash on hand, 
as well as committed credit facilities comprised of a €800 million bridge facility, with a term of 
up to two years, and a five-year US$934 million term loan. These credit facilities are available 
exclusively for financing the acquisition (see note 23 to the Consolidated Financial Statements).
Coverage of capital requirements
Our gross cash position as of September 30, 2014 amounted to €2,418 million. We also have 
access to various stand-alone short- and long-term credit facilities from various financial 
institutions totaling €68 million. In addition, Infineon has access to credit facilities from several 
domestic and international banks, committed specifically for the acquisition of International 
Rectifier (see above). 
Free cash flow from continuing operations (for definition: see the chapter „Internal Management 
System“) − not considering the purchase price payment for International Rectifier − is expected 
to be between €0 and €100 million in the 2015 fiscal year despite the payments of €208 million 
made in October 2014 in connection with the Qimonda partial settlement regarding the 
Qimonda’s patents and the fine imposed by the European Commission, since cash flow pro­
vided by operating activities is expected to cover or exceed planned investments. Adjusted 
for these exceptional items, we expect a free cash flow from continuing operations at 
approximately the previous year’s level.
P   see page 144 f.
P   see page 219 and 255
P   see page 233 and 237
P   see page 238
P   see page 234
P   see page 80
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152

We have also applied for government grants in connection with specified investment projects. 
There is no assurance, however, that these funds will be approved, either on time or at all. 
Further information regarding grants received is provided in note 5 to the Consolidated 
Financial Statements.
Taking into account the available financial resources – including internal liquidity on hand, 
net cash that can be generated and available credit facilities – we assume that we will be able 
to cover our planned capital requirements for the 2015 fiscal year. Infineon has not undertaken 
steps for obtaining an official rating from any of the leading rating agencies. The Company 
expects to continue to have access to sufficient levels of financing on competitive terms without 
such a rating.
Derivative financial instruments
We do not use derivative financial instruments for trading or speculative purposes.
We employ the following derivative financial instruments for hedging purposes: forward 
foreign currency contracts to reduce exchange rate exposures and commodity swaps to 
reduce price risks for expected purchases of gold. A transaction-dependent Deal Contingent 
Forward was concluded which hedges part of the euro/US dollar currency arising from the 
purchase price obligation of the acquisition of International Rectifier. 
We employ put options on own shares in connection with our capital returns program. 
Further information regarding derivative financial instruments and the management of 
financial risks is provided in notes 31 and 32 to the Consolidated Financial Statements; infor­
mation regarding the put options on own shares is provided in note 25 to the Consolidated 
Financial Statements.
P   see page 220
P   see page 247 f. and 251 ff.
P   see page 237
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Treasury and capital requirements

OVERALL STATEMENT OF THE 
MANAGEMENT BOARD WITH RESPECT 
TO INFINEON’S FINANCIAL CONDITION 
AS OF THE DATE OF THIS REPORT
Looking back, the 2014 fiscal year was a successful one for Infineon – a year in which we met 
or slightly surpassed all targets set. Against the background of a challenging market, we made 
good use of the opportunities available to us and profited from our investments. We were 
well prepared to cope with steeply rising demand from our customers and therefore did react 
fast. Revenue grew by 12 percent to €4,320 million, Segment Result jumped by 64 percent to 
€620 million and the Segment Result Margin improved by 4.6 percentage points to 14.4 percent. 
Despite higher investments, free cash flow improved by €82 million to €317 million. With a 
Return on Capital Employed (RoCE) of 20.3 percent, we earned a solid premium over our cost 
of capital. 
The central challenges to modern society – energy efficiency, mobility and security – on 
which we are focusing our business, continue to gain in significance and offer considerable 
growth potential. Our plan is to grow systematically by forging ahead with our 300-millimeter 
manufacturing technology and applying our strategic approach “Product to System”. The 
upcoming acquisition of International Rectifier will create even more impetus, be it in the 
form of additional power semiconductor production volumes for our 300-millimeter capacity 
or by harnessing International Rectifier’s complementary strengths in specific processes, 
technologies, products, regions and sales channels. 
For the 2015 fiscal year – excluding any contribution from International Rectifier’s business – 
we forecast a revenue growth of 8 percent, plus or minus 2 percentage points. With regards 
to investments, our budget stands at approximately 700 million Euros. Our expenses in 
research and development and selling activities are expected to increase at a rate similar to 
our revenue or slightly higher. Taking these factors into account, we forecast a Segment 
Result Margin of 14 percent for the 2015 fiscal year.
We remain fully committed to achieving our targets: We plan to grow at an annual average 
rate of 8 percent over the cycle, thereby generating a Segment Result Margin of 15 percent. 
Our intention is to achieve this growth with an average ratio of investments to revenue of 
13 percent over the economic cycle. 
As a result of the reduced investment intensity compared to previous years we expect 
a sustainable improvement of the free cash flow going forward and therefore are proposing 
to raise the dividend already for the 2014 fiscal year significantly by 6 Cent per share to then 
€0.18 per share in the Annual General Meeting. 
Our financial targets will not change after the planned acquisition of International Rectifier. 
In terms of profitability, we aim to achieve our Segment Result target margin of 15 percent 
at International Rectifier as well at the latest in the second fiscal year after completion of the 
acquisition of International Rectifier by generating synergies in manufacturing and in the 
fields of development, sales and administration. In terms of investments, the combination of 
Infineon’s and International Rectifier’s businesses will not result in any change in our target of 
keeping investments at 13 percent of revenue. So our dividend policy also remains valid: We 
aim to pay a dividend each fiscal year at least on the same level as in the previous fiscal year.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
154

The structure of Infineon’s balance sheet remains solid. As of September 30, 2014 we report an 
equity ratio of 64.6 percent and a gross cash position of €2.4 billion. Even after the acquisition 
of International Rectifier – which we will finance partly out of our own cash resources and 
partly via debt – we remain committed to our capital structure targets in order to finance 
operating activities on a sound basis and to be able to undertake planned investments 
throughout all phases of the business cycle.
Application of accounting options and discretionary planning opportunities
The description and assessment of Infineon’s performance, financial condition and results of 
operations as presented in the Group Management Report are dependent on the underlying 
recognition and measurement methods applied and the assumptions and estimates used. 
These are described in detail in note 2 to the Consolidated Financial Statements and are, in all 
material respects, unchanged from the previous year. 
Off-balance-sheet arrangements such as the sale of receivables, sale-and-lease-back 
transactions or non-consolidated special-purpose entities were not entered into during the 
2014 and 2013 fiscal years.
P   see page 204 ff.
155
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Overall statement of the Management Board with respect to infineon’s financial condition as of the date of this report

INFINEON TECHNOLOGIES AG    
In addition to reporting on the Infineon Group, we also report in the following section on 
Infineon Technologies AG’s performance.
Infineon Technologies AG is the parent company of the Infineon Group and performs the Group’s 
management and corporate functions. It takes on major Group-wide responsibilities such as 
Finance and Accounting, Corporate Compliance, Human Resources, strategic and product-
oriented R&D activities and also worldwide Corporate and Marketing Communication. Further­
more, it manages logistical processes throughout the Group. Infineon Technologies AG has 
its own production facilities, located in Regensburg and Warstein (both Germany). The principal 
performance indicator for Infineon Technologies AG is net income.
Unlike the Consolidated Financial Statements, which are prepared in accordance with 
International Financial Reporting Standards (“IFRS”), Infineon Technologies AG’s separate 
financial statements are prepared in accordance with the German Commercial Code (HGB). 
The complete separate financial statements are published separately.
Earning position
Statement of income of Infineon Technologies AG in accordance with
the German Commercial Code (condensed)
€ in millions
2014
2013
Revenue
4,601 
4,070 
Cost of goods sold
(3,528) 
(3,260) 
Gross profit
1,073 
810 
Research and development expenses
(547) 
(506) 
Selling expenses
(138) 
(120) 
General and administrative expenses
(186) 
(171) 
Other income (expense), net
39 
19 
Result from investments, net
1,003 
433 
Interest result
(22) 
(32) 
Other financial result
47 
1 
Income before taxes
1,269 
434 
Income tax
(28) 
(15) 
Net income 
1,241 
419 
Transfers to retained earnings according to section 58 paragraph 2 AktG
(228) 
–
Transfers to retained earnings according to section 58 paragraph 2a AktG
(784) 
(289) 
Unappropriated profit at the end of year
229 
130 
Infineon Technologies AG reports a net income of €1,241 million for the 2014 fiscal year. After 
transferring a total of €1,012 million to revenue reserves, the unappropriated profit amounted 
to €229 million.
Infineon Technologies AG’s net income for the 2014 fiscal year was positively impacted by 
income from the reversal of an impairment loss previously recorded on its investment in 
Infineon Technologies Holding B.V. The carrying amount of the investment was increased by 
€774 million (2013: €289 million). Infineon Technologies AG recorded sharp rises in revenue 
(13 percent) and gross profit (32 percent) for the 2014 fiscal year. Cost of goods sold increased 
by 8 percent.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
156

Net assets and financial position
Statement of financial position of Infineon Technologies AG in accordance with
the German Commercial Code (condensed)
€ in millions
2014
2013
Intangible assets, property, plant and equipment
474 
463 
Financial Assets
3,651 
3,175 
Non-current assets
4,125 
3,638 
Inventories
344 
294 
Receivables and other assets
618 
580 
Cash and cash equivalents, marketable securities
2,339 
2,240 
Current assets
3,301 
3,114 
Prepaid expenses
28 
33 
Active difference resulting from offsetting
4 
5 
Total assets
7,458 
6,790 
Share Capital
2,243 
2,150 
Capital Reserves
1,165 
1,150 
Retained Earnings
2,365 
1,352 
Distributable profit
229 
130 
Shareholders’ equity
6,002 
4,782 
Special reserve with an equity portion
1 
1 
Provisions for pensions and similar obligations
62 
418 
Other provisions
553 
606 
Provisions
615 
1,024 
Liabilities to banks
–
9 
Trade payables, liabilities to affiliated companies and other liabilities
819 
946 
Liabilities
819 
955 
Deferred income
21 
28 
Total liabilities and shareholders’ equity
7,458 
6,790 
The principal factors influencing the Company’s financial condition are described below. 
Within assets, increases were recorded for financial investments (€476 million) as well as for 
cash and cash equivalents and marketable securities (€99 million). The carrying amount of 
investments increased mainly as a result of the reversal of an impairment loss previously 
recorded on the investment in Infineon Technologies Holding B.V. (€774 million). By contrast, 
the offsetting of pension plan obligations against pension plan assets (reported in the previous 
fiscal year as investments) reduced investments by €316 million. The increase in equity 
(€1,220 million) was mainly attributable to net income of €1,241 million recorded in the 2014 
fiscal year and the issue of new shares in conjunction with the conversion of parts of the con­
vertible bond (€101 million). Payment of the dividend for the 2013 fiscal year (€129 million) 
reduced equity accordingly.
Provisions for pension plans and similar commitments decreased by €356 million as a result 
of the first-time offsetting of pension plan obligations (€480 million) against pension plan 
assets measured at their present value (€418 million). Other provisions also decreased by 
€53 million.
The balance sheet item “Payables” went down by €136 million during the fiscal year under 
report, mainly owing to a €215 million decrease in payables to affiliated companies, while other 
liabilities increased by €87 million.
The equity ratio at the end of the reporting period was 80.5 percent (September 30, 2013: 
70.4 percent). 
157
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Infineon Technologies AG

Dividends
Under the German Stock Corporation Act (Aktiengesetz), the amount of dividends available 
for distribution to shareholders is based on the level of unappropriated profit (Bilanzgewinn) 
recorded by the ultimate parent, as determined in accordance with the German Commercial 
Code (HGB).
Infineon Technologies AG reports unappropriated profit of €229 million in its financial state­
ments for the fiscal year ended September 30, 2014. A cash dividend of €0.18 per share will be 
proposed for this period at the Annual General Meeting. The disbursement of the proposed 
dividend is subject to approval by shareholders.
The Company paid a dividend of €0.12 per share for the 2013 fiscal year, resulting in a total 
distribution of €129 million.
For information regarding Infineon’s long-term dividend policy, see the section “Dividend, 
capital returns and conversion of convertible bond” in the chapter “The Infineon share”.
Expected developments, together with associated material risks and opportunities
To a large extent, the risks and opportunities as well as the future developments of Infineon 
Technologies AG are identical to those of the Infineon Group. Moreover, it is assumed that the 
result from investments will play a major role in Infineon Technologies AG’s earnings perfor­
mance. As a general rule, Infineon Technologies AG participates in the risks of its subsidiaries 
and equity investments on the basis of the relevant shareholding. As parent company, Infineon 
Technologies AG is integrated in the Group-wide risk management system and internal control 
system of the Infineon Group. For information in this respect and for a description of the 
expected developments, risks and opportunities of Infineon Technologies AG, please see the 
chapter “Report on expected developments, together with associated material risks and 
opportunities”.
Most transactions within the Infineon Group involving derivative financial instruments are 
handled by Infineon Technologies AG. The comments provided in the chapter “Treasury and 
capital requirements” regarding the nature and scope of transactions with derivative financial 
instruments and hedged risks apply analogously to Infineon Technologies AG. Reference 
is also made to the notes to the separate financial statements of Infineon Technologies AG. 
For Infineon Technologies AG net income is the core performance indicator. Turnover and 
investment income for the year have the greatest influence on this performance indicator. 
Investment income in the 2014 fiscal year was impacted positively by write-ups of investments 
in the amount of €784 million.
Infineon Technologies AG expects a significant decline in the net income for the year of 
Infineon Technologies AG in the 2015 fiscal year, compared with the 2014 fiscal year.
P   see page 108 f.
P   see page 130 ff.
P   see page 153
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
158

SIGNIFICANT EVENTS AFTER THE END 
OF THE REPORTING PERIOD    
Completion of the partial settlement with the Qimonda insolvency administrator 
The partial settlement reached on September 11, 2014 by Infineon and the Qimonda insolvency 
administrator was completed on October 9, 2014. On that date, Infineon paid an amount 
of €260 million to the insolvency administrator for the partial settlement (see note 33 to the 
Consolidated Financial Statements).
Payment of the fine imposed by the EU Commission on Infineon
The fine of €83 million imposed by the EU Commission on Infineon on September 3, 2014 
was paid in October 2014. In mid-November 2014, Infineon filed an appeal with the European 
Court of Justice in Luxembourg against the antitrust fine (see note 33 to the Consolidated 
Financial Statements).
Acquisition by Infineon approved by shareholders of International Rectifier
At their extraordinary meeting held on November 4, 2014, the shareholders of International 
Rectifier granted the necessary approval for Infineon’s acquisition of International Rectifier. 
Completion of the acquisition is subject to regulatory approvals in the relevant jurisdictions 
and customary closing conditions. Finalization and completion of the transaction is expected 
towards the end of the 2014 calendar year or at the beginning of the 2015 calendar year 
(see note 3 to the Consolidated Financial Statements).
P   see page 255 ff.
P   see page 254
P   see page 218
159
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Significant events after the end of the reporting period

CORPORATE GOVERNANCE
INFORMATION PURSUANT TO SECTION 289, PARAGRAPH 4, 
AND SECTION 315, PARAGRAPH 4, 
OF THE GERMAN COMMERCIAL CODE (HGB)
Structure of the subscribed capital
The share capital of Infineon Technologies AG stood at €2,255,478,460 as of September 30, 2014. 
This sum is divided into 1,127,739,230 non-par registered shares, each of which represents 
a notional portion of the share capital of €2. Each share carries one vote and gives an equal 
right to the profit of the Company based on the profit appropriation resolved by shareholders 
at the Annual General Meeting. 
The Company held 6 million of the above-mentioned issued shares as own shares at the end 
of the reporting period (September 30, 2013: 6 million). Own shares held by the Company on 
the date of the Annual General Meeting do not carry a vote and are not entitled to participate 
in profit.
Restrictions on voting rights or the transfer of shares
Restrictions on the voting rights of shares may, in particular, arise as the result of the 
regulations of the German Stock Corporation Act (Aktiengesetz – “AktG”). Shareholders are 
prohibited from voting under certain circumstances pursuant to section 136 AktG, for example, 
and Infineon Technologies AG has no voting rights from its own shares according to section 
71b AktG. Non-compliance with the notification requirements pursuant to section 21, para­
graph 1 or 1a of the German Securities Trading Act (Wertpapierhandelsgesetz – “WpHG”) 
can, according to section 28 WpHG, have the effect that certain rights – including the right to 
vote – may, temporarily at least, not exist. We are not aware of any contractual restrictions 
on voting rights or the transfer of shares.
Pursuant to section 67, paragraph 2, AktG, only those persons recorded in the share register 
of Infineon Technologies AG are recognized as shareholders of the Company. In order to be 
recorded in the share register of Infineon Technologies AG, shareholders are required to submit 
to the Company the number of shares held by them and their name or company name, their 
address and, where applicable, their registered office and their date of birth. Pursuant to 
section 67, paragraph 4, AktG, Infineon Technologies AG is entitled to request information 
from any party registered in the share register regarding the extent to which shares, to which 
the entry in the share register relates, are actually owned by the registered party and, if it 
does not own the shares, to receive the information necessary for the maintenance of the 
share register in relation to the party for whom the party concerned holds the shares. Section 
67, paragraph 2, AktG, stipulates that the shares concerned do not confer voting rights until 
such time as the information requested has been supplied in the appropriate manner.
Shareholdings exceeding 10 percent of the voting rights
Section 21, paragraph 1, WpHG requires each shareholder whose voting rights reach, exceed or, 
after exceeding, fall below 3, 5, 10, 15, 20, 25, 30, 50 or 75 percent of the voting rights of a listed 
corporation to notify such corporation and the German Federal Financial Supervisory Authority 
(Bundesanstalt für Finanzdienstleistungsaufsicht – “BaFin”) immediately. As of September 30, 
2014, we have not been notified of any direct or indirect shareholdings reaching or exceeding 
10 percent of the voting rights. The shareholdings notified to us as of September 30, 2014, 
are presented in the Notes to the Financial Statements of Infineon Technologies AG under the 
information pursuant to section 160, paragraph 1, No. 8 AktG.
Shares with special control rights
No shares conferring special control rights have been issued.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
160

System of control over voting rights when employees’ own shares and 
their control rights are not exercised directly
Employees who hold shares in Infineon Technologies AG exercise their control rights directly in 
accordance with the applicable laws and the Articles of Association just like other shareholders.
Rules governing the appointment and dismissal of members of the Management Board
Section 5, paragraph 1, of the Articles of Association stipulates that the Management Board 
of Infineon Technologies AG shall consist of at least two members. The Management Board 
currently comprises three members. The Supervisory Board decides on the exact number of 
members of the Management Board and on their appointment and dismissal in accordance 
with section 5, paragraph 1, of the Articles of Association and section 84, paragraph 1, AktG. 
As Infineon Technologies AG falls within the scope of the German Co-Determination Act (Mit­
bestimmungsgesetz – “MitbestG”), the appointment or dismissal of members of the Manage­
ment Board requires a two-thirds majority of the votes of the members of the Supervisory 
Board (section 31, paragraph 2, MitbestG). If such majority is not achieved on the first ballot, 
the appointment may be approved on a recommendation of the Mediation Committee on 
a second ballot by a simple majority of the votes of the members of the Supervisory Board 
(section 31, paragraph 3, MitbestG). If the required majority is still not achieved, a third ballot is 
held in which the Chairman of the Supervisory Board has two votes (section 31, paragraph 4, 
MitbestG). If the Management Board does not have the required number of members, in urgent 
cases, the local court (Amtsgericht) of Munich makes the necessary appointment upon petition 
of a party concerned pursuant to section 85, paragraph 1, AktG.
Pursuant to section 84, paragraph 1, sentence 1, AktG, the maximum term of appointment 
for members of the Management Board is five years. Re-appointment or extension of the 
term of office, in each case for a maximum of five years, is permitted (section 84, paragraph 1, 
sentence 2, AktG). Section 5, paragraph 1, of the Articles of Association and section 84, 
paragraph 2, AktG stipulate that the Supervisory Board may appoint a chairman and a deputy 
chairman of the Management Board. The Supervisory Board may revoke the appointment 
of a member of the Management Board and the Chairman of the Management Board for good 
cause (section 84, paragraph 3, AktG).
Rules governing the amendment of the Articles of Association
Pursuant to section 179, paragraph 1, AktG, responsibility for amending the Articles of Associ­
ation rests with the Annual General Meeting. However section 10, paragraph 4, of the Articles 
of Association gives the Supervisory Board the authority to amend the Articles of Association 
insofar as such amendments relate merely to the wording, such as changes in the share 
capital amount resulting from a capital increase out of conditional or authorized capital or 
a capital decrease by means of cancellation of own shares. Unless the Articles of Association 
provide for another majority, section 179, paragraph 2, AktG stipulates that resolutions of the 
Annual General Meeting on the amendment of the Articles of Association require a majority 
of at least three quarters of the share capital represented. Section 17, paragraph 1, of the 
Articles of Association of Infineon Technologies AG provides in principle for resolutions to be 
passed with a simple majority of the votes cast and, when a capital majority is required, with 
a simple majority of the capital unless a higher majority is required by law or in accordance 
with other stipulations contained in the Articles of Association.
Powers of the Management Board to issue shares
The powers of the Management Board to issue shares derive from section 4 of the Articles of 
Association, in conjunction with applicable legal provisions. Further information relating 
to the Company’s existing Authorized and Conditional Capital can be found in note 25 to the 
Consolidated Financial Statements.
P   see page 235 f.
161
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Corporate governance
Information pursuant to section 289, paragraph 4, and section 315, paragraph 4, of the German Commercial Code (HGB)

Authorization to issue bonds with warrants and/or convertible bonds
The Annual General Meeting on February 13, 2014 authorized the Management Board, in the 
period through February 12, 2019, once or in partial amounts, to issue bonds with warrants 
and/or convertible bonds (referred to collectively as “bonds”) in an aggregate nominal amount 
of up to €2,000,000,000, to guarantee such bonds issued by subordinated Group companies 
of the Company and to grant holders of bond options or conversion rights to up to 130,000,000 
no par value registered Company shares, representing a notional portion of the share capital 
of up to €260,000,000, in accordance with the relevant terms of the bonds. The Management 
Board is authorized, with the approval of the Supervisory Board, to exclude the subscription 
rights of the shareholders to the bonds 
•	 if the issue price is not substantially lower than the theoretical market value of the bonds, 
as determined in accordance with accepted methods of financial mathematics; however 
this only applies insofar as the shares to be issued to service the option and/or conversion 
rights established on this basis in aggregate do not exceed 10 percent of the share capital 
either at the time of this authorization becoming effective or at the time of its exercise;
•	 in order to exclude fractional amounts resulting from a given subscription ratio from the 
subscription rights of the shareholders to the bonds or insofar as such action is necessary in 
order to grant holders of option or conversion rights from bonds that have already been or 
will in future be issued by the Company or its subordinated Group companies subscription 
rights to that extent to which they would be entitled after exercise of their rights or after 
fulfillment of any conversion obligations.
Even if the dilution protection regulations are applied, the option or conversion price must 
equal at least 90 percent of the average stock exchange price of the Company’s shares in the 
Xetra closing auction on the Frankfurt Stock Exchange (or a comparable successor system) 
during the ten exchange trading days prior to the date of adoption of the resolution by the 
Management Board to issue the bonds or, insofar as the shareholders have subscription rights 
for the bonds, during the days on which subscription rights for the bonds are traded on the 
Frankfurt Stock Exchange, but excluding the last two exchange trading days for such subscrip­
tion rights. Without prejudice to section 9, paragraph 1, AktG, the option or conversion price 
may be reduced pursuant to a dilution protection clause in accordance with the terms of the 
bonds if the Company increases its share capital before the end of the option or conversion 
period, honoring the subscription rights of the shareholders, or issues or guarantees further 
bonds and the holders of option rights or of convertible bonds are not granted subscription 
rights in this regard. The terms may also provide for a value-preserving adjustment of the 
option or conversion price or of the option or conversion rate in the event of other measures 
potentially leading to a dilution of the commercial value of the option or conversion rights. 
In any event, the notional portion of the share capital attributable to the shares underlying 
each convertible bond may not exceed the nominal value of the bond.
The Management Board is authorized, subject to the requirements resolved by shareholders 
at the Annual General Meeting, to determine the further details of the bond issue, including its 
terms and conditions.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
162

Purchase of own shares
A resolution passed by the Annual General Meeting on February 28, 2013 authorizes Infineon 
Technologies AG, in the period through to February 27, 2018, to acquire its own shares, within 
the statutory boundaries, in an aggregate amount not exceeding 10 percent of the share 
capital at the time the resolution was passed or – if the latter amount is lower – of the share 
capital in existence at the time the authorization is exercised. The Company may not use the 
authorization for the purposes of trading in its own shares. The Company may exercise the 
authorization once or a number of times for one or a number of purposes. The authorization 
may also be used by dependent companies or companies in which the Company has a majority 
holding or by third parties acting for the Company or for dependent companies or companies 
in which the Company has a majority holding. The Management Board decides whether 
own shares are acquired through the stock exchange, by means of a public offer to purchase 
addressed to all shareholders or a public invitation to submit offers for sale (referred to jointly 
as a “public purchase offer”) or via a bank or other entity that meets the requirements of 
section 186, paragraph 5 sentence 1 AktG (referred to jointly as “bank”) that is engaged to 
complete the acquisition as part of a defined repurchase program.
(a)	 If shares are acquired through the stock exchange, the purchase price per share (excluding 
incidental costs) paid by the Company may not be more than 10 percent above or below 
the price established in the Xetra (or comparable successor system) opening auction on 
the trading day.
(b)	 If shares are acquired by means of a public purchase offer, a fixed purchase price or 
purchase price range may be specified. The purchase price per share (excluding incidental 
costs) paid by the Company in this case may be no more than 10 percent above and no 
more than 20 percent below the arithmetic mean of the closing prices of the share in Xetra 
trading (or a comparable successor system) on the last three exchange trading days prior 
to the day of publication of the public purchase offer (“effective date”). If significant price 
changes occur after the effective date, the purchase price may be adjusted accordingly; 
in this case, the relevant time frame is the three exchange trading days prior to the public 
announcement of any such adjustment. The volume of the purchase may be limited. 
If the total subscription for the public purchase offer exceeds this volume, the Company 
will adopt a quota-based purchase approach. Provision may be made for a preferred 
acceptance of smaller quantities (up to 100 offered shares per shareholder). The public 
purchase offer may also provide for further terms and conditions.
(c )	A bank can be engaged as part of a defined repurchase program to acquire either an agreed 
number of shares or shares for a previously defined total purchase price, on a previously 
defined minimum number of trading days in Xetra trading (or a comparable successor 
system) and in any case by no later than the end of a previously agreed period, and to 
transfer them to the Company. In such cases, (i) the bank must acquire the shares through 
the stock exchange and (ii) the purchase price per share to be paid by the bank (excluding 
incidental costs) must not be more than 10 percent above or below the price established 
in the Xetra (or comparable successor system) opening auction on the trading day and 
(iii) the purchase price per share to be paid by the Company must include a discount with 
respect to the arithmetic mean of the volume-weighted average price (“VWAP”) of the 
Infineon share in Xetra trading (or a comparable successor system) over the actual period 
in which shares are repurchased. Notwithstanding the above stipulations and subject to 
any further instructions issued by the Company, the bank may implement the repurchase 
program at its own discretion.
163
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Corporate governance
Information pursuant to section 289, paragraph 4, and section 315, paragraph 4, of the German Commercial Code (HGB)

The Company is authorized – on its own, through dependent companies or companies in 
which it has a majority holding or through third parties acting for it or for dependent companies 
or companies in which it has a majority holding – not only to sell Infineon shares acquired 
on the basis of this or an earlier authorization via the stock exchange or by means of a public 
offer, but also to utilize those shares for all legally admissible purposes, specifically including 
the following:
(a)	 The shares may be cancelled without this cancellation or its implementation requiring 
any further resolution of the Annual General Meeting. Cancellation results in a reduction 
in share capital by the proportion attributable to the cancelled shares. The Management 
Board may also decide in this connection that the share capital will not be affected by 
the cancellation and that the proportion of non-cancelled shares in the share capital will 
be increased accordingly. The Management Board is authorized in this case to amend the 
number of shares listed in the Articles of Association. 
(b)	 The shares may be offered and transferred to third parties in connection with corporate 
mergers or the acquisition of companies, parts of companies or participations in companies 
and/or other assets that qualify for treatment as contributions in conjunction with acqui­
sition transactions of the above-mentioned nature. 
(c)	 The shares may, subject to the consent of the Supervisory Board, be sold to third parties 
for cash payment including by means other than through the stock exchange or through 
an offer to all shareholders, provided that the price at which the shares are sold (excluding 
incidental selling costs) is not substantially lower than the share price established in the 
Xetra (or comparable successor system) opening auction on the day of the sale. Further­
more, the total value of the shares sold in these cases may not exceed 10 percent of the 
share capital as determined either at the time of this authorization becoming effective 
or at the time of its exercise. The notional portion of the share capital that relates to 
shares issued or used with the subscription rights of the shareholders excluded in direct 
or analogous application of section 186, paragraph 3, sentence 4, AktG, is to be included 
in this amount. Also to be included in this number are the shares that have already been 
issued or can still be issued in future to service conversion or option rights insofar as 
the underlying bonds were issued during the lifetime of this authorization with the sub­
scription rights of the shareholders excluded in analogous application of section 186, 
paragraph 3, sentence 4, AktG.
(d)	 The shares may be used to meet the Company’s obligations under bonds with warrants 
and convertible bonds issued or guaranteed by it in the past or in the future.
(e)	 The shares may be used directly or indirectly to meet obligations under the “Infineon 
Technologies AG Stock Option Plan 2006” or the “Infineon Technologies AG Stock Option 
Plan 2010”. If own shares are to be transferred to members of the Management Board, 
this authorization applies to the Supervisory Board.
(f)	 The shares may be offered for sale to, or awarded as compensation to, members of the 
Company’s Management Board, to members of the Management Board/Board of Directors 
of affiliated companies and to employees of the Company or affiliated companies; shares 
offered and awarded in this context may also be transferred to the relevant persons after 
termination of membership on representative bodies and/or employment contracts. 
The shares may also be transferred to a bank that has agreed to use the shares exclusively 
for the purposes stipulated in sentence 1. If own shares are to be offered for purchase or 
awarded and transferred to members of the Management Board, this authorization applies 
to the Supervisory Board.
The shares acquired on the basis of this or an earlier authorization may also be used to repay 
securities-backed loans taken out with a bank for one of the purposes stated in clauses b) to f).
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
164

The authorizations may be used once or a number of times, individually or together, and 
in their maximum value or in fractions of their maximum value. Subscription rights of the 
shareholders with respect to the shares affected by these measures are excluded insofar as 
the shares concerned are used in accordance with the aforementioned authorizations with 
the exception of clause a). In addition, the subscription rights of shareholders are excluded in 
respect of fractional amounts in instances in which the shares are sold through a public offer 
addressed to all shareholders.
According to a resolution passed by the Annual General Meeting on February 28, 2013, the 
acquisition of Infineon Technologies AG shares may also be effected using equity derivatives. 
The Management Board is authorized (i) to sell options that when exercised require the Com­
pany to acquire Company shares (put options) and (ii) to acquire options that when exercised 
entitle the Company to acquire Company shares (call options). The acquisition may furthermore 
be effected using a combination of put and call options (referred to collectively as “derivatives”). 
Shares may also be acquired using derivatives via a bank that is engaged – in conjunction 
with a defined repurchase program and on the conditions determined by the Annual General 
Meeting – to acquire an agreed number of shares or shares underlying derivatives for a pre-
determined total acquisition price by no later than the end of a previously agreed period and 
to transfer them to the Company.
The total number of shares that can be acquired using derivatives may not exceed 5 percent 
of the Company’s share capital, determined either at the time of this authorization becoming 
effective or at the time of its exercise through the use of the derivatives. The shares acquired 
through the exercise of this authorization are to be counted toward the acquisition threshold 
for the shares acquired in accordance with the authorization to acquire own shares described 
directly above. The term of the individual derivatives may in each case be no longer than 
18 months, must expire by no later than February 27, 2018 and must be defined such that the 
acquisition of own shares either to exercise or to satisfy the derivatives cannot be effected 
after February 27, 2018.
The derivative contracts must be concluded with a bank or via the stock exchange. It must 
be ensured that obligations under the derivatives are met only using shares that have been 
acquired previously, in compliance with the principle of equal treatment, via the stock exchange 
at the current price of the share in Xetra trading (or a comparable successor system) at the 
time of acquisition via the stock exchange. The price agreed in the derivative (excluding 
incidental acquisition costs but taking into account the option premium paid or received) for 
the acquisition of a share when options are exercised may be no more than 10 percent above 
and no more than 30 percent below the price of the share calculated at the opening auction 
in Xetra trading (or a comparable successor system) on the day the derivative transaction 
is concluded.
The acquisition price paid by the Company for derivatives may not be substantially higher than, 
and the sale price received by the Company for derivatives may not be substantially lower 
than, the theoretical market value of the options concerned as determined in accordance with 
accepted methods of financial mathematics, considering among other things the agreed 
exercise price.
If own shares are acquired using derivatives in accordance with the foregoing rules, any 
right of the shareholders to conclude such derivative transactions with the Company will be 
excluded in analogous application of section 186, paragraph 3, sentence 4, AktG. The share­
holders similarly have no right to conclude derivative transactions with the Company insofar 
as arrangements for the conclusion of derivative transactions include a preferred offer for 
the conclusion of derivative transactions concerning small volumes of shares.
Shareholders have a right to sell their Infineon shares in this connection only insofar as the 
Company is required to accept the shares under the derivative transactions. No other right to 
sell shares will apply in this connection.
The rules laid out above relating to the authorization to acquire own shares directly apply as 
appropriate to the use of own shares acquired using derivatives.
165
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Corporate governance
Information pursuant to section 289, paragraph 4, and section 315, paragraph 4, of the German Commercial Code (HGB)

The Company resolved a new capital returns program in November 2013 and intends to allocate 
up to €300 million for this program through September 30, 2015. Further details and the 
current status of the program are provided in note 25 to the Consolidated Financial Statements 
and are also published regularly on the Company’s website at www.infineon.com/cms/en/
about-infineon/investor/capital-returns/program-2013. 
Significant agreements in the event of a change of control as a result of a takeover bid
The facilities agreement concluded by Infineon with several local and international financial 
institutions to finance the acquisition of International Rectifier (for details see note 23 to 
the Consolidated Financial Statements), contains a change of control clause, which conveys 
the right to the individual contractual parties – in the event of a defined change in control – 
to call for an amendment to the facilities agreement or, in specified cases, to give notice of 
termination of their participation in the financing arrangements and call for repayment of the 
relevant credit amount. This change of control clause reflects standard market practice for 
facilities agreements of this nature in the interests of creditor protection.
Furthermore, certain patent cross-licensing agreements, development agreements, subsidy 
agreements and approvals, supply contracts, joint venture agreements and license agree­
ments contain change of control clauses according to which a change in control of Infineon 
Technologies AG triggers the right of the other party to terminate the agreement, to continue 
the agreement at its discretion as well as other rights which may, under circumstances, be 
unfavorable for Infineon.
The change of control clauses negotiated with the contract partners of Infineon Technologies 
AG as part of its general business activities are also in line with standard market practice. 
The same applies for the subsidy agreements and approvals as well as for the joint venture 
agreements entered into by Infineon.
Agreements for compensation in the event of a takeover bid
If a member of the Management Board leaves his or her position in connection with a change 
of control, that member is currently entitled to continued payment of the relevant annual 
remuneration for the entire remaining contract term. In accordance with a special contract 
termination right granted to members of the Management Board, the period of continued 
payment is capped at a maximum of 36 months in the event the member resigns, or at a 
minimum of 24 months and a maximum of 36 months in the event the member is removed 
from office or dismissed by Infineon Technologies AG. Further details are contained in the 
Compensation Report. 
The change of control clauses agreed with the members of the Management Board correspond 
to the recommendation made in section 4.2.3, paragraph 5, of the German Corporate Gover­
nance Code. Such clauses are intended to give members of the Management Board security 
if a change of control situation occurs, and to preserve their independence in the event of 
a takeover bid. 
There are no comparable arrangements for employees.
P   see page 237
@ www.infineon.com/cms/en/ 
about-infineon/investor/capital-returns/
program-2013
P   see page 234
P   see page 188
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
166

CORPORATE GOVERNANCE REPORT
Corporate governance practices
Corporate Governance – standards for effective and responsible corporate management
The Management Board and the Supervisory Board of Infineon Technologies AG view corporate 
governance as a comprehensive concept for responsible, transparent and value-led corporate 
management. Good corporate governance contributes towards increasing the value of the 
business on a sustainable basis, while at the same fostering trust in our entity among national 
and international investors, the financial markets, business partners, employees and the 
public. The Management Board, the Supervisory Board and the management ensure that 
corporate governance is actively implemented and continuously developed throughout 
the entity. Corporate governance at Infineon encompasses not only the German Corporate 
Governance Code (Deutscher Corporate Governance Kodex – “DCGK”), but also the standards 
of the internal control system, compliance – especially the Infineon Business Conduct Guide­
lines – and regulations on organizational and supervisory duties within the entity, which are 
available to all employees on the Infineon intranet.
Business Conduct Guidelines 
We conduct our business responsibly and in compliance with legal requirements and adminis­
trative regulations – and we have established several guidelines for this purpose. Infineon 
Technologies AG’s “Business Conduct Guidelines” as the most important of these are published 
on the Internet and are mandatory for the Management Board and all employees worldwide. 
The Business Conduct Guidelines are regularly reviewed and updated. They include regu­
lations on compliance with the law, interaction with business partners and third parties, the 
avoidance of conflicts of interest, interaction with Company institutions, data and information 
management and environmental protection, health and safety. The guidelines also contain 
regulations concerning the handling of complaints and reports of breaches of the guidelines.
Corporate Compliance Officer and Compliance Panel
An independent Compliance Office has been in place at Infineon since June 1, 2011, during 
which time it has been allocated increased budget and staffing levels. The additional resources 
allocated underline Infineon’s clear commitment to absolute compliance with the law 
and to maintaining ethical standards which protect the legitimate interests of employees, 
suppliers, customers, and shareholders, safeguard Infineon’s reputation, and take account 
of Infineon’s needs. In addition to meet the traditional compliance objectives, such as risk 
mitigation and increases in efficiency and effectiveness, compliance is promoted with 
a view to strengthening Infineon’s image as a reliable and fair business partner and thus 
contributing to its overall success.
Infineon Technologies AG’s Corporate Compliance Officer reports directly to the Infineon 
Chief Financial Officer (CFO). The Corporate Compliance Officer coordinates the compliance 
management system, develops the Infineon compliance program based on a risk-oriented 
approach, sets or works on guidelines, advises employees, receives complaints and tip-offs, 
including those made anonymously, and leads investigations aimed to clarify compliance-
related cases. In addition, he or she carries out regular compliance training measures for 
employees on topics such as anti-trust law and anti-corruption. Extensive training measures 
were carried out also during the 2014 fiscal year. The Corporate Compliance Officer is supported 
by regional Compliance Officers. The Company has also established a Compliance Panel, 
composed of experienced managers from the Legal, Human Resources, Internal Audit and 
Security departments and the Corporate Compliance Officer. The members of the Compliance 
Panel meet regularly. 

@ www.infineon.com/cms/en/about- 
infineon/investor/corporate-governance/
compliance/business-conduct-guidelines/
167
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The primary task of the panel is to deliberate on the current status of compliance throughout 
Infineon and to discuss key issues and reach decisions aimed at improving the compliance 
system. A whistleblowing system has been established as an important component of the 
compliance system. Infineon employees can contact the Corporate Compliance Officer 
on a confidential basis (anonymously if desired) to report non-compliance with internal 
guidelines and applicable laws. Since 2011, an external lawyer serving in the capacity of an 
independent ombudsman has also been available for employees and business partners to 
pass on confidential information (anonymously if desired) with respect to legal violations 
at Infineon. The Corporate Compliance Officer follows up every item of information communi­
cated before deciding – in collaboration with the Compliance Panel – whether to initiate an 
internal investigation.
The audit of the Compliance Management System at Infineon Technologies AG and at two 
other major Group entities – commissioned at the end of the 2012 fiscal year – was completed 
in June 2014. Under the terms of this engagement, the Management Board commissioned 
an independent audit firm to test and report on the appropriateness, implementation and 
effectiveness of the compliance management system. The audit was conducted in accordance 
with the “Principles for the Proper Performance of Reasonable Assurance Engagements 
Relating to Compliance Management Systems (IDW PS 980)” issued by the Institute of Public 
Auditors in Germany (IDW). The main points of emphasis of the engagement were the 
prevention of corruption and compliance with anti-trust law.
Risk management
The Management Board considers the systematic and effective management of risks and 
opportunities as part of good corporate governance and one of our key success factors. It forms 
a part of our business operations and ensures that risks and opportunities are detected early 
and exposure to risk is minimized. This transparency of the risk exposure Group-wide also 
makes a contribution to the systematic and continuous increase in the value of the business.
Our Group-wide Risk and Opportunity Management System, which is continuously adapted to 
changes in circumstances, consists of four sub-processes: Risk and opportunity identification, 
analysis, controlling and monitoring. Its effectiveness is reviewed regularly by the Supervisory 
Board’s Investment, Finance and Audit Committee. 
Details of risk management at Infineon are presented in the chapter “Risk and opportunity 
report”, which provides an in-depth description of both risk and opportunity management and 
the internal control system at Infineon.
Transparent management
We submit a regular quarterly report covering our business developments and Infineon’s 
financial position and performance to our shareholders according to a defined financial 
calendar. The members of the Management Board regularly inform shareholders, analysts, 
media and general public about the quarterly and annual results. Our comprehensive investor 
relations service features regular meetings and telephone conferences with analysts and 
institutional investors. All notices and disclosures are usually available on our website 
(www.infineon.com) in German and English. 
Infineon Technologies AG also issues ad hoc announcements in addition to its regular reporting 
to publicize information that is not in the public domain and the disclosure of which is deemed 
to affect the value of the Infineon share significantly.
The Company has a Disclosure Committee comprising experienced managers from the 
investor relations, communication, financial reporting and accounting, legal and internal 
audit departments. The Disclosure Committee reviews and approves specified financial and 
other material information published in conjunction with regular financial reporting or ad 
hoc announcements. 
German law requires the Management Board to render a responsibility statement (“Bilanzeid”). 
The information required for this purpose is confirmed internally to the Management Board 
by senior executives bearing management responsibility.
P   see page 137 ff.
@ www.infineon.com
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
168

D&O insurance
The Company maintains a directors’ and officers’ group liability insurance policy (“D&O 
insurance”). The D&O insurance policy covers personal liability in the event of claims made in 
particular against members of the Management and Supervisory Board for indemnification 
of losses incurred in the performance of their duties. A deductible of 10 percent of the loss 
up to the amount of one and a half times the annual fixed compensation of the member of 
the Management or Supervisory Board concerned has been agreed in accordance with the 
statutory regulation in section 93, paragraph 2, of the German Stock Corporation Act (AktG) 
(for the Management Board) and the recommendation in section 3.8 of the DCGK (for the 
Supervisory Board).
Financial reporting and auditing
Starting with the 2009 fiscal year, Infineon Technologies AG has prepared its Consolidated 
Financial Statements exclusively in accordance with International Financial Reporting 
Standards (IFRS) as applicable in the EU. The separate Financial Statements of Infineon 
Technologies AG continue to be prepared in accordance with the German Commercial Code 
(HGB). The separate and consolidated Financial Statements of Infineon Technologies AG 
and the combined Management Report (Lagebericht) are published within 90 days of the end 
of the fiscal year after approval by the Supervisory Board. 
Infineon’s financial reporting for the 2014 fiscal year is audited by KPMG AG Wirtschaftsprüfungs­
gesellschaft, Munich (KPMG). The Quarterly Reports were also subjected to review by KPMG. 
The audit also considers the Company’s system for the early identification of risks and the 
submission of the Declaration of Compliance in accordance with section 161 AktG. The Invest­
ment, Finance and Audit Committee discusses the quarterly reports and the half-yearly finan­
cial report with the Management Board prior to publication. We have agreed with KPMG 
that the Chairman of the committee should be informed immediately if any possible reasons 
for exclusion or bias occur during the audit, unless they can be eliminated immediately. 
The auditors should also report immediately on all findings and occurrences material to the 
Supervisory Board’s work that arise in the course of the audit and review engagements.
Directors’ dealings
Members of the Management Board and the Supervisory Board and specified persons bearing 
management responsibility with, among other things, regular access to inside information, 
as well as parties related to them, are required pursuant to Section 15a of the German 
Securities Trading Act (Wertpapierhandelsgesetz) to notify the Company as well as the Federal 
Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) 
of own transactions involving Company shares or related financial instruments. This only 
applies, however, if the total value of the transactions made by one of the above-mentioned 
persons amounts to €5,000 or more in one calendar year. The Company is obliged to publish 
the notifications it receives and have them recorded in the Company Register. Such notices are 
also reported to BaFin. 
169
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Corporate Governance Report

The following securities transactions were notified to the Company during the previous 
fiscal year.
Last name, first name
Dr. Ploss, Reinhard
Function
Chairman of the Management Board
Description
Shares in Infineon Technologies AG
ISIN/WKN
DE0006231004/623 100
 
 
Date of transaction
March 12, 2014
Purchase/sale
Purchase
Price (per unit)
€8.21
Number of units
8,500
Total volume
€69,742.50
 
 
Date of transaction
March 12, 2014
Purchase/sale
Purchase
Price (per unit)
€8.20
Number of units
2,500
Total volume
€20,495.00
 
 
Total volume of transactions
€90,237.50
Transaction location
Frankfurt/Main Stock Exchange (Xetra)
Last name, first name
Asam, Dominik
Function
Member of the Management Board
Description
Shares in Infineon Technologies AG
ISIN/WKN
DE0006231004/623 100
 
 
Date of transaction
November 21, 2013
Purchase/sale
Purchase
Price (per unit)
€7.21
Number of units
1,943
Total volume
€14,005.14
 
 
Date of transaction
November 21, 2013
Purchase/sale
Purchase
Price (per unit)
€7.21
Number of units
6,365
Total volume
€45,872.56
 
 
Total volume of transactions
€59,877.70
Transaction location
Frankfurt/Main Stock Exchange (Xetra)
Last name, first name
Gruber, Peter
Function
Member of the Supervisory Board
Description
Shares in Infineon Technologies AG
ISIN/WKN
DE0006231004/623 100
 
 
Date of transaction
November 20, 2013
Purchase/sale
Sale
Price (per unit)
€6.90
Number of units
16,000
Total volume
€110,400.00
 
 
Transaction location
Frankfurt/Main Stock Exchange (Xetra)
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
170

Compensation of the Management Board and the Supervisory Board
Details of Management Board and Supervisory Board compensation in the 2014 fiscal year are 
presented in the comprehensive Compensation Report, which also forms part of the Group 
Management Report of Infineon Technologies AG.
Share based compensation schemes for employees and members of the 
Management Board 
Infineon’s share based compensation schemes are detailed in note 27 to the Consolidated 
Financial Statements; the full text of the plans may be viewed at www.infineon.com (“About 
Infineon/Investor/Corporate Governance/equity based compensation”).
As part of the long-term remuneration of executives and selected Infineon employees world­
wide, a so-called “Performance Share Plan” (PSP) came into force for the first time in the 2014 
fiscal year, replacing the previous stock option plan. The same plan also applies to members 
of the Management Board, whereby the latter – unlike other plan participants – have a 
contractually secured claim. The principal conditions of the plan for members of the Manage­
ment Board are described in the Compensation Report, which also forms part of the Group 
Management Report. Essentially the same conditions apply to other PSP participants, with 
differing rules only with respect to the requirement of members of the Management Board to 
invest in Infineon shares and in the event of early termination; moreover, the cap only applies 
to members of the Management Board.
Declaration concerning the management of the Company 
(Part of the Group Management Report – unaudited)
Declaration of compliance with the German Corporate Governance Code issued for 
the 2014 fiscal year by the Management Board and Supervisory Board of Infineon 
Technologies AG in accordance with section 161 of the German Stock Corporation Act 
The Management Board and Supervisory Board issued the following declaration pursuant to 
section 161 AktG in November 2014:
1.		 Since the submission of the last Declaration of Compliance in November 2013, Infineon 
Technologies AG has, with one exception, complied with all recommendations of the 
German Corporate Governance Code in the version of May 13, 2013 (“Code”). The one 
exception, stated and explained in the November 2013 declaration, relates to the following: 
	 	 Section 5.4.6 of the Code recommends that performance-related compensation of the 
members of the Supervisory Board shall be oriented toward sustainable growth of the 
enterprise. The similarity in terminology to the requirements contained in the German 
Stock Corporation Act with respect to compensation of members of the Management 
Board seems to imply that performance-related compensation should also be based on 
a “multi-year assessment” for members of the Supervisory Board. 
	 	 Members of the Supervisory Board of Infineon Technologies AG receive both fixed and 
performance-related compensation, the latter only being paid if earnings per share 
exceed a pre-defined amount. 
	 	 Both the Management Board and the Supervisory Board have deliberated on this topic on 
several occasions. They concluded in each case that the compensation system currently 
in place for the Supervisory Board is already oriented toward sustainable growth of the 
enterprise even without a multi-year assessment, since the minimum amount required to 
trigger the compensation payment increases year-on-year, thus setting an incentive for 
improving earnings each year. As a consequence, neither of the boards saw any require­
ment to change the Supervisory Board compensation system approved with a large 
majority at the Annual General Meeting. The Management Board and the Supervisory Board 
have not changed their assessment of the situation.
P   see page 239 f.
@ www.infineon.com
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2.		 The new version of the Code dated June 24, 2014 became effective on September 30, 
2014. With the exception – described in point 1 of this declaration – of the unchanged 
recommendation contained in section 5.4.6 of the Code, Infineon Technologies AG has 
also complied, and will comply in the future, with the recommendations contained in this 
version of the Code.
Relevant disclosures in respect of corporate governance practices
The Company complies with all legal requirements with respect to corporate governance. 
With one exception stated in the Declaration of Compliance, Infineon complies with the 
recommendations of the German Corporate Governance Code. Furthermore, corporate 
governance practices in particular underpin the guidelines for corporate conduct (“Infineon 
Business Conduct Guidelines”) as well as the regulations relating to organizational and 
supervisory duties. Both of these sets of regulations are available to all employees worldwide 
on the Infineon intranet.
Shareholders and Annual General Meeting
Infineon shareholders take their decisions at the Annual General Meeting, which is held at 
least once a year. Each share carries one vote. Shareholders can attend the Annual General 
Meeting as long as they are registered in the share register and have duly registered for the 
meeting. The Annual General Meeting decides on all issues assigned to it by law, most notably 
on the formal approval of the conduct of business by the Management Board and the Super­
visory Board, the profit appropriation, the election of the auditors and amendments to the 
Articles of Association. Shareholders are entitled to make counterproposals to motions 
introduced by management and to speak and ask questions at the Annual General Meeting. 
They also have the right, subject to certain conditions, to challenge resolutions of the Annual 
General Meeting, to request an extraordinary judicial review and to claim damages from 
corporate bodies of the Company on behalf of the Company when they identify incidences of 
misconduct or serious deficiencies in the Company’s management and control. We wish to 
support our shareholders as far as possible in the exercise of their rights at the Annual General 
Meeting. Shareholders can register for our Annual General Meeting electronically, participate 
in voting by postal voting or by sending online instructions e.g. to their proxies and they can 
follow the general debate via the Internet. All documents and information relating to the 
Annual General Meeting can be found on our website. Our Investor Relations Department, 
moreover, can be contacted throughout the year both by telephone and electronically to 
ensure the exchange of information between us and our shareholders.
Description of the mode of operation of the Management Board and 
Supervisory Board and of the composition and mode of operation of the 
Supervisory Board’s committees
Infineon Technologies AG is subject to German stock corporation law, which stipulates a 
two-tier administrative system, with the Management Board responsible for management 
and the Supervisory Board responsible for corporate oversight. We are convinced that this 
separation of the two functions is an important precondition for good corporate governance. 
The Management Board and the Supervisory Board cooperate closely in Infineon’s interest.
Management Board
Infineon Technologies AG’s Management Board currently comprises three members. In 
accordance with the DCGK, the Supervisory Board has set an age limit for Management Board 
membership under which members of the Management Board in general should be no more 
than 67 years old. In accordance with its rules of procedure, the Supervisory Board takes 
account of diversity as well as technical and personal suitability in respect of the composition 
of the Management Board and will in particular endeavor to ensure appropriate female 
representation. The Management Board currently comprises only men (100 percent), of whom 
two are in the middle age-group of between 30 and 50 years of age (66.7 percent) and one 
(33.3 percent) is in the 50+ age-group.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
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172

The Management Board is the Company’s executive body. It is obliged to serve the Company’s 
interests and thereby pursue the goal of sustainably increasing Infineon’s value taking into 
account the interests of all stakeholders. It determines Infineon’s commercial objectives, 
strategic direction and corporate policy and defines how the Group is to be organized.
According to German stock corporation law, the Management Board has overall responsibility 
for the management of the Company. The Company’s Management Board has adopted 
rules of procedure with the consent of the Supervisory Board. These rules stipulate that the 
Company is managed jointly by all of the members of the Management Board, who should 
work together in a cooperative manner to this end. Collaboration between the Management 
Board and the Supervisory Board is coordinated by the Chief Executive Officer (CEO). The 
CEO maintains regular contact with the Chairman of the Supervisory Board, with whom he 
discusses the key aspects of Infineon’s strategy, planning, course of business and risk manage­
ment. At the ordinary meetings of the Supervisory Board, the Management Board reports 
comprehensively and promptly on Infineon’s business performance, its economic situation, 
the economic situation of the individual segments, as well as Infineon’s financial and invest­
ment planning. The CEO notifies the Chairman of the Supervisory Board without delay 
of any matters that are of material importance for assessing the position and development 
of the Company or for its management.
Supervisory Board
Work of the Supervisory Board
The Supervisory Board advises and monitors the Management Board as it manages the entity. 
The Supervisory Board is informed by the Management Board regularly, comprehensively, 
and in a timely manner on all matters of relevance and agrees Infineon’s corporate strategy 
and its implementation with the Management Board. The Supervisory Board discusses the 
quarterly reports and reviews and approves both the Separate Financial Statements and 
the Consolidated Financial Statements of Infineon Technologies AG. Major decisions of the 
Management Board, such as Group-wide financial and investment planning and major 
acquisitions and equity investments, divestitures, and financial measures, are subject to its 
approval. Further details are stipulated in the rules of procedure of the Management Board 
and the Supervisory Board. When Supervisory Board votes end in ties, the Chairman of the 
Supervisory Board has two votes if voting is carried out a second time and again results in a tie.
The duties of the Supervisory Board and its committees are regulated by law, by the Articles 
of Association and by the rules of procedure of the Supervisory Board and its committees. 
In addition, the DCGK contains recommendations about Supervisory Board work.
The Supervisory Board reviews the efficiency of its work, including its interaction with 
the Management Board, once a year. The efficiency review is performed on the basis of 
a questionnaire addressing different areas and criteria of the Supervisory Board’s work. The 
results were subsequently discussed at a Supervisory Board meeting. In the 2010 fiscal year, 
an external independent consultant was engaged for the first time to conduct a detailed 
survey of Supervisory Board activities. The most recent efficiency review took place in summer 
2014, again on the basis of a questionnaire. No deficits in efficiency were identified.
Composition of the Supervisory Board
The Supervisory Board of Infineon Technologies AG currently has 12 members and comprises 
an equal number of shareholder representatives and employee representatives as stipulated in 
the German Co-Determination Act (Mitbestimmungsgesetz). The shareholder representatives 
are elected by the Annual General Meeting, the employee representatives by employee 
delegates at Infineon’s German facilities in accordance with the German Co-Determination Act. 
The normal term of office of members of the Supervisory Board is approximately five years. 
The most recent regular election of shareholder representatives and employee representatives 
to the Supervisory Board took place in the 2010 fiscal year for periods of office through to the 
end of the 2015 Annual General Meeting. The Annual General Meeting held on February 17, 2011 
elected Mr. Wolfgang Mayrhuber as a member of the Supervisory Board as successor to 
Prof. Dr. Klaus Wucherer. At its meeting held on the same day, the Supervisory Board elected 
Mr. Mayrhuber as its Chairman. 
173
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Section 6 (1) of the Articles of Association stipulate that the Supervisory Board shall consist 
of the minimum number of members required by law. The Company previously had fewer 
than 10,000 employees in Germany and, therefore, the Supervisory Board currently comprises 
12 members in accordance with paragraph 7 section 1, sentence 1, number 1 of the German 
Co-Determination Act. Due to the fact that the Company and its subsidiaries in Germany in 
the meantime have more than 10,000 employees, the Management Board initiated so-called 
“status proceedings” in the 2014 fiscal year, with a view to increasing the size of the Super­
visory Board from its current 12 to 16 members. In future, the Supervisory Board will, therefore, 
comprise eight shareholder representatives and eight employee representatives. The elections 
for employee representatives will take place in December 2014, the elections for shareholder 
representatives at the 2015 Annual General Meeting. 
The overall composition of the Supervisory Board should comply with the principles of 
diversity in the opinion of the Supervisory Board. This means firstly that the composition 
of the Supervisory Board should take into account the diversity to be found in an open and 
innovative global company like Infineon as far as possible and secondly that nobody should 
be selected or dropped as a candidate for the Supervisory Board simply because he or she 
possesses or lacks a certain diversity factor. “Diversity” as the term is used here denotes 
international (in the sense of roots, upbringing, education or professional activity rather than 
citizenship), gender and age diversity.
The Supervisory Board specified concrete objectives regarding its composition at its meeting 
of November 22, 2010 in accordance with the recommendation in section 5.4.1 DCGK (version: 
May 2010). With effect from the version dated May 15, 2012, the Code includes the recommen­
dation in section 5.4.1 that the Supervisory Board should also specify concrete objectives 
regarding the appropriate number of independent members of the Supervisory Board. The 
objectives of the Supervisory Board were, therefore, expanded in a resolution dated August 7, 
2012. With respect to the extension of the Supervisory Board from currently 12 to 16 members, 
on November 17, 2014, the Supervisory Board resolved to adapt its objectives as follows:
“The Supervisory Board comprises an equal number of representatives of the employee and 
the shareholder. The Supervisory Board cannot influence the selection of candidates for the 
Supervisory Board by the employees; similarly, shareholder representatives on the Super­
visory Board are elected by the Company’s shareholders at the Annual General Meeting and 
not by the Supervisory Board. Nevertheless it is a stated objective of the Supervisory Board 
that the Supervisory Board should comprise 
(i)		 at least twelve “independent” representatives […] (including at least four shareholder 
representatives),
(ii)	 at least two women and 
(iii)	at least five “international” representatives […]. 
The Supervisory Board already meets these minimum criteria and it is intended that it 
continues to do so at all times in future.” 
The current composition of the Supervisory Board continues to meet these objectives. 
The Supervisory Board considers in particular that all of its current 12 members are inde­
pendent within the meaning of the recommendation in section 5.4.2 DCGK. Furthermore, 
the Super­visory Board complies with the age limit defined in its rules of procedure, which 
states that in general nobody older than the age of 69 should be proposed for membership of 
the Supervisory Board. Exceptions to this rule are possible, however, in justified cases. The 
Supervisory Board currently comprises two women (16.7 percent) and ten men (83.3 percent), 
of whom all (100 percent) are in the 50  + age-group. 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
174

The Supervisory Board will take this requirements profile and these objectives into account 
in its future nominations to the Annual General Meeting. In doing so, the Supervisory Board 
will also disclose any of the candidate’s business or other relationships with Infineon, the 
Company’s representative bodies and/or a major shareholder in the Company, if it considers 
that an impartial shareholder making an objective decision about the election would consider 
such information to be of relevance. The same applies in respect of the Nomination Committee 
insofar as it carries out the preparatory work for the Supervisory Board decision. The Super­
visory Board recommends that its members elected by the employees also do what they can, 
within the scope of their influence, to have the required profile and objectives taken into 
account in the election nominations made by the relevant bodies on the employees’ side. The 
Supervisory Board also recommends that the objectives be taken into account by any of its 
members making an application for the appointment of a member of the Supervisory Board 
by the courts.
Supervisory Board committees
The Supervisory Board rules of procedure provide for the formation of three committees: 
the Mediation Committee, the Executive Committee, and the Investment, Finance, and Audit 
Committee. The Supervisory Board has also established both a Strategy and Technology 
Committee and the Nomination Committee recommended in the DCGK. All Supervisory Board 
committees have an equal number of employee representatives and shareholder represen­
tatives apart from the Nomination Committee, which consists exclusively of shareholder 
representatives. 
The Mediation Committee, which consists of the Chairman of the Supervisory Board, the 
Vice-Chairman, one shareholder representative and one employee representative, submits 
specific recommendations to the Supervisory Board concerning the appointment of members 
of the Management Board if the first round of the election on the appointment does not result 
in the required majority of two thirds of the members of the Supervisory Board.
The Executive Committee consists of the Chairman of the Supervisory Board, the Vice-
Chairman, one shareholder representative and one employee representative. The duties of 
this committee include preparing the appointment and dismissal of members of the Manage­
ment Board and drawing up the resolution (taken by the Supervisory Board) on Management 
Board compensation. It is also responsible for concluding, amending and terminating 
contracts with members of the Management Board except in matters involving earnings. 
The Investment, Finance, and Audit Committee (“Audit Committee”) consists of the Chairman 
of the Supervisory Board, the Vice-Chairman and one further representative each of the 
shareholders and employees. The Chairman of the Investment, Finance, and Audit Committee, 
Dr. Eckart Sünner, has – among other qualifications –particular expertise in and extensive 
experience of financial reporting on account of his many years of service as chairman of the audit 
committee of another DAX-listed corporation and accordingly qualifies as an “independent 
financial expert” pursuant to section 100, paragraph 5, of the German Stock Corporation Act. 
The Audit Committee monitors the Company’s financial reporting process and discusses 
and examines the Separate Financial Statements and Consolidated Financial Statements 
prepared by the Management Board, the combined Management Report (Lagebericht) and 
the quarterly and half-yearly financial reports. It gives recommendations with respect to the 
approval of the Separate Financial Statements and Consolidated Financial Statements by 
the Supervisory Board based on the independent auditors’ report, it submits its recommen­
dations for the selection of the independent auditor to the Supervisory Board, engages the 
independent auditors selected by the Annual General Meeting to audit the Separate Financial 
Statements and Consolidated Financial Statements and review the interim financial reports, 
specifies the key areas to be examined in audit activities jointly with independent auditors 
and is responsible for setting the independent auditors’ compensation. 
Other matters addressed by the Audit Committee include the monitoring of the effectiveness 
of the internal control system, internal audit system and risk management system. It has the 
authority in this connection both to contact any employee of the entity directly and to seek 
external assistance. Internal Audit reports annually to the Audit Committee, which can also 
specify an audit plan and key areas to be considered in audits. 
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Corporate Governance Report

Furthermore, the Audit Committee is responsible for the discussion of compliance issues. 
The Management Board and the Corporate Compliance Officer regularly report to the Audit 
Committee on the structure and work of the compliance organization and on any particular 
compliance issues.
The Strategy and Technology Committee, which consists of three shareholder representatives 
and three employee representatives, concerns itself with Infineon’s business strategy and 
key technology issues.
The Nomination Committee, which consists of the Chairman of the Supervisory Board 
and two further shareholder representatives, proposes to the Supervisory Board suitable 
candidates for recommendation to the Annual General Meeting.
All committees regularly submit detailed reports on their work to the Supervisory Board. 
Further information about the work of the Supervisory Board and its committees can be 
found, together with details of the people who serve on them, in note 36 to the Consolidated 
Financial Statements and in the report of the Supervisory Board to the Annual General Meeting.
Avoidance of conflicts of interest
The members of the Management Board and Supervisory Board disclose any conflicts of 
interest to the Supervisory Board without delay. No conflicts of interest arose among the 
members of the Management Board and Supervisory Board in the 2014 fiscal year. 
The German Corporate Governance Code requires prior approval to be given by the Super­
visory Board before members of the Management Board take on mandates on external 
supervisory boards. In the year under report, the Supervisory Board gave its approval to 
Mr. Mittal’s mandate on the supervisory board of tesa SE.
Material transactions between the Company and members of the Management Board or 
related parties require the approval of the Supervisory Board. This also applies to consulting 
and other service or work contracts a member of the Supervisory Board enters into with the 
Company. As a precaution, the Supervisory Board approved in November 2010 a contract 
between the Company and the Technische Universität München (Institute for Technical 
Electronics headed by Prof. Dr. Schmitt-Landsiedel) for the performance of R&D work on the 
topic of “Sensing for Automotive Applications”; this contract expired on September 30, 2013. 
The Company is currently in the process of negotiating a continuation of the contract with 
Technische Universität München; the Supervisory Board has already approved the continuation 
of the collaboration with Technische Universität München in principle. Dr. Sünner has been 
Of Counsel with the law firm Allen & Overy LLP since 2011. The Company has in the past 
engaged Allen & Overy in individual cases, but has never received advice from Dr. Sünner 
personally in conjunction with any of these engagements. Allen & Overy and Dr. Sünner have 
also confirmed that Dr. Sünner does not participate – either directly or indirectly – in the fees 
from any of these engagements. A potential conflict of interest, therefore, does not arise.
Shareholdings of members of Management and Supervisory Board
As of September 30, 2014, the shares in Infineon Technologies AG held by all members of the 
Management Board and Supervisory Board did not exceed 1 percent of the shares issued by 
the Company.
Information regarding the composition of the Management Board, Supervisory Board and 
the Supervisory Board’s committee can be found in note 36 to the Consolidated Financial 
Statements.
P   see page 265 f.
P   see page 264 ff.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
176

COMPENSATION REPORT
This Compensation Report, which forms an integral part of the Management Report, 
explains the principles applied in determining compensation for the Management Board 
and Supervisory Board of Infineon Technologies AG and the level of the remuneration paid 
to the individual members of the Management Board and Supervisory Board in accordance 
with the applicable legal requirements and the recommendations of the German Corporate 
Governance Code in the version of June 24, 2014 (Deutscher Corporate Governance Kodex –
“DCGK”). Infineon believes that transparent and understandable reporting of Management 
Board and Supervisory Board compensation represents a fundamental element of good 
corporate governance.
Management Board compensation
Compensation system
The Management Board compensation system – similarly to the compensation paid to the 
individual members of the Management Board – is defined and regularly reviewed by the 
full Supervisory Board on the basis of proposals from the Executive Committee. The compen­
sation paid to the members of the Management Board is intended to reflect the typical level 
and structure of management board compensation at comparable companies in Germany 
and elsewhere, as well as Infineon’s economic position and future prospects. The duties, 
responsibilities and performance of each member of the Management Board are also to be 
considered, as is Infineon’s wider pay structure. This includes considering Management Board 
compensation in relation to the compensation of senior management and of the workforce 
as a whole, including changes in the level of compensation over time. The stated objective is 
that the compensation structure should be designed in such a way that it promotes sustai­
nable business development. Infineon aims to set compensation at a level that is competitive 
both nationally and internationally so as to inspire and reward dedication and success in 
a dynamic environment. 
The regular periodic review of the Management Board compensation system was performed 
by an external independent compensation expert during the 2014 fiscal year, who reached 
the conclusion that the compensation system complies with applicable Stock Corporation Act 
(“AktG”) as well as with the recommendations (“Empfehlungen”) of the DCGK. Details of the 
review of the Management Board compensation system are provided in the following section 
“Review of Management Board compensation; changes to individual service contracts”. 
Components of the Management Board compensation system
The members of the Management Board receive as compensation for their service an annual 
income which – based on a target achievement of 100 percent – comprises approximately 
45 percent fixed compensation and approximately 55 percent variable compensation com­
ponents:
•	 Fixed compensation: The fixed compensation comprises a contractual basic annual 
salary that has no link to performance and is paid in 12 equal monthly installments. 
•	 Variable (performance-related) compensation: The variable compensation comprises 
three components: an annual bonus (short-term incentive), a multiple-year bonus (mid-
term incentive) and a long-term variable compensation component (long-term incentive).
177
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Compensation Report

The short-term incentive (STI) is intended to reward performance over the preceding fiscal 
year reflecting Infineon’s recent progress. Assuming a 100 percent target achievement, the 
STI constitutes approximately 20 percent of target annual income. It is set by the Supervisory 
Board in a two-phase process: 
(i)		 At the beginning of each fiscal year, the target functions with respect to the two key per­
formance indicators “free cash flow” and “Return on Capital Employed (RoCE)” are defined 
uniformly for all members of the Management Board. Underpinning the consistent 
approach taken to managing the business, the same target indicators – supplemented by 
the Segment Result – are used as the basis for determining the variable compensation 
components (bonus payments) for Infineon managers and employees. The two key per­
formance indicators, which are described in more detail in the chapter “Internal Manage­
ment System”, are equally weighted for the purposes of measuring the STI. 
(ii)	 At the end of the fiscal year, the actual levels of target achievement for free cash flow and 
RoCE and, hence the amount of the STI, are determined by the Supervisory Board. 
An STI is paid only if, on the basis of the approved financial statements, the levels of target 
achievement reach at least the 50 percent threshold for both performance indicators (free cash 
flow, RoCE). If one of the two target thresholds is not achieved, no annual bonus is paid for 
the relevant fiscal year. If the thresholds are achieved, the arithmetic mean of the two target 
achievements is calculated, and is used as the percentage rate to determine the actual STI 
amount. A cap of 250 percent applies, meaning that the maximum amount that can be paid is 
two and a half times the target STI (= 100 percent), regardless of the actual achievement level. 
The Supervisory Board may, in addition, increase or reduce the amount to be paid in each 
case by up to 50 percent, as it sees fit, based on the performance of the Management Board as 
a whole, Infineon’s position and any exceptional factors. A lower limit applies in this case such 
that the amount to be paid cannot be less than the amount that would be due given 50 per­
cent target achievement. The upper limit for an upwards adjustment is the cap of 250 percent. 
If the term of office on the Board begins or ends during a fiscal year, the entitlement to STI 
is on a pro-rata monthly basis (one twelfth for each month started). Members of the Manage­
ment Board are not entitled to receive an STI bonus for the fiscal year in which they resign 
from office or terminate their contract of their own volition or if their contract is terminated 
for good cause.
The mid-term Incentive (MTI) is intended to reward sustained performance by the Manage­
ment Board reflecting Infineon’s medium-term progress. In combination with the long-
term incentive, the MTI ensures compliance with the stock corporation law requirement that 
the structure of compensation is “oriented toward sustainable growth of the enterprise”. 
Assuming a 100 percent target achievement, the MTI constitutes approximately 20 percent of 
target annual income. 
A new MTI tranche commences every fiscal year. Each tranche has a term of three years and 
is paid in cash at the end of the term. The amount of the payment is determined on the basis 
of actual RoCE and free cash flow figures during each three-year period. For these purposes, 
the target values for RoCE and free cash flow for each individual year of an MTI tranche 
correspond to the STI targets set each year in advance. The level of target achievement for 
both the RoCE target and the free cash flow target must reach a threshold of 50 percent in 
each year of the relevant three-year period, otherwise the level of target achievement for the 
purposes of the MTI is set to zero for the year concerned. If the thresholds are exceeded, the 
level of target achievement determined for the STI in the relevant fiscal year also applies for 
the purposes of the MTI. The MTI to be paid at the end of the three-year period is determined 
by calculating the arithmetic mean of the three annual target achievement levels. Unlike the 
STI, the MTI is paid as calculated even if the mean level of target achievement for the three-
year period is below the 50 percent threshold. A cap of 200 percent applies, meaning that the 
maximum amount that can be paid is two times the target MTI (= 100 percent), regardless of 
the actual achievement level.
P   see page 80
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
178

The Supervisory Board may increase or reduce the amount to be paid under the MTI in each 
case by up to 50 percent, as it sees fit, based on the performance of the Management Board 
as a whole, Infineon’s situation and any exceptional factors. When exercising its judgment 
in this respect, the Supervisory Board also takes into account the level of achievement of the 
three-year target for revenue growth and Segment Result that is set each year by the Super­
visory Board exclusively for this purpose. Unlike the STI, there is no lower limit for the amount 
by which the Supervisory Board can adjust the MTI; for the upper limit, however, the cap 
applies (200 percent).
If the term of office commences during a fiscal year, the MTI tranche is determined on a pro-rata 
basis (1/36 for each month of a full MTI tranche started). Upon leaving Infineon, regulations 
ensure that the member of the Management Board can only receive an MTI payment for the 
actual number of MTI tranches during his/her term of office. MTI tranches already started are 
forfeited if a mandate or service contract of a member of the Management Board comes to 
an end before the due date, for instance if a member resigns from office or terminates the con­
tractual arrangements of his/her own volition or if the contract is terminated for good cause.
The long-term incentive (LTI) is intended to reward long-term – and like the MTI – sustained 
performance on the part of members of the Management Board and ensure that their interests 
are aligned with the interest of the Company’s shareholders regarding a positive share price 
development. Assuming a 100 percent target achievement, the LTI constitutes approximately 
15 percent of the target annual income of each individual member of the Management Board. 
With effect from the 2014 fiscal year, the LTI is awarded in the form of a Performance Share 
Plan. As well as being relevant for members of the Management Board, the new LTI also 
applies – with minor differences attributable to specific circumstances – to Infineon managers 
and selected Infineon employees worldwide.
The (virtual) performance shares are allocated – initially on a provisional basis – on October 1 
of each fiscal year for the fiscal year beginning on that date. In this context, performance 
shares were issued for the first time on October 1, 2013 for the 2014 fiscal year beginning on 
that date. The performance shares are allocated on the basis of the contractually agreed “LTI 
allocation amount” in euro. The number of performance shares is determined by dividing the 
LTI allocation amount by the average price of the Infineon share (Xetra closing price) during 
the nine months prior to the allocation date. The prerequisite for the definitive allocation 
of the – at that stage still virtual – performance shares is that the relevant member of the 
Management Board invests 25 percent of his/her individual LTI allocation amount in Infineon 
shares and that the holding period of four years applicable both for the member’s own-
investment and for the performance shares has come to an end. Moreover, 50 percent of the 
performance shares are performance-related; they are only allocated definitively if the 
Infineon share outperforms the Philadelphia Semiconductor Index (SOX) between the date 
of the performance shares’ provisional allocation and the end of the holding period. If the 
conditions for definitive allocation of performance shares – either of all or of only those that 
are not performance-related – are met at the end of the holding period, the member of the 
Management Board acquires a claim against the Company for the transfer of the correspond­
ing number of (real) Infineon shares; performance shares which do not achieve the target 
are forfeited. The value of the performance shares definitively granted to the member of the 
Management Board per LTI tranche may not exceed 250 percent of the relevant LTI allocation 
amount; the performance shares above this amount are forfeited (cap). The value of the 
performance shares in conjunction with the cap is calculated on the basis of the closing price 
of the Infineon share in Xetra trading at the end of the holding period; the date on which the 
Infineon shares are transferred is irrelevant for these purposes.
The shares are transferred to a securities custodian account attributable to the member of 
the Management Board; thereafter he/she can freely dispose of them. The same also applies 
to Infineon shares acquired in conjunction with the own-investment requirement at the end 
of the holding period. 
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Compensation Report

The Supervisory Board has the right, at the end of the holding period, to make a cash settle­
ment to the member of the Management Board rather than actually transfer Infineon shares. 
If the member of the Management Board leaves office during the first two years of the holding 
period applicable to the performance shares of a particular LTI tranche, those performance 
shares are forfeited unless the reason for leaving office is that the member of the Management 
Board has reached the contractually agreed age limit. The holding period for the own-invest­
ment shares expires when the member of the Management Board leaves office; at that stage 
the member of the Management Board concerned can freely dispose of the shares. If the 
member of the Management Board leaves office at a later date – except if the member resigns 
from office or terminates the contractual arrangements of his/her own volition or if the contract 
is terminated for good cause –, the LTI tranche (including the own-investment) remains in 
place unchanged. The member of the Management Board is then treated in all respects as if 
he/she were still in office; there is no pro rata reduction due to leaving office early.
The Supervisory Board is required to define suitable alternative LTI instruments of commen­
surate value if it is impossible or not desired by the Supervisory Board to offer an LTI on the 
basis of the Performance Share Plan. 
Prior to the introduction of the Performance Share Plan, the Company maintained a stock 
option plan (“Stock Option Plan 2010”) – resolved at the 2010 Annual General Meeting – as an 
LTI. Based on the terms of this plan, the Supervisory Board has awarded members of the 
Management Board an annual tranche of stock options – most recently in the 2013 fiscal year – 
corresponding in value to the portion of the target annual income attributable to the LTI. 
Any stock options granted are subject as a general rule to the plan conditions applicable to 
employees. Accordingly, a four-year vesting period and a subsequent three-year exercise 
period apply as well as an absolute performance target (minimum increase in Infineon share 
price of 20 percent) and a relative performance target (outperformance of the SOX by the 
Infineon share over a specified time period). If the gain from exercised stock options amounts to 
more than 250 percent of the target annual income attributable to the LTI for the year concerned, 
a number of options will expire such that the gain is reduced to the 250 percent mark (cap).
Additionally, the Supervisory Board has the option to grant a special bonus, among other 
things for special achievements of the Management Board. This bonus is capped, however, at 
a maximum of 30 percent of the fixed compensation of the member of the Management Board.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
180

Management Board compensation in the 2014 fiscal year in accordance with 
German Accounting Standard 17 (DRS 17)
Total compensation
Total compensation to members of the Management Board disclosed pursuant to DRS 17 and 
benefits to the individual members of the Management Board – also presented in accordance 
with DRS 17 – are shown in the following table: 
in € 

Dr. Reinhard Ploss
Chief Executive Officer
Dominik Asam
Chief Financial Officer
Arunjai Mittal
Member of the 
Management Board
Total

 
2014 
2013 
2014 
2013 
2014 
2013 
2014 
2013 
Fixed compensation
 
 
 
 
 
 
 
 
Basic annual salary
945,000
945,000
685,000
685,000
685,000
685,000
2,315,000
2,315,000
Fringe benefits 1
35,909
14,192
40,927
22,624
26,260
12,224
103,096
49,040
Total fixed compensation
980,909
959,192
725,927
707,624
711,260
697,224
2,418,096
2,364,040
 
 
 
 
 
 
 
 
 
Variable compensation
 
 
 
 
 
 
 
 
Single-year variable compensation (STI)
525,000
362,880
385,000
266,112
385,000
266,112
1,295,000
895,104
Multi-year variable compensation
 
 
 
 
 
 
 
 
	
Mid Term Incentive (MTI)
 
 
 
 
 
 
 
 
	
	
Provision for 2011 – 2013 tranche
–
98,632
–
117,505
–
–
–
216,137
	
	
Provision for 2012 – 2014 tranche
128,333
98,663
128,333
98,663
128,333
98,663
384,999
295,989
	
	
Provision for 2013 – 2015 tranche
175,000
134,540
128,333
98,663
128,333
98,663
431,666
331,866
	
	
Provision for 2014 – 2016 tranche
175,000
–
128,333
–
128,333
–
431,666
–
	
Long Term Incentive (LTI)
 
 
 
 
 
 
 
 
	
	
Stock Option Plan 2010  2
–
178,125
–
124,404
–
125,309
–
427,838
	
	
Performance Share Plan  3
247,426
–
172,806
–
172,806
–
593,038
–
Total variable compensation
1,250,759
872,840
942,805
705,347
942,805
588,747
3,136,369
2,166,934
Total compensation
2,231,668
1,832,032
1,668,732
1,412,971
1,654,065
1,285,971
5,554,465
4,530,974
1	The compensation shown under “Fringe benefits” comprises primarily the monetary value of the provision of a company car, life-insurance and and invalidity premiums 
on behalf of members of the Management Board.
2	The figures for the active members of the Management Board in the 2013 fiscal year are based on a fair market value per option of €0.95, which was calculated using 
a Monte-Carlo simulation model taking account of the value-reducing cap.
3	The figures for the active members of the Management Board in the 2014 fiscal year are based on a fair market value per performance share amounting to €5.20, which was 
calculated using a Monte-Carlo simulation model taking account of the value-reducing cap.
Members of the Management Board did not receive any loans from Infineon in the 2014 and 
2013 fiscal years.
Similarly, they did not receive any benefits from third parties in the 2014 and 2013 fiscal years, 
whether promised or actually paid, for their Board activities at Infineon.
Share-based compensation
As described in the section “Management Board compensation”, the contractually agreed 
LTI was granted to members of the Management Board in 2014 for the first time in the form 
of so-called “performance shares”. The average price of the Infineon share relevant for the 
number of performance shares granted for the 2014 fiscal year was €6.62. 
A fair market value of €5.20 per performance share was determined for the 2014 fiscal year, 
taking account – among other things – of the 250 percent cap of the LTI allocation amount. 
Regarding the calculation of the fair market value we refer to note 27 to the Consolidated 
Financial Statements.
Stock options relating to the Stock Option Plan 2010 were issued to members of the Manage­
ment Board for the last time in (and for) the 2013 fiscal year. The number of options granted 
was calculated on the basis of their fair market value. The fair market value figure used to 
determine the number of stock options took no account of the cap applicable to them and 
was consequently equivalent to the fair market value of the options granted by the Company 
to employees under the Infineon Stock Option Plan 2010 (for which no cap applied).
P   see page 239 f.
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Compensation Report

The stock options granted to members of the Management Board were subject to an exercise 
cap of 250 percent of their fair market value at grant date. The cap was calculated using the 
fair market value of an option (€1.68) without any value-reducing limit. 
The following table shows the number of performance shares awarded to members of the 
Management Board in the 2014 fiscal year as well as the number of stock options awarded in 
the previous fiscal year. No stock options were exercised and no stock options expired in the 
2013 or 2014 fiscal years. 
Further details regarding the Performance Shares granted on October 1, 2014 for the 2015 fiscal 
year to the Members of the Management Board are provided in note 27 to the Consolidated 
Financial Statements.
Performance Share Plan
Stock Option Plan 2010
 
 
Virtual performance 
shares newly granted 
at the beginning 
of the fiscal year


Stock 
options 
outstanding 
at the 
beginning 
of the 
fiscal year
Stock 
options 
granted 
in the 
fiscal year

 
Stock 
options 
outstanding 
at the 
end of the 
fiscal year
Stock 
options 
expiered 
in the 
fiscal year

Exercisable 
Stock 
options 
outstanding
at the 
end of the 
fiscal year
Total 
expense 
for share-
based 
compen­
sation
Member of the 
Management Board
Fiscal year

Number
Fair Value 
grant date 
in €
Number
Number
Fair Value 
grant date 
in €
Number
Number
Number
in €
Dr. Reinhard Ploss 
(CEO)
 
2014
47,582 
247,426 
433,214 
–
–
433,214 
–
–
200,285 
2013
–
–
245,714 
187,500 
178,125 
433,214 
–
–
70,766 
Dominik Asam  

 
2014
33,232 
172,806 
350,952 
–
–
350,952 
–
–
141,089 
2013
–
–
220,000 
130,952 
124,404 
350,952 
–
–
50,631 
Arunjai Mittal  1

 
2014
33,232 
172,806 
229,167 
–
–
229,167 
–
–
121,403 
2013
–
–
–
229,167 
217,709 
229,167 
–
–
27,904 
Total

 
2014
114,046 
593,038 
1,013,333 
–
–
1,013,333 
–
–
462,777 
2013
–
–
465,714 
547,619 
520,238 
1,013,333 
–
–
149,301 
1	As agreed between the Compnay and Mr. Mittal, the stock options to which he was entitled as LTI pro rata for the 2012 fiscal year, were not granted until the 2013 fiscal year. 
Accordingly, 98,215 of the share options granted to Mr. Mittal in total in the 2013 fiscal year (fair value at grant date of €92,400) relate to the 2012 LTI.
Special bonuses
The Supervisory Board did not award any special bonuses to members of the Management 
Board during the 2014 fiscal year. 
Other awards and benefits 
The Company entered into a restitution agreement in the 2009 fiscal year with each of the 
active members of the Management Board at that time. Dr. Ploss is the only current member 
of the Management Board affected by such an agreement. These agreements provide for the 
Company to cover, to the extent permitted by law, all costs and expenses incurred by members 
of the Management Board in the performance of their duties for the Company in connection 
with legal, governmental, regulatory and parliamentary proceedings and investigations as 
well as arbitration proceedings, in which the member of the Management Board is involved 
in conjunction with his/her activities on behalf of the Company. However, the agreements 
specifically exclude any restitution of costs if the proceedings concern an action or omission 
that constitutes a culpable breach of the duty of care of the member of the Management Board 
pursuant to section 93, paragraph 2, of the German Stock Corporation Act (“AktG”). 
No payments were made by the Company during the 2014 fiscal year under these restitution 
arrangements.
P   see page 239
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
182

Management Board compensation in the 2014 fiscal year in accordance with 
the German Corporate Governance Code
The DCGK recommends that the individual compensation components of each member of 
the Management Board be disclosed in accordance with specified criteria. It also recommends 
that disclosure is based on the model tables – in part diverging from DRS 17 – provided in the 
appendix to the Code. In order to comply with DCGK requirements, Infineon is not required 
to use the model tables until it prepares its Compensation Report for the 2015 fiscal year. 
Nevertheless, in the interest of better comparability with other companies, the recommended 
model tables are already used in the Compensation Report for the 2014 fiscal year.
Compensation granted in accordance with DCGK
The following table shows the value of compensation granted for the 2013 and 2014 fiscal years, 
including fringe benefits, as well as the minimum and maximum values that can be achieved 
for the 2014 fiscal year. 
Unlike in the disclosures of total compensation in accordance with DRS 17, the STI is required to 
be disclosed pursuant to the DCGK at the target value (i.e., the value in the event of 100 percent 
target achievement). The MTI is required to be disclosed – in a deviation from DRS 17 – at the 
target value for an “average probability scenario” at the grant date. For these purposes, Infineon 
assumes 100 percent target achievement. In addition, the pension expense, i.e., the service 
cost pursuant to IAS 19 (see section “Commitments to the Management Board upon termina­
tion of employment”), is also required to be included in the amount of total compensation 
disclosed in accordance with the DCGK. 
183
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Corporate governance
Compensation Report

Compensation granted to members of the Management Board in accordance with the DCGK 
(total compensation and compensation components) as well as the minimum and maximum 
values that can be achieved are shown in the following table:
in € 
Dr. Reinhard Ploss
Chief Executive Officer
 
2014 
2013 
2014 (min.)
2014 (max.)
Fixed compensation
 
 
 
 
Basic annual salary
945,000 
945,000 
945,000 
945,000 
Fringe benefits
35,909 
14,192 
35,909 
35,909 
Total fixed compensation
980,909 
959,192 
980,909 
980,909 
 
 
 
 
 
Variable compensation
 
 
 
 
Single-year variable compensation (STI)
420,000 
420,000 
– 
1,050,000 
Multi-year variable compensation
 
 
 
 
	
Mid Term Incentive (MTI)
 
 
 
 
	
	
2013 – 2015 tranche
–
420,000 
–
–
	
	
2014 – 2016 tranche
420,000 
–
– 
840,000 
	
Long Term Incentive (LTI)
 
 
 
 
	
	
Share Option Plan 2010
–
178,125 
–
–
	
	
Performance Share Plan 1
247,426 
–
123,713 
787,500 
Total variable compensation
1,087,426 
1,018,125 
123,713 
2,677,500 
Pension expense
149,601 
148,302 
149,601 
149,601 
Total compensation (DCGK)
2,217,936 
2,125,619 
1,254,223 
3,808,010 
1	The figures of the active members of the Management Board in the 2014 fiscal year are based on a fair market value per 
performance share amounting to €5.20, which was calculated using a Monte-Carlo simulation model taking account of the 
value-reducing cap.
Allocation amount in accordance with DCGK 
Since compensation granted to members of the Management Board for the fiscal year does 
not always coincide with amounts disbursed in a particular fiscal year, a separate table is 
presented – in accordance with the relevant DCGK recommendation – showing the amounts 
flowing to members of the Management Board for the 2014 fiscal year (the so-called “allocation 
amount” (“Zufluss”)). 
In line with the DCGK recommendations, the fixed compensation and the STI are required 
to be disclosed as the allocation amount for the fiscal year concerned. In the case of the MTI, 
the DCGK recommends that this is disclosed as flowing to members of the Management Board 
in the fiscal year, in which the plan term of the relevant MTI tranche ends. In this sense, in 
addition to the fixed compensation granted for 2014 and the STI, the allocation amount for 
the 2012 – 2014 MTI tranche also flowed to the members of the Management Board for the 
2014 fiscal year. 
In accordance with the DCGK, share-based payments are deemed to be allocated on the basis 
of the relevant time and value for German tax law purposes. Accordingly, the members of 
the Management Board were not deemed to have been allocated share-based payments in 
either the 2014 or the 2013 fiscal year. 
In line with the DCGK recommendations, the pension expense meaning the service cost 
pursuant to IAS 19 constitutes the allocation amount (see previous table), even though it is 
not – strictly speaking – an allocation.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
184

The total compensation allocated to the individual members of the Management Board 
for the 2014 fiscal year in accordance with DCGK – analyzed by component – is shown in the 
following table:
in € 

Dr. Reinhard Ploss
Chief Executive Officer
Dominik Asam
Chief Financial Officer
Arunjai Mittal
Member of the 
Management Board
 
2014 
2013 
2014 
2013 
2014 
2013 
Fixed compensation
 
 
 
 
 
 
Basic annual salary
945,000 
945,000 
685,000 
685,000 
685,000 
685,000 
Fringe benefits
35,909 
14,192 
40,927 
22,624 
26,260 
12,224 
Total fixed compensation
980,909 
959,192 
725,927 
707,624 
711,260 
697,224 
 
 
 
 
 
 
 
Variable compensation
 
 
 
 
 
 
Single-year variable 
compensation (STI)
525,000 
362,880 
385,000 
266,112 
385,000 
266,112 
Multi-year variable 
compensation
 
 
 
 
 
 
	
Mid Term Incentive (MTI)
 
 
 
 
 
 
	
   2011 – 2013 tranche 1
–
421,344 
–
386,232 
–
–
	
   2012 – 2014 tranche 
333,872 
–
333,872 
–
306,049 
–
	
Long Term Incentive (LTI)
 
 
 
 
 
 
	
   Stock Option Plan 2010
–
–
–
–
–
–
	
   Performance Share Plan
–
–
–
–
–
–
Total variable compensation
858,872 
784,224 
718,872 
652,344 
691,049 
266,112 
Pension expense
149,601 
148,302 
192,780 
211,352 
159,627 
164,978 
Total compensation (DCGK)
1,989,382 
1,891,718 
1,637,579 
1,571,320 
1,561,936 
1,128,314 
1	Mr. Mittal did not participate in the 2011 – 2013 MTI tranche, since he was not appointed to the Board until January 1, 2012.
Dominik Asam 
Chief Financial Officer
Arunjai Mittal 
Member of the Management Board
 
2014 
2013 
2014 (min.)
2014 (max.)
2014 
2013 
2014 (min.)
2014 (max.)
 
 
 
 
 
 
 
 
 
 
685,000 
685,000 
685,000 
685,000 
685,000 
685,000 
685,000 
685,000 
 
40,927 
22,624 
40,927 
40,927 
26,260 
12,224 
26,260 
26,260 
 
725,927 
707,624 
725,927 
725,927 
711,260 
697,224 
711,260 
711,260 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
308,000 
308,000 
– 
770,000 
308,000 
308,000 
– 
770,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
–
308,000 
–
–
–
308,000 
–
–
 
308,000 
–
– 
616,000 
308,000 
–
– 
616,000 
 
 
 
 
 
 
 
 
 
 
–
124,404 
–
–
–
125,309 
–
–
 
172,806 
–
86,403 
550,000 
172,806 
–
86,403 
550,000 
 
788,806 
740,404 
86,403 
1,936,000 
788,806 
741,309 
86,403 
1,936,000 
 
192,780 
211,352 
192,780 
192,780 
159,627 
164,978 
159,627 
159,627 
 
1,707,513 
1,659,380 
1,005,110 
2,854,707 
1,659,693 
1,603,511 
957,290 
2,806,887 
185
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Corporate governance
Compensation Report

Commitments to the Management Board upon termination of employment
Allowances and pension entitlements in the 2014 fiscal year
The members of the Management Board who were in their positions prior to the introduction 
of the new compensation system in 2010 are contractually entitled to a defined benefit pension 
payment. In the 2014 fiscal year, this now only relates to Dr. Ploss, who has an entitlement to 
an annual retirement benefit, currently standing at €200,000 and which increases by €5,000 for 
each full year of service on the Board, up to a maximum amount of €210,000. This entitlement 
is already vested both contractually and under the applicable statutory provisions and is 
secured and financed by the Company in the form of a pension reinsurance policy pledged to 
Dr. Ploss. The pension entitlement is required to be reviewed every three years from the start 
of payment of the pension in accordance with the German Company Pension Act (Betriebs­
rentengesetz) and increased by a percentage equal to the percentage increase in the consumer 
price index for Germany as defined by the German Federal Statistical Office. The Supervisory 
Board may decide to make an amendment as it sees fit, taking account of the needs of the 
recipient and the financial condition of the Company. If Dr. Ploss’s mandate comes to an end, 
payment of the pension entitlement begins at the earliest at the age of 60. 
In accordance with the recommendations incorporated in the new compensation system, 
Mr. Asam and Mr. Mittal – both of whom took up office after the new system had been approved – 
have both received a defined contribution pension commitment essentially identical to the 
Infineon pension plan applicable to all employees (rather than a defined benefit pension 
commitment based on years of service under the old system). The Company has accordingly 
set up a personal pension account (basic account) for each beneficiary and makes annual 
pension contributions to it. The Company adds annual interest to the balance in the basic 
account using the highest statutory interest rates valid for the insurance industry (guaranteed 
interest rates) until disbursement of the pension begins and may also award surplus credits. 
95 percent of any income earned over and above the guaranteed interest rate is credited to 
the pension account, either at the date on which disbursement of the pension begins or, at the 
latest, however, when the beneficiary reaches the age of 60. The balance of the basic account 
when disbursement of the pension begins (due to age, invalidity or death) – increased by 
an adjusting amount in the event of invalidity or death – constitutes the retirement benefit 
entitlement and is paid out to the member of the Management Board or his or her surviving 
dependents in twelve annual installments, or, if so requested by the member of the Manage­
ment Board, in eight annual installments, as a lump sum or as life-long pension. Entitlements 
due to Mr. Asam and Mr. Mittal that have already vested contractually or under the applicable 
statutory provisions are also secured and financed by the Company in the form of pension 
reinsurance policies pledged to the relevant members of the Management Board. 
The plan rules applicable for Mr. Asam and Mr. Mittal differ in terms of the initial defined 
component, the annual transfer to the pension account and the vesting period.
In addition to a one-time, contractually vested initial component of €540,000 paid as compen­
sation for the loss of vested retirement pension entitlements in connection with the termination 
agreement with his previous employer, Mr. Asam will receive from the Company for each 
fiscal year of his membership on the Management Board a pension contribution amounting 
to between 25 and 40 percent, as determined by the Supervisory Board, of the relevant agreed 
basic annual salary i.e., fixed compensation. As in the previous year, the pension contribution 
for Mr. Asam for the 2014 fiscal year has been set at 30 percent of his basic annual salary which 
amounts to €205,500. The pension entitlements arising from the defined contributions made 
on behalf of Mr. Asam became vested with effect from December 31, 2013. 
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
186

Mr. Mittal already has a pension entitlement from his previous employment with Infineon that 
became vested under the applicable statutory provisions in September 2006. The contract 
appointing him to the Board specifically states that the amounts made available to cover 
his vested pension entitlements represent a continuation of this vested entitlement (and are, 
therefore, not subject to any separate vesting arrangements). The Company makes a fixed 
annual pension contribution on behalf of Mr. Mittal for each full fiscal year of service on the 
Board, equivalent to 30 percent of the relevant agreed basic annual salary; the Supervisory 
Board is not required to decide each time on the amount to be contributed. The pension 
contribution for the 2014 fiscal year amounted to €205,500.
The amounts credited to the pension entitlements accounts of Mr. Asam and Mr. Mittal – in 
line with the plan rules applied to Infineon employees – are paid out on or after reaching the 
age of 67, provided the service contract has also ended, or, on request, at an earlier point 
in time if the service contract ends on or after reaching the age of 60. If the beneficiaries elect 
that their pension be paid out in monthly installments, the pension amount is adjusted 
automatically each year in accordance with the Infineon pension plan.
Alongside the annual retirement entitlements and related benefit amounts, the following 
table shows the present values of pension entitlements earned to date and the service cost in 
accordance with IFRS. In accordance with IFRS, the service cost for the current fiscal year is 
determined at the beginning of the fiscal year concerned.
Pension entitlements
in €



Member of the 
Management Board
Fiscal Year




Pension 
entitlements 
(annual) as of 
beginning 
of pension 
period
Benefit 
amounts 
determined 
for the 
relevant 
fiscal year
Present value 
of pension 
and benefit 
entitlement

Service cost 
(earned in the 
current year)


Dr. Reinhard Ploss 
(Chief Executive Officer)
 
2014
200,000 
–
5,287,480 
149,601 
2013
195,000 
–
4,037,092 
148,302 
Dominik Asam

 
2014
–
205,500 
1,836,096 
192,780 
2013
–
205,500 
1,161,739 
211,352 
Arunjai Mittal

 
2014
–
205,500 
3,079,244 
159,627 
2013
–
205,500 
1,859,479 
164,978 
Total

 
2014
200,000
411,000
10,202,820
502,008
2013
195,000
411,000
7,058,310
524,632
187
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Corporate governance
Compensation Report

Early termination of service contract
The service contracts of members of the Management Board include a change of control 
clause, which stipulates the terms that apply when the activities of a member of the Manage­
ment Board are terminated in the event of a significant change in Infineon’s ownership 
structure. A change of control for the purposes of this clause occurs when a third party, 
individually or together with another party, acquires at least 30 percent of the voting rights 
in Infineon Technologies AG as defined in section 30 of the German Securities Acquisition 
and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz –“WpÜG”). Members of the 
Management Board have the right to resign and terminate their contracts within 12 months 
of the announcement of such a change of control and any who choose to do so are entitled 
to continued payment of their annual remuneration up to the end of the originally agreed 
duration of their contract, up to a maximum of 36 months. If Infineon Technologies AG removes 
a member of the Management Board or terminates his or her contract within 12 months of 
the announcement of a change of control, the members of the Management Board concerned 
are entitled to continued payment of the annual remuneration to the end of the originally 
agreed duration of their contract, subject to a minimum period of 24 months and a maximum 
period of 36 months.
The Management Board service contracts otherwise contain no promises of severance pay for 
situations in which contracts are terminated early. 
Payments to former members of the Management Board in the 2014 fiscal year
Former members of the Management Board received total payments of €1,103,977 (primarily 
pension benefits) in the 2014 fiscal year (2013: €1,097,095). As of September 30, 2014, accrued 
pension liabilities for former members of the Management Board amounted to €59,502,832 
(2013: €47,929,138). The increase in accrued pension liabilities for former members of the 
Management Board was due to the reduction in the discount rate from 3.65 percent in the 
preceding fiscal year to 2.40 percent as of September 30, 2014. 
Mr. Bauer did not receive any service fees in the 2014 fiscal year relating to the consultancy 
agreement concluded on November 26, 2012, by him and the Company after prior approval 
by the Supervisory Board.
Review of Management Board compensation; changes to individual service contracts 
Review of Management Board compensation system and individual contracts
In accordance with section 4.2.2 DCGK, the Supervisory Board engaged an external independent 
compensation expert in the 2014 fiscal year to review the appropriateness of the Management 
Board compensation system in place since October 1, 2010. This system had been reviewed 
for the first time during the 2012 fiscal year. In this context, the target annual incomes of each 
individual member of the Management Board were subjected to detailed scrutiny. The next 
review is scheduled to take place in the 2016 fiscal year. 
Increase in Management Board compensation
The review of the individual target annual incomes of the members of the Management 
Board by an independent compensation expert indicated that – in comparison to other 
entities – action needed to be taken especially in the case of Dr. Ploss, and that there was 
also some leeway for moderate increases in the compensation of Mr. Asam and Mr. Mittal. 
In accordance with the recommendation given by the Executive Committee on May 6, 2014, 
the Supervisory Board accordingly resolved a general increase in the compensation of 
members of the Management Board. Overall, compensation was raised by approximately 
14 percent for Dr. Ploss and by approximately 10 percent each for Mr. Asam and Mr. Mittal. 
At the same time, it was decided to raise the fixed compensation and the variable compen­
sation components equally (as far as possible), with the consequence that the previous 
ratio – 45 percent fixed and 55 percent variable – remains in place. The changes to the level 
of compensation came into force with effect from October 1, 2014. 
The increase in compensation had already been considered in the independent compensation 
expert’s report, and did not result in any change in the assessment of the appropriateness of 
the Management Board’s compensation.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
188

Supervisory Board compensation
Compensation structure
The Supervisory Board compensation system was subject to a thorough review in the 2010 
fiscal year and came into force with (retrospective) effect from October 1, 2010, in line with 
a proposal put forward by the Management Board and the Supervisory Board to the Annual 
General Meeting on February 17, 2011. Compensation paid to the Supervisory Board takes 
into account the responsibilities and scope of tasks of the members of the Supervisory Board 
as well as Infineon’s economic position and performance. The compensation due to the 
Supervisory Board in each fiscal year (total compensation) is governed by section 11 of the 
Company’s Articles of Association and comprises three components:
•	 Fixed compensation (basic remuneration) of €50,000. This amount applies to each member 
of the Supervisory Board and is payable within one month of the close of the fiscal year;
•	 a variable compensation component amounting to €1,500 for every €0.01 by which 
earnings per share exceed a minimum threshold of €0.30, where this minimum threshold 
is increased by €0.03 every year, with the first increase taking effect for the fiscal year 
beginning October 1, 2011; the minimum amount, therefore, amounts to €0.39 for the 2014 
fiscal year. The variable compensation component is determined in each case on the basis 
of the basic (undiluted) earnings per share from continuing operations determined in 
accordance with the pertinent financial reporting regulations. The variable compensation 
component is limited to €50,000 per fiscal year. It also applies to each member of the 
Supervisory Board and falls due for payment once the Annual General Meeting following 
the fiscal year to which the compensation relates has ended;
•	 an allowance recognizing the additional work involved in performing certain functions within 
the Supervisory Board: The Chairman of the Supervisory Board receives an allowance of 
€50,000, each Vice-chairman receives an allowance of €37,500, the Chairman of the Invest­
ment, Finance and Audit Committee and the Chairwoman of the Strategy and Technology 
Committee each receive an allowance of €25,000 and each member of a Supervisory Board 
committee – with the exception of the Nomination Committee and the Mediation Commit­
tee – receives an allowance of €15,000. The additional allowance is payable only if the body 
to which the Supervisory Board or committee member belongs has convened or passed 
resolutions in the fiscal year concerned. A member of the Supervisory Board performing more 
than one of the functions indicated receives only the highest single additional allowance 
payable to a member performing the functions concerned. The allowance is paid to the 
relevant holder of office within one month of the close of the fiscal year.
In the event that a member, during a fiscal year, joins (or leaves) the Supervisory Board or one 
of its committees or takes on a Supervisory Board function for which an allowance is paid, 
the relevant compensation components are given on a pro-rata basis.
As part of the total compensation, the Company additionally grants each member of the 
Supervisory Board a meeting attendance fee of €2,000 in respect of each meeting of the 
Supervisory Board or one of its committees attended in person. The meeting attendance fee 
is paid only once in cases in which more than one meeting is held on a given day.
Members of the Supervisory Board, moreover, are reimbursed for all expenses incurred in 
connection with the performance of their Supervisory Board duties and for any value-added 
tax to be charged to them in this connection. The Company also pays any value-added tax 
incurred on their total remuneration (including meeting attendance fees) for the members of 
the Supervisory Board.
189
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Corporate governance
Compensation Report

Compensation of the Supervisory Board for the 2014 fiscal year
The total compensation (including meeting attendance fees) paid to the individual members 
of the Supervisory Board in the 2014 fiscal year comprises the following (these figures do not 
include value-added tax at 19 percent):
Supervisory Board compensation
In €

Member of the 
Supervisory Board
Fiscal year


Fixed 
compen­
sation
Variable
compen- 
sation ¹
Allowance 
for specific 
functions
Meeting 
attendance 
fees
Total 
compen­
sation
Wigand Cramer
2014 
50,000 
7,500 
15,000 
30,000 
102,500 
 
2013 
50,000 
– 
15,000 
24,000 
89,000 
Alfred Eibl
2014 
25,000 
3,750 
7,500 
10,000 
46,250 
(until March 31, 2014)
2013 
50,000 
– 
15,000 
18,000 
83,000 
Reinhard Gottinger
2014 
25,000 
3,750 
–
14,000 
42,750 
(since April 1, 2014)
2013 
–
– 
–
–
– 
Peter Gruber
2014 
50,000 
7,500 
15,000 
22,000 
94,500 
 
2013 
50,000 
– 
15,000 
18,000 
83,000 
Gerhard Hobbach
2014 
50,000 
7,500 
15,000 
20,000 
92,500 
 
2013 
50,000 
– 
15,000 
16,000 
81,000 
Hans-Ulrich Holdenried
2014 
50,000 
7,500 
15,000 
26,000 
98,500 
 
2013 
50,000 
– 
15,000 
22,000 
87,000 
Prof. Dr. Renate Köcher
2014 
50,000 
7,500 
–
14,000 
71,500 
 
2013 
50,000 
– 
–
12,000 
62,000 
Wolfgang Mayrhuber 
2014 
50,000 
7,500 
50,000 
34,000 
141,500 
 
2013 
50,000 
– 
50,000 
28,000 
128,000 
Manfred Puffer
2014 
50,000 
7,500 
–
22,000 
79,500 
 
2013 
50,000 
– 
–
16,000 
66,000 
Gerd Schmidt
2014 
50,000 
7,500 
37,500 
28,000 
123,000 
 
2013 
50,000 
– 
37,500 
24,000 
111,500 
Prof. Dr. Doris 
Schmitt-Landsiedel
 
2014 
50,000 
7,500 
25,000 
18,000 
100,500 
2013 
50,000 
– 
25,000 
18,000 
93,000 
Jürgen Scholz
2014 
50,000 
7,500 
15,000 
22,000 
94,500 
 
2013 
50,000 
– 
15,000 
16,000 
81,000 
Dr. Eckart Sünner
2014 
50,000 
7,500 
25,000 
26,000 
108,500 
 
2013 
50,000 
– 
25,000 
20,000 
95,000 
Total 
2014 
600,000 
90,000 
220,000 
286,000 
1,196,000 
 
2013 
600,000 
–
227,500 
232,000 
1,059,500 
1	Based on earnings per share from continuing operations of €0.44 in 2014 and €0.26 in 2013.
Members of the Supervisory Board did not receive any loans from Infineon either in the 2014 
or 2013 fiscal year.
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GROUP MANAGEMENT REPORT – OUR 2014 FISCAL YEAR 
190

Other matters (2014 fiscal year)
In May 2011 the Company concluded a contract with Prof. Dr. Wucherer, a former member 
of the Supervisory Board. The subject of the contract is the rendering of general and project-
related advisory services to the Strategy and Technology Committee. The agreement was 
terminated with effect from December 31, 2013. The contractually agreed (pro-rata) fee of 
€5,000 was paid in the 2014 fiscal year.
Neubiberg, November 2014
Management Board
Dr. Reinhard Ploss	
Dominik Asam	
	 Arunjai Mittal
191
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Corporate governance
Compensation Report

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
192
CONSOLIDATED 
FINANCIAL 
STATEMENTS

193
GROUP MANAGEMENT REPORT
The infineon group
→
GROUP MANAGEMENT REPORT
Our 2014 fiscal year
→
CONSOLIDATED 
FINANCIAL STATEMENTS
→
194	
CONSOLIDATED STATEMENT OF OPERATIONS
195	
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
196	
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
198	
CONSOLIDATED STATEMENT OF CASH FLOWS
200	
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
202	
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS ﻿

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
194
€ in millions
Notes
2014
2013
Revenue 
 
4,320 
3,843 
Cost of goods sold 
 
(2,673) 
(2,520) 
Gross profit 
 
1,647 
1,323 
Research and development expenses 
 
(550) 
(525) 
Selling, general and administrative expenses 
 
(496) 
(440) 
Other operating income 
7
26 
19 
Other operating expense 
7
(102) 
(52) 
Operating income
 
525 
325 
Financial income 
8
10 
30 
Financial expense 
9
(19) 
(51) 
Gain from investments accounted for using the equity method 
17
3 
2 
Income from continuing operations before income taxes 
 
519 
306 
Income tax
10
(31) 
(23) 
Income from continuing operations 
 
488 
283 
Gain (loss) from discontinued operations, net of income taxes 
4
47 
(11) 
Net income
 
535 
272 
Attributable to:
 
 
 
	
Non-controlling interests
 
–
–
	
Shareholders of Infineon Technologies AG
 
535 
272 
Basic earnings per share (in euro) attributable to 
shareholders of Infineon Technologies AG:
 
 
 
Basic earnings per share (in euro) from continuing operations
11
0.44 
0.26 
Basic earnings per share (in euro) from discontinued operations
11
0.04 
(0.01) 
Basic earnings per share (in euro)
11
0.48 
0.25 
Diluted earnings per share (in euro) attributable to 
shareholders of Infineon Technologies AG:
 
 
 
Diluted earnings per share (in euro) from continuing operations
11
0.44 
0.26 
Diluted earnings per share (in euro) from discontinued operations
11
0.04 
(0.01) 
Diluted earnings per share (in euro)
11
0.48 
0.25 
CONSOLIDATED STATEMENT OF OPERATIONS
for the year ended September 30, 2014 and 2013

195
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended September 30, 2014 and 2013
€ in millions
2014
2013
Net income
535 
272 
Other comprehensive income
 
 
	
Items that will not be reclassified to profit or loss:
 
 
	
	
Actuarial gains (losses) on pension plans and similar commitments
(130) 
20 
Total items that will not be reclassified to profit or loss
(130) 
20 
	
Items that may be reclassified subsequently to profit or loss:
 
 
	
	
Currency translation effects
12 
(12) 
	
	
Net change in fair value of hedging instruments 
43 
(7) 
Total items that may be reclassified subsequently to profit or loss
55 
(19) 
Other comprehensive income (loss) for the year, net of tax
(75) 
1 
Total comprehensive income for the year, net of tax
460 
273 
Attributable to:
 
 
	
Non-controlling interests
–
–
	
Shareholders of Infineon Technologies AG
460 
273

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
196
€ in millions
Notes
2014
2013
ASSETS:
 
 
 
Cash and cash equivalents
 
1,058 
527 
Financial investments
12
1,360 
1,759 
Trade receivables
13
581 
518 
Inventories
14
707 
609 
Income tax receivable
 
7 
12 
Other current assets
15
221 
198 
Total current assets
 
3,934 
3,623 
Property, plant and equipment
16
1,700 
1,600 
Goodwill and other intangible assets
19
250 
170 
Investments accounted for using the equity method
17
35 
34 
Deferred tax assets
10
378 
325 
Other non-current assets
18
141 
153 
Total non-current assets
 
2,504 
2,282 
 
 
 
 
Total assets
 
6,438 
5,905 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as of September 30, 2014 and 2013

197
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Consolidated Statement of Financial Position
€ in millions
Notes
2014
2013
LIABILITIES AND EQUITY:
 
 
 
Short-term debt and current maturities of long-term debt
23
35 
134 
Trade payables
20
648 
569 
Short-term provisions
21
590 
675 
Income tax payable
 
69 
62 
Other current liabilities
22
261 
154 
Total current liabilities
 
1,603 
1,594 
Long-term debt
23
151 
169 
Pension plans and similar commitments
30
379 
246 
Deferred tax liabilities
10
5 
4 
Long-term provisions
21
70 
46 
Other non-current liabilities
24
72 
70 
Total non-current liabilities
 
677 
535 
Total liabilities
 
2,280 
2,129 
Shareholders’ equity:
25
 
 
	
Ordinary share capital
 
2,255 
2,162 
	
Additional paid-in capital
 
5,414 
5,549 
	
Accumulated deficit
 
(3,502) 
(3,907) 
	
Other reserves
 
64 
9 
	
Own shares
 
(37) 
(37) 
	
Put options on own shares
 
(40) 
–
Equity attributable to shareholders of Infineon Technologies AG
 
4,154 
3,776 
Non-controlling interests
 
4 
–
Total equity
 
4,158 
3,776 
 
 
 
 
Total liabilities and equity
 
6,438 
5,905

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
198
€ in millions
Note
2014
2013
 
28
 
 
Net income
 
535 
272 
Plus/minus: net loss (income) from discontinued operations, net of income taxes
 
(47) 
11 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
	
Depreciation and amortization
 
514 
466 
	
Income tax
 
31 
23 
	
Net interest result
 
9 
21 
	
Gains on disposals of property, plant and equipment
 
(2) 
(1) 
	
Dividends received from associated companies
 
1 
–
	
Impairment charges
 
3 
19 
	
Other non-cash result
 
(2) 
(7) 
	
Change in trade receivables
 
(58) 
(48) 
	
Change in inventories
 
(89) 
(44) 
	
Change in trade payables
 
74 
(44) 
	
Change in provisions
 
(29) 
(19) 
	
Change in other assets and liabilities
 
99 
12 
	
Interest received
 
10 
14 
	
Interest paid
 
(9) 
(12) 
	
Income tax paid
 
(52) 
(53) 
Net cash provided by operating activities from continuing operations
 
988 
610 
Net cash used in operating activities from discontinued operations
 
(7) 
(9) 
Net cash provided by operating activities
 
981 
601 
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended September 30, 2014 and 2013

199
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Consolidated Statement of Cash Flows
€ in millions
Note
2014
2013
	
Purchases of financial investments
 
(1,238) 
(1,340) 
	
Proceeds from sales of financial investments
 
1,637 
1,387 
	
Acquisitions of businesses, net of cash acquired
 
(7) 
–
	
Purchases of intangible assets and other assets
 
(101) 
(63) 
	
Purchases of property, plant and equipment
 
(567) 
(315) 
	
Proceeds from sales of property, plant and equipment and other assets
 
4 
3 
Net cash used in investing activities from continuing operations
 
(272) 
(328) 
Net cash used in investing activities from discontinued operations
 
(1) 
(1) 
Net cash used in investing activities
 
(273) 
(329) 
 
 
 
 
	
Net change in related party financial receivables and payables
 
(1) 
(1) 
	
Proceeds from issuance of long-term debt
 
4 
52 
	
Repayments of long-term debt
 
(29) 
(51) 
	
Repurchase of convertible subordinated bonds
 
(35) 
–
	
Change in cash deposited as collateral
 
7 
–
	
Proceeds from issuance of ordinary shares
 
1 
2 
	
Purchases of own shares
 
–
(38) 
	
Proceeds from the issuance of put options on own shares
 
3 
–
	
Dividend payments
 
(129) 
(129) 
Net cash used in financing activities from continuing operations
 
(179) 
(165) 
Net cash used in financing activities from discontinued operations
 
–
–
Net cash used in financing activities
 
(179) 
(165) 
 
 
 
 
Net increase in cash and cash equivalents
 
529 
107 
Effect of foreign exchange rate changes on cash and cash equivalents
 
2 
(5) 
Cash and cash equivalents at beginning of period
 
527 
425 
Cash and cash equivalents at end of period
 
1,058 
527

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
200
€ in millions, except for number of shares




 
Note
Ordinary shares issued
Additional 
paid-in capital



 
Accumulated 
deficit



 
 
 
Shares


 
Amount


 
 
 
25
 
 
 
 
 
Balance as of October 1, 2012
 
1,080,306,332 
2,160 
5,674 
(4,199) 
Net income 
 
–
–
–
272 
 
Other comprehensive income (loss) 
for the period, net of tax
 
–
–
–
20 
Total comprehensive income (loss) 
for the period, net of tax
 
–
–
–
292 
Dividends
 
–
–
(129) 
–
 
Issuance of ordinary shares:
 
 
 
 
 
 
	
Exercise of stock options
 
776,702 
2 
1 
–
 
Share-based compensation
 
–
–
3 
–
 
Purchase of own shares
 
–
–
–
–
 
Put options on own shares
 
–
–
–
–
Balance as of September 30, 2013
 
1,081,083,034 
2,162 
5,549 
(3,907) 
 
 
 
 
 
 
Balance as of October 1, 2013
 
1,081,083,034 
2,162 
5,549 
(3,907) 
Net income
 
–
–
–
535 
 
Other comprehensive income (loss) 
for the period, net of tax
 
–
–
–
(130) 
Total comprehensive income (loss) 
for the period, net of tax
 
–
–
–
405 
Dividends
 
–
–
(129) 
–
 
Issuance of ordinary shares:
 
 
 
 
 
 
	
Exercise of stock options
 
484,260 
1 
–
–
 
	
Exercise of conversion rights
 
46,171,936 
92 
7 
–
 
Share-based compensation
 
–
–
6 
–
 
Put options on own shares
 
–
–
3 
–
 
Other changes in equity
 
–
–
(22) 
–
Balance as of September 30, 2014
 
1,127,739,230 
2,255 
5,414 
(3,502) 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended September 30, 2014 and 2013

201
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Consolidated Statement of Changes in Equity
Other reserves
Own shares 
 
 
 
 
 
Put options on 
own shares 
 
 
 
 
Total equity  
attributable to  
shareholders  
of Infineon  
Technologies AG 
 
Non-controlling 
interests 
 
 
 
 
Total equity 
 
 
 
 
 
Foreign  
currency  
translation 
adjustment 
Unrealized 
gains (losses) 
on securities 
 
Unrealized 
gains (losses) 
on cash  
flow hedge
 
 
 
 
 
 
 
 
 
26 
3 
(1) 
–
(88) 
3,575 
–
3,575 
–
–
–
–
–
272 
–
272 
 
(12) 
–
(7) 
–
–
1 
–
1 
 
(12) 
–
(7) 
–
–
273 
–
273 
–
–
–
–
–
(129) 
–
(129) 
 
 
 
 
 
 
 
 
–
–
–
–
–
3 
–
3 
–
–
–
–
–
3 
–
3 
–
–
–
(37) 
–
(37) 
–
(37) 
 
–
–
–
–
88 
88 
–
88 
 
14 
3 
(8) 
(37) 
–
3,776 
–
3,776 
 
 
 
 
 
 
 
 
 
 
14 
3 
(8) 
(37) 
–
3,776 
–
3,776 
–
–
–
–
–
535 
–
535 
 
12 
–
43 
–
–
(75) 
–
(75) 
 
12 
–
43 
–
–
460 
–
460 
–
–
–
–
–
(129) 
–
(129) 
 
 
 
 
 
 
 
 
–
–
–
–
–
1 
–
1 
–
–
–
–
–
99 
–
99 
–
–
–
–
–
6 
–
6 
–
–
–
–
(40) 
(37) 
–
(37) 
 
–
–
–
–
–
(22) 
4 
(18) 
 
26 
3 
35 
(37) 
(40) 
4,154 
4 
4,158

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
202
NOTES TO THE CONSOLIDATED 
FINANCIAL STATEMENTS
The Infineon Group (“Infineon” or “the Infineon Group”) comprising Infineon Technologies AG (hereafter also “the 
Company”) and its subsidiaries design, develop, manufacture and market a broad range of semiconductors and 
systems solutions. The focus of activities is on automotive electronics, industrial electronics and chip-card based 
security. Infineon products are also used in a wide variety of microelectronic applications, for example in computer 
systems, telecommunications systems and consumer goods. The product range comprises standard components, 
customer-specific solutions for devices and systems, specific components for digital, analog, and mixed-signal 
applications as well as embedded, non-volatile memories. Most of Infineon’s revenue is generated by power 
semiconductors, the remainder by embedded control products (microcontroller designs adapted to the specific 
requirements of the application) and other product categories. Infineon’s operations, investments and customers 
are located mainly in Europe, Asia and North America.
Infineon Technologies AG is a listed company under German law and ultimate parent company of the Infineon Group. 
The principal office of the Company is Am Campeon 1 – 12, 85579 Neubiberg (Germany). The Company is registered 
in the Commercial Register of the District Court of Munich under the number HRB 126492.
1  Basis of the Consolidated Financial Statements
The Consolidated Financial Statements prepared by Infineon Technologies AG as ultimate parent company for 
the year ended September 30, 2014, have been prepared in accordance with International Financial Reporting 
Standards (“IFRS”) and related Interpretations effective as of September 30, 2014 as issued by the International 
Accounting Standards Board (“IASB”) to the extent to which the IFRS and Interpretations have been adopted by the 
European Union (“EU”). The Consolidated Financial Statements also comply with the supplementary requirements 
set forth in section 315a paragraph 1 of the German Commercial Code (“Handelsgesetzbuch” or “HGB”). 
The fiscal year end for Infineon and the Company is September 30.
The requirements of the Standards applied have been complied with in full and convey a true and fair view of the 
financial position, cash flows and results of operations of the Infineon Group.
Infineon’s accounting policies are described in note 2. 
The Consolidated Financial Statements comprise the Consolidated Statement of Operations, Consolidated Statement 
of Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows, 
Consolidated Statement of Changes in Equity and Notes to the Consolidated Financial Statements. The Consolidated 
Statement of Operations is presented using the cost of sales method.
The accounting and valuation policies used, as well as the explanatory comments and disclosures made in the 
IFRS Consolidated Financial Statements for the 2014 fiscal year are based, as a general rule, on those used in the 
Consolidated Financial Statements for the year ended September 30, 2013. 
With effect from October 1, 2013 certain items in the Consolidated Statement of Financial Position and the Consoli­
dated Statement of Cash Flows have been reclassified in order to improve clarity and comparability with other 
companies. The reclassification has also been applied to the comparative periods: 
•	 Other Receivables and Other Payables which were previously disclosed as part of “Trade and other receivables” 
and “Trade and other payables” are shown as “Other current assets” and “Other current liabilities” respectively.
•	 The balance sheet items “Financial assets” and “Financial liabilities” previously disclosed separately are 
included in the line items “Other assets” and “Other liabilities” respectively.

203
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
•	 In the Consolidated Statement of Cash Flows various non-cash components of consolidated net income are 
summarized in the new line item “Other non cash result”. Additionally the line items “Change in other current 
assets/liabilities” has been combined with the line items “Change in other assets and liabilities”.
All amounts herein are shown in euro (or “€”) except where otherwise stated. 
Deviations between amounts presented are possible due to rounding. Negative amounts are presented in parentheses. 
The Company’s Management Board approved the Consolidated Financial Statements for submission to the 
Company’s Supervisory Board on November 20, 2014.
Financial reporting rules applied for the first time
The IASB has issued the following Standards or amendments to Standards, which are required to be applied in 
Consolidated Financial Statements for the year ended September 30, 2014 and which have an impact on Infineon’s 
Consolidated Financial Statements:
•	 “Improvements to IFRS (2011)” (effective date: January 1, 2013). These changes had no significant impact on 
the Consolidated Financial Statements.
•	 Amendment to IFRS 7 “Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities” 
(effective date: January 1, 2013). The amendment required additional disclosures in the Consolidated Financial 
Statements. See note 31.
•	 IFRS 13 “Fair Value Measurement” (effective date: January 1, 2013). This Standard required additional disclosures 
about financial instruments. See note 31.
•	 Amendment to IAS 19 “Employee Benefits” (effective date: January 1, 2013). The change has no significant impact 
on the Consolidated Financial Statements. See note 30 for additional disclosures. Comparative prior year periods 
have not been retrospectively adjusted due to the immaterial effect on the Consolidated Financial Statements.
Financial reporting rules issued not yet adopted
The following new or amended Standards have been issued recently by the IASB and will be relevant to Infineon 
from today’s perspective. They have not been applied in the Consolidated Financial Statements as of September 30, 
2014 since they are not yet mandatory or, alternatively, have not yet been endorsed by the EU. The new or amended 
Standards are applicable for fiscal years beginning on or after their effective date. As a general rule, they are not 
adopted before their effective date, even if this is permitted for certain standards: 
•	 Amendment to IAS 32 “Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities” 
(effective date: January 1, 2014). The application of this revised standard will have no significant impact on the 
Consolidated Financial Statements.
•	 IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements” and IFRS 12 “Disclosure of Interests 
in Other Entities” (effective date: January 1, 2014). The application of these standards will have no significant 
impact on the Consolidated Financial Statements.
•	 Changes to the transitional provisions of IFRS 10, IFRS 11 and IFRS 12 (effective date: January 1, 2014). These 
changes will not have a significant impact on the Consolidated Financial Statements.
•	 IAS 28 “Investments in associates and joint ventures” (effective date: January 1, 2014). This standard will not 
have a significant impact on the Consolidated Financial Statements.
•	 Change to IAS 36 “Disclosure of recoverable amount for non-financial assets” (effective date: January 1, 2014). 
This change will not have a significant impact on the Consolidated Financial Statements.
•	 “Improvements to IFRS (2012)“ (effective date: July 1, 2014). This update will not have a significant impact on 
the Consolidated Financial Statements.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
204
•	 “Improvements to IFRS (2013)“ (effective date: July 1, 2014). This update will not have a significant impact on 
the Consolidated Financial Statements.
•	 Change to IFRS 11 “Acquisition of interests in joint operations” (effective date: January 1, 2016). This change 
will not have a significant impact on the Consolidated Financial Statements.
•	 Changes to IAS 16 and IAS 38 “Clarification of acceptable methods of depreciation and amortization” (effective 
date: January 1, 2016). This change will not have a significant impact on the Consolidated Financial Statements.
•	 IFRS 15 “Revenue from contracts with customers” (effective date: January 1, 2017). Infineon is currently 
analysing the impact on the Consolidated Financial Statements.
•	 IFRS 9 “Financial Instruments” (effective date: January 1, 2018). Infineon is currently analysing the impact on 
the Consolidated Financial Statements.
2  Summary of significant accounting policies
The Consolidated Financial Statements have been drawn up using the following consolidation, accounting and 
valuation principles:
Basis of consolidation
The accompanying Consolidated Financial Statements include the financial statements of Infineon Technologies AG 
and its direct and indirect subsidiaries on a consolidated basis. A subsidiary is defined as an entity which, directly 
or indirectly, is controlled by Infineon Technologies AG. Control is the possibility to govern the financial and 
operating policies of an entity so as to obtain benefits from its activities. An indication of this is the control of the 
majority of voting rights; in this context, any potential voting rights must also be taken into account for the 
purposes of assessing control. 
An entity is included in the Consolidated Financial Statements from the date on which Infineon acquires the right 
to control the entity concerned (acquisition date). Upon first-time consolidation of an entity, the acquired assets 
and liabilities are measured on the basis of their fair value at the acquisition date. Any excess of cost of acquisition 
of the entity over the share of the fair value of acquired assets, liabilities and contingent liabilities is recognized 
as goodwill. Any excess of Infineon’s share of the fair value of items acquired over cost of acquisition is recognized 
as a gain.
The financial statements of entities included in the Consolidated Financial Statements are prepared using uniform 
valuation and accounting policies. The effect of intragroup transactions on assets and liabilities as well as gains 
and losses arising from intragroup relationships are eliminated on consolidation. 
Infineon deconsolidates a subsidiary when it loses control over the financial and operating policies of the entity 
and no longer benefits from the entity’s activities. Examples of the loss of control are the full or partial sale of shares 
in a subsidiary, the relinquishing of voting rights or the opening of insolvency proceedings against the subsidiary. 
A list of subsidiaries of Infineon Technologies AG is provided in note 36.
Investments accounted for using the equity method
Investments in associated companies and joint ventures (as defined below) are accounted for using the equity 
method principles (collectively: “Investments Accounted for Using the Equity Method”). 
(a) Associated companies
An “associated company” is an entity in which Infineon has significant influence, but not a controlling interest, over 
the operating and financial policy decisions of the entity. Significant influence is generally presumed when Infineon 
holds between 20 percent and 50 percent of the voting rights.

205
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
(b) Joint ventures
A “joint venture” is a contractual arrangement whereby two or more parties undertake an economic activity that is 
subject to joint control. 
Equity method
Based on the cost of investment at the date of acquisition of an interest in an associated company or joint venture, 
the carrying amount of the investment is increased or decreased at each subsequent reporting date for the share 
of profits or losses, dividends paid and other changes in equity of the associated company or joint venture, to the 
extent that they relate to Infineon’s share of the investment. 
Goodwill arising from the acquisition of an associated company or joint venture is included in the carrying amount 
of the investment (net of accumulated impairment losses). Impairment losses in excess of the carrying amount of 
the investment in the entity are charged against other assets held related to the investment, such as intercompany 
loans or other receivables. If the carrying amount of the investment and of other assets related to the investment 
is written down to zero, it must be determined whether there are additional losses to be recognized, to the extent 
that Infineon has an obligation to fund such losses.
Gains and losses on transactions with entities in which Infineon has an investment accounted for using the equity 
method are eliminated in proportion to Infineon’s interest in the entity.
When an equity method investee’s fiscal year end differs by no more than three months from the Company’s fiscal 
year end, the Company’s share of the profit or loss of the respective company is recognized with a time lag.
Other equity investments
Other equity investments, where Infineon has an ownership interest of less than 20 percent, are recorded 
at acquisition cost less any necessary write-downs for impairment if a fair value cannot be reliably determined. 
Reporting currency and foreign currency translation
The currency of the primary economic environment in which an entity operates and normally generates and 
expends cash is considered to be the functional currency of that entity. The functional currency of Infineon 
Technologies AG is the euro. The Consolidated Financial Statements have been prepared in euros. As a rule the 
functional currency of foreign subsidiaries corresponds either to the local currency or the euro.
Foreign currency transactions are translated into the functional currency of the relevant entity using the exchange 
rates prevailing at the transaction date. Monetary assets and liabilities which are not denominated in the functional 
currency of the reporting entity are translated at the closing exchange rate prevailing at the end of the relevant 
reporting period. Exchange rate gains and losses from the currency translation are recognized in the Consolidated 
Statement of Operations as part of the operating result.
The assets and liabilities of foreign subsidiaries with functional currencies other than the euro are translated into 
euros using period-end exchange rates. Income and expenses of these entities are translated using the average 
exchange rate for the period under report. All cumulative differences arising from the currency translation of the 
equity in foreign subsidiaries arising from changes to exchange rates are recognized directly in equity as a separate 
component of “Other Reserves”.
The exchange rates of the primary currencies (€1.00 quoted in currencies specified below) used in the preparation 
of the accompanying Consolidated Financial Statements are as follows:
€1 in units of foreign currency 
Closing rate
Annual average exchange rate
 
September 30, 2014
September 30, 2013
2014
2013
Japanese yen
138.9300 
133.4100 
139.0405 
121.0254 
Malaysian ringgit 
4.1518 
4.3391 
4.3830 
4.1016 
Singapore dollar
1.6189 
1.6947 
1.7025 
1.6359 
US dollar
1.2732 
1.3499 
1.3539 
1.3119

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
206
Recognition and measurement princIples 
The following table summarizes the principal measurement bases used in the preparation of the Consolidated 
Financial Statements:
Balance sheet item
Measurement principle
Assets
 
Cash and cash equivalents
Nominal amount
Financial investments
Fair value/amortized cost
Trade receivables
Amortized cost
Inventories
Lower of acquisition or production cost and net realizable value
Assets classified as held for sale
Lower of carrying amount and fair value less costs to sell
Property, plant and equipment
Amortized acquisition or production cost
Goodwill
Impairment-only approach
Intangible assets (except goodwill):
 
	
with finite useful life
Amortized acquisition or production cost
	
with indefinite useful life
Impairment-only approach
Other assets (current and non-current):
 
	
Other financial assets:
 
	
	
Loans and receivables
Amortized cost
	
	
Available-for-sale
Fair value directly through equity
	
	
Measured at fair value through profit or loss
Fair value through profit or loss
	
	
Designated cash flow hedges
Fair value directly through equity
	
Remaining other assets 
Amortized cost
 
 
Equity and liabilities
 
Trade payables
Amortized cost
Debt
Amortized cost
Provisions
 
	
Pensions
Projected unit credit method
	
Other provisions
Expected settlement amount
Other liabilities (current and non-current):
 
	
Other financial liabilities:
 
	
	
Measured at fair value through profit or loss
Fair value through profit or loss
	
	
Designated hedging instruments
Fair value directly through equity
	
	
Other financial liabilities
Amortized cost
	
Remaining other liabilities 
Amortized cost
Put options on own shares
Present value of nominal amount at date of issue
Own shares 
Acquisition cost
 
Cash and cash equivalents
Cash and cash equivalents represent cash and all financial resources with a maturity at acquisition date of three 
months or less, and are measured at their nominal amount.
Financial instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability and/or 
equity instrument of another entity. Financial instruments containing both equity and liability elements (for example 
convertible bonds which give the holder the right to convert the bond into shares of the company), are required 
to be evaluated in accordance with IAS 32, “Financial Instruments: Presentation” and, where necessary, divided 
into their equity and liability components.
Financial instruments are initially recognized at their fair value. Transaction costs directly attributable to the 
acquisition or issuance of financial instruments are only included in the carrying amount if the financial instruments 
are not measured at fair value through profit or loss.

207
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Regular purchases and sales of financial assets are recognized on the basis of the settlement date. The settlement 
date is the date on which an asset is delivered to or by Infineon.
Financial assets are derecognized when the rights to receive payments from the investments have expired or 
have been transferred and Infineon has transferred all risks and rewards of ownership. Financial liabilities 
are derecognized when they are extinguished, that is when the obligation specified in the respective contract is 
discharged, cancelled or expired.
Infineon classifies financial assets into the following categories: “Loans and receivables”, “Available-for-sale financial 
assets” and “Financial assets measured at fair value through profit and loss”. No financial assets were classified 
as “Assets held-to-maturity” in the fiscal years 2014 and 2013. “Designated hedging instruments (cash flow hedges)” 
also belong to financial assets.
Infineon classifies financial liabilities into the following categories: “Financial liabilities measured at fair value 
through profit and loss” and “Other financial liabilities”. Furthermore, “Designated hedging instruments (cash flow 
hedges)” belong to financial liabilities. 
The classification of a financial asset or financial liability to one of the categories listed above is determined on 
initial recognition of the relevant item.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted 
in an active market. At Infineon the balance sheet items “Cash and cash equivalents”, “financial investments”, 
“trade receivables” and “current and non-current other assets” all contain financial assets which are classified in 
the category loans and receivables. 
Loans and receivables are measured on initial recognition at their fair value plus incidental acquisition costs. 
Subsequently, they are measured at amortized cost using the effective interest method. Loans and receivables are 
tested for impairment. They are considered to be impaired when there is objective evidence that Infineon will not 
be able to collect all amounts contractually due. Objective evidence that indicates impairment would include, for 
example, known financial difficulties or the insolvency of a debtor resulting in the recognition of a corresponding 
allowance which is recorded as an expense in profit or loss. When a payment default becomes certain, for example 
in the case of insolvency proceedings or a voluntary settlement agreement, such loans and receivables are 
considered to be uncollectible and derecognized along with the previously recognized allowance. 
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative assets that are either designated as available for sale, or not 
allocated to any of the other categories. They comprise principally marketable securities and are reported as 
“Financial investments” (see note 12).
Upon acquisition, available-for-sale financial assets are measured at fair value taking into account transaction 
costs. Subsequently they are measured at their fair value at the end of the relevant reporting period. Transaction 
costs relating to the acquisition of available-for-sale financial assets with a finite term and fixed or determinable 
payments are capitalized and recognized in the Consolidated Statement of Operations using the effective interest 
method. Changes in the fair value of available-for-sale financial assets are recognized directly in equity. If the fair 
value is permanently or significantly lower than the amortized cost, an impairment loss is recognized through 
profit or loss. 
Infineon assesses declines in fair value to determine whether a financial asset or group of financial assets is 
impaired. In the case of available-for-sale financial assets, a significant or prolonged decline in the fair value of 
the financial asset below its acquisition cost is considered as an indicator that the assets are impaired. If any such 
evidence exists, the cumulative loss that had been recognized directly in equity - measured as the difference 
between the acquisition cost and the current fair value, less any impairment loss previously recognized in profit 
or loss - is removed from equity and recognized in profit or loss.

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208
When financial assets classified as available-for-sale are sold, the accumulated fair value adjustments previously 
recognized in equity are reclassified to profit or loss.
Financial assets or liabilities measured at fair value through profit or loss
At Infineon financial assets or liabilities measured at fair value through profit or loss comprise almost entirely 
derivatives used to hedge currency risks for which hedge accounting is not applied.
Derivative financial instruments are categorized as held for trading and measured at fair value through profit or loss 
unless they are designated as hedging instruments and hedge accounting is applied. All fair value gains and losses 
are recognized through profit or loss. Changes in the fair value of undesignated derivative financial instruments 
that relate to operating activities are recorded as part of cost of goods sold, while those of undesignated derivative 
financial instruments relating to financing activities are recorded in financial income or financial expense.
All financial instruments in this category are measured at the value at the trading date. Derivative financial 
instruments with a positive fair value at the end of the reporting period are reported as “Other current assets” 
and those with a negative fair value at the end of the reporting period are reported as “Other current liabilities”. 
Infineon had no derivative financial instruments with a remaining term of more than 12 months in place as of 
September 30, 2014 and 2013.
Designated hedging instruments (cash flow hedges)
Certain derivative financial instruments are used to hedge expected highly probable future foreign currency risks or 
risks of commodity price changes (such as gold prices) in order to minimize the associated risk (cash flow hedges).
Derivative financial instruments are measured at their fair value and included in “Other current assets” or “Other 
current liabilities”.
The effective portion of changes in the fair value of derivative financial instruments that are designated as cash 
flow hedges and are part of hedging relationships that meet the criteria for hedge accounting is recognized directly 
in equity. “Effective” is the degree to which changes in the fair value or cash flows of the hedged items that are 
attributable to a hedged risk are offset by changes in the fair value or cash flows of the hedging instrument. The 
gain or loss relating to the ineffective portion is recognized immediately in profit or loss. Amounts accumulated in 
equity are recycled in profit or loss in the periods in which the underlying hedged item affects profit or loss.
When a hedging instrument expires or is sold, or when a hedging relationship no longer meets the criteria for 
hedge accounting, any cumulative gain or loss existing at that time remains in equity until the underlying 
transaction actually occurs. When a forecasted transaction is no longer expected to occur, the cumulative gain or 
loss that was reported in equity is immediately transferred to profit or loss.
Other financial liabilities
All other financial liabilities are measured at amortized cost using the effective interest method. This also applies 
to obligations in conjunction with the put options issued by the Company on own shares and the debt component 
of compound financial instruments such as the subordinated convertible bond issued by Infineon which became 
due in May 2014.
Compound financial instruments
Compound financial instruments issued by Infineon comprise convertible bonds which became due in May 2014, 
which gave the holder the right to exchange the bonds for shares in Infineon (see note 23), the number of underlying 
shares is fixed and does not vary in relation to the shares’ fair value.

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INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
The liability component of such a compound financial instrument is recognized upon issuance as a liability 
measured at the fair value of a comparable liability without a conversion option. The conversion right component 
is classified as an equity instrument. It is recognized within equity upon issuance of the compound financial 
instrument measured at an amount corresponding to the difference between the fair value of the entire instrument 
and the fair value of the debt component. On initial recognition of the instrument, directly attributable transaction 
costs are allocated to the equity and debt components in proportion to their book values. 
The liability component is measured at amortized cost using the effective interest method, whereas the equity 
component remains unchanged during the term of the compound financial instrument.
In the event that the compound financial instrument is redeemed before its due date, the consideration paid is 
allocated to the equity and debt components. The difference at redemption date between the carrying amount 
of the liability component and the fair value of a comparable liability without the conversion right is recognized 
as interest expense or income in profit or loss. The difference between the consideration paid and the fair value 
of a comparable liability without the conversion right results in an increase or reduction in equity (additional 
paid-in capital).
Put options on own shares
Put options issued by the Company on its own shares are reported as “Obligation to acquire own shares” within 
other current liabilities provided settlement must occur by the delivery of a fixed number of shares in return for a 
fixed payment specified in advance. The obligation is recognized at the date of issue of the put option, measured 
at the present value of the amount expected to settle the option. A corresponding amount is recognized as a 
reduction of equity, reported within equity as “Put options on own shares”. The option premium received on the 
issue of the put options is recognized as additional paid-in capital. The liabilities are recognized on an accruals 
basis, with the accrued interest recorded as an interest expense. The liability is extinguished when the put options 
are exercised, at which point the corresponding amounts are reclassified within equity from “Put options on own 
shares” to “Own shares”. If the put option lapses, the amounts previously recognized as a reduction of equity and 
as a liability are derecognized. 
Inventories
Inventories encompass assets to be consumed in the production process or in the rendering of services (raw 
materials and supplies), in the production process at the balance sheet date (work in progress), or held for sale in 
the ordinary course of business (finished and purchased goods). 
Inventories are measured at the lower of acquisition or fully absorbed production cost – calculated using the 
weighted-average method – and net realizable value. Net realizable value corresponds to realizable sale proceeds 
under normal business conditions less estimated costs to complete and sell. Production cost comprises costs 
of material, production wages and an appropriate portion of attributable overheads, including depreciation and 
amortization on property, plant and equipment and intangible assets. Overhead mark-ups are determined on the 
basis of normal capacity utilization levels. 
Write-downs are recorded on inventories using a consistent approach throughout Infineon and are determined 
at product level for obsolete and slow-moving inventories on the basis of the amount of revenues expected to be 
generated by the relevant product. 
Current and deferred income taxes
The current income tax expense is calculated in accordance with taxation provisions in force at the end of the 
reporting period in the countries in which Infineon operates.
Deferred taxes are calculated on temporary differences between the tax base and the book value of assets and 
liabilities, and on tax losses available for carry-forward. By contrast, no deferred tax is recognized on goodwill 
arising in connection with business combinations. Similarly, deferred taxes are not recognized on the initial 
recognition of an asset or liability in connection with a transaction that is not a business combination and which, 
at the time of the transaction, affects neither the pre-tax income according to IFRS nor taxable profit. Deferred 
tax assets and liabilities are measured using applicable tax rates and laws that have been enacted by the end of 
the reporting period or are about to be enacted, when the related deferred tax asset is realized or the deferred 
tax liability is settled.

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CONSOLIDATED FINANCIAL STATEMENTS
210
Deferred tax assets in respect of deductible temporary differences and tax loss carry-forwards which exceed 
deferred tax liabilities in respect of taxable temporary differences, are only recognized to the extent that it is 
probable that the relevant Group entity can generate sufficient taxable profit to realize the corresponding benefit. 
Infineon reviews deferred tax assets for impairment at every reporting date. The assessment requires management 
to make assumptions about future taxable profits as well as other positive and negative influencing factors.
Deferred tax assets and liabilities are netted to the extent they relate to the same tax authority and to the same 
taxpayer or a group of different taxpayers who are jointly assessed for income tax purposes.
Income taxes are recognized in the Consolidated Statement of Operations, with the exception of income taxes 
relating to items recognized directly in equity or in Other Comprehensive Income.
For uncertain tax positions additional tax provisions are recorded or, in case of tax losses carried forward, deferred 
tax assets are reduced accordingly. The assessment of uncertain tax positions is based on best estimate.
Discontinued operations
Discontinued operations are reported when a component of an entity is either classified as held for sale or has 
already been disposed of. The component of an entity must be either (a) a separate major line of business or 
geographical area of operations, (b) part of a single coordinated plan to dispose of a separate major line of business 
or geographical area of operations or (c) a subsidiary acquired exclusively with a view to resale. 
Discontinued operations are presented as separate line items in the Consolidated Statement of Operations 
and Consolidated Statement of Cash Flows. The line item “Income/loss from discontinued operations, net of 
income taxes” includes the results of operating activities as well as gains and losses on the disposal of discontin­
ued operations.
Prior year figures in the Consolidated Statement of Operations and Consolidated Statement of Cash Flows 
are restated so that they correspond to those that have been classified as discontinued operations as of the 
reporting date.
Assets and liabilities held for sale 
“Assets held for sale” can be non-current assets or groups of assets (for example assets of a subsidiary held for 
sale or assets related to discontinued operations), the carrying amounts of which will be realized primarily by way 
of a highly probable divestment transaction within the next twelve months or an already executed divestment 
transaction, and not through continued use. Assets held for sale are reported in the Statement of Financial Position 
as a separate line item within current assets. Liabilities disposed of in a transaction together with assets held 
for sale are reported separately in the liabilities and equity section of the Statement of Financial Position, within 
current liabilities, as “Liabilities held for sale”.
Non-current assets classified as held for sale are no longer depreciated on a scheduled basis. Instead, they are 
measured at the lower of carrying amount or fair value less costs to sell at the end of the reporting period. 
No assets held for sale or liabilities held for sale were reported in the Statement of Financial Position in the 2014 
and 2013 fiscal years.
Property, plant and equipment
Property, plant and equipment are measured at amortized acquisition or construction cost, and its value is 
reduced by scheduled depreciation as well as, where necessary, impairments. 
The cost of acquisition comprises the acquisition price plus incidental acquisition costs, and subsequent 
acquisition costs, less any reduction received on the acquisition price. The cost of self-constructed equipment 
comprises direct costs as well as appropriate allocations of material and manufacturing overheads.

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INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Where an obligation exists to dismantle or remove an asset or restore a site to its former condition at the end of its 
useful life, the present value of the related future payments is capitalized along with the cost of acquisition or 
construction at the point of purchase or completion, and the entire asset is depreciated over its estimated useful life. 
A liability is recognized for the same amount, the carrying amount of which is increased in future periods by 
compounding the interest component.
If the construction phase of property, plant or equipment extends over more than 12 months, the interest 
incurred on related borrowed capital up to the date of completion is capitalized as part of the cost of acquisition 
or construction in accordance with the requirements of IAS 23 “Borrowing Costs”. No interest was capitalized in 
the fiscal years ended September 30, 2014 and 2013.
Ongoing expenses for the maintenance and repair of property, plant and equipment are generally recognized 
in profit or loss as they occur. Subsequent acquisition or construction costs are capitalized if a measure (such as 
a complete overhaul of technical equipment) will result in significant additional future economic benefits.
Property, plant and equipment is depreciated using the straight-line method. Land, property rights and construction 
in progress are not depreciated. Depreciation on property, plant and equipment is based on the following useful 
lives, as applied consistently throughout Infineon:
 
Years
Buildings
10 – 25
Technical equipment and machinery
3 – 10
Other plant and office equipment
1 – 10
Impairment losses are recognized to take account of declines in value that go beyond the regular use-related 
decline in value represented by depreciation and are expected to be permanent. Corresponding reversals are made 
when the reasons for previous impairments no longer exist, provided that the reversal does not cause the carrying 
amount to exceed amortized acquisition or construction cost. 
When assets are sold, decommissioned or scrapped, the difference between the net proceeds and the carrying 
amount of the assets is recognized as a gain or loss in other operating income or expenses.
Infineon does not apply the revaluation model as described in IAS 16 “Property, Plant and Equipment”.
Investment properties
Infineon does not own any investment properties and therefore does not apply IAS 40 “Investment Properties”.
Leases
Infineon is a lessee of property, plant and equipment. In the case of operating lease contracts, the costs of leasing 
an asset are spread on a straight-line basis over the term of the lease arrangement. All leases where Infineon 
as lessee meets certain requirements which indicate beneficial ownership are accounted for as finance leases 
pursuant to IAS 17 “Leases”. This is the case when substantially all of the risks and rewards of ownership of the 
asset are transferred to Infineon as lessee. 
Recoverability of intangible assets and other long-lived assets
Goodwill 
Goodwill is an asset that represents the future economic benefits arising from assets acquired in a business combi­
nation that are not individually identified and separately recognized. Goodwill is the excess of the acquisition cost 
of a business over the net fair value of acquired, separately identifiable assets, liabilities and contingent liabilities 
at the date of acquisition. Goodwill arising from acquisitions of businesses is reported in the line item “Goodwill 
and other intangible assets” in the Consolidated Statement of Financial Position. Separately identifiable intangible 
assets acquired in a business combination are recognized and reported separately from goodwill.

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CONSOLIDATED FINANCIAL STATEMENTS
212
Goodwill acquired in a business combination is allocated to the cash-generating units (CGUs) that will benefit from 
the synergies generated by the business combination. This level is beneath the segment level and represents the 
smallest group of assets that generate cash inflows from continuing activities that are largely independent of the 
cash inflows of other assets or asset groups (see the following table regarding the allocation of goodwill to CGUs). 
Acquired goodwill is not systematically amortized. Instead, it is tested for possible impairment annually in 
the fourth quarter of the fiscal year and, additionally, whenever there are events or changes in circumstances 
(triggering events) that indicate that the carrying amount may not be recoverable. The impairment test for good­
will is performed at the CGU level. The recoverable amount is the higher of the fair value less costs to sell and the 
value in use. If the carrying amount of the respective CGU including allocated goodwill exceeds the recoverable 
amount, then the goodwill must be written down accordingly. Such impairments cannot be reversed in a subsequent 
period. The determination of the recoverable amount requires a significant degree of management estimates 
and assumptions. 
Infineon determines the recoverable amount of a particular CGU on the basis of its value in use as long as this is 
higher than its carrying amount. The value in use is measured by estimating the future cash flows that will be 
generated by the continuing operations of the CGU and using an appropriate interest rate to discount these expected 
future cash flows. 
Cash flows are projected based on past experience, current operating results and the five-year strategic business 
plan approved in the fourth quarter of the fiscal year. The plan is calculated bottom-up based on certain central 
assumptions applied consistently throughout Infineon. Certain additional parameters (for example depreciation/
amortization, investments in fixed assets, change in working capital) are calculated based on defined influencing 
factors. Cash flows for periods beyond the planning horizon are estimated using a terminal value. Terminal growth 
rates are derived from publicly available market studies from market research institutes and do not exceed the 
historical long-term average growth rate for the sector in which the relevant CGU operates. 
The discount rate is based on the weighted average cost of capital (WACC) after-tax for the CGU in question. 
The Capital Asset Pricing Model (CAPM) is used to calculate the cost of equity. The relevant pre-tax WACC used to 
discount future pre-tax cash flows in line with IAS 36, is derived from estimated future after-tax cash flows and 
the after-tax WACC. The resulting discount rate reflects the current market rate of return as well as the specific risks 
attached to each CGU. In accordance with IAS 36, Infineon determines the appropriate WACC based on market 
information, the risk-free interest rate is derived from yields on long-term government bonds, and the beta factor 
is derived from a group of comparable companies that have a comparable risk structure to the CGU, taking into 
account leverage.
The following table shows the allocation of the carrying amount of goodwill to cash generating units, as well as the 
valuation parameters used.
CGU within segment
Book value of 
allocated goodwill
€ in millions
pre-tax WACC

in %
after-tax WACC

in %
terminal growth rate

in %
2014
2013
2014
2013
2014
2013
2014
2013
Industrial Power Control
4
n/a 
13.1
n/a 
10.3
n/a 
1
n/a 
Power Management 
& Multimarket
19
19
12.4
17.7 
10.2
12.3 
1
1 
Other
2
2
 
 
 
 
 
 
Total
25
21

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INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
By applying different parameters that Infineon considers to be possible but not probable, sensitivity analyses are 
performed on the WACC and terminal growth rate. In this way, Infineon takes account of the inherently uncertain 
nature of estimates and carries out impairment tests on goodwill based on scenarios that are less favorable than 
those considered most likely. The recoverability of goodwill was confirmed for each of these scenarios. An increase 
or decrease of 1 percent in either the WACC or the terminal growth rate had no effect on the value of goodwill. 
Until the approval of the Consolidated Financial Statements, the validity of the results was continually monitored 
for triggering events that indicate that the recoverable amount had fallen below the book value.
Other intangible assets
Other intangible assets consist primarily of purchased intangible assets, such as licenses and technology, which 
are measured at acquisition cost, as well as capitalized development costs. These intangible assets have finite 
useful lives ranging from three to ten years and their acquisition costs or costs to produce are amortized using the 
straight-line method. For the criteria used to capitalize development costs see “Research and development costs”.
Infineon did not hold any other intangible assets with indefinite useful lives in either the 2014 or 2013 fiscal years.
Other long-lived assets
Infineon reviews long-lived assets, including property, plant and equipment, for possible impairment whenever 
events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The 
recoverability of used assets is measured by comparing the carrying amount of the asset with its recoverable 
amount. The recoverable amount of an asset is defined as the higher of its fair value less costs to sell and its value 
in use. The value in use is generally calculated based on discounted future cash flows of the CGU to which the 
asset is allocated. Considerable management judgment is necessary to estimate future cash flows. 
If such assets are considered to be impaired, the impairment recognized is measured as the amount by which 
the carrying value of the assets exceeds their recoverable amount. An impairment loss recognized in prior periods 
for an asset other than goodwill is reversed insofar as, since the last impairment, a change in the underlying 
assumptions has occurred which leads to a lower impairment requirement. The maximum possible reversal of an 
impairment loss would lead to the carrying amount that would have been determined (net of depreciation and 
amortization) if no impairment loss had been recognized for that asset in prior years.
Pensions and similar obligations
Infineon provides benefits to most of its employees for the period after they have retired, either directly or 
as a result of payments to private and public institutions. The benefits provided differ according to the legal, 
economic and tax circumstances prevailing in each country and are mostly dependent on the length of service 
and the salary of the employee concerned. The occupational pension plans include both defined contribution and 
defined benefit plans. 
In the case of defined contribution plans, Infineon pays pre-determined amounts based on statutory or contractual 
regulations to a separate entity (a fund) or to public or private pension insurance companies. Once the contributions 
are paid, Infineon has no further performance obligation. The contributions are recognized as expense in the year 
in which they fall due and are included in costs by function within the operating result. Liabilities are recorded 
where payment obligations exist for the various defined contribution plans. Prepaid contributions are recognized 
as an asset to the extent that a cash refund or a reduction of future payments is available.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
214
All other plans that do not fall under the definition of a defined contribution plan are accounted for as defined 
benefit plans. These relate to the commitments to pay vested rights and current benefits to eligible present and 
former employees and their dependants. The obligations relate to retirement pensions. The liability recognized in 
respect of defined benefit pension plans is the present value of the defined benefit obligation (DBO) at the end 
of the reporting period less the fair value of the plan assets, together with adjustments for past service costs. The 
present value of the DBO and resulting pension cost are determined in accordance with IAS 19 “Employee Benefits” 
annually for each separate plan by independent, qualified actuaries using the projected-unit-credit method. For 
the calculation, actuarial procedures are applied for which it is necessary to make specific assumptions. The most 
important of these are the discount rate, future expected increases in salaries and pensions, and mortality rates. 
Discount rates are determined on the basis of market yields at the end of the reporting period on high-grade, 
fixed interest corporate bonds from issuers carrying a very high credit rating that are denominated in the currency 
in which the benefits will be paid and that have remaining maturities approximating the terms of the related 
pension liability.
All items of income and expense relating to defined benefit plans, with the exception of the net interest result, are 
recognized on a net basis in the functional areas within the operating result. The net interest result arising from the 
multiplication of the net pension obligation (pension obligation less plan assets) by the discount rate is reported 
as financial expense. Actuarial gains and losses resulting from experience adjustments for defined benefit pension 
obligations and plan assets, and from changes in actuarial assumptions are recognized directly in equity and 
presented in the Consolidated Statement of Comprehensive Income in the period in which they arise. Past service 
costs are recognized immediately in profit or loss.
Provisions
Provisions are recognized for present legal and constructive obligations arising from past events that are likely to 
result in a future outflow of resources, the amount of which can be reliably estimated. 
With regard to legal proceedings and litigation, for example the Qimonda insolvency, Infineon regularly assesses 
the probability of an unfavorable outcome. Infineon records provisions and liabilities, including provisions for 
significant legal costs, for those obligations and risks relating to legal disputes which it assesses at the relevant 
reporting date are likely to occur. That is where, from Infineon’s perspective at the date of assessment, there is 
compelling evidence which indicates an obligation or risk, and the obligation or risk can be quantified with reason­
able accuracy at the time of assessment. As soon as additional information is available the affected estimates are 
reviewed and, where necessary, provisions for these proceedings are revised.
Provisions are measured at their expected settlement amount in accordance with IAS 37 “Provisions, Contingent 
Liabilities and Contingent Assets” or, where applicable, also in accordance with IAS 19 “Employee Benefits”. The 
amount recognized for a provision is the best estimate of the expenditure required to settle the present obligation. 
Estimates of outcomes and financial effects are dependent upon the judgment of management, supplemented by 
experience gained from similar transactions and, where appropriate, the assessment of independent experts (such 
as attorneys). The evidence considered includes any additional evidence provided by events after the reporting 
period and up to the preparation of the Annual Report. If the circumstances to be assessed encompass a large 
number of possible outcomes, the obligation is estimated by weighting all possible outcomes by their associated 
probabilities (expected value method). Where there is a continuous range of possible outcomes and each point in 
that range is as likely as any other, the mid-point of the range is used. 
Where cash flows are not expected to arise within the next twelve months and the interest effect is considered 
material, provisions are stated at the present value of expected cash outflows. For the purposes of the present 
value calculation, Infineon uses a pre-tax interest rate that reflects current market assessments of the time value 
of money and the risks specific to the liability. In estimating the future outflow of economic benefits Infineon also 
includes inflation assumptions if applicable. Provisions for onerous contracts are measured at the lower of the 
expected cost of fulfilling and the expected cost of terminating the contract. Additions to provisions are always 
recognized in profit or loss.

215
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Claims for reimbursements from third parties are not offset against provisions, instead they are capitalized 
separately if their realization is virtually certain.
If the projected obligation decreases as a result of a change in the estimate, the provision is reversed by the corre­
sponding amount and the resulting income recognized in the same functional area of the Consolidated Statement 
of Operations in which the original charge was recognized.
Contingent liabilities
Contingent liabilities are possible obligations, whose actual existence is dependent on the occurrence of one or 
more uncertain future events not wholly within the control of Infineon. They can also be present obligations that 
will probably not result in the outflow of resources or whose outflow of resources cannot be quantified reliably. 
Contingent liabilities are not recognized in the Statement of Financial Position, instead they are disclosed and 
described in the Notes to the Consolidated Financial Statements (see notes 33 and 34).
Own shares
Own shares held are measured at cost, including directly attributable transaction costs, and reported as a 
reduction of equity. In the case of own shares acquired by way of issuing put options on own shares, acquisition 
cost corresponds to the present value of the exercise value of the put options discounted back to issuance date. 
When own shares are cancelled at a subsequent date, Infineon’s share capital is reduced by the appropriate pro 
rata amount of the shares to total share capital. Additional paid-in capital is reduced by the difference between 
acquisition cost and the amount deducted from share capital.
Segment reporting
The Management Board of Infineon Technologies AG, in its role as Infineon’s chief operating decision maker, 
allocates resources and assesses the performance of the operating segments. Segments and regions are identified 
and key performance figures selected on the basis of internal management and reporting systems (management 
approach). Underlying data used in this context are derived from the Consolidated Financial Statements drawn up 
in accordance with IFRS. 
Infineon’s business is structured on the basis of four operating segments, namely Automotive, Industrial Power 
Control, Power Management & Multimarket and Chip Card & Security. 
The remaining activities of operations that have been sold are aggregated into “Other Operating Segments”. 
Results and specific Group functions not allocated to the operating segments are aggregated under “Corporate 
and Eliminations”.
Revenue recognition
Infineon generates revenue from the sale of semiconductor products and system solutions. Infineon’s semicon­
ductor products include a wide variety of chips and components used in electronic applications ranging from auto­
motive electronics and industrial applications, to chip cards. Infineon’s products are also used in a wide variety 
of microelectronic applications, including computer systems, telecommunications systems and consumer goods. 
Revenue is allocated to the individual segments on the basis of differences in product type and applications.
In addition, Infineon generates a small portion of its revenue from licensing its intellectual property to third parties, 
as well as development arrangements. 
Revenue is measured on the basis of the fair value of the consideration receivable.
Revenue from products sold is recognized when the significant risks and rewards of ownership of the goods are 
transferred to the buyer and it is sufficiently probable that the economic benefits associated with the sale will flow 
to Infineon. The amount of revenue recognized is based on the fair value of the consideration received or receivable 
taking into account returns, settlement discounts and bonuses.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
216
In principle Infineon recognizes revenue on sales to distributors by using the “sell in” method (i.e., when a product 
is sold to the distributor). In accordance with established business practice in the semiconductor industry, under 
certain circumstances distributors can apply for price protection and ship and debit credit notes. Price protection 
allows a distributor to request a credit note for unsold products held in inventory if Infineon reduced the standard 
list price of these products. Ship and debit allows a distributor to retrospectively claim a credit note for existing 
quotes in certain cases. The authorization of these credits remains fully within the control of Infineon. Infineon 
calculates the provision for price protection and ship and debit in the same period the related revenue is recorded. 
The ship and debit provision is based on historical price trends determined based on the difference between 
the contract price and the standard list price to the distributor. The price protection provision is based on actual 
list prices and distributor inventory on hand. The inventory turnover, the transparency of inventory pricing for 
standard products and the long distributor pricing history enable Infineon to reliably estimate provisions for price 
protection and ship & debit credit notes at the end of the reporting period.
In addition, distributors can, subject to certain conditions, exchange inventory for the same or other products, 
(stock rotation) or request scrap allowances. Stock rotation credit notes are accrued based on expected stock 
rotation in accordance with the contractual agreement. Distributor scrap allowances are accrued based on the 
contractual agreement and, upon submission of a valid claim, are granted up to a certain maximum based on 
turnover in a given period. Historically, actual returns under such return provisions have been insignificant. 
Infineon monitors such product returns on an ongoing basis. 
In some cases, rebate programs are offered to specific customers or distributors whereby the customer or 
distributor is granted a rebate upon achievement of a defined sales volume. Customers or distributors are also 
compensated for pre-agreed joint advertising activities on a case-by-case basis. Such rebates and refunds are 
taken into account for revenue recognition purposes.
Other returns are permitted only for quality-related reasons in the normal course of business within the applicable 
warranty period. Infineon records provisions for warranty costs as a charge to cost of goods sold based on historical 
experience as well as information available about other warranty costs.
Research and development costs
Costs of research activities undertaken in order to gain new scientific or technical knowledge are expensed 
as incurred.
Costs for development activities, the results of which are applied to a plan or design for the production of new 
or substantially improved products and processes, are capitalized if the development costs can be measured 
reliably, the product or process is technically and commercially feasible, future economic benefits are probable 
and Infineon intends, and has sufficient resources, to complete development and use or sell the asset. The costs 
capitalized include the cost of materials, direct labor and directly attributable general overhead expense that 
serves to prepare the asset for use. Such capitalized costs are presented as internally generated intangible assets 
within “Goodwill and other intangible assets” (see note 19). Development costs, which do not fulfill the criteria 
for capitalization are expensed as incurred. Capitalized development costs are stated at cost less accumulated 
amortization and impairment charges. After the completion of the development phase and following the ramp-up 
of production, internally generated intangible assets are amortized as part of cost of goods sold over a period of, 
as a rule, three to five years.
Capitalized development costs are reviewed for impairment annually as long as amortization over the expected 
useful life has not begun and, additionally, when evidence for a potential impairment exists. In particular, a decline 
in expected revenue or higher costs is evidence for a potential impairment.

217
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Grants
Grants for investments include both tax-free investment grants and taxable grants for investments in property, 
plant and equipment. The recognition of the grant starts when it is reasonably assured that Infineon will comply 
with the conditions attached to the grant, and it is reasonably assured that the grant will be received. Tax-free 
investment grants are deferred and recognized over the remaining useful life of the related asset. Taxable grants 
are deducted from the purchase and production cost of the related asset and thereby reduce depreciation and 
amortization expense in future periods. 
Grants that are related to expenses included in profit or loss are presented as a reduction of the related expense 
in the Consolidated Statement of Operations (see note 5).
Share-based compensation
Infineon has compensation plans in place in which equity instruments such as stock options or, from the 2014 
fiscal year, so-called performance shares, are granted to members of the Management Board senior managers 
and selected employees. In accordance with IFRS 2 “Share-based Payment”, these compensation plans qualify as 
equity-settled share-based compensation and are accounted for accordingly. The fair value of the equity instruments 
granted is determined by an external expert using a recognized financial-mathematical method (Monte Carlo simu­
lation model) and recognized as expense on a straight-line basis over the vesting period during which Infineon 
receives consideration from the Management Board or employee in the form of work performed, and, with respect 
to the stock options, the achievement of the respective targets (outperformance of the Philadelphia Semiconductor 
Index (SOX) over a predetermined period) is expected. The expense is charged to costs by function as part of the 
operating result and credited directly to equity (additional paid-in capital). The amount recognized as expense is 
adjusted in order to reflect either the effective number of equity instruments that can ultimately be exercised by 
the Management Board and employees, or the actual number allocated to the Management Board and employees. 
The proceeds received net of any directly attributable transaction costs are credited to ordinary share capital 
and additional paid-in capital when the stock options are exercised. Performance shares do not result in any 
cash inflows.
Estimates and assumptions
The preparation of financial statements in accordance with IFRS requires management to make estimates and 
assumptions that have an impact on the reported amounts and the associated disclosures.
Estimates and assumptions undergo regular review and must be adjusted where appropriate. They can vary from 
period to period and have a material effect on the financial condition, liquidity position and results of operations.
Although these estimates and assumptions are applied by management to the best of its knowledge based on 
current events and circumstances, actual events may result in deviations from these estimates. 
Areas containing estimates and assumptions and that are consequently most likely to be affected when actual 
results vary from estimates are:
•	 valuation of inventory (see “Inventories” and note 14),
•	 recoverability of trade receivables (see note 13),
•	 recoverability of non-financial assets (see “Recoverability of intangible assets and other long-lived assets”), 
•	 recognition and recoverability of deferred tax assets (see “Current and deferred income taxes” and note 10),
•	 recognition and valuation of provisions (see “Provisions” and notes 21 and 33) and
•	 valuation of pension plans (see “Pensions and similar obligations” and note 30).
All assumptions and estimates are based on the circumstances and assessments as of the balance sheet date, and 
taking into account knowledge gained up to the approval by the Management Board of the Consolidated Financial 
Statements on November 20, 2014.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
218
3  Acquisitions
LS Power Semitech Co., Ltd.
On June 3, 2014 the Company completed the acquisition of a further 20 percent of the shares of LS Power Semitech 
Co., Ltd. (LSPS), Korea, from LS Industrial Systems Co., Ltd. (LSIS), Korea, in order to better position itself in the 
IGBT-based industrial power modules market. The Company now has a controlling interest in LSPS, holding 
66.4 percent of the shares. The purchase price amounted to €8 million. LSPS develops, manufactures and markets 
compact power modules in the 600-volt class for household appliances and small industrial drives.
The assets and liabilities acquired were recorded at their fair value at the date of first consolidation. The difference 
between the acquisition costs (purchase price plus the fair value of the existing shareholding) and the identified 
fair value of the assets and liabilities, assessed according to the partial goodwill method, is recorded as goodwill.
The following table presents the effect of the transaction at the date of acquisition:
€ in millions
 
Assets acquired
11 
Goodwill
4 
Non-controlling interests
(3) 
Purchase price
12 
	
Therein: fair value of the existing shareholding (46.4 %)
4 
	
Therein: paid in cash and cash equivalents
8 
Acquired cash and cash equivalents
(1) 
Net cash outflow for acquisitions
7 
The book value of the existing shareholding as at the acquisition date of 46.4 percent was recorded as €0, its 
fair value was reassessed as being €4 million. The income from this reassessment was recorded in the Statement 
of Operations under other operating income. 
International Rectifier Corporation
The Company and International Rectifier Corporation (“International Rectifier”), USA, signed a contract for the sale 
of International Rectifier on August 20, 2014. Infineon intends to acquire International Rectifier for US$40 per share 
in cash, corresponding to an equity value of approximately US$3 billion. With the integration of International 
Rectifier Infineon extends its offering, and can deliver an even broader portfolio of products and solutions to its 
customers in future.
The Company’s Supervisory Board and International Rectifier’s Board of Directors have agreed the transaction. 
At an extraordinary general meeting on November 4, 2014 the shareholders of International Rectifier granted 
the necessary approval. The approval of the relevant regulatory authorities and the fulfilment of other customary 
conditions are required before the acquisition can be completed. Completion and execution of the transaction is 
expected at the end of the 2014 calendar year or at the beginning of the 2015 calendar year. 
Infineon will finance the transaction out of existing cash and a binding loan commitment of around €1.5 billion 
(see note 23).

219
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
4  Disposals and Discontinued Operations
Qimonda – discontinued operations
On January 23, 2009, Qimonda AG (“Qimonda”), a majority-owned company filed an application at the Munich 
Local Court to commence insolvency proceedings. On April 1, 2009, the insolvency proceedings were opened. 
Insolvency proceedings were also opened for further domestic and foreign subsidiaries of Qimonda. Some of 
these proceedings have already been completed. The results of these proceedings are reported as discontinued 
operations in Infineon’s Consolidated Statement of Operations and Consolidated Statement of Cash Flows, to the 
extent that the underlying events occurred before the commencement of insolvency proceedings. To the extent 
that the events occurred after the commencement of insolvency proceedings, their results are reported as part of 
continuing operations.
Certain provisions relating to Qimonda’s insolvency were required to be adjusted in the 2014 fiscal year as 
a result of new developments, in particular following the partial settlement agreed with the administrator on 
September 11, 2014 which led to a positive contribution to earnings (for this and the remaining risks existing 
in relation to Qimonda’s insolvency see the section “Legal risks – Proceedings in relation to Qimonda” in note 33).
Sale of the Wireline Communications business – discontinued operations 
On November 6, 2009 the Wireline Communications business was sold to various companies which are affiliates of 
Golden Gate Private Equity Inc. (Lantiq). In the 2014 fiscal year €10 million of subsequent income arose as a result of 
the release of a provision in connection with the sale.
Following the sale, Infineon continues to carry out activities on behalf of Lantiq, which are reported as continuing 
operations under “Other Operating Segments” for segment reporting purposes.
Sale of the Wireless mobile phone business – discontinued operations 
On August 30, 2010, Infineon entered into a contract for the sale of the mobile phone business of the Wireless 
Solutions segment (“Wireless mobile phone business”) for a consideration of US$1.4 billion with Intel Corporation 
(“Intel”). Businesses with analog and digital TV tuners and satellite radio receivers and with radio frequency 
power transistors for amplifiers in cellular base stations are the only areas of the Wireless Solutions segment 
that remained with Infineon. The sale was completed on January 31, 2011. All assets, patents, other intellectual 
property and selected liabilities allocated to the Wireless mobile phone business were separately transferred. 
The Wireless mobile phone business is being continued by the purchaser under the name “Intel Mobile Communi­
cations” (“IMC”).
In the 2014 and 2013 fiscal years, adjustments to the pre-tax gain on the sale due to the release of provisions 
along with post-divestment income relating to the Wireless mobile phone business amounted to €8 million and 
€4 million respectively.
Following the sale, Infineon continues to carry out activities contracted by IMC, which are reported as continuing 
operations under “Other Operating Segments” for segment reporting purposes.
Loss/Income from discontinued operations, net of income taxes
The results of Qimonda, the Wireline Communications business and the Wireless mobile phone business presented 
in the Consolidated Statements of Operations as “loss/income from discontinued operations, net of tax” for the 
years ended September 30, 2014 and 2013, consist of the following:
€ in millions
2014
2013
Qimonda’s share of discontinued operations, net of income taxes
29 
(15) 
Wireline Communication’s share of discontinued operations, net of income taxes
10 
–
Wireless mobile phone business’ share of discontinued operations, net of income taxes
8 
4 
Gain (loss) from discontinued operations, net of income taxes
47 
(11)

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
220
5  Grants and subsidies
Infineon has received economic development funding from various governmental institutions, including grants for 
the construction of manufacturing facilities, for research and development activities and employee development. 
Grants and subsidies included in profit or loss in the Consolidated Financial Statements during the fiscal years 
ended September 30, 2014 and 2013 are as follows:
€ in millions
2014
2013
Included in the Consolidated Statement of Operations in:
 
 
	
Cost of goods sold
38 
27 
	
Research and development expenses
66 
52 
	
Selling, general and administrative expenses
1 
1 
Total
105 
80 
In the 2014 and 2013 fiscal years, respectively, taxable investment grants were deducted from the acquisition or 
construction cost of property, plant and equipment and intangible fixed assets with no material effect.
6  Cost of purchased services and materials as well as personnel expense
The Consolidated Statement of Operations (continuing and discontinued operations) includes the following 
amounts of expense for purchased services, materials and personnel.
Expenses for purchased services and materials comprised the following in the 2014 and 2013 fiscal years:
€ in millions
2014
2013
Raw materials, supplies and purchased goods
929 
829 
Cost of purchased services
891 
779 
Expenses for licenses
63 
63 
Total (continuing and discontinued operations)
1,883 
1,671 
Personnel expenses are as follows for the years ended September 30, 2014 and 2013: 
€ in millions
2014
2013
Wages and salaries
1,273 
1,154 
Social insurance levies, pensions and similar obligations
217 
213 
Total (continuing and discontinued operations)
1,490 
1,367 
The average number of employees by geographic region is as follows for the 2014 and 2013 fiscal years:
 
2014
2013
Europe
12,959 
12,536 
	
Therein: Germany
8,766 
8,493 
Asia-Pacific (without Japan)
14,989 
13,219 
	
Therein: China
1,708 
1,457 
Japan
129 
121 
Americas
533 
499 
Total
28,610 
26,375

221
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
7    Other operating income and expense
Other operating income is as follows for the 2014 and 2013 fiscal years:
€ in millions
2014
2013
Rental income
10 
12 
Gain from reassessment of the existing shareholding in LSPS (see note 3)
4 
–
Gains on disposals of assets
3 
2 
Income from other equity investments
2 
1 
Other income from customers
1 
2 
Other
6 
2 
Total
26 
19 
Other operating expense is as follows for the 2014 and 2013 fiscal years:
€ in millions
2014
2013
Fine from the chip card antitrust proceedings (see note 33)
83 
–
Expenses in connection with rental income
10 
9 
Onerous contracts
9 
–
Expenses for restructuring and similar measures
8 
18 
Acquisition related expenses in connection with International Rectifier
7 
–
Impairments and reversal of impairments of intangible assets, property, 
plant and equipment assets and assets classified as held for sale
3 
19 
Losses on disposals of assets
1 
1 
Expense (income) in connection with legal disputes
(24) 
5 
Other
5 
–
Total
102 
52 
8    Financial income
Financial income for the 2014 and 2013 fiscal years relates solely to interest income of €10 million and €30 million, 
respectively.
9    Financial expense
Financial expense for the 2014 and 2013 fiscal years relates solely to interest expense of €19 million and €51 million, 
respectively.
Interest expense for the 2014 fiscal year includes a pre-tax loss of €1 million arising from the repurchase of part of 
the convertible bonds that became due 2014 (see note 23). 
10  Income tax
Income tax from continuing operations for the years ended September 30, 2014 and 2013, is as follows:
€ in millions
2014
2013
Current tax expense
(76) 
(39) 
Deferred tax benefit
45 
16 
Income tax
(31) 
(23)

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
222
The German combined statutory tax rate for Infineon Technologies AG is 29 percent for the 2014 and 2013 
fiscal years. This comprised a corporate tax rate of 15 percent, plus a solidarity surcharge of 5.5 percent thereon 
and a municipal trade tax rate of 13 percent.
A reconciliation of income taxes from continuing operations for the fiscal years ended September 30, 2014 and 
2013, determined using the German combined statutory tax rate of 29 percent for the 2014 and 2013 fiscal years 
is as follows:
€ in millions
2014
2013
Expected income tax expense
(151) 
(89) 
Change in available tax credits
19 
10 
Tax rate differential
25 
20 
Non-deductible expenses and tax-exempt income, net
(30) 
(1) 
Prior year taxes
(2) 
–
Change in valuation allowance on deferred tax assets
112 
38 
Other
(4) 
(1) 
Actual income taxes
(31) 
(23) 
Deferred tax assets and liabilities as of September 30, 2014 and 2013 are composed of the following:
€ in millions


 
September 30, 2014
September 30, 2013
Deferred 
tax assets
Deferred 
tax liabilities
Deferred 
tax assets
Deferred 
tax liabilities
Intangible assets
9 
(50) 
12 
(29) 
Property, plant and equipment
110 
(8) 
95 
(6) 
Provisions and pension obligations
151 
(111) 
122 
(104) 
Tax loss carry-forwards
939 
–
1,004 
–
Tax credit carry-forwards
279 
–
263 
–
Other
143 
(11) 
150 
(10) 
Total deferred taxes
1,631 
(180) 
1,646 
(149) 
Valuation allowance
(1,078) 
–
(1,176) 
–
Netting
(175) 
175 
(145) 
145 
Total
378 
(5) 
325 
(4) 
In Germany Infineon Technologies AG had corporation tax loss carry-forwards of €2.7 billion and municipal trade 
tax loss carry-forwards of €3.8 billion as of September 30, 2014. In other jurisdictions tax loss carry-forwards 
amounted to €37 million and unused tax credit carry-forwards of €279 million. Such tax loss carry-forwards and tax 
credit carry-forwards are generally limited to use by the particular entity that generated the loss or credit, provided 
that they have not expired under current law. Of the tax loss carry-forwards in other jurisdictions, €6 million expire 
within four years as a result of the respective legal requirements. 
Infineon assessed its deferred tax assets and the need for a valuation allowance. The existence of tax loss carry-
forwards is generally strong evidence that the utilization of deferred tax assets is not probable. For the assessment 
of deferred tax assets in Germany, Infineon therefore focused in particular on profitable continuing operations. 
Based on the results of this assessment of deferred tax assets, considering all positive and negative factors and 
information relating to the foreseeable future, Infineon recognized deferred tax assets, after netting, of €378 million 
and €325 million as of September 30, 2014 and 2013, respectively.

223
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
The change of the net amount of deferred tax assets and liabilities can be broken down as follows:
€ in millions
2014
2013
Deferred taxes, net as of the beginning of the fiscal year
321 
311 
Deferred tax benefit attributable to continuing operations
45 
16 
Deferred taxes recognized in equity
3 
(2) 
Foreign currency translation
4 
(4) 
Deferred taxes, net as of the end of the fiscal year
373 
321 
Infineon did not provide for additional income taxes or foreign withholding taxes on the cumulative retained 
earnings of foreign subsidiaries as of September 30, 2014 and 2013, as these earnings are intended to be indefinitely 
reinvested in those operations. It is not practicable to estimate the amount of unrecognized deferred tax liabilities 
for these undistributed foreign earnings.
Including the items recognized directly in equity and the expense/benefit from continuing and discontinued 
operations, the income tax expense consisted of the following:
€ in millions
2014
2013
Income taxes from continuing operations
(31) 
(23) 
Income taxes from discontinued operations
10 
(1) 
Income taxes recognized directly in equity
6 
(2) 
Income taxes
(15) 
(26) 
11  Earnings per share
Basic earnings per share are calculated by dividing earnings by the weighted average number of shares outstanding 
during the reporting period. The calculation of the diluted earnings per share is based on the assumption that 
all potentially dilutive instruments are converted into ordinary shares with the consequence of a corresponding 
increase in the number of shares on the one hand and a corresponding reduction in the charge on earnings for 
these instruments, such as interest expense, on the other. The pro rata effect of the acquisition of 6 million own 
shares in the previous year is disclosed under “Adjustment for own shares”.
Basic and diluted earnings per share are calculated as follows:
€ in millions (unless otherwise stated)
2014
2013
Earnings attributable to shareholders of Infineon Technologies AG – basic
535 
272 
	
Adjustment for interest expense on convertible bond
3 
–
Earnings attributable to shareholders of Infineon Technologies AG – diluted
538 
272 
 
 
 
Weighted-average number of shares outstanding (in millions):
 
 
	
– Ordinary share capital
1,116.7 
1,080.7 
	
– Adjustment for own shares
(6.0) 
(5.4) 
Weighted-average number of shares outstanding – basic
1,110.7 
1,075.3 
Adjustments for:
 
 
	
– Effect of potential conversion of convertible bond
11.6 
–
	
– Effect of stock options and performance shares
0.7 
0.7 
Weighted-average number of shares outstanding – diluted
1,123.0 
1,076.0 
 
 
 
Basic and diluted earnings per share ¹ (in euro):
 
 
	
Earnings per share (in euro) from continuing operations
0.44 
0.26 
	
Earnings (loss) per share (in euro) from discontinued operations, net of income taxes
0.04 
(0.01) 
Earnings per share – basic and diluted
0.48 
0.25 
1	The calculation of earnings per share is based on unrounded figures.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
224
The average number of potentially dilutive instruments that did not have a dilutive impact and were not taken 
into account in the calculation of diluted earnings per share included:
•	 For the 2013 fiscal year 50.6 million shares which could be issued upon conversion of the convertible bond were 
not taken into account, since they would have increased the earnings per share.
•	 In the 2014 and 2013 fiscal years 12.1 million and 12.0 million, respectively, of stock options and performance 
shares issued to members of the Management Board and employees were not taken into account, since their 
exercise price was higher than the average share price during the reporting period.
•	 In the 2014 and 2013 fiscal year 9.1 million and 2.2 million, respectively, put options written on own shares 
were not taken into account since their exercise price was lower than the average share price during the 
reporting period.
12  Financial investments
Financial investments comprise fixed-term deposits with banks and securities. While fixed-term deposits with 
banks with an original term of up to six months qualify as “loans and receivables” pursuant to IAS 39 “Financial 
Instruments: Recognition and Measurement”, securities are categorized as available-for-sale financial assets 
(for valuation see note 2).
Financial investments at September 30, 2014 and 2013 comprise the following (for further information see also 
notes 31 and 32):
€ in millions
2014
2013
Fixed-term bank deposits 
1,296 
1,706 
Securities
64 
53 
Financial investments
1,360 
1,759 
13  Trade receivables
Trade receivables due within one year at September 30, 2014 and 2013 consist of the following:
€ in millions
2014
2013
Trade receivables, third parties
584 
522 
Trade receivables, related parties
4 
4 
Trade receivables, gross
588 
526 
Allowance for doubtful accounts
(7) 
(8) 
Trade receivables, net
581 
518 
Changes in the allowance for doubtful accounts for the 2014 and 2013 fiscal years were as follows:
€ in millions
2014
2013
Allowance for doubtful accounts at beginning of the fiscal year
8 
16 
Usage of allowance, net
(1) 
(2) 
Current year’s allowance, net of reversals
–
(6) 
Allowance for doubtful accounts at end of the fiscal year
7 
8

225
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Third party trade receivables that are outstanding but not impaired at the reporting date comprise the following:
€ in millions



 
Carrying 
amount


 
Thereof 
neither 
impaired nor 
past due
 
Of which not impaired 
but past due
Past due 
0 – 30 days
Past due 
> 31 days
Third party – trade, net of allowances as of September 30, 2014
577 
554 
16 
7 
Third party – trade, net of allowances as of September 30, 2013
514 
496 
12 
6 
With respect to trade receivables that are not overdue and not impaired at the end of the reporting period, there 
are no indications that customers, based on their past credit history and current creditworthiness assessments, are 
not able to meet their obligations.
Receivables with a maturity of more than one year are presented as other non-current assets (see note 18).
14  Inventories
Inventories at September 30, 2014 and 2013 consist of the following: 
€ in millions
2014
2013
Raw materials and supplies
76 
92 
Work in progress
414 
350 
Finished goods and merchandise
217 
167 
Total
707 
609 
The amount of inventories recognized as expense in the 2014 and 2013 fiscal years corresponds approximately to 
the cost of goods sold for each fiscal year.
Inventories at September 30, 2014 and 2013 are stated net of write-downs of €79 million and €83 million, 
respectively.
15  Other current assets
Other current assets at September 30, 2014 and 2013 consist of the following: 
€ in millions
2014
2013
VAT and other receivables from tax authorities
50 
66 
Prepaid expenses
45 
33 
Derivative financial instruments
41 
2 
Grants receivables
34 
39 
Third party – financial and other receivables
9 
13 
Related party – financial and other receivables
1 
–
Other
41 
45 
Total
221 
198

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
226
16  Property, plant and equipment
A summary of changes in property, plant and equipment for the years ended September 30, 2014 and 2013 
is as follows:
Changes in property, plant and equipment 2014
€ in millions
Cost
 
October 1, 
2013



Additions




Acqui­
sitions 
through 
business 
combi­
nations
Disposals




Reclassi-
fication



Transfers




Foreign 
currency
effects


Septem-
ber 30, 
2014


Land, land rights 
and buildings
860 
7 
–
(1) 
6 
–
3 
875 
Technical equipment 
and machinery
6,169 
344 
13 
(102) 
91 
–
14 
6,529 
Other plant and 
office equipment
1,119 
56 
1 
(58) 
4 
–
1 
1,123 
Payments on account and 
construction in progress
212 
160 
1 
–
(101) 
–
–
272 
Total
8,360 
567 
15 
(161) 
–
–
18 
8,799 
Changes in property, plant and equipment 2013
€ in millions
Cost
 
October 1, 
2012



Additions




Acqui­
sitions 
through 
business 
combi­
nations
Disposals




Reclassi-
fication



Transfers ¹




Foreign 
currency
effects


Septem-
ber 30, 
2013


Land, land rights 
and buildings
827 
11 
–
(2) 
26 
–
(2) 
860 
Technical equipment 
and machinery
5,949 
120 
–
(80) 
177 
11 
(8) 
6,169 
Other plant and 
office equipment
1,131 
43 
–
(55) 
4 
–
(4) 
1,119 
Payments on account and 
construction in progress
278 
142 
–
–
(207) 
–
(1) 
212 
Total
8,185 
316 
–
(137) 
–
11 
(15) 
8,360 
1	For the year ended September 30, 2013, transfers relate primarily to assets that were classified as held for sale. 
Depreciation on property, plant and equipment is presented in the Consolidated Statement of Operations 
mainly in cost of goods sold.
Impairments are recognized as other operating expense in the Consolidated Statement of Operations. Property, 
plant and equipment amounting to €8 million was pledged as of September 30, 2014 (prior year: €0 million).

227
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Accumulated depreciation and impairment
Carrying amount
October 1,  
2013 
 
 
 
Depre­
ciation 
 
 
 
Disposals 
 
 
 
 
Reclassi- 
fication 
 
 
 
Transfers 
 
 
 
 
Impair-
ments 
 
 
 
Foreign 
currency 
effects 
 
 
Septem- 
ber 30, 
2014 
 
 
Septem- 
ber 30, 
2014 
 
 
Septem- 
ber 30, 
2013 
 
 
(620)  
(28) 
1 
–
–
(1) 
(1) 
(649) 
226 
240 
(5,122)  
(381) 
100 
(4) 
–
(1) 
(13) 
(5,421) 
1,108 
1,047 
(1,018)  
(72) 
58 
4 
–
–
(1) 
(1,029) 
94 
101 
–
–
–
–
–
–
–
–
272 
212 
(6,760) 
(481) 
159 
–
–
(2) 
(15) 
(7,099) 
1,700 
1,600 
Accumulated depreciation and impairment
Carrying amount
October 1,  
2012 
 
 
 
Depre­
ciation 
 
 
 
Disposals 
 
 
 
 
Reclassi- 
fication 
 
 
 
Transfers ¹
 
 
 
 
Impair-
ments 
 
 
 
Foreign 
currency 
effects 
 
 
Septem- 
ber 30, 
2013 
 
 
Septem- 
ber 30, 
2013 
 
 
Septem- 
ber 30, 
2012 
 
 
(596) 
(27) 
2 
–
–
–
1 
(620) 
240 
231 
(4,839) 
(349) 
79 
(9) 
(11) 
–
7 
(5,122) 
1,047 
1,110 
(1,019) 
(66) 
55 
9 
–
–
3 
(1,018) 
101 
112 
–
–
–
–
–
–
–
–
212 
278 
(6,454) 
(442) 
136 
–
(11) 
–
11 
(6,760) 
1,600 
1,731

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
228
17  Investments accounted for using the equity method
Infineon Technologies Bipolar GmbH & Co. KG
Effective September 30, 2007, and based on an agreement with Siemens AG (“Siemens”) dated September 28, 2007, 
the Company contributed all assets and liabilities of its high power bipolar business (including licenses, patents, 
and frontend and backend production assets) to a newly formed legal entity called Infineon Technologies Bipolar 
GmbH & Co. KG (“Bipolar”) and Siemens subsequently acquired a 40 percent interest in Bipolar. The transaction 
received regulatory approval and subsequently closed on November 30, 2007. The joint venture agreement grants 
Siemens certain contractual participating rights which inhibit Infineon from exercising control over Bipolar. 
Accordingly, Infineon accounts for the interest in Bipolar under the equity method. The fiscal year-end of Bipolar 
is September 30. 
LS Power Semitech Co., Ltd.
In the 2009 fiscal year, the Company entered into a joint venture agreement with LSIS, which closed on Novem­
ber 27, 2009, to establish the joint venture LSPS. Up to June 2014, LSIS held 53.6 percent and the Company held 
46.4 percent of LSPS. On June 3, 2014, the Company acquired additional 20 percent of the shares of LSPS. The 
Company now holds 66.4 percent of the shares and with it control over LSPS. Since that date LSPS is included as a 
consolidated affiliate in the consolidated financial statements. For more information see note 3.
Cryptomathic Holding ApS
The Company acquired its 25 percent share in Cryptomathic Holding ApS (“Cryptomathic”) in May 2002. Crypto­
mathic − through its subsidiary Cryptomathic A/S − develops and sells software and consultancy services in the 
field of digital security. The fiscal year-end for Cryptomathic is December 31. As a consequence of a share buy-back 
Infineon‘s share increased to 34 percent. Based on this share, the investment is accounted for using the equity 
method. The Company’s share in the results of Cryptomathic is recognized based on interim financial statements 
with a three-month time lag with no material impact. 
Summarized financial information
The summarized financial information for investments accounted for using the equity method (not adjusted for the 
percentage ownership held by Infineon), for the years ended September 30, 2014 and 2013 is as follows: 
€ in millions


 
2014
Current 
assets
Non-current 
assets
Current 
liabilities
Non-current 
liabilities
Equity
Revenue
Gross profit
Net income 
(loss)
Bipolar
67 
10 
14 
10 
53 
83 
14 
5 
Cryptomathic
7 
–
2 
–
5 
10 
6 
1 
Total
74 
10 
16 
10 
58 
93 
20 
6 
€ in millions


 
2013
Current 
assets
Non-current 
assets
Current 
liabilities
Non-current 
liabilities
Equity
Revenue
Gross profit
Net income 
(loss)
Bipolar
62 
14 
14 
12 
50 
83 
11 
1 
LSPS
9 
19 
13 
8 
7 
22 
1 
(5) 
Cryptomathic
7 
1 
4 
–
4 
10 
7 
4 
Total
78 
34 
31 
20 
61 
115 
19 
–
The net book value of LSPS was already written off in full owing to the share of losses already recognized in prior 
years. The share of additional losses for the 2013 fiscal year of €2 million has not been recognized as the Company 
has no obligation to absorb such losses. Cumulative losses amounted to €2 million as at September 30, 2013.

229
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
18  Other non-current assets
Other non-current assets at September 30, 2014 and 2013 consist of the following:
€ in millions
2014
2013
Restricted cash
75 
75 
Prepaid expenses
23 
28 
Securities
16 
15 
Other equity investments
5 
6 
Grants receivables
5 
5 
Long-term receivables
5 
5 
Other
12 
19 
Total
141 
153 
“Restricted cash” as of September 30, 2014 and September 30, 2013 consists of a rental deposit in connection with 
the Campeon head office of €75 million (see note 34).

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
230
19  Goodwill and other intangible assets
The following table presents the composition of intangible assets for the years ended September 30, 2014 and 2013. 
Amortization of intangible assets is mainly presented in cost of goods sold. Impairments of intangible assets 
are presented as other operating expense.
Changes in goodwill and other intangible assets 2014
€ in millions
Cost
 
October 1, 
2013


Additions
internally
developed

Additions 
from 
business 
combi­
nations
Purchased 
additions


Disposals



Transfers



Foreign 
currency
effects

Septem-
ber 30, 
2014

Goodwill acquired for 
consideration
21 
–
4 
–
–
–
–
25 
Internally developed 
intangible assets
245 
92 
–
–
(10) 
–
–
327 
Other intangible assets
136 
–
8 
9 
–
1 
–
154 
Total
402 
92 
12 
9 
(10) 
1 
–
506 
Changes in goodwill and other intangible assets 2013
€ in millions
Cost
 
October 1, 
2012


Additions
internally
developed

Additions 
from 
business 
combi­
nations
Purchased 
additions


Disposals



Transfers



Foreign 
currency
effects

Septem-
ber 30, 
2013

Goodwill acquired for 
consideration
21 
–
–
–
–
–
–
21 
Internally developed 
intangible assets
194 
51 
–
–
–
–
–
245 
Other intangible assets
141 
–
–
12 
(17) 
–
–
136 
Total
356 
51 
–
12 
(17) 
–
–
402 
Reference is made to note 2, section “Recoverability of intangible assets and other long-lived assets” with respect 
to the procedures and assumptions used for the annual impairment test for goodwill as well as with respect to 
carrying amounts of the goodwill of the individual CGUs.
No intangible assets were transferred to a third party as security or pledged as of September 30, 2014 and 2013.

231
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Accumulated amortization and impairment
Carrying amounts
October 1,  
2013 
 
 
Amorti­
zation 
 
 
Disposals 
 
 
 
Impair-
ment 
 
 
Foreign  
currency 
effects 
 
Septem- 
ber 30, 
2014 
 
Septem- 
ber 30, 
2014 
 
Septem- 
ber 30, 
2013 
 
–
–
–
–
–
–
25 
21 
(109) 
(25) 
10 
(1) 
–
(125) 
202 
136 
(123) 
(8) 
–
–
–
(131) 
23 
13 
(232) 
(33) 
10 
(1) 
–
(256) 
250 
170 
Accumulated amortization and impairment
Carrying amounts
October 1,  
2012 
 
 
Amorti­
zation 
 
 
Disposals 
 
 
 
Impair-
ment 
 
 
Foreign  
currency 
effects 
 
Septem- 
ber 30, 
2013 
 
Septem- 
ber 30, 
2013 
 
Septem- 
ber 30, 
2012 
 
–
–
–
–
–
–
21 
21 
(75) 
(19) 
–
(15) 
–
(109) 
136 
119 
(135) 
(5) 
17 
–
–
(123) 
13 
6 
(210) 
(24) 
17 
(15) 
–
(232) 
170 
146

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
232
20  Trade payables
Trade payables at September 30, 2014 and 2013 consist of the following:
€ in millions
2014
2013
Third party – trade
636 
557 
Related parties – trade
12 
12 
Trade payables
648 
569 
Trade payables with a maturity of more than one year are reported in other non-current liabilities (see note 24).
21  Provisions
Short-term and long-term provisions at September 30, 2014 consist of the following: 
€ in millions
October 1, 
2013
Additions
Usage
Reversals
Septem-
ber 30, 2014
Personnel costs
176 
183 
(121) 
(6) 
232 
Warranties
114 
31 
(13) 
(57) 
75 
Provisions related to Qimonda
356 
33 
(15) 
(62) 
312 
Other
75 
28 
(17) 
(45) 
41 
Total
721 
275 
(166) 
(170) 
660 
	
Thereof short-term
675 
 
 
 
590 
	
Thereof long-term
46 
 
 
 
70 
Obligations to employees include, among others, costs of variable compensation, severance payments, service 
anniversary awards, other personnel costs and social security costs.
Provisions for warranties mainly represent the estimated future cost of fulfilling contractual requirements 
associated with products sold.
Provisions relating to Qimonda are described in detail in note 33.
Other provisions comprise provisions for delay on contracts, asset retirement obligations, litigations (other than 
provisions relating to Qimonda) and miscellaneous other liabilities.
Of the total provisions as of September 30, 2014 and 2013, a cash outflow of €590 million and €675 million, respec­
tively, is expected to occur within one year. With the exception of the service anniversary awards of €17 million and 
€14 million as of September 30, 2014 and 2013, respectively, the cash outflow for the majority of the remaining 
€53 million and €32 million as of September 30, 2014 and 2013, respectively, is expected within two to seven years.

233
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
22  Other current liabilities
Other current liabilities at September 30, 2014 and 2013 consist of the following:
€ in millions
2014
2013
Fine from the chip card antitrust proceedings (see note 33)
83 
–
Payroll obligations to employees
73 
66 
Obligation to acquire own shares
40 
–
Advanced payments
18 
24 
Deferred income
13 
18 
Deferred grants and subsidies
11 
19 
VAT and other taxes payables
9 
8 
Derivative financial instruments with negative fair values
3 
4 
Related parties – financial payables
1 
1 
Other
10 
14 
Total
261 
154 
The obligation to acquire own shares in connection with Infineon’s capital returns amounts to €40 million as of 
September 30, 2014 and corresponds to the discounted exercise value of outstanding put options on Infineon 
Technologies AG shares as at issue date (see note 25), plus interest up to the end of the reporting period.
23  Debt
Debt at September 30, 2014 and 2013 consists of the following: 
€ in millions
2014
2013
Current maturities of long-term debt
35 
26 
Convertible subordinated bonds, 7.5 %, due 2014
–
108 
Short-term debt and current maturities of long-term debt
35 
134 
Loans payable to banks:
 
 
	
Unsecured loans, weighted average interest rate 1.18 % (2013: 1.25 %), due 2016 – 2023
151 
169 
Long-term debt
151 
169 
 
 
 
Total
186 
303 
On May 26, 2009, the Company (as guarantor), through its subsidiary Infineon Technologies Holding B.V. (as issuer), 
issued €196 million new subordinated convertible bonds due May 2014 at a discount of 7.2 percent and a nominal 
interest rate of 7.5 percent per year. The bonds could be converted at any time during the term into shares of the 
Company. After adjustments in connection with anti-dilution clauses at the time of the Company’s share capital 
increase in August 2009 as well as for the dividend payments for the 2010 to 2012 fiscal years, the conversion price 
stood at €2.22. In conjunction with the new capital returns program (see “Put options on own shares and own 
shares” in note 25), at the beginning of the 2014 fiscal year Infineon repurchased for €35 million and cancelled part 
of the convertible bonds with a nominal value of €11 million. This was after having already repurchased and cancelled 
bonds with a nominal value of €83 million in the 2011 and 2012 fiscal years (partly in conjunction with the first capital 
returns program). In addition, in the first quarter of the 2014 fiscal year bond holders exercised their conversion 
rights and converted their holdings with a nominal value of €64 million into 28.6 million shares of the Company. 
Infineon announced the early redemption of all outstanding bonds on December 23, 2013, according to section 4 (4) 
of their terms and conditions. By the end of the conversion period on January 31, 2014 all remaining bonds with 
a nominal value of €39 million were converted into 17.6 million shares of the Company. €31 million attributable to 
the conversion right of the bondholders was recognized in additional paid-in capital in the 2009 fiscal year when 
the convertible bonds were issued. The debt component of the convertible bonds was recorded at amortized cost 
using the effective interest method.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
234
Loans payable to banks serve primarily for the financing of operating activities at Infineon Technologies Austria AG. 
Infineon has also established several standalone short- and long-term credit facilities mainly for the purpose of 
financing of operating activities. 
Furthermore, in connection with the pending acquisition of International Rectifier, Infineon concluded a financing 
agreement of €1.5 billion with several domestic and international banks. The acquisition financing consists of 
two senior unsecured tranches: bridge financing of €800 million with a term of one year and two extension options 
for Infineon of six months each, and a loan of US$934 million with a term of five years. Both tranches were not 
drawn as at September 30, 2014.
The total lines of credit as of September 30, 2014 are summarized in the following table:
€ in millions
 

Term
As of September 30, 2014
Aggregate
facility
Drawn
Available
Short-term
103 
35 
68 
Long-term
1,685 
151 
1,534 
Total
1,788 
186 
1,602 
Interest expense incurred in connection with debt for the years ended September 30, 2014 and 2013, was €6 million 
and €19 million, respectively.
Aggregate amounts of debt and interest maturing subsequent to September 30, 2014 are as follows:
€ in millions 

Fiscal year
Debt

Interest

2015
35 
3 
2016
16 
2 
2017
13 
1 
2018
4 
1 
2019 and after
118 
1 
Total ¹
186 
8 
1	Potential payments for debt in connection with the pending acquisition of International Rectifier are not considered.
24  Other non-current liabilities
Other non-current liabilities as of September 30, 2014 and 2013 consist of the following:
€ in millions
2014
2013
Deferred income and liabilities from the linearization of expenses
28 
32 
Personnel liabilities
19 
16 
Deferred grants and subsidies (see note 5)
13 
12 
Other
12 
10 
Total
72 
70

235
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
25  Equity
Ordinary share capital
The ordinary share capital of Infineon Technologies AG increased during the 2014 fiscal year by €93,312,392. 
46,656,196 new shares were issued in the 2014 fiscal year, of which 484,260 (2013: 776,702) resulted from the 
exercise of employee stock options, and 46,171,936 (2013: 0) from conversions of the subordinated convertible 
bonds due 2014 (see note 23). As of September 30, 2014 the ordinary share capital stood at €2,255,478,460 divided 
into 1,127,739,230 no par value registered shares, each representing €2 of the Company’s ordinary share capital. 
Each share grants the holder one vote and an equal portion of the profits in the form of a dividend as resolved 
by the Annual General Meeting. As of September 30, 2014, of the above mentioned total number of issued shares 
the Company held 6 million own shares (2013: 6 million). Own shares held by the Company as at the date of the 
Annual General Meeting carry no voting rights and are not entitled to dividend.
Additional paid-in capital
Additional paid-in capital reported in the Consolidated Statement of Financial Position decreased by €135 million in 
the 2014 fiscal year, of which €129 million related to the dividend paid in February 2014. The Company repurchased 
for €35 million and cancelled subordinated convertible bonds due 2014 with a nominal value of €11 million during 
the 2014 fiscal year. €21 million, net of tax, was recorded directly as a reduction of additional paid-in capital, 
reflecting the repurchase of conversion rights for 4.7 million shares associated with the convertible bond repurchase, 
measured on the basis of the conversion ratio at the time of repurchase (see note 23). Additional paid-in capital 
was increased by €3 million in the 2014 fiscal year as a result of option premiums received in connection with put 
options on own shares (see below). The exercise of employee stock options increased additional paid-in capital by 
€0.3 million. Expenses amounting to €6 million for share-based compensation were recorded in the 2014 fiscal year, 
additional paid-in capital increased by the same amount (see note 27).
Additional paid-in capital reported in the Consolidated Statement of Financial Position decreased by €125 million 
in the 2013 fiscal year, of which €129 million related to the dividend paid in February 2013. The exercise of employee 
stock options increased additional paid-in capital by €1 million. Expenses amounting to €3 million for share-based 
compensation were recorded, additional paid-in capital increased by the same amount (see note 27).
Authorized share capital
As of September 30, 2014, the Company’s Articles of Association provide for two authorized capitals totaling up to 
€688,000,000.
Section 4(8) of the Articles of Association provides that the Management Board is authorized, with the approval 
of the Supervisory Board, to increase the share capital in the period until February 10, 2015 once or in partial 
amounts by a total of up to €648,000,000 by issuing up to 324,000,000 new no par value registered shares, carrying 
a dividend right as of the beginning of the fiscal year in which they are issued, against contributions in cash or in 
kind (Authorized Capital 2010/I). The Management Board is authorized, with the approval of the Supervisory Board, 
to exclude the subscription rights of the shareholders in certain cases.
However, in order to protect the shareholders against the dilution of their holdings, the Management Board of 
Infineon Technologies AG has undertaken to make use of this authorization to exclude the subscription rights of the 
shareholders in the case of capital increases against contributions in cash or in kind out of the Authorized Capital 
2010/I, only up to an amount equivalent to 10 percent of the share capital at the time the authority comes into force 
or, if the latter value should be lower, the share capital existing at the time the authority is exercised. Any capital 
increase utilizing the Authorized Capital 2010/I with the subscription rights of the shareholders excluded is thus 
limited to a maximum of 108,674,208 no par value shares or €217,348,416 as at September 30, 2014.
Section 4(9) of the Articles of Association further provides that the Management Board is authorized, with the 
approval of the Supervisory Board, to increase the share capital in the period until February 10, 2015 once or in 
partial amounts by a total of up to €40,000,000 by issuing up to 20,000,000 new no par value registered shares 
against contributions in cash for the purpose of increasing the number of shares issued to employees of the 
Company or its Group companies (Authorized Capital 2010/II). The subscription rights of the shareholders are 
excluded in relation to these shares.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
236
Conditional Capital
As of September 30, 2014, the Company’s conditional capital recorded in the Commercial Register amounts to 
€460,225,602. It has been created through four conditional capital increases:
•	 Conditional Capital III (registered in the Commercial Register as “Conditional Capital 2001/I”) pursuant to 
section 4(5) of the Articles of Association of up to €26,325,602 that may be used to issue up to 13,162,801 new 
registered shares in connection with the Company’s stock option plans “Infineon Technologies AG 2001 Inter­
national Long Term Incentive Plan” and “Infineon Technologies AG Aktienoptionsplan 2006” (“Stock Option 
Plan 2006”) (see note 27). During the 2014 fiscal year, a total of 484,260 new non-par shares corresponding to 
a proportionate amount of €2 per share were issued out of the Conditional Capital III as a result of the exercise 
of share options in conjunction with the Stock Option Plan 2006. Conditional Capital III decreased accordingly 
by €968,520 to €25,357,082. The corresponding change to the Articles of Association was submitted after the end 
of the reporting period and entered into the Commercial Register as requested.
•	 Conditional Capital 2009/I pursuant to section 4(7) of the Articles of Association of up to €149,900,000 that 
could be used to issue up to 74,950,000 new registered shares to satisfy the conversion rights of the holders of 
the convertible bonds issued in May 2009 by Infineon Technologies Holding B.V. (see note 23). During the 2014 
fiscal year, a total of 46,171,936 new non-par shares with a proportionate amount of the share capital of €2 per 
share were issued out of the Conditional Capital 2009/I as a result of the conversion of the convertible bonds. 
The Conditional Capital 2009/I decreased accordingly by €92,343,872 to €57,556,128. Further details of the 
conversion of the convertible bonds are shown in note 23. As a result of the exercise of the conversion rights, 
the convertible bonds have been fully repaid. The Conditional Capital 2009/I is no longer required and so the 
Management Board and the Supervisory Board will propose to the Annual General Meeting that the Conditional 
Capital 2009/I be revoked. 
•	 Conditional Capital 2010/I pursuant to section 4(10) of the Articles of Association of up to €24,000,000 that 
may be used to issue up to 12,000,000 new registered shares in connection with the Company’s “Infineon 
Technologies AG Aktienoptionsplan 2010” (“Stock Option Plan 2010”) (see note 27).
•	 Conditional Capital 2014 pursuant to section 4 (11) of the Articles of Association of up to €260,000,000 that 
may be used to issue up to 130,000,000 new registered shares to satisfy the rights of the holders of warrants or 
convertible bonds, which the Company may issue at any time prior to February 12, 2019.
Other reserves
Other reserves changed as follows during the fiscal years ended September 30, 2014 and 2013:
€ in millions
2014
2013
 
Pretax
Tax effect 
Net
Pretax
Tax effect 
Net
Unrealized gains (losses) 
on hedging instruments
43 
–
43 
(7) 
–
(7) 
Foreign currency translation adjustment
12 
–
12 
(12) 
–
(12) 
Total
55 
–
55 
(19) 
–
(19) 
Accumulated deficit
The following table shows a reconciliation of accumulated deficit as of September 30, 2013 and 2014:
€ in millions
 
As of October 1, 2012
(4,199) 
Net income attributable to shareholders of Infineon Technologies AG
272 
Actuarial loss on post employment benefit obligations net of tax of negative €2 million
20 
As of September 30, 2013
(3,907) 
Net income attributable to shareholders of Infineon Technologies AG
535 
Actuarial gains on post employment benefit obligations net of tax of €3 million
(130) 
As of September 30, 2014
(3,502)

237
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Put options on own shares and own shares
On May 9, 2011 Infineon Technologies AG resolved to make use of the authorization to repurchase shares given 
by shareholders at the Annual General Meeting on February 17, 2011. From the original sum of up to €300 million 
allocated to measures aimed at returning capital to shareholders, €212 million were spent by the end of the 
program on March 31, 2013. The capital return has in particular been effected through writing put options on 
Infineon shares, and additionally through the repurchase of outstanding convertible bonds (see note 23). The share 
repurchase was carried out in accordance with sections 14 (2) and 20a (3) of the German Securities Trading Act in 
line with the provisions of Commission Regulation (EC) No. 2273/2003 of December 22, 2003. 
During the previous fiscal year up to the end of the program on March 31, 2013, put options for 6 million shares 
were exercised for which the Company paid €38 million to the holders of the options, leaving a total of 6 million 
own shares on hand as of September 30, 2013. 
In November 2013 the Company resolved upon a new capital returns program of up to €300 million until Septem­
ber 30, 2015. The capital returns program, making use of the authorization to acquire own shares given at the 
Annual General Meeting on February 28, 2013, may be effected either through the use of put options, or the direct 
repurchase of shares through Xetra trading on the Frankfurt Stock Exchange. Furthermore the Company could 
also repurchase further parts of the convertible subordinated bonds due 2014. Any shares repurchased will either 
be cancelled, thereby reducing the share capital, used to service convertible bonds, or distributed to employees, 
board members of affiliated companies, or members of the Management Board. The share repurchase will be 
carried out in accordance with the requirements of sections 14 (2) and 20a (3) of the German Securities Trading Act 
in line with the provisions of Commission Regulation (EC).
The capital returns program may be suspended and resumed at any time within the time frame defined in the 
resolution of the Annual General Meeting and taking into consideration other legal requirements. More information 
and the current status of the program is regularly published in the internet at www.infineon.com/cms/de/
about-infineon/investor/capital-returns/program-2013.
Up to September 30, 2014 the Company has issued put options on own shares with an exercise amount of 
€85 million, of which put options with a value of over €40 million remained outstanding as of September 30, 2014. 
Put options with a value of €45 million have expired. The outstanding put options with an original maximum term 
of twelve months correspond to a total of 6 million shares. Premiums received for the issued put options amounted 
to €3 million and resulted in a corresponding increase of additional paid-in capital. 
The following table contains an overview of put options issued, lapsed and exercised during the 2014 and 2013 
fiscal year:
In each case stated in millions


Exercise 
value 

in €
Underlying 
number 
of shares 
(in units)
Outstanding put options as of October 1, 2012
89 
16 
Put options issued in the 2013 fiscal year
–
–
	
Less: put options lapsed in the 2013 fiscal year
(51) 
(10) 
	
Less: put options exercised in the 2013 fiscal year
(38) 
(6) 
Outstanding put options as of September 30, 2013
–
–
 
 
 
Put options issued during the 2014 fiscal year
85 
14 
	
Less: put options lapsed in the 2014 fiscal year
(45) 
(8) 
	
Less: put options exercised in the 2014 fiscal year
–
–
Outstanding put options as of September 30, 2014
40 
6

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
238
Dividends
Under the German Stock Corporation Act (Aktiengesetz), the amount of dividends available for distribution to 
shareholders is based on the level of unappropriated profit (Bilanzgewinn) of the ultimate parent, as determined 
in accordance with the HGB. All dividend payments must be approved by the Annual General Meeting. 
For the 2013 fiscal year, a cash dividend of €0.12 per share (total amount: €129 million) was paid in accordance with 
the resolution passed at the Annual General Meeting on February 13, 2014. In the 2013 fiscal year, a cash dividend 
of €0.12 per share (total amount: €129 million) was paid for the 2012 fiscal year.
In May 2014 Infineon reduced its target ratio of investments to revenue over the cycle with effect from the 2015 
fiscal year from about 15 percent to about 13 percent. In view of the reduced capital intensity and the resulting 
expected sustainable improvement in free cash flow, the dividend should significantly increase from as early as 
fiscal year 2014.
A dividend of €0.18 for each share entitled to a dividend shall be proposed to be paid from the €228 million of 
distributable profits of Infineon Technologies AG for the 2014 fiscal year. Taking into account the fact that own 
shares held by the Company at the time of the Annual General Meeting are not entitled to receive a dividend, this 
would result in an expected distribution of approximately €202 million. Since payment of the dividend depends 
on approval being given by the Annual General Meeting which is set to take place on February 12, 2015, a liability 
has not been recognized in the Consolidated Financial Statements.
26  Capital management
Infineon’s principal capital management objective is to ensure financial flexibility on the basis of a solid capital 
structure. As with comparable companies in the semiconductor industry, it is of prime importance that sufficient 
cash funds are available to finance operating activities and planned investments throughout all phases of the 
business cycle. On the other hand, debt should only constitute a modest proportion of the financing mix. Based on 
these principles Infineon has defined the following three key objectives for capital management: 
•	 gross cash position of between 30 and 40 percent of revenue
•	 positive net cash position
•	 gross debt of not more than 2x EBITDA (earnings from continuing operations before tax, depreciation and 
amortization)
Infineon is not subject to any statutory capital requirements, nor are any such defined in the Articles of Association.
Capital management as well as the corresponding objectives and definitions are based on ratios which in turn are 
based on the consolidated IFRS financial statements. Infineon defines its net cash position or net debt position, 
as gross cash less the total of short-term and long-term debt (gross debt). Gross cash is defined as the total of cash, 
cash equivalents and financial investments. Infineon defines EBIT as earnings (loss) from continuing operations 
before interest and taxes and EBITDA as EBIT plus scheduled depreciation/amortization. 
As of September 30, 2013, Infineon had a net cash position of €1,983 million which increased to €2,232 million over 
the course of the 2014 fiscal year. The gross cash position increased from €2,286 million as of September 30, 2013, 
to €2,418 million as of September 30, 2014 (for details see the chapter “Review of liquidity” in the Group management 
report). Based on revenue of €4,320 million, the ratio of gross cash to revenue was 56.0 percent as of September 30, 
2014 (59.5 percent in 2013) and thus above the targeted range. 
The gross debt to EBITDA ratio was 0.2 as of September 30, 2014 (0.4 in 2013). Infineon continues to have sufficient 
financial flexibility to ensure that in addition to financing its planned investments it is also able to pay regular 
dividends (see note 25) and complete the pending acquisition of International Rectifier.

239
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Infineon will also continue to pursue the capital management targets after the acquisition. Infineon’s gross cash 
position is likely to temporarily lie outside the communicated target range in the 2015 fiscal year, and could even 
temporarily register a net debt position, as a result of this transaction, as well as due to the payments of €343 million 
made by Infineon in October 2014 in connection with the Qimonda partial settlement and the fine imposed by 
the European Commission (“EU-Commission”) (for details see note 33). The gross debt to EBITDA ratio will remain 
below the stated maximum level even after including the higher levels of debt incurred in connection with the 
acquisition of International Rectifier.
27  Share-based compensation
In order to provide share-based compensation the Company has in place the Stock Option Plan 2006, the Stock 
Option Plan 2010 and, from the 2014 fiscal year, the Performance Share Plan.
Share-based compensation costs
Share-based compensation costs for the fiscal years ended September 30, 2014 and 2013 amounted to €6 million 
and €3 million, respectively.
Performance share plan
A new Long Term Incentive Plan (LTI) consisting of a so called “performance share” plan was developed for the 
Management Board and selected senior executives as a successor to the Stock Option Plan 2010.
Under this plan, (virtual) performance shares are provisionally allocated on October 1 for the fiscal year starting on 
that date according to a pre-determined LTI allocation amount in euro. With the allotment of a virtual performance 
share, the participant in the plan acquires the right to receive (real) Infineon shares once a personal investment in 
Infineon shares has reached a four-year holding period. The level of personal investment is dependent on position 
and LTI allocation.
50 percent of the performance shares are performance-related, 50 percent are not dependent on performance. 
The performance-related shares are only finally allocated if the Infineon share outperforms the Philadelphia 
Semiconductor Index (SOX) during the period between the date of the provisional allocation and the end of the 
holding period. If at the end of the holding period the requirements for an allocation of performance shares – either 
all or only those that are not performance related – are fulfilled, then the entitlement to the transfer of the corre­
sponding number of (real) Infineon shares is acquired. Members of the Management Board may not receive more 
than a 250 percent gain on the respective LTI allocation; above this level performance shares are forfeited.
The fair value of the performance shares at the date of allocation is determined by an external expert using a recog­
nized financial-mathematical method (Monte Carlo simulation model). Variations in the underlying assumptions 
have no material effect on the fair value.
The following requirements apply:
Tranche

End of the 
waiting period
Average share price 
of the nine months 
before grant in €
Number of 
performance shares 
at September 30, 2014
Fair Value per 
performance share 
in €
Fiscal year 2014: Employees
September 30, 2017
6.62 
1,262,250 
5.72 
Fiscal year 2014: Management Board
September 30, 2017
6.62 
114,046 
5.20 
As at 1 October, 2014 100,702 (virtual) performance shares were allocated to the Management Board and 
1,074,276 (virtual) performance shares were allocated to employees.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
240
Stock Option Plan 2006 and Stock Option Plan 2010
There are no changes with respect to the stock option plans described in the consolidated financial statements 
as of 30 September, 2013.
The fair value of the stock options of the Stock Option Plans 2006 and 2010 is determined by an external expert 
using a recognized financial-mathematical method (Monte Carlo simulation model). 
The development of the 2006 and 2010 stock option plans during the 2013 and 2014 fiscal years is presented below:
 
Number of 
options 

(in millions)
Weighted-
average 
exercise price 
(in €)
Options outstanding as of September 30, 2012
13.1 
7.85 
	
Granted
4.4 
7.00 
	
Exercised
(0.8) 
2.72 
	
Forfeited and expired
(4.9) 
9.71 
Options outstanding as of September 30, 2013
11.8 
7.11 
Exercisable at September 30, 2013
0.9 
2.72 
 
 
 
Options outstanding as of September 30, 2013
11.8 
7.11 
	
Granted
–
–
	
Exercised
(0.5) 
2.72 
	
Forfeited and expired
(0.1) 
7.94 
Options outstanding as of September 30, 2014
11.2 
7.29 
Exercisable at September 30, 2014
0.4 
2.72 
 
28  Supplemental cash flow information
There were no significant non-cash transactions from acquisition or financing activities during the 2014 and 2013 
fiscal years.
Cash and cash equivalents reported as of September 30, 2014 and 2013 totaling €1,058 million and €527 million, 
respectively, and include €53 million and €33 million, respectively, which were subject to legal transfer restrictions 
and so were not available for general use by Infineon. This amount represents cash and cash equivalents of con­
solidated companies located in countries where the transfer of cash is legally restricted, for example the People’s 
Republic of China.
29  Related parties
Infineon has transactions in the normal course of business with equity method investees and other related com­
panies (collectively, “related companies”). The related parties which are controlled or significantly influenced by 
Infineon are disclosed in note 36. Related parties also include persons in key management positions (collectively 
“related persons”), in particular members of the Management and Supervisory Board and their close relatives.

241
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Related companies
Infineon purchases certain raw materials and services from, and sells certain products and services to related 
companies. These purchases from and sales to related companies are generally effected at manufacturing cost 
plus a mark-up.
Related companies receivables and payables consist exclusively of trade and other receivables and payables from 
and to equity method investees and other related companies. 
Related companies receivables and payables as of September 30, 2014 and 2013 consist of the following: 
€ in millions


 
September 30, 2014
September 30, 2013
at-equity 
companies
other related 
companies
at-equity 
companies
other related 
companies
Trade and other receivables
3 
1 
3 
1 
Financial receivables
–
1 
–
–
Trade and other payables
10 
2 
10 
2 
Financial payables
–
1 
–
1 
Sales and service charges to and purchases from related companies in the 2014 and 2013 fiscal years consist of 
the following:
€ in millions


 
2014
2013
at-equity 
companies
other related 
companies
at-equity 
companies
other related 
companies
Sales and service charges
15 
2 
22 
2 
Purchases
81 
29 
82 
28 
Related persons
The active members of the Management Board in the 2014 fiscal year received total fixed non-performance-
related compensation for their services of €2.4 million (2013: €2.4 million). In addition, the members of the 
Management Board received variable performance-related compensation for their services in the 2014 fiscal year 
totaling €2.5 million (2013: €1.7 million). This comprised a Short Term Incentive of €1.3 million (2013: €0.9 million), 
and a Mid Term Incentive of €1.2 million (2013: €0.8 million). Furthermore, the Management Board received a 
Long Term Incentive (LTI) which, in 2014 for the first time, took the form of performance shares. Previously the 
LTI was granted in the form of stock options based on the Stock Option Plan 2010. The expense resulting from 
the LTI amounted to €0.6 million (2013: €0.4 million). The total compensation received by active members of the 
Management Board amounted to €5.5 million in the 2014 fiscal year (2013: €4.5 million).
The total compensation of the members of the Supervisory Board of Infineon Technologies AG in the 2014 fiscal 
year, including attendance fees, amounted to €1.2 million (2013: €1.1 million). Employee representatives in the 
Supervisory Board who are employed by Infineon also receive a salary for their activities as employees.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
242
Former members of the Management Board received total payments of €1.1 million (principally pension payments) 
in the 2014 fiscal year (2013: €1.1 million). 
As of September 30, 2014, pension liabilities for former members of the Management Board amounted to 
€59.5 million (2013: €47.9 million). 
Neither Infineon Technologies AG nor any of its subsidiaries have granted loans to any member of the Supervisory 
or Management Boards.
Disclosure of the individual remuneration of the members of the Management Board and the Supervisory Board as 
required by section 315a (1) in connection with section 314 (1) no. 6a, sentences 5 to 8 of the German Commercial 
Code, is provided in the Compensation Report which is part of the Group Management Report.
In the 2014 and 2013 fiscal years there were no transactions between Infineon and related persons which fall 
outside of the scope of the existing employment, service or appointment terms, or of the contractual arrangements 
for their remuneration.
30  Pension plans
Defined benefit pension plans
Infineon’s employee benefit plans consist of domestic and foreign defined benefit and defined contribution 
pension plans providing retirement, disability and surviving dependents’ benefits. For the Infineon Group, the 
significant benefit plans in Germany pertain to Infineon Technologies AG, and among the foreign benefit plans to 
Infineon Technologies Austria AG.
In Germany Infineon primarily offers defined contribution benefits which provide for the employees when they 
reach retirement age, or in the event of disability or death. With the Infineon pension plan new entrants receive 
a defined contribution benefit which is funded by Infineon. Payments by the Infineon pension plan are generally 
made in 12 installments. For active employees who were, before the Infineon Pension Plan came into force, 
entitled to benefits in the form of an annuity, this commitment is overridden and with it the possibility of an annuity is 
guaranteed. Together with former employees, this group makes up the largest part of the obligation. The statutory 
framework is provided by the Company Pension Act (in German: Betriebsrentengesetz or BetrAVG) and by employ­
ment law in general. New employees receive a contribution-based pension commitment in accordance with the 
Infineon Pension Plan. An appropriate provision is recorded for the German defined benefit pension plans, which 
are partly backed by plan assets. Individual agreements are in place for the members of the Management Board 
which are backed by pension reinsurance policies (detailed in the “Compensation Report” chapter). 
The benefit obligation of some foreign plans is measured according to the income in the last month or year of 
service, others are dependent on average income over the service period. Furthermore, in certain countries 
Infineon makes severance payments irrespective of the reason for the termination of employment, these payments 
are usually defined by laws in the relevant country. The liabilities arising from foreign defined benefit pension 
plans are partly covered by plan assets.
The valuation date of the German and foreign pension plans is September 30. 
The Group defined benefit pension plans are exposed to risks arising from changes to actuarial assumptions such 
as interest rates, salary and pension trends, investment risks and longevity risks. A low discount rate leads to 
higher pension liabilities. Equally, a lower than expected growth in plan assets could lead to a deterioration of the 
funded status, or require the payment of additional contributions.

243
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
The development of Infineon’s German (domestic) and non-German (foreign) pension plans and the plan assets 
to September 30, 2014 and 2013 is presented in the following table:
€ in millions


 
2014
2013
Domestic 
plans
Foreign 
plans
Total
Domestic 
plans
Foreign 
plans
Total
Change in defined benefit obligations taking 
into account future salary increases:
 
 
  
 
 
 
	
Present value at beginning of year
(573) 
(108) 
(681) 
(567) 
(109) 
(676) 
	
Current service cost
(15) 
(3) 
(18) 
(15) 
(3) 
(18) 
	
Past service income (cost)
–
–
–
2 
(6) 
(4) 
	
Interest cost
(20) 
(4) 
(24) 
(19) 
(4) 
(23) 
	
Actuarial gains (losses) for:
 
 
 
 
 
 
	
	
Experience adjustments
–
(3) 
(3) 
(1) 
1 
–
	
	
Adjustments to 
demographic assumptions
–
(2) 
(2) 
–
–
–
	
	
Adjustments to financial assumptions
(134) 
(15) 
(149) 
16 
5 
21 
	
Acquisitions and divestitures
–
(1) 
(1) 
–
–
–
	
Curtailments
–
5 
5 
–
–
–
	
Benefits paid by Infineon
12 
3 
15 
11 
3 
14 
	
Foreign currency effects
–
(3) 
(3) 
–
5 
5 
Present value of defined benefit obligation 
at end of year
(730) 
(131) 
(861) 
(573) 
(108) 
(681) 
 
 
 
 
 
 
 
Change in fair value of plan assets:
 
 
  
 
 
 
	
Fair value at beginning of year
394 
43 
437 
344 
39 
383 
	
Expected return on plan assets
14 
2 
16 
17 
3 
20 
	
Actuarial gains (losses)
22 
2 
24 
1 
–
1 
	
Contributions from Infineon
12 
6 
18 
43 
6 
49 
	
Benefits paid
(12) 
(3) 
(15) 
(11) 
(3) 
(14) 
	
Foreign currency effects
–
2 
2 
–
(2) 
(2) 
Fair value of plan assets at end of year
430 
52 
482 
394 
43 
437 
 
 
 
 
 
 
 
Net pension liability
(300) 
(79) 
(379) 
(179) 
(65) 
(244) 
	
Thereof: Infineon Technologies AG
(281) 
–
(281) 
(152) 
–
(152) 
	
Thereof: Infineon Technologies Austria AG
–
(37) 
(37) 
–
(35) 
(35)

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
244
Reconciliation of the amounts recognized in the Consolidated Statement of Financial Position:
€ in millions


 
2014
2013
Domestic 
plans
Foreign 
plans
Total
Domestic 
plans
Foreign 
plans
Total
Pension obligations, net
(300) 
(79) 
(379) 
(179) 
(65) 
(244) 
	
Thereof recognized in: Pension plans 
and similar 
commitments
(300) 
(79) 
(379) 
(181) 
(65) 
(246) 
	
Thereof recognized in: Other non-current 
assets
–
–
–
2 
–
2 
Since no asset ceiling applied, the funded status of the Infineon pension plans corresponds to the amounts 
reported in the Consolidated Statement of Financial Position as at September 30, 2014 and 2013.
Certain pension scheme liabilities with a value of €11 million were, in the previous year, backed by reinsurance 
policy assets with a fair value of €13 million. The net amount of these liabilities and their related insurance assets 
of €2 million represents assets arising from employee benefits and was disclosed within other non-current assets 
(see note 18).
The funding of the present value of the defined benefit obligations is as follows: 
€ in millions


 
2014
2013
Domestic 
plans
Foreign 
plans
Total
Domestic 
plans
Foreign 
plans
Total
Plans that are wholly unfunded
10 
63 
73  
9 
54 
63 
Plans that are wholly or partly funded
720 
68 
788 
564 
54 
618 
Total
730 
131 
861 
573 
108 
681 
Actuarial assumptions
The weighted-average assumptions used in calculating the actuarial values for the pension plans are as follows:
in %


 
2014
2013
Domestic 
plans
Foreign 
plans
Domestic 
plans
Foreign 
plans
Discount rate at the end of the fiscal year
2.4 
3.4 
3.7 
4.2 
Rate of salary increase
2.0 
2.3 
2.0 
2.4 
Projected future pension increases
2.0 
0.7 
2.0 
0.8 
Expected return on plan assets at the beginning of the fiscal year
n/a
n/a
4.8 
6.9 
Discount rates are established based on prevailing market rates for high-grade fixed interest corporate bonds from 
issuers carrying a very high credit rating.

245
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Sensitivity analysis
The following sensitivity analysis table shows how the present value of all defined benefit pension obligations 
would be affected by changes in the aforementioned actuarial assumptions. In each case they reflect the effect of 
changes in one actuarial assumption holding all other assumptions constant.
€ in millions


 
2014
Domestic 
plans
Foreign 
plans
Total
Present value of defined benefit pension plans with:
 
 
 
a 50 basis points higher discount rate 
669 
117 
786 
a 50 basis points lower discount rate 
800 
136 
936 
a 50 basis points higher expected rate of salary increase
736 
130 
866 
a 50 basis points lower expected rate of salary increase
724 
122 
846 
a 50 basis points higher expected rate of pension increase
746 
129 
875 
a 50 basis points lower expected rate of pension increase
715 
123 
838 
Increase in life expectancy by one year
745 
129 
874 
The 2005 G actuarial tables by Dr. Klaus Heubeck were used for Germany, and for Austria the AVÖ 2008-P (Ang.) 
tables were applied.
Investment strategies
The pension plans’ assets are invested with several fund managers. The investment guidelines require a mix of 
active and passive investment management programs over different asset classes. Having regard to the duration 
of the underlying liabilities, a portfolio of investments of plan assets in equity, debt and other securities, and 
reinsurance policies is targeted to maximize the long-term return on assets for a given level of risk. Investment 
risk is monitored on an ongoing basis through periodic portfolio reviews, coordination with investment managers 
and annual liability measurements. Investment policies and strategies are periodically reviewed to ensure the 
objectives of the plans are met, taking into account any changes in benefit plan design, market conditions or other 
material items. Furthermore, Infineon periodically commissions detailed asset/liability studies to be performed 
by third-party professional investment advisors and actuaries, the results of which are incorporated into the 
investment strategy.
Plan asset allocation
As of September 30, 2014 and 2013 the allocation of invested plan assets to the major asset categories is as follows:
€ in millions



 
2014
2013
Quoted in 
an active 
market
Not quoted 
in an active 
market
Quoted in 
an active 
market
Not quoted 
in an active 
market
Government bonds
153 
–
47 
–
Corporate bonds
109 
–
154 
–
Equity securities
75 
–
76 
–
Cash and cash equivalents
53 
–
76 
–
Reinsurance policies
–
33 
–
32 
Property
– 
26 
–
28 
Other
25 
8 
16 
8 
Total
415
67
369 
68 
The position “Other” in the table above comprises mainly commodity funds.
As a matter of policy Infineon’s pension plans do not invest in shares of Infineon.
The actual return on plan assets in the fiscal year ended September 30, 2014 was €40 million (2013: €20 million 
positive).

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
246
Amounts recognized in profit or loss and in total comprehensive income
The expenses and income of defined benefit plans for the years ended September 30, 2014 and 2013 comprise 
the following:
€ in millions


 
2014
2013
Domestic 
plans
Foreign 
plans
Total
Domestic 
plans
Foreign 
plans
Total
Current service cost
(15) 
(3) 
(18) 
(15) 
(3) 
(18) 
Interest cost
(20) 
(4) 
(24) 
(19) 
(4) 
(23) 
Expected return on plan assets
14 
2 
16 
17 
3 
20 
Amortization of unrecognized 
past service (cost) benefit
–
–
–
2 
(6) 
(4) 
Curtailment gain recognized
–
5 
5 
–
–
–
Pension costs
(21) 
–
(21) 
(15) 
(10) 
(25) 
Service costs are recorded within cost of goods sold to the extent that they relate to production employees, 
otherwise they are recorded as research and development or selling, general and administrative expenses. As a 
result of the first-time adoption of IAS 19 (revised) “Employee Benefits”, in the 2014 fiscal year interest costs and 
expected return on plan assets were recorded net as part of financial expense. In the 2013 fiscal year interest costs 
were recorded as part of financial expense, and the expected return on plan assets as part of financial income.
Actuarial losses of €130 million and actuarial gains of €22 million have been recognized outside of the Consolidated 
Statement of Operations in Other Comprehensive Income for the years ended September 30, 2014 and 2013, 
respectively. 
As of September 30, 2014 and 2013, cumulative actuarial losses amounted to €292 million and €162 million, 
respectively. In addition, cumulative actuarial losses amounting to €8 million, resulting from deferred compen­
sation and retiree health care plans, are also recognized directly in Other Comprehensive Income. 
In the 2015 fiscal year payments of €19 million are expected to be made to plan assets of which €18 million 
relates to benefits paid directly to pension recipients by the Group companies, and €1 million is contributions 
to plan assets.
The weighted average duration of defined benefit plans was around 17 years as of September 30, 2014 and 2013, 
respectively.
The following table shows the expected disbursements for defined benefit plans for the next ten fiscal years:
€ in millions
Total
2015
18 
2016
18 
2017 – 2019
70 
2020 – 2024
175 
Total
281 
Defined contribution plans
In connection with defined contribution plans, fixed contributions are made to external insurance providers or 
funds. Infineon has no further performance obligations or risks with regard to these pension plans in excess of the 
fixed contributions paid. Additionally the Group makes contributions to government pension schemes. Expenses 
for defined contribution plans amounted to €114 million and €109 million in the fiscal years ended September 30, 
2014 and 2013, respectively.

247
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
31  Additional disclosures on financial instruments
The following table presents the carrying amounts and the fair values of financial instruments by their respective 
classes, and a breakdown by category of financial instrument as defined by IAS 39.
€ in millions


 
Financial assets
Categories of financial assets
Carrying 
amount
At fair value 
through 
profit or loss
Available 
for sale
Loans and 
receivables
Designated 
cash flow 
hedges
Fair value

Balance as of September 30, 2014
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
	
Cash and cash equivalents
1,058 
–
–
1,058 
–
1,058 
	
Financial investments
1,360 
–
64 
1,296 
–
1,360 
	
Trade receivables
581 
–
–
581 
–
581 
	
Other current assets
115 
2 
–
74 
39 
115 
Non-current assets:
 
 
 
 
 
 
	
Other non-current assets
118 
–
21 
97 
–
118 
Total
3,232 
2 
85 
3,106 
39 
3,232 
 
 
 
 
 
 
 
Balance as of September 30, 2013
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
	
Cash and cash equivalents
527 
–
–
527 
–
527 
	
Financial investments
1,759 
–
53 
1,706 
–
1,759 
	
Trade receivables
518 
–
–
518 
–
518 
	
Other current assets
62 
2 
–
60 
–
62 
Non-current assets:
 
 
 
 
 
 
	
Other non-current assets
116 
–
20 
96 
–
116 
Total
2,982 
2 
73 
2,907 
–
2,982

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
248
€ in millions





 
Financial liabilities:
Categories of 
financial liabilities
Carrying 
amount


At fair value 
through 
profit or loss

Other 
financial 
liabilities 
(amortized 
cost)
Designated 
hedging 
instruments 
(cash flow 
hedges)
Fair value



Balance as of September 30, 2014
 
 
 
 
 
Current liabilities:
 
 
 
 
 
	
Short-term debt and current maturities 
of long-term debt
35 
–
35 
–
35 
	
Trade payables
648 
–
648 
–
648 
	
Other current liabilities
179 
1 
176 
2 
179 
Non-current liabilities:
 
 
 
 
 
	
Long-term debt
151 
–
151 
–
151 
	
Other non-current liabilities
15 
–
15 
–
15 
Total
1,028 
1 
1,025 
2 
1,028 
 
 
 
 
 
 
Balance as of September 30, 2013
 
 
 
 
 
Current liabilities:
 
 
 
 
 
	
Short-term debt and current maturities 
of long-term debt
134 
–
134 
–
138 
	
Trade payables
569 
–
569 
–
569 
	
Other current liabilities
17 
1 
13 
3 
17 
Non-current liabilities:
 
 
 
 
 
	
Long-term debt
169 
–
169 
–
169 
	
Other non-current liabilities
7 
–
7 
–
7 
Total
896 
1 
892 
3 
900 
For assets measured at amortized costs categorized as “Loans and receivables”, it is assumed that the fair values 
correspond to their carrying amounts. The same assumption applies to liabilities resulting from trade payables and 
other current liabilities categorized as “Other financial liabilities (amortized cost)”. 
Financial instruments measured at fair value are allocated to the following measurement levels in accordance 
with IFRS 13. The allocation to the different levels is based on the market proximity of the valuation parameters 
used in the determination of the fair value:
•	 Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities,
•	 Level 2: valuation parameters whose prices are not the ones considered in Level 1, but which can be observed 
either directly or indirectly for the assets or liabilities, 
•	 Level 3: valuation parameters for assets and liabilities which are not based on observable market data.

249
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
The fair value hierarchy of financial instruments measured at fair value as of September 30, 2014 and 2013 
is as follows:
€ in millions

 
Fair value

 
Fair value by category
Level 1
Level 2
Level 3
2014 Fiscal year
 
 
 
 
Current assets:
 
 
 
 
	
Financial investments
64 
–
64 
–
	
Other current assets
41 
–
41 
–
Non-current assets:
 
 
 
 
	
Other non-current assets
21 
16 
–
5 
Total
126 
16 
105 
5 
Current Liabilities
 
 
 
 
	
Other current liabilities
3 
–
3 
–
Total
3 
–
3 
–
 
 
 
 
 
2013 Fiscal year
 
 
 
 
Current assets:
 
 
 
 
	
Financial investments
53 
–
53 
–
	
Other current assets
2 
–
2 
–
Non-current assets:
 
 
 
 
	
Other non-current assets
20 
15 
–
5 
Total
75 
15 
55 
5 
Current Liabilities
 
 
 
 
	
Other current liabilities
4 
–
4 
–
Total
4 
–
4 
–
The fair values of the securities included in financial investments categorized as “Available for sale” for which no 
active market exists are calculated as the present value of future expected cash flows, taking into account valuation 
parameters which can be observed in the market (Level 2). 
The fair value of derivative financial instruments (including cash flow hedges) included in other current assets 
or liabilities is determined according to the discounted cash flow method. Where possible, valuation parameters 
observed on the reporting date in the relevant markets (such as currency rates or commodity prices) and made 
available by reliable external sources are used (Level 2).
The fair value of the securities included in other non-current assets is based on market prices quoted on an active 
market (Level 1). Also included in other non-current assets are financial investments which are not quoted on an 
active market. For these, the fair value as of September 30, 2014 is determined by considering existing contractual 
arrangements based on externally observable dividend policy (Level 3). The fair value of these investments 
amounts to €5 million both at September 30, 2014 and at September 30, 2013. 
For financial instruments measured at amortized cost whose fair value should be disclosed in the notes to the 
consolidated financial statements, the fair value in the 2014 fiscal year is mainly determined as the present value 
of future expected cash flows, where, to the extent possible, observable valuation parameters were taken into 
account. The recognized fair values can therefore be allocated to Level 2. For the convertible bond which was 
included in the previous year in current financial liabilities, the fair value was determined based on the market 
price as of September 30, 2013 which was 236.0 percent premium to par. This was assigned to Level 1 of the fair 
value hierarchy. 
In 2014 and 2013 fiscal years no reclassification within the fair value hierarchy was carried out.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
250
As required to be disclosed by IFRS 7, the net gain or loss on financial instruments within continuing operations in 
the Group Statement of Operations in the 2014 and 2013 fiscal years amounted to the following:
€ in millions
2014
2013
Available-for-sale financial assets
3 
1 
Loan and receivables
36 
(3) 
Held for trading
–
(1) 
Other financial liabilities
(40) 
(3) 
Designated hedging instruments (cash flow hedges)
(7) 
(4) 
Total
(8) 
(10) 
The net currency effect included within net gains and losses amount to negative €4 million (2013: negative €3 million). 
Infineon does not net financial instruments. The Company conducts derivative transactions according to the 
global netting agreement (Master Agreement) of the International Swaps and Derivatives Association (ISDA) and 
other comparable national framework agreements. These agreements contain no legally enforceable requirement 
for netting. 
Derivative financial instruments and hedging activities
Infineon uses derivative financial instruments for hedging purposes, not for trading or speculative purposes. 
Infineon enters into derivative financial instruments such as forward exchange contracts and commodity swaps. 
The objective of these transactions is to reduce the impact of exchange rate and commodity price fluctuations 
on future net cash flows. Furthermore, a transaction-dependent Deal Contingent Forward was concluded which 
hedges part of the euro/US dollar currency risk arising from the purchase price obligation of the acquisition of 
Inter­national Rectifier in August 2014.
The notional amounts and fair values of Infineon’s derivative instruments as of September 30, 2014 and 2013 
are as follows:
€ in millions


 
2014
2013
Notional 
amount
Fair value
Notional 
amount
Fair value
Forward exchange contracts sold
25 
–
132 
2 
Forward exchange contracts purchased
116 
1 
93 
–
Deal Contingent Forward
1,146 
39 
–
–
Commodity swaps
42 
(2) 
41 
(3) 
Total
 
38 
 
(1) 
Foreign exchange derivatives are entered into by Infineon to offset the exchange risk from anticipated cash 
receipts from operating activities. Neither in 2014 nor in 2013 were any foreign exchange derivatives used to hedge 
ongoing business designated as cash flow hedges.
For partial protection against exchange rate risks arising from the purchase price obligation of the acquisition 
of International Rectifier, the company has, in August 2014, concluded a transaction-dependent euro/US dollar 
foreign currency forward contract (so-called “Deal Contingent Forward”) with a notional amount of US$1.5 billion. 
This contract has been accounted for as a cash flow hedge. As of September 30, 2014, the fair value of the Deal 
Contingent Forward is €39 million. The corresponding change in value in the same amount is recorded in other 
reserves. No ineffectiveness deriving from the Deal Contingent Forward has been recorded in the 2014 fiscal year.

251
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
With completion of the acquisition of International Rectifier, which is expected by the end of calendar year 2014 
or beginning of the calendar year 2015, the effects of the hedging relationship will be taken into account for 
determining the goodwill resulting from the transaction.
To offset the price risks of highly probable gold purchases in the coming fiscal years, Infineon entered into swaps 
which are designated as cash flow hedges in the 2014 and 2013 fiscal years. The fair value of these swaps amounted 
to negative €2 million as of September 30, 2014 and negative €3 million as of September 30, 2013. The fair value 
changes of these swaps of positive €1 million in 2014 (2013: negative €9 million) are recorded in other reserves. 
Infineon did not record any hedge ineffectiveness in the 2014 or 2013 fiscal years for these hedging relationships. 
In the 2014 and 2013 fiscal years, no gains or losses were transferred from other reserves to profit or loss as a result 
of cash flow hedges for future raw material purchases being cancelled following the decision that the occurrence 
of the hedged transaction had become unlikely.
32  Financial risk management
Infineon’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest 
rate risk and price risk), credit risk and liquidity risk. Infineon’s financial risk management program seeks to 
minimize potential adverse effects on its profitability and liquidity. Infineon uses derivative financial instruments 
to hedge certain risks to which it is exposed. Financial risk management is carried out by the central Finance & 
Treasury (FT) department in accordance with policies approved by the Chief Financial Officer. The FT department 
identifies, evaluates and hedges financial risks in close co-operation with the operating units. The FT department’s 
policy contains principles for overall risk management as well as documented policies covering specific areas, such 
as foreign exchange risk, interest rate risk, credit risk, the use of derivative and non-derivative financial instruments, 
and the investment of excess liquidity.
Market risk
Market risk is defined as the risk of losses related to adverse changes in the market prices of financial instruments, 
including those related to foreign exchange rates, interest rates and other price risks.
Infineon is exposed to various market risks in the ordinary course of business, primarily resulting from changes 
in foreign exchange rates and interest rates. Infineon enters into a range of derivative financial transactions with 
various counterparties to limit such risks. Derivative instruments are used only for hedging purposes and not for 
trading or speculative purposes.
Foreign exchange risk
Foreign exchange risk is the risk arising from changes to foreign exchange rates. According to IFRS, foreign exchange 
risks are associated with monetary financial instruments that are denominated in a foreign currency that does 
not correspond to the functional currency, and the non-functional currency represents the relevant risk variable. 
Translation risks are not taken into consideration.
Although Infineon prepares the Consolidated Financial Statements in euros, a varying but significant portion of 
its revenue as well as cost of goods sold, research and development and distribution costs are denominated 
in currencies other than the euro, primarily the US dollar. Fluctuations in the exchange rates of these currencies 
compared to the euro had an effect on the results of Infineon in the 2014 and 2013 fiscal years.
The Management Board has established policies that require Infineon’s individual legal entities to manage the 
foreign exchange risk with respect to their functional currency. Group entities prepare a monthly rolling cash flow 
forecast by currency in order to determine foreign exchange exposures. The net foreign exchange positions 
determined in these forecasts are required to be hedged, usually by entering into internal hedging contracts.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
252
Infineon’s policy with respect to limiting short-term foreign currency exposure is to hedge at least 75 percent of 
its estimated net cash flow for the following two months, at least 50 percent of its estimated net cash flow for the 
third month and, depending on the nature of the underlying transactions, a portion for the periods thereafter. Part 
of the foreign currency exposure cannot be mitigated due to differences between actual and forecasted amounts. 
Infineon calculates this remaining risk based on net cash flows considering items in the Statement of Financial 
Position, actual orders received or placed and all other planned income and expenditure.
A transaction-dependent foreign currency forward contract (a so-called Deal Contingent Forward) with a nominal 
value of US$1.5 billion was concluded which hedges part of the euro/US dollar currency risk arising from the 
purchase price obligation of the acquisition of International Rectifier in August 2014.
Regarding the net result related to foreign currency derivatives and foreign currency transactions included within 
net income please refer to note 31.
The following table shows the effects on profit or loss and equity for continuing operations of a 10 percent shift in 
the currency exchange rates for the major foreign currencies as of September 30, 2014 and 2013:
€ in millions


 
Profit or Loss
Equity
+10 %
(10 %)
+10 %
(10 %)
September 30, 2014
(2) 
3 
(11) 
–
September 30, 2013
7 
(9) 
–
–
Interest rate risk
In accordance with IFRS 7 “Financial Instruments: Disclosures”, interest rate risk is defined as the risk that the fair 
value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Infineon is exposed to interest rate risk through its financial assets and debt instruments resulting from bond 
issuances and debt financing. Due to the cyclical nature of its core business and the need to maintain high 
operational flexibility, Infineon holds a relatively high level of liquid financial assets that are invested in short-term 
fixed-interest instruments. These investments generally have a contract duration of between one and twelve 
months in order to achieve short term interest rate returns. The risk to these assets of changing interest rates is 
partially offset by financial liabilities, some of which are based on variable interest rates.
To reduce the net remaining risks caused by changes in market interest rates, Infineon is able to make use of 
interest rate derivatives, such as interest swaps, in order to align the fixed interest periods of assets and liabilities.
IFRS 7 requires a sensitivity analysis showing the effect of possible changes in market interest rates on profit or loss 
and equity. Infineon prepares this using the iteration method. Infineon does not hold any fixed-rate financial assets 
or liabilities that are measured at fair value through profit or loss. Furthermore, Infineon did not hold any fixed-rate 
available-for-sale financial assets either in 2014 or 2013.
Changes in market interest rates affect interest income and interest expense on variable rate financial instruments. 
A change in interest rates as of September 30, 2014 and September 30, 2013 would have no significant impact on 
the respective net interest result of the 2014 and 2013 fiscal years, therefore further details are not included here.
Other price risk
According to IFRS 7 “Financial Instruments: Disclosures”, other price risk is defined as the risk that the fair value or 
future cash flows of a financial instrument could fluctuate because of changes in market prices (other than those 
arising from interest rate risk or currency risk), irrespective of whether those changes are caused by factors specific 
to the individual financial instrument or its issuer, or by factors affecting all similar financial instruments traded in 
the market.

253
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Infineon holds financial instruments that are exposed to market price risks. A change in the relevant market prices 
would have no significant impact on the result of the 2014 and 2013 fiscal years, therefore further details are not 
included here.
Additionally, Infineon is exposed to price risks with respect to raw materials upon which it is dependent. Infineon 
seeks to minimize these risks through its sourcing policies (including the use of multiple sources, where possible) 
and its operating procedures. In line with these measures Infineon concluded additional financial derivative 
contracts for certain commodity supplies (gold) for the following fiscal year in order to mitigate the remaining risk 
which arises from the fluctuation of commodity prices. The change in relevant market prices as of September 30, 
2014 and September 30, 2013 had no significant impact on equity of the 2014 and 2013 fiscal years, therefore no 
further details are given here.
Credit risk
Credit risk arises when a customer or other counterparty of a financial instrument fails to discharge its contractual 
obligations. 
Infineon is exposed to this risk as a consequence of its ongoing operations, the investment of cash funds and 
certain financing activities. Infineon’s credit risk arises primarily from trade receivables, cash and cash equivalents, 
financial investments and derivative financial instruments. Excluding the impact of any collateral received, 
the carrying amount of financial investments, cash and cash equivalents and trade receivables corresponds to 
the maximum credit risk.
Credit risk with respect to trade receivables is limited by the large number and geographic diversity of the customer 
base. Infineon controls credit risk through comprehensive credit evaluations for all major customers, the use of 
credit limits and monitoring procedures. New customers are evaluated for creditworthiness in accordance with 
Infineon guidelines. Credit limits are also in place for individual customers. Creditworthiness and credit limits are 
constantly monitored. A further measure taken to reduce credit risk is the use of reservation of title clauses. How­
ever, despite continuous monitoring, Infineon cannot fully exclude the possibility of a loss arising from the default 
of one of its contract parties. 
FT enters into foreign exchange and interest hedging contracts and invests cash funds in cash equivalents and 
financial investments worldwide with major financial institutions that have high credit ratings. Infineon assesses 
the creditworthiness of banks using a methodology that establishes daily investment limits for individual banks, 
based on current ratings (Standard & Poor’s, Moody’s or Fitch) and credit default swap premiums. Any possible 
breaches of stipulated thresholds must be reported and risk exposures reduced. 
Infineon has spread its cash investments over more than 10 banks. At September 30, 2014 no financial institution 
was responsible for more than 14 percent (2013: 12 percent) of Infineon’s cash investments. This gives rise to a 
maximum risk of €190 million (2013: €230 million) in the event of the default of a single financial institution assuming 
no deposit insurance scheme is in place. Infineon also holds derivative financial instruments with a positive fair 
value of €41 million (2013: €2 million), of which €39 relates to the Deal Contingent Forward described above.
Financing and liquidity risk
Financing and liquidity risk is the risk that an entity will encounter difficulties in meeting obligations associated 
with financial liabilities.
Liquidity risk could arise from a potential inability of Infineon to meet maturing financial obligations. Infineon’s 
liquidity management provides that sufficient levels of cash and other funds are available at short notice as well 
ensuring the availability of funding through an adequate amount of committed credit facilities. 
The following table discloses the maturity analysis for non-derivative financial liabilities and a cash flow analysis for 
derivative financial instruments with negative fair values. The table shows the undiscounted contractually agreed 
cash flows that result from the respective financial liability. Cash flows are recognized at the date when Infineon 
becomes a contractual partner to the financial instrument. Amounts in foreign currencies are translated using the 
closing rate at the reporting date. The value of financial instruments with variable interest payments is determined 
using the interest rate from the last interest fixing date before September 30, 2014. The cash outflows of financial 
liabilities that can be repaid at any time are assigned to the period where the earliest redemption is possible.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
254
€ in millions
Contractual 
cash flows
2015
2016
2017
2018
2019
Thereafter
Non derivative 
financial liabilities
1,032 
865 
21 
16 
6 
107 
17 
Derivative 
financial liabilities:
 
 
 
 
 
 
 
	
Cash outflow
60 
53 
7 
–
–
–
–
	
Cash inflow ¹
(57) 
(50) 
(7) 
–
–
–
–
Total
1,035 
868 
21 
16 
6 
107 
17 
1	Cash inflows of derivative financial liabilities are included where these are incurred upon settlement of the instrument, in order to show all 
contractual cash flows.
33  Legal risks
Litigation and government inquiries
Antitrust litigation
In September 2004, the Company entered into a plea agreement with the Antitrust Division of the U.S. Department 
of Justice in connection with its investigation into alleged violations of U.S. antitrust laws in the DRAM industry. 
Thereafter civil class action lawsuits were filed in the USA and Canada seeking damages which, in the meantime, 
have been amicably settled. 
In October 2008 the EU Commission initiated an investigation into the Company and other manufacturers of chips 
for smartcards for alleged violations of antitrust laws. On September 3, 2014 the EU Commission imposed a fine 
of €83 million on Infineon which was paid in October 2014. Infineon rejects the allegations as unfounded. Moreover 
Infineon believes its procedural rights to have been violated by the EU Commission and has brought an action 
against this decision before the European Court of Justice in Luxembourg in mid-November 2014.
Several customers in Canada have filed class actions for damages in connection with these investigative proceedings: 
The first action was filed in the state of British Columbia in July 2013, and the second in the state of Quebec in 
September 2014. The actions followed the press reports on the respective investigation and the decision of the 
EU Commission. No dates have been set for court proceedings.
In June 2010, the Brazilian Secretariat of Economic Law of the Ministry of Justice (“SDE”) announced that it had 
initiated an investigation related to alleged anticompetitive activities within the DRAM industry. The SDE’s Notice 
of Investigation names the Company, various DRAM manufacturers and certain executives as parties to the 
proceedings, and focuses on the period from July 1998 to June 2002. The SDE’s Notice of Investigation is based 
on the antitrust proceedings carried out in the United States and in Europe. The company remains in contact with 
the authorities and endeavors to reach an amicable solution. Any statement by the Company as to the possible 
outcome of these proceedings could seriously damage the Company’s position in these matters. There is no 
certainty that the provisions recorded will be sufficient to cover all of the liabilities that could ultimately be 
incurred in relation to these proceedings.
Patent litigation
In November 2008, Volterra Semiconductor Corporation (“Volterra”) filed suit against the Company, IF North 
America, and Primarion, Inc., a former affiliate of the Company that is now part of IF North America, (jointly the 
“Defendants”) in the United States District Court for the Northern District of California, alleging infringement of 
five U.S. patents by products that were offered by Primarion, and claimed relief for damages, enhanced damages 
for willful infringement and injunctive relief. Volterra later withdrew one patent; four patents remained in the 
lawsuit. In 2011, the court found infringement of two patents, but in 2013 the court rejected almost all of the 
damages claimed. The parties then agreed on injunctive relief with no impact on Infineon’s current products. 
In January 2010, the Company itself filed a patent infringement action against Volterra in the District of Delaware, 
later transferred to the Northern District of California. In August 2013, Infineon Technologies Austria AG, an affiliate 
of the Company, also filed suit against Volterra as well as its Asian subsidiary in the Eastern District of Texas for 
patent infringement. On October 30, 2014, the parties settled in mediation, whereby all lawsuits against the 
Company and its affiliates will be dismissed. The terms of the settlement are confidential.

255
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Proceedings in relation to Qimonda
All significant assets, liabilities and business activities attributable to the memory business (Memory Products) 
were carved out from Infineon and transferred to Qimonda in the form of a non-cash contribution with economic 
effect from May 1, 2006. Various service agreements were concluded with Qimonda in addition to the demerger 
and contribution agreement of April/May, 2006 as part of the establishment of Qimonda as a separate legal entity. 
Qimonda filed an application at the Munich Local Court to commence insolvency proceedings on January 23, 2009. 
On April 1, 2009, the insolvency proceedings formally opened. The insolvency of Qimonda has given rise to various 
disputes between the administrator and Infineon.
Partial settlement on September 11, 2014
On September 11, 2014 the Company and the administrator reached a partial settlement which was closed on 
9 October, 2014. On the closing day the Company paid €260 million to the administrator. 
The partial settlement includes the acquisition by Infineon of Qimonda’s patent business including the entire 
patent portfolio. On the closing day, the administrator transferred the patent business including the ownership of 
the patents to Infineon. With the exception of the proceedings mentioned below, the payment on the closing day 
amicably ends the actions with respect to the continuing use of the Qimonda patents and Infineon’s ownership of 
the license. The below mentioned decision of the Munich Higher Regional Court thereby became legally binding.
With the partial settlement the below mentioned insolvency law proceedings contesting intercompany payments 
were also amicably brought to a close.
Additionally, further out-of-court claims of right to contest under insolvency law, as well as any other claims 
made by the administrator are settled, apart from those relating to the proceedings in connection with the alleged 
activation of a shell company and liability for impairment of capital. 
Alleged activation of a shell company and liability for impairment of capital
The administrator filed a request for declaratory judgment in an unspecified amount against Infineon Technologies 
AG and, by way of third party notice, Infineon Technologies Holding B.V. and Infineon Technologies Investment B.V., 
at Regional Court Munich I in November 2010. This requested that Infineon be deemed liable to make good the 
deficit balance of Qimonda as it stood when the insolvency proceedings in respect of the assets of Qimonda began, 
i.e., to refund to Qimonda the difference between the latter’s actual business assets when the insolvency proceedings 
began and its share capital (in German: “Unterbilanzhaftung”). The administrator contended that the commence­
ment of operating activities by Qimonda amounted to what is considered in case law to be the activation of a 
shell company (in German: “Wirtschaftliche Neugründung”), and that this activation of a shell company was not 
disclosed in the correct manner. On March 6, 2012, with respect to another matter, the German Federal High Court 
issued a ruling on principle that any liability resulting from the activation of a shell company only depends on the 
situation at the date of the activation of a shell company and not, as asserted by the administrator, on the situation 
at the date on which insolvency proceedings are opened. 
In addition to the request for declaratory judgment against Infineon in an unspecified amount, on February 14, 2012 
the administrator also lodged a request for payment based on an alternative claim (in German: “Hilfsantrag”), as 
well as making other additional claims. In conjunction with this alternative claim, the administrator has requested 
the payment of at least €1.71 billion plus interest in connection with the alleged activation of a shell company. On 
June 15, 2012 the insolvency administrator increased his request for payment of February 14, 2012 on the grounds 
of activation of a shell company to at least approximately €3.35 billion plus interest. Furthermore, the insolvency 
administrator continues to base a substantial part of his alleged payment claims, as already asserted out of court 
against Infineon in August 2011 for an unspecified amount, on so-called liability for impairment of capital (in German 
“Differenzhaftung”). This claim is based on the allegation that, from the very beginning, the carved-out memory 
products business had a negative billion euro value. The administrator therefore asserts that Infineon is obliged 
to make good the difference between this negative value and the lowest issue price (in German: “geringster 
Ausgabebetrag”) of the subscribed stock.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
256
The alleged impairment of capital runs contrary to two valuations prepared as part of the preparatory documen­
tation for the capital increase by independent auditing companies, one of which had been engaged by Infineon 
and the other of which was acting in the capacity of a court-appointed auditor of non-cash contributions and 
post-formation acquisitions. The auditing company engaged by Infineon concluded in its valuation that the business 
area contributed had a value of several times the lowest issue price of the shares issued, while the court-appointed 
auditor of non-cash contributions and post-formation acquisitions confirmed to the court that the lowest issue 
price of the shares issued was covered – as legally required – by the value of the non-cash contributions. Additionally, 
in the course of its defense against the claims asserted by the administrator, Infineon has commissioned several 
expert opinions all of which arrive at the same conclusion, that the objections raised by the administrator against 
the valuation of the non-cash contribution are not valid.
The parties have exchanged comprehensive written submissions as well as expert reports. On August 29, 2013 
the court appointed an independent expert in order to clarify specifically the valuation issues raised by the 
administrator. 
Continuation of the rights of use of Infineon and its licensees in respect of Qimonda patents 
Infineon transferred numerous patents to Qimonda in the course of its contribution of the memory business. 
It retained rights of use in respect of these patents in the contribution agreement, which also contains provisions 
concerning cross licensing. The administrator has declared non-performance of this agreement. 
The Company had filed an action for declaratory judgment against the administrator with Regional Court Munich I 
in January 2011. This action was intended to produce a decision by the court confirming that the rights of use 
of Infineon and its licensees with respect to the intellectual property of the Qimonda Group are still valid. On Feb­
ruary 9, 2012 the Regional Court Munich I upheld Infineon’s action almost completely, only dismissing the action 
with respect to the patents transferred to third parties or expired prior to the opening of insolvency proceedings 
on the one hand and with respect to rights to receive information on the other. Confirming the Company’s legal 
opinion, in its ruling of July 25, 2013, the Munich Regional Appeal Court upheld the first instance judgment, apart 
from a small number of restrictions. The administrator had applied to the US Bankruptcy Court for the Eastern 
District of Virginia in October 2009 for an order stating that rights of use under Qimonda’s US patents do not fall 
under a protective provision of US insolvency law, according to which such rights of use continue to exist despite the 
insolvency of the licensor. Infineon and other semiconductor manufacturers had filed objections to this application.
In October 2011, the US Bankruptcy Court decided that the legal protection offered by section 365(n) of the 
US Bankruptcy Code applies with respect to Qimonda’s US patents, thus the patents’ rights of use remain valid. 
The administrator appealed against the decision of the U.S. Bankruptcy Court directly to the Court of Appeals for 
the Fourth Circuit. The Court of Appeals affirmed the decision of the U.S. Bankruptcy Court on December 3, 2013. 
On October 6, 2014, the administrator applied to the U.S. Supreme Court for a review of the case. The US Supreme 
Court dismissed the administrator’s right of appeal against the decision of the Court of Appeals, as a result of which 
this decision is legally binding.
The legal disputes described above were settled by the abovementioned partial settlement on September 11, 2014. 
As a result of this, and as a result of the acquisition of the Qimonda patent business connected with the partial 
settlement, all rights of use granted under the Qimonda patents to Infineon and Infineon’s licensees are legally valid.
Contestation of intercompany payments under insolvency law
On March 22, 2013, the administrator had filed suit against Infineon at Regional Court Munich I. In this suit, the 
administrator asserted insolvency law related claims amounting to €105.9 million and US$28 million plus interest 
of 5 percentage points over the base rate of the German Federal Bank for the period since the opening of the insol­
vency proceedings. On 17 April, 2014, the administrator demanded the repayment of payments made to Infineon 
Technologies Dresden GmbH of nearly €11 million, as well as to the Company of nearly €1 million, plus interest, 
on the grounds of insolvency. The legal disputes described were settled by the aforementioned partial settlement 
made on September 11, 2014.

257
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Residual liability of Infineon as former shareholder of Qimonda Dresden GmbH & Co. OHG 
Infineon was a shareholder with personal liability of Qimonda Dresden until the carve-out of the memory business, 
as a result certain long-standing creditors have residual liability claims against Infineon. These claims, which 
include the potential repayment of public subsidies, trade tax demands, receivables of service providers and 
suppliers and employee-related claims such as salaries and social security contributions, can only be exercised by 
the administrator acting in the name of the creditors concerned. Settlements have subsequently been concluded 
with some of the residual liability creditors.
Provisions relating to Qimonda
Infineon recognizes provisions and liabilities for such obligations and risks which it assesses at the end of each 
reporting period are more likely than not to be incurred (that is where, from Infineon’s perspective at the end of 
each reporting period, the probability of having to settle an obligation or risk is greater than the probability of not 
having to) and the obligation or risk can be estimated with reasonable accuracy at this time. 
As described above, Infineon faces certain risks in connection with the insolvency proceedings relating to the 
assets of Qimonda and that entity’s subsidiaries. As a result, Infineon recorded provisions in connection with 
some of the abovementioned matters totaling €312 million as of September 30, 2014 (2013: €356 million). Of the 
provisions recorded as of September 30, 2014, €125 million is assigned to the partial settlement concluded with the 
administrator in September 2014 and closed in October 2014, and, after deducting the fair value of the Qimonda 
patents planned to be resold, €104 million is assigned to the settlement of the dispute over the continuation of 
the right of use of the Qimonda patents. €48 million has been provided in connection with the residual liability as 
former shareholder of Qimonda Dresden. For the defense of the proceedings still pending for the alleged activation 
of a shell company and liability for impairment of capital, the Company has recorded a provision of €26 million 
as of September 30, 2014. Remaining provisions in connection with the Qimonda insolvency total €9 million as of 
September 30, 2014. In addition €3 million (CAD 4.5 million) was recognized as liability as of September 30, 2014 
for the settlement of the Canadian DRAM lawsuit.
There can be no certainty that the provisions recorded will be sufficient to cover all of the liabilities that could 
ultimately be incurred in relation to the insolvency of Qimonda and, in particular, the matters discussed above. 
In addition, it is possible that liabilities and risks materialize that are currently considered to be unlikely to do so, 
and accordingly are not included in provisions. 
Infineon evaluates the merits of the various claims in each of these matters continuously, defends itself vigorously 
and seeks to find alternative solutions in the best interest of Infineon as it deems appropriate. Should the alleged 
claims prove to be valid, substantial financial obligations could arise for Infineon which could have a material 
adverse effect on its business and its financial condition, liquidity position and results of operations.
Other
Infineon is also involved in various other legal disputes and proceedings in connection with its existing or previous 
business activities. These can relate to products, services, patents, environmental issues and other matters. 
Based on its current knowledge, Infineon does not believe that the ultimate resolution of these other pending legal 
disputes and proceedings will have a material adverse effect on Infineon’s financial condition, liquidity position 
and results of operations. However future revisions to this assessment cannot be ruled out and any re-assessment 
of the miscellaneous legal disputes and proceedings could have a material adverse effect on the financial condition, 
liquidity position and results of operations, particularly in the period in which re-assessment is made. Furthermore, 
in connection with its existing or previous business operations, Infineon is also exposed to numerous legal risks 
which have until now not resulted in legal disputes. These include risks related to product liability, environment, 
capital market, anti-corruption, competition and antitrust legislation as well as other compliance regulations. 
Claims could also be made against Infineon in connection with these matters in the event of breaches of law com­
mitted by individual employees or third parties.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
258
Provisions for legal proceedings and other uncertain legal issues
Provisions relating to legal proceedings and other uncertain legal issues are recorded when it is probable that 
a liability has been incurred and the associated amount can be reasonably estimated. If the estimated amount 
is within a range of amounts and all amounts within the range are equally probable, the provision recorded is equal 
to the mid-point of the range.
Any potential liability is reviewed again as soon as additional information becomes available and the estimates are 
revised if necessary. Provisions with respect to these matters are subject to future developments or changes in 
circumstances in each of the matters, which could have a material adverse effect on Infineon’s financial condition, 
liquidity position and results of operations.
An adverse final decision of any of the matters described above could result in significant financial liabilities for 
Infineon and other adverse effects, and these in turn could have a material adverse effect on its business and 
financial condition, liquidity position and results of operations. Infineon evaluates the merits of the various claims 
in each of these matters continuously, defends itself vigorously and seeks to find alternative solutions in the best 
interest of Infineon as it deems appropriate. Irrespective of the validity of the allegations and the success of the 
aforementioned claims and other matters described above, Infineon could incur significant costs in the defense 
against or settlement of such allegations and this too could have a material adverse effect on its financial condition, 
liquidity position and results of operations.
Contingent liabilities arising from legal disputes and other uncertain legal positions
To the extent that liabilities arising from legal disputes and other uncertain legal positions (see section “Litigation 
and government enquiries”) are not probable or cannot be reliably estimated, then they qualify as contingent 
liabilities. Management is of the opinion that, according to the current assessment, with the exception of possible 
claims that could arise from the action brought by the Qimonda administrator in connection with the alleged 
activation of a shell company and liability for impairment of capital, as well as claims that could arise as a con­
sequence of the EU Commission’s decision on September 3, 2014 on a fine, the existing contingent liabilities 
have no material effect on Infineon’s financial condition, liquidity position and results of operations.
34  Contingent liabilities and other financial commitments 
Contingent liabilities
Contingent liabilities relate to possible future events, the occurrence of which would result in an obligation. The 
occurrence of such an obligation is considered to be unlikely at the reporting date, but cannot be ruled out entirely. 
The following table summarizes Infineon’s contingent liabilities with respect to external parties, excluding possible 
liabilities arising from litigation, as of September 30, 2014:
Payments due in 
(€ in millions)
Total
Less than
1 year
1 – 2
years
2 – 3
years
3 – 4
years
4 – 5
years
After
5 years
Guarantees
110 
13 
11 
7 
47 
4 
28 
In total, Infineon has guarantees outstanding to external parties as of September 30, 2014 amounting to €110 million. 
Guarantees are mainly issued for the payment of import duties, rentals of buildings, and contingent obligations 
related to government grants received.
Other financial obligations and other risks
In addition to provisions, liabilities and contingent liabilities, Infineon also has other financial obligations, relating 
in particular to lease and long-term rental arrangements, and unconditional purchase commitments. These are 
explained in more detail below.

259
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Undiscounted future minimum operating lease and rental payments arising from operating lease contracts 
amounted to €402 million (September 30, 2013: €574 million). The corresponding payment obligations fall due 
as follows: 
Payments due in 
(€ in millions)
Total
Less than
1 year
1 – 2
years
2 – 3
years
3 – 4
years
4 – 5
years
After
5 years
Payments arising from 
lease contracts
567 
93 
81 
55 
49 
48 
241 
Payments arising from 
sub-lease contracts
(165) 
(17)
(16)
(15)
(15)
(15)
(87)
Total Commitments
402 
76 
65 
40 
34 
33 
154 
Total rental expenses under operating leases amounted to €68 million and €66 million for the years ended 
September 30, 2014 and 2013, respectively.
Contracts already entered into for commenced or planned investments in property, plant and equipment 
(purchase commitments) at September 30, 2014 amounted to €122 million (September 30, 2013: €150 million). 
Purchase commitments for planned investments in intangible assets at September 30, 2014 amounted to 
€2 million (September 30, 2013: €2 million). 
Long-term purchase commitments are in place for the supply of raw materials, in particular for wafers, strategic 
raw materials, semiconductor intermediate products, electricity and gas. Overall, these minimum purchase 
commitments give rise to other financial obligations amounting to approximately €519 million as at the reporting 
date (September 30, 2013: €553 million). These contracts generally have terms of between one and seven years. 
Purchases under these agreements are recorded as incurred in the normal course of business. Infineon assesses 
its anticipated purchase requirements on a regular basis in order to meet customer demand for its products. 
An assessment of potential losses under these purchase contracts is made on a regular basis for example in the 
event that anticipated purchase quantities fall below the minimum contractual quantities. 
In conjunction with its investing activities, Infineon receives government grants and subsidies related to the 
construction and financing of certain of its production facilities. Grants are also received for selected research and 
development projects. These amounts are recognized upon the achievement of specified criteria. Certain of these 
grants have been received contingent upon Infineon complying with certain project-related requirements, such 
as creating a specified number of jobs over a defined period of time. Infineon is committed to maintaining these 
requirements, and from today’s perspective Infineon expects to be able to do so. Nevertheless, should such 
requirements not be met, as of September 30, 2014, a maximum of €66 million of these subsidies could be refund­
able. Such amount does not include any potential liabilities for Qimonda-related subsidies (see note 33).
Infineon, through certain of its sales and other agreements may, in the normal course of business, be obligated 
to indemnify its counterparties under certain conditions for warranties, patent infringement or other matters. 
The maximum amount of potential future payments under these types of agreements is not predictable with any 
degree of certainty, since the potential obligation is contingent on events that may or may not occur in future, and 
depends on certain facts and circumstances specific to each agreement. Historically, payments made by Infineon 
under these types of agreements have not had a material adverse effect on Infineon’s financial condition, liquidity 
position and results of operations.
On December 23, 2003, the Company entered into a long-term lease contract with MoTo Objekt Campeon GmbH & 
Co. KG (“MoTo”). This included an agreement to lease an office complex south of Munich known as Campeon whose 
construction was completed by MoTo in the second half of 2005. Infineon has no obligations with respect to finan­
cing MoTo and has taken over no guarantees related to the construction. The Company took on Campeon under 
an operating lease arrangement in October 2005 and completed the move of its employees to this new location in 
the 2006 fiscal year. The complex was leased for a period of 20 years. After year 15, the Company has a non-bargain 
purchase option to acquire the complex or otherwise continue the lease for the remaining period of five years.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
260
Pursuant to the agreement, the Company placed a rental deposit of €75 million in escrow, which was included 
in restricted cash as part of other financial assets in the Consolidated Statement of Financial Position as of Sep­
tember 30, 2014. Lease payments are subject to limited adjustments based on specified financial ratios related 
to Infineon. The agreement was classified as an operating lease, in accordance with IAS 17, with monthly lease 
payments expensed on a straight-line basis over the lease term. 
35  Segment reporting
Identification of Segments
Infineon identifies reportable segments on the basis of the differences between the types of products and their 
applications. 
During the 2014 fiscal year, Infineon’s business was structured on the basis of four operating segments, namely 
Automotive, Industrial Power Control, Power Management & Multimarket and Chip Card & Security. Additionally 
Infineon differentiates between Other Operating Segments and Corporate and Eliminations.
Automotive
The Automotive segment designs, develops, manufactures and markets semiconductors for use in automotive 
applications. 
Industrial Power Control 
The Industrial Power Control segment designs, develops, manufactures and markets semiconductors for the 
generation, transmission and economy in the use of electrical energy.
Power Management & Multimarket
The Power Management & Multimarket segment designs, develops, manufactures and markets semiconductors 
for energy-efficient power supplies as well as for mobile devices and mobile phone network infrastructures.
Chip Card & Security
The Chip Card & Security segment designs, develops, manufactures and markets semiconductor-based security 
products for card applications and networked systems.
Other Operating Segments
Other Operating Segments comprises the remaining activities of businesses that have been disposed of, and 
other business activities. Since the closing of the sale of the Wireline Communications business and the Wireless 
mobile phone business, sales to Lantiq and Intel Mobile Communications under the corresponding production 
agreements, other than those assigned to discontinued operations, are included in this segment.
Corporate and Eliminations
Corporate and Eliminations reflects the elimination of intragroup revenue and profits/losses to the extent that 
these arise between the segments. 
Similarly, certain items are included in Corporate and Eliminations which are not allocated to the other segments. 
These include certain corporate headquarter costs and specific strategic technology initiatives, such as the 
300-millimeter thin-wafer technology, which are not allocated to the segments since they arise from corporate 
decisions not within the direct control of segment management. 
Furthermore, raw materials and work in progress of the common production frontend facilities, and raw materials 
of the common backend facilities, are not under the control or responsibility of the operating segment managers 
and are therefore allocated to corporate functions. Only work in progress of backend facilities and finished goods 
are allocated to the operating segments.

261
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Chief Operating Decision Maker, definition of Segment Result and allocation of 
assets and liabilities to the individual segments
The Management Board, as the Chief Operating Decision Maker, decides how resources are allocated to the segments. 
Based on revenue and Segment Result, the Management Board assesses performance and formulates operating 
targets and budgets for the segments.
Segment Result is defined as the operating income (loss) excluding: asset impairments (net of reversals); the impact 
on earnings of restructuring and closures; share-based compensation expense; acquisition-related depreciation/
amortization and other expenses; gains (losses) on sales of assets, businesses, or interests in subsidiaries as well as 
other income (expense), including litigation costs.
Decisions relating to financing and the investment of cash funds are taken at a Group level and not at a segment 
level. For this reason, financial income and financial expense (including interest income and expense) are not 
allocated to the segments.
Neither assets nor liabilities are allocated to the segments, nor is segment performance assessed on this basis. 
Similarly, cash flows are not determined on a segment basis. 
The exception to this approach is inventory information which is regularly analyzed at a segment level. Infineon 
also allocates depreciation and amortization expense to the operating segments based on production volume and 
product mix using standard costs.
Segment information
The following tables present selected segment data: 
€ in millions
2014
2013
Revenue:
 
 
Automotive
1,965 
1,714 
Industrial Power Control
783 
651 
Power Management & Multimarket
1,061 
987 
Chip Card & Security
494 
463 
Other Operating Segments 
22 
26 
Corporate and Eliminations
(5) 
2 
Total
4,320 
3,843 
The operating segments do not currently have any trading relationships with one another. Accordingly, there was 
no intersegment revenue during the 2014 and 2013 fiscal years. Costs are recharged if applicable without impact 
on profit or loss. 
€ in millions
2014
2013
Segment Result:
 
 
Automotive
259 
167 
Industrial Power Control
144 
38 
Power Management & Multimarket
172 
144 
Chip Card & Security
43 
39 
Other Operating Segments
6 
(9) 
Corporate and Eliminations
(4) 
(2) 
Total
620 
377

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
262
The following table provides the reconciliation of Segment Result to income from continuing operations before 
income taxes:
€ in millions
2014
2013
Segment Result 
620 
377 
Plus/minus:
 
 
	
Impairment on assets including assets classified as held for sale, net of reversals
(3) 
(19) 
	
Impact on earnings of restructuring and closures, net
(8) 
(18) 
	
Share-based compensation expense
(6) 
(3) 
	
Acquisition-related depreciation/amortization and other expenses
(8) 
(2) 
	
Gains (losses) on sales of assets, businesses, or interests in subsidiaries, net
2 
1 
	
Other income and expense, net  1
(72) 
(11) 
Operating income
525 
325 
Financial income
10 
30 
Financial expense
(19) 
(51) 
Gain (loss) from investments accounted for using the equity method, net
3 
2 
Income from continuing operations before income taxes
519 
306 
1	Included in the 2014 fiscal year is the €83 million fine imposed on Infineon by the EU-Commission in their chip card antitrust investigations.
€ in millions
2014
2013
Depreciation and amortization:
 
 
Automotive  ¹
232 
204 
Industrial Power Control  ¹
103 
82 
Power Management & Multimarket  ¹, ²
112 
109 
Chip Card & Security  ¹
62 
66 
Other Operating Segments  ¹
5 
5 
Corporate and Eliminations
–
–
Total
514 
466 
1	In the 2014 und 2013 fiscal years €7 million and €5 million of depreciation and amortization which are not included in the Segment Result are included 
here for the segments.
2	Includes in the 2014 and 2013 fiscal years €1 million and €2 million of acquisition-related depreciation and amortization which are not included in the
Segment Result.
Income from associated companies and joint ventures accounted for using the equity method totaled €3 million 
and €2 million in the 2014 and 2013 fiscal years, respectively. This income was recognized in the Industrial Power 
Control segment in the 2014 fiscal year. The income in the 2013 fiscal year was recognized half in the Industrial 
Power Control segment and half in the Other Operating Segments. This allocated income is however not included 
in the Segment Result. 
€ in millions
2014
2013
Inventories:
 
 
Automotive
214 
176 
Industrial Power Control
104 
66 
Power Management & Multimarket
112 
96 
Chip Card & Security
40 
33 
Other Operating Segments
–
1 
Corporate and Eliminations
237 
237 
Total
707 
609

263
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Entity-wide disclosures in accordance with IFRS 8
The following is a summary of revenue and of non-current assets by geographic area for the years ended Septem­
ber 30, 2014 and 2013:
€ in millions
2014
2013
Revenue:
 
 
Europe, Middle East, Africa
1,707 
1,567 
	
Therein: Germany
859 
795 
Asia-Pacific (without Japan)
1,845 
1,560 
	
Therein: China
868 
710 
Japan
284 
227 
Americas
484 
489 
Total
4,320 
3,843 
€ in millions
2014
2013
Property, plant and equipment, goodwill and other intangible assets:
 
 
Europe
1,271 
1,191 
	
Therein: Germany
816 
723 
Asia-Pacific (w/o Japan)
665 
567 
	
Therein: China
20 
18 
Japan
1 
1 
Americas
13 
11 
Total
1,950 
1,770 
Revenues from external customers are based on the customers’ billing location. Regional employment data 
is provided in note 6.
For the 2014 fiscal year revenue with one single customer amounted to €441 million. This revenue is allocated 
to all four operating segments of Infineon. For the 2013 fiscal year revenue with one single customer amounted 
to €395 million.
36  Additional information in accordance with HGB
Application of exemption regulations
The entities listed below have entered into control and profit and loss transfer agreements with Infineon 
Technologies AG, and intend to make use of the option contained in section 264 paragraph 3 HGB exempting 
incorporated companies from certain requirements relating to the preparation, audit and publication of annual 
financial statements:
•	 Hitex Development Tools GmbH, Karlsruhe,
•	 Infineon Technologies Finance GmbH, Neubiberg,
•	 Infineon Technologies Mantel 19 GmbH, Neubiberg, 
•	 Infineon Technologies Mantel 21 GmbH, Neubiberg and
•	 Infineon Technologies Mantel 25 GmbH, Neubiberg,
make use of the possibility of exemption from the requirements of section 325 HGB governing the publication 
of annual financial statements.
Infineon Technologies Dresden GmbH makes use of the possibility of exemption from the obligation to prepare 
a management report, and the exemption from the requirements of section 325 HGB governing the publication 
of annual financial statements.
Due to the insolvency of Qimonda, Qimonda and its subsidiaries are not included in the Company’s Consolidated 
Financial Statements. Infineon has no information as to whether Qimonda draws up Consolidated Financial 
Statements or makes use of the possibility of exemptions with respect to their preparation.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
264
Information pursuant to section 161 Stock Corporation Act (AktG)
The Declaration of Compliance prescribed by section 161 AktG was drawn up by the Management Board and 
the Supervisory Board and made permanently available to the public in the internet at www.infineon.com 
(“About Infineon/Investor/Corporate Governance/Declaration of Compliance”).
Accounting fees pursuant to section 314 paragraph 1 no. 9 HGB
Year-end audit fees
At the Annual General Meeting held on February 13, 2014, the shareholders elected KPMG AG Wirtschaftsprüfungs­
gesellschaft (“KPMG”), Munich, as Company and Group auditor for the 2014 fiscal year. The audit fees charged by 
KPMG in the 2014 fiscal year amounted to €0.9 million for the audit of the Consolidated Financial Statements and 
various separate financial statements.
Fees for other advisory services
In addition to the amounts described above, KPMG charged an aggregate of €0.2 million in the 2014 fiscal year 
for other audit services. These services consisted primarily of services rendered in connection with the review of 
quarterly financial statements. 
Fees for tax advisory services
In addition to the amounts described above, KPMG charged the Company an aggregate of €0 thousand in the 2014 
fiscal year for professional services relating to tax.
Other fees
Fees of €0.1 million were charged by KPMG in the 2014 fiscal year for other services.
Management Board and Supervisory Board
Management compensation in 2014 fiscal year
The remuneration of the individual members of the Management Board and the Supervisory Board, as required 
by section 314 (1) no. 6a, sentences 5 to 8 HGB, is disclosed in the Compensation Report which is part of the Group 
Management Report.
Management Board 
The members of the Management Board during the 2014 fiscal year were as follows:
Name
Age
Term expires
Position
Membership of Supervisory Boards and governing 
bodies of domestic and foreign companies
Dr. Reinhard Ploss
58
September 30, 2020
Chairman of the 
Management Board, 
Chief Executive Officer, 
Labor Director
Member of the Supervisory Board
•	 Infineon Technologies Austria AG, 
	 Villach, Austria (Chairman)

Member of the Board of Directors
•	 Infineon Technologies (Kulim) Sdn. Bhd.,
	 Kulim, Malaysia (Chairman)
Dominik Asam
45
December 31, 2018
Member of the 
Management Board, 
Executive Vice President, 
Chief Financial Officer
Member of the Supervisory Board
•	 EPCOS AG, Munich
•	 Infineon Technologies Austria AG, 
	 Villach, Austria

Member of the Board of Directors
•	 Infineon Technologies Asia Pacific Pte., Ltd., 
	 Singapore
•	 Infineon Technologies China Co., Ltd., 
	 Shanghai, People’s Republic of China
•	 Infineon Technologies North America Corp., 
	 Wilmington, Delaware, USA
Arunjai Mittal
 43
December 31, 2019
Member of the 
Management Board, 
Executive Vice President
Member of the Supervisory Board
•	 tesa SE, Hamburg 
	 (since April 24, 2014)

Member of the Board of Directors
•	 Infineon Technologies Asia Pacific Pte., Ltd., 
	 Singapore (Chairman)
•	 Infineon Technologies India, Pvt. Ltd., 
	 Bangalore, India
•	 Infineon Technologies North America Corp., 
	 Wilmington, Delaware, USA (Chairman)
•	 Infineon Technologies Japan K.K., Tokyo, Japan

265
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
The Supervisory Board 
The members of the Supervisory Board during the 2014 fiscal year, the Supervisory Board position held by them, 
their occupation, their membership of other supervisory and governing bodies and their ages are as follows 
(as at: September 30, 2014):
Name

Age

Term expires

Occupation

Membership of Supervisory Boards and 
comparable governing bodies 
of domestic and foreign companies
Wolfgang Mayrhuber
Chairman
67
Annual General 
Meeting 2015
Management Consultant 
Member of the Supervisory Board
•	 Deutsche Lufthansa AG, Köln (chairman)
•	 BMW AG, Munich
•	 Münchener Rückversicherungs-
	 Gesellschaft AG, Munich

Member of the Board of Directors
•	 Heico Corporation, Hollywood, Florida, USA
Gerd Schmidt  ¹ 
Deputy Chairman 
60
Annual General 
Meeting 2015
Chairman of the Infineon 
Works Council, Regensburg, 
Infineon Technologies AG
 
Wigand Cramer  ¹
61
Annual General 
Meeting 2015
Labor union secretary 
IG Metall, Berlin
 
Reinhard Gottinger  ¹
(since April 1, 2014)
53
Annual General 
Meeting 2015
Chairman of the Central 
Works Council Infineon 
Technologies AG
 
Peter Gruber  ¹
Representative of 
Senior Management 
53
Annual General 
Meeting 2015
Senior Vice President 
Operations Finance 
Infineon Technologies AG
Member of the Supervisory Board
•	 Infineon Technologies Dresden GmbH, 
	 Dresden

Member of the Board of Directors
•	 Infineon Technologies (Kulim) Sdn. Bhd., 
	 Kulim, Malaysia
Gerhard Hobbach  ¹
52
Annual General 
Meeting 2015
Member of the Infineon 
Works Council, Campeon, 
Infineon Technologies AG
 
Hans-Ulrich Holdenried
63
Annual General 
Meeting 2015
Management Consultant
Member of the Supervisory Board
•	 Integrata AG, Stuttgart
•	 Wincor Nixdorf AG, Paderborn
Prof. Dr. Renate Köcher
62
Annual General 
Meeting 2015
Managing Director
Institut für Demoskopie 
Allensbach GmbH, 
Allensbach
Member of the Supervisory Board
•	 Allianz SE, Munich
•	 BMW AG, Munich
•	 Robert Bosch GmbH, Gerlingen
•	 Nestlé Deutschland AG, Frankfurt am Main 
Dr. Manfred Puffer 
51
Annual General 
Meeting 2015
Management Consultant
Member of the Board of Directors
•	 Athene Holding Ltd., Pembroke, Bermuda
•	 Athene Life Re Ltd., Pembroke, Bermuda 
Prof. Dr. Doris 
Schmitt-Landsiedel
61
Annual General 
Meeting 2015
Professor, Munich 
Technical University
 
Jürgen Scholz  ¹
53
Annual General 
Meeting 2015
First authorized agent 
of IG Metall, Regensburg
Member of the Supervisory Board
•	 Krones AG, Neutraubling 

Member of the Administrative Board
•	 BMW BKK AG, Dingolfing
Dr. Eckart Sünner 
70
Annual General 
Meeting 2015
Of Counsel
Allen & Overy, Mannheim 
Member of the Supervisory Board
•	 K+S AG, Kassel
 
 
 
 
 
Former members of the Supervisory Board
Alfred Eibl  ¹
65
March 31, 2014
Chairman of the 
Central Works Council 
Infineon Technologies AG
 
1	Employee representative

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
266
The Supervisory Board maintains the following principal committees
Mediation Committee
Wolfgang Mayrhuber (Chairman)
Hans-Ulrich Holdenried
Gerd Schmidt
Jürgen Scholz
 
Executive Committee
Wolfgang Mayrhuber (Chairman)
Gerhard Hobbach
Hans-Ulrich Holdenried
Gerd Schmidt
 
Investment, Finance and Audit Committee
Dr. Eckart Sünner (Chairman)
Wigand Cramer
Wolfgang Mayrhuber
Gerd Schmidt
 
Strategy and Technology Committee
Prof. Dr. Doris Schmitt-Landsiedel (Chairwoman)
Reinhard Gottinger
Peter Gruber
Hans-Ulrich Holdenried
Wolfgang Mayrhuber
Jürgen Scholz
 
Nomination Committee
Wolfgang Mayrhuber (Chairman)
Prof. Dr. Renate Köcher
Dr. Manfred Puffer
The members of the Company’s Supervisory Board, individually or in aggregate, do not own, directly or indirectly, 
more than 1 percent of Infineon Technologies AG’s outstanding share capital as of September 30, 2014.
The business address of each member of the Supervisory Board is: Infineon Technologies AG, Am Campeon 1 – 12, 
D-85579 Neubiberg (Germany).

267
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Subsidiaries, joint ventures and associated companies as of September 30, 2014
Name of company


Registered office


Share-
hold-
ings 
in %
Equity 

(€ in 
millions)
Net result

(€ in 
millions)
Foot-
note

Fully consolidated subsidiaries:
 
 
 
 
 
Hitex Development Tools GmbH
Karlsruhe, Germany
100
2.16
0.00
3
Infineon Integrated Circuit (Beijing) Co., Ltd.
Beijing, 
People’s Republic of China
100
13.04
1.36
6
Infineon Technologies (Advanced Logic) Sdn. Bhd.
Malacca, Malaysia
100
21.82
3.23
3
Infineon Technologies (Kulim) Sdn. Bhd.
Kulim, Malaysia
100
124.88
(5.83)
3
Infineon Technologies (Malaysia) Sdn. Bhd.
Malacca, Malaysia
100
152.06
27.48
3
Infineon Technologies (Wuxi) Co., Ltd.
Wuxi, People’s Republic of China
100
105.65
9.94
6
Infineon Technologies (Xi’an) Co., Ltd.
Xi’an, People’s Republic of China
100
5.65
(1.53)
6
Infineon Technologies Asia Pacific Pte. Ltd.
Singapore, Singapore
100
156.73
36.00
3
Infineon Technologies Australia Pty. Ltd.
Bayswater, Australia
100
1.02
0.12
3
Infineon Technologies Austria AG
Villach, Austria
100
476.50
74.57
3
Infineon Technologies Batam PT
Batam, Indonesia
100
12.51
1.23
3
Infineon Technologies Cegléd Kft.
Cegléd, Hungary
100
14.75
(0.76)
3
Infineon Technologies Center of Competence 
(Shanghai) Co., Ltd.
Shanghai, 
People’s Republic of China
100
2.68
0.15
6
Infineon Technologies China Co., Ltd.
Shanghai, 
People’s Republic of China
100
106.34
11.06
6
Infineon Technologies Dresden GmbH
Dresden, Germany
100
224.27
0.00
3
Infineon Technologies Finance GmbH
Neubiberg, Germany
100
369.89
0.00
3
Infineon Technologies France S.A.S.
St. Denis, France
100
14.16
3.03
3
Infineon Technologies Holding B.V.
Rotterdam, The Netherlands
100
2,037.12
64.41
3
Infineon Technologies Hong Kong, Ltd. 
Hong Kong, 
People’s Republic of China
100
1.56
0.17
3
Infineon Technologies India, Pvt. Ltd.
Bangalore, India
100
13.42
1.10
4
Infineon Technologies Industrial Power, Inc.
Wilmington, Delaware, USA
100
8.79
0.68
3
Infineon Technologies Investment B.V.
Rotterdam, The Netherlands
100
1.04
0.00
3
Infineon Technologies Italia s.r.l.
Milan, Italy
100
1.33
0.52
3
Infineon Technologies IT-Services GmbH
Klagenfurt, Austria
100
5.92
3.29
3
Infineon Technologies Japan K.K.
Tokyo, Japan
100
6.12
2.37
3
Infineon Technologies Korea Co., Ltd.
Seoul, Republic of Korea
100
3.75
0.80
3
Infineon Technologies Nordic AB
Kista, Sweden
100
5.67
0.43
3
Infineon Technologies North America Corp.
Wilmington, Delaware, USA
100
99.55
6.18
3
Infineon Technologies Romania & Co. Societate 
in Comandita
Bucharest, Romania
100
1.17
0.75
3
Infineon Technologies Shared Service Center, 
Unipessoal Lda.
Maia, Portugal
100
1.11
0.13
3
Infineon Technologies Taiwan Co., Ltd.
Taipei, Taiwan
100
3.02
0.81
3
Infineon Technologies U.K. Ltd.
Bristol, Great Britain
100
3.22
1.48
3
LS Power Semitech Co., Ltd.
Cheonan, Republic of Korea
66
8.51
1.97
6
Molstanda Vermietungsgesellschaft mbH
Neubiberg, Germany
94
12.17
2.32
6
 
 
 
 
 
 
Joint ventures/associated companies:
 
 
 
 
 
Cryptomathic A/S
Arhus, Denmark
34
12.82
0.79
6
Cryptomathic Holding ApS
Arhus, Denmark
34
5.33
1.95
6
Infineon Technologies Bipolar GmbH & Co. KG
Warstein, Germany
60
67.30
(0.91)
3
Infineon Technologies Bipoláris Kft.
Cegléd, Hungary
60
1.42
0.01
3

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
CONSOLIDATED FINANCIAL STATEMENTS
268
Name of company


Registered office


Share-
hold-
ings 
in %
Equity 

(€ in 
millions)
Net result

(€ in 
millions)
Foot-
note

Immaterial subsidiaries: ¹
 
 
 
 
 
DICE Danube Integrated Circuit Engineering GmbH
Linz, Austria
72
0.10
0.01
3
DICE Danube Integrated Circuit Engineering GmbH 
& Co. KG
Linz, Austria
72
1.03
0.98
3
EPOS embedded core & power systems GmbH 
& Co. KG
Duisburg, Germany
100
0.49
0.22
3
EPOS embedded core & power systems 
Verwaltungs GmbH
Duisburg, Germany
100
0.05
0.00
3
eupec Thermal Management Inc. in liquidation
Wilmington, Delaware, USA
51
0.01
(0.08)
3
Hitex (UK) Limited
Coventry, Great Britain
88
1.67
0.22
3
Infineon Technologies Austria Pensionskasse AG
Villach, Austria
100
0.83
0.01
6
Infineon Technologies Bipolar Verwaltungs GmbH
Warstein, Germany
60
0.03
0.00
3
Infineon Technologies Canada, Inc.
St.John, New Brunswick, Canada
100
0.00
0.00
3
Infineon Technologies Delta GmbH
Neubiberg, Germany
100
0.02
0.00
3
Infineon Technologies Gamma GmbH
Neubiberg, Germany
100
0.02
0.00
3
Infineon Technologies Iberia S.L.U.
Madrid, Spain
100
0.14
0.04
3
Infineon Technologies Ireland Ltd.
Dublin, Ireland
100
0.52
0.13
3
Infineon Technologies Mantel 19 GmbH
Neubiberg, Germany
100
0.05
0.00
3
Infineon Technologies Mantel 21 GmbH
Neubiberg, Germany
100
0.03
0.00
3
Infineon Technologies Mantel 24 GmbH
Neubiberg, Germany
100
0.02
0.00
3
Infineon Technologies Mantel 25 GmbH
Neubiberg, Germany
100
0.02
0.00
3
Infineon Technologies Mantel 26 AG
Neubiberg, Germany
100
0.05
0.00
3
Infineon Technologies Romania s.r.l.
Bucharest, Romania
100
0.03
0.00
6
Infineon Technologies RUS LLC
Moscow, Russian Federation
100
0.10
0.02
6
Infineon Technologies Schweiz GmbH
Zurich, Switzerland
100
0.20
0.03
3
Infineon Technologies South America Ltda.
São Paulo, Brazil
100
0.02
(0.05)
3
KAI Kompetenzzentrum Automobil- und 
Industrieelektronik GmbH
Villach, Austria
100
0.10
0.00
6
KFE Kompetenzzentrum Fahrzeug Elektronik GmbH
Lippstadt, Germany
24
1.63
(0.02)
6
Magellan Technology Pty. Ltd. in liquidation
Annandale, Australia
16
0.91
(2.63)
5
MicroLinks Technology Corp.
Kaohsiung, Taiwan
1
0.57
(0.35)
6
OSPT IP Pool GmbH
Neubiberg, Germany
100
0.02
0.00
3
Surf Merger Sub Inc.
Wilmington/Delaware, USA
100
N.A.
N.A.
7
 
 
 
 
 
 
Qimonda AG and its subsidiaries: ²
 
 
 
 
 
Celis Semiconductor Corp.
Colorado Springs, Colorado, USA
17
–
–
2
Itarion Solar Lda.
Vila do Conde, Portugal
40
–
–
2
Qimonda (Malaysia) Sdn. Bhd. in liquidation
Malacca, Malaysia
77
–
–
2
Qimonda AG in insolvency
Munich, Germany
77
–
–
2
Qimonda Asia Pacific Pte. Ltd.
Singapore, Singapore
77
–
–
2
Qimonda Belgium BVBA in insolvency
Leuven, Belgium
77
–
–
2
Qimonda Beteiligungs GmbH in insolvency
Munich, Germany
77
–
–
2
Qimonda Bratislava s.r.o. in liquidation
Bratislava, Slovakia
77
–
–
2
Qimonda Dresden GmbH & Co. OHG in insolvency
Dresden, Germany
77
–
–
2
Qimonda Dresden Verwaltungsgesellschaft mbH 
in insolvency
Dresden, Germany
77
–
–
2
Qimonda Europe GmbH in liquidation
Munich, Germany
77
–
–
2
Qimonda Finance LLC in insolvency
Wilmington, Delaware, USA
77
–
–
2
Qimonda Flash Geschäftsführungs GmbH 
in liquidation
Dresden, Germany
77
–
–
2
Qimonda Flash GmbH in insolvency
Dresden, Germany
77
–
–
2
Qimonda France SAS in liquidation
St. Denis, France
77
–
–
2
Qimonda Holding B.V. in insolvency
Rotterdam, The Netherlands
77
–
–
2

269
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Notes to the Consolidated Financial Statements
Name of company


Registered office


Share-
hold-
ings 
in %
Equity 

(€ in 
millions)
Net result

(€ in 
millions)
Foot-
note

Qimonda International Trade (Shanghai) Co. Ltd.
Shanghai, 
People’s Republic of China
77
–
–
2
Qimonda Investment B.V.
Rotterdam, The Netherlands
77
–
–
2
Qimonda IT (Suzhou) Co., Ltd. in liquidation
Suzhou, 
People’s Republic of China
77
–
–
2
Qimonda Italy s.r.l. in liquidation
Padua, Italy
77
–
–
2
Qimonda Korea Co. Ltd. in liquidation
Seoul, Republic of Korea
77
–
–
2
Qimonda Licensing LLC
Fort Lauderdale, Florida, USA
77
–
–
2
Qimonda Memory Product Development Center 
(Suzhou) Co., in liquidation
Suzhou, 
People’s Republic of China
77
–
–
2
Qimonda North America Corp. in insolvency
Wilmington, Delaware, USA
77
–
–
2
Qimonda Richmond LLC in insolvency
Wilmington, Delaware, USA
77
–
–
2
Qimonda Solar GmbH
Dresden, Germany
77
–
–
2
Qimonda Taiwan Co. Ltd. in liquidation
Taipei, Taiwan
77
–
–
2
Qimonda UK Ltd. in liquidation
High Blantyre, Scotland
77
–
–
2
1	Certain immaterial subsidiaries were not consolidated in the 2014 and 2013 fiscal years. Infineon evaluates the significance of these subsidiaries annually 
at each reporting date. Net income, external revenue and total assets of all subsidiaries deemed to be immaterial were in total less than 1 percent of 
the respective Group values.
2	On January 23, 2009 Qimonda AG applied to the Munich District Court insolvency proceedings to be opened. Insolvency proceedings were formally opened 
on April 1, 2009. The equity and earnings of Qimonda AG and its subsidiaries are not disclosed due to the substantial and ongoing restriction of Infineon’s 
rights as a result of Qimonda AG’s insolvency. In addition, the list of subsidiaries held by Qimonda AG was based on information from September 30, 2010, 
since Infineon had not received any further information from the insolvency administrator of Qimonda AG with respect to the insolvency or liquidation 
of Qimonda companies. Since all Qimonda-related investments were written down in full in previous years, this has no effect on Infineon’s net assets, 
financial position and results of operations.
3	Equity and net result as of September 30, 2013.
4	Equity and net result as of March 31, 2013.
5	Equity and net result as of June 30, 2013.
6	Equity and net result as of December 31, 2013.
7	The company was founded on August 14, 2014.
The values in the above table represent financial statements prepared according to local requirements and are, in 
some cases, provisional.
Neubiberg, November 20, 2014
Infineon Technologies AG
Management Board
Dr. Reinhard Ploss	
Dominik Asam	
Arunjai Mittal

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FURTHER INFORMATION
270
RESPONSIBILITY STATEMENT BY THE 
MANAGEMENT BOARD
To the best of our knowledge, and in accordance with the applicable reporting principles, the Consolidated 
Financial Statements give a true and fair view of the assets, liabilities, financial position and profit or loss 
of the Group, and the Group Management Report includes a fair review of the development and performance of 
the business and the position of the Group, together with a description of the principal opportunities and risks 
associated with the expected development of the Group.
Neubiberg, November 26, 2014
Infineon Technologies AG
Dr. Reinhard Ploss	
Dominik Asam	
Arunjai Mittal

271
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Auditor’s Report
AUDITOR’S REPORT
We have audited the consolidated financial statements prepared by the Infineon Technologies AG, Neubiberg, 
comprising the statements of financial position, operations, comprehensive income, cash flows and changes 
in equity, together with the management report of the Company and the Group for the business year from 
October 1, 2013 to September 30, 2014. The preparation of the consolidated financial statements and the Group 
management report in accordance with IFRSs, as adopted by the EU, and the additional requirements of German 
commercial law pursuant to § 315a Abs. 1 HGB (Handelsgesetzbuch “German Commercial Code”) are the respon­
sibility of the Managing Board of the Company. Our responsibility is to express an opinion on the consolidated 
financial statements and on the Group management report based on our audit. 
We conducted our audit of the consolidated financial statements in accordance with § 317 HGB and German 
generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer 
(Institute of Public Auditors in Germany) (IDW). Those standards require that we plan and perform the audit such 
that misstatements materially affecting the presentation of the net assets, financial position and results of opera­
tions in the consolidated financial statements in accordance with the applicable financial reporting framework 
and in the Group management report are detected with reasonable assurance. Knowledge of the business activities 
and the economic and legal environment of the Group and expectations as to possible misstatements are taken 
into account in the determination of audit procedures. The effectiveness of the accounting-related internal control 
system and the evidence supporting the disclosures in the consolidated financial statements and the Group 
management report are examined primarily on a test basis within the framework of the audit. The audit includes 
assessing the annual financial statements of those entities included in consolidation, the determination of entities 
to be included in consolidation, the accounting and consolidation principles used and significant estimates made 
by management, as well as evaluating the overall presentation of the consolidated financial statements and Group 
management report. We believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRSs, as 
adopted by the EU, the additional requirements of German commercial law pursuant to § 315a Abs. 1 HGB and give 
a true and fair view of the net assets, financial position and results of operations of the Group in accordance with 
these requirements. The Group management report is consistent with the consolidated financial statements and 
as a whole provides a suitable view of the Group’s position and suitably presents the opportunities and risks of 
future development.
Munich, November 20, 2014 
KPMG AG
Wirtschaftsprüfungsgesellschaft
Braun	 	
Wolper
Wirtschaftsprüfer	
Wirtschaftsprüfer

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FURTHER INFORMATION
272
€ in millions, except otherwise stated
2014
2013
2012
2011
2010
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
 
 
 
 
 
Revenue by region
 
 
 
 
 
Europe, Middle East, Africa
1,707 
1,567 
1,732 
1,920 
1,528 
	
Therein: Germany
859 
795 
908 
1,090 
862 
Asia-Pacific (w/o Japan)
1,845 
1,560 
1,470 
1,450 
1,202 
	
Therein: China
868 
710 
637 
663 
595 
Japan
284 
227 
252 
202 
184 
Americas
484 
489 
450 
425 
381 
Revenue by Segment
 
 
 
 
 
Automotive
1,965 
1,714 
1,660 
1,552 
1,268 
Industrial & Multimarket¹
–
–
–
–
1,429 
Industrial Power Control
783 
651 
728 
797 
–
Power Management & Multimarket
1,061 
987 
929 
1,003 
–
Chip Card & Security
494 
463 
457 
428 
407 
Other Operating Segments
22 
26 
125 
216 
194 
Corporate and Eliminations
(5) 
2 
5 
1 
(3) 
Total Revenue
4,320 
3,843 
3,904 
3,997 
3,295 
Gross profit
1,647 
1,323 
1,427 
1,654 
1,237 
Gross margin
38.1 %
34.4 %
36.6 %
41.4 %
37.5 %
Research and development expenses
(550) 
(525) 
(455) 
(439) 
(399) 
Selling, general and administrative expenses
(496) 
(440) 
(475) 
(449) 
(386) 
Other operating income and expense, net
(76) 
(33) 
(42) 
(30) 
(104) 
Operating income
525 
325 
455 
736 
348 
Net financial result
(9) 
(21) 
(23) 
(26) 
(66) 
Income (loss) from investments accounted for using the equity method
3 
2 
(1) 
4 
8 
Income tax
(31) 
(23) 
1 
30 
22 
Income from continuing operations 
488 
283 
432 
744 
312 
Income (loss) from discontinued operations, net of income taxes 
47 
(11) 
(5) 
375 
348 
Net income
535 
272 
427 
1,119 
660 
Basic earnings (loss) per share attributable to shareholders 
of Infineon Technologies AG (in €):
 
 
 
 
 
Basic earnings per share from continuing operations
0.44 
0.26 
0.40 
0.68 
0.29 
Basic earnings (loss) per share from discontinued operations
0.04 
(0.01) 
–
0.35 
0.32 
Basic earnings per share
0.48 
0.25 
0.40 
1.03 
0.61 
Diluted earnings (loss) per share attributable to shareholders 
of Infineon Technologies AG (in €):
 
 
 
 
 
Diluted earnings per share from continuing operations
0.44 
0.26 
0.39 
0.66 
0.28 
Diluted earnings (loss) per share from discontinued operations
0.04 
(0.01) 
–
0.32 
0.30 
Diluted earnings per share
0.48 
0.25 
0.39 
0.98 
0.58 
Key Data for the Consolidated Statement of Operations
 
 
 
 
 
Return on sales ²
12.4 %
7.1 %
10.9 %
28.0 %
20.0 %
EBIT ³
528 
327 
453 
740 
363 
EBIT margin ⁴
12.2 %
8.5 %
11.6 %
18.5 %
11.0 %
EBITDA ⁵
1,042 
793 
881 
1,104 
699 
Segment Result
 
 
 
 
 
Automotive
259 
167 
219 
279 
198 
Industrial & Multimarket  ¹
–
–
–
–
294 
Industrial Power Control
144 
38 
118 
202 
–
Power Management & Multimarket
172 
144 
142 
242 
–
Chip Card & Security
43 
39 
56 
54 
22 
Other Operating Segments
6 
(9) 
5 
14 
(4) 
Corporate and Eliminations
(4) 
(2) 
(13) 
(5) 
(35) 
Segment Result:
620 
377 
527 
786 
475 
Segment Result Margin
14.4 %
9.8 %
13.5 %
19.7 %
14.4 %
FINANCIAL DATA 2010 – 2014

273
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Financial data 2010 – 2014
€ in millions, except otherwise stated
2014
2013
2012
2011
2010
CONSOLIDATED STATEMENT OF FINANCIAL POSITION DATA
 
 
 
 
 
Total assets
6,438 
5,905 
5,898 
5,873 
4,993 
Gross cash position
2,418 
2,286 
2,235 
2,692 
1,727 
Net cash position
2,232 
1,983 
1,940 
2,387 
1,331 
Inventories
707 
609 
567 
507 
514 
Assets classified as held for sale
–
–
5 
5 
495 
Property, plant and equipment
1,700 
1,600 
1,731 
1,343 
838 
Goodwill and other intangible assets
250 
170 
146 
111 
87 
Debt
186 
303 
295 
305 
396 
Provisions
660 
721 
740 
836 
608 
Liabilities classified as held for sale
–
–
–
–
177 
Total liabilities
2,280 
2,129 
2,323 
2,518 
2,368 
Total equity
4,158 
3,776 
3,575 
3,355 
2,625 
Statement of Financial Position Ratios
 
 
 
 
 
Equity ratio
64.6 %
63.9 %
60.6 %
57.1 %
52.6 %
Return on equity
12.9 %
7.2 %
11.9 %
33.4 %
25.1 %
Return on assets
8.3 %
4.6 %
7.2 %
19.1 %
13.2 %
Return on Capital Employed (RoCE)
20.3 %
14.1 %
22.3 %
62.1 %
30.2 %
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS DATA
 
 
 
 
 
Net cash provided by operating activities from continuing operations
988 
610 
667 
983 
958 
Net cash used in investing activities from continuing operations
(272) 
(328) 
(1,013) 
(2,499) 
(355) 
Net cash used in financing activities from continuing operations
(179) 
(165) 
(199) 
(352) 
(487) 
Net increase in cash and cash equivalents 
from discontinued operations
(8) 
(10) 
(40) 
1,206 
136 
Depreciation and amortization
514 
466 
428 
364 
336 
Purchases of property, plant and equipment 
and intangible assets and other assets
(668) 
(378) 
(890) 
(887) 
(325) 
Cash flow
529 
107 
(585) 
(662) 
252 
Free cash flow
317 
235 
(219) 
106 
573 
 
 
 
 
 
 
The IFX Share (as of September 30)
 
 
 
 
 
Dividend per share ⁷ in €
0.18 
0.12 
0.12 
0.12 
0.10 
Dividend ⁷ in € million
202 
129 
129 
130 
109 
Closing price Xetra Trading System in €
8.19 
7.40 
4.94 
5.59 
5.08 
Closing price OTCQX in US$
10.30 
9.98 
6.44 
7.39 
6.93 
Shares outstanding in million
1,128 
1,081 
1,080 
1,087 
1,087 
Market capitalization € in millions
9,190 
7,950 
5,335 
6,073 
5,521 
Market capitalization US$ in millions
11,554 
10,729 
6,957 
8,031 
7,514 
 
 
 
 
 
 
Infineon-Employees (as of September 30 in total figures)
29,807 
26,725 
26,658 
25,720 
26,654 
1	The Industrial & Multimarket segment was split into two separate segments effective January 1, 2012, namely the Industrial Power Control segment 
and the Power Management & Multimarket segment. Prior year figures have been adjusted accordingly.
2	Return on sales = net income/loss divided by revenue.
3	EBIT = earnings from continuing operations before interest and tax.
4	EBIT margin = EBIT divided by revenue.
5	EBITDA = EBIT plus scheduled depreciation and amortization.
6	Return on assets = net income (loss) divided by total assets.
7	A cash dividend of €0.18 per share for the 2014 fiscal year will be proposed at the Annual General Meeting.
This would result in a distribution of approximately €202 million.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FURTHER INFORMATION
274
LIST OF GRAPHICS
Graphic
Page
G 01	 Combined Reporting
2
G 02	 Revenue development of the 
individual segments in the 2014 fiscal year 
compared to the previous year
23
G 03	 Revenue by segment in the 2014 fiscal year
23
G 04	 Worldwide Semiconductor revenue by region 
in the 2014 fiscal year (adjusted to the 
Infineon fiscal year)
25
G 05	 Infineon revenue by region
25
G 06	 Top 20 semiconductor manufacturers 
for 2013 calendar year
25
G 07	 Growth, profitability and investments 
are interdependent
27
G 08	 Infineon is focused with its four segments on 
the three central challenges to modern society
27
G 09	 Revenue in the fiscal years 1999 to 2014 
compared to the global semiconductor market
28
G 10	 Emission targets of different regions
29
G 11	 Value of power semiconductors 
(minimum to maximum) 
per gigawatt of electric power generated
30
G 12	 Expected worldwide car production by region
30
G 13	 Segment Result Margin 
in the fiscal years 2010 to 2014
33
G 14	 Infineon is the only supplier operating 
in the market for power semiconductors 
that has reached critical size for 
manufacturing on 300-millimeter wafers
34
G 15	 Investments as a percentage of revenue 
in the fiscal years 2009 to 2014
36
G 16	 Revenue and Segment Result 
of the Automotive segment
41
G 17	 Automotive segment revenue by region
41
G 18	 Average semiconductor content 
of various types of vehicle (2013)
43
G 19	 Expected number of systems 
for radar-based distance warning
44
G 20	 World automotive semiconductor market share
45
G 21	 Japan automotive semiconductor market share; 
Infineon in third place for the first time
45
G 22	 World automotive semiconductor market 
by product category
45
G 23	 Revenue and Segment Result 
of the Industrial Power Control segment
47
G 24	 Industrial Power Control segment 
revenue by region
47
G 25	 World discrete power semiconductors 
and modules market share
51
G 26	 World IGBT modules market share
51
G 27	 World discrete IGBT power semi­conductors 
market share
51
G 28	 Revenue and Segment Result 
of the Power Management 
& Multimarket segment
53
G 29	 Power Management & Multimarket 
segment revenue by region
53
G 30	 World standard power MOSFET market share
57
G 31	 World silicon microphone ICs 
market share by units
57
G 32	 Revenue and Segment Result 
of the Chip Card & Security segment
59
G 33	 Chip Card & Security 
segment revenue by region
59
Graphic
Page
G 34	 Expected growth in chip-based 
payment cards in the USA and China
61
G 35	 World microcontroller-based 
chip card ICs market share
63
G 36	 R&D expenses
65
G 37	 Development of Infineon’s market share 
for silicon microphone ICs from 2007 to 2013
69
G 38	 Schematic illustration of a silicon microphone 
based on dual backplate technology; 
the membrane is positioned between 
two signal electrodes
70
G 39	 Investments
73
G 40	 Corporate Social Responsibility
82
G 41	 Stakeholders
83
G 42	 Injury Rate (IR)
84
G 43	 Lost Day Rate (LDR)
84
G 44	 Water consumption
85
G 45	 Standardized water consumption
85
G 46	 Water balance
86
G 47	 Water discharges 2014
86
G 48	 Energy consumption
87
G 49	 Standardized electricity consumption
87
G 50	 PFCs emissions
88
G 51	 Calculation of the CO₂-Burden
89
G 52	 Carbon footprint
90
G 53	 Waste generation
91
G 54	 Waste management methods 
in the 2014 fiscal year
91
G 55	 Standardized waste generation
91
G 56	 Principles of Purchasing
94
G 57	 Corporate Citizenship expenditure
95
G 58	 Examples of the Corporate Citizenship 
activities of Infineon in the 2014 fiscal year
95
G 59	 Nationalities (Infineon worldwide 2014)
98
G 60	 Women in management positions 
(Infineon worldwide)
99
G 61	 Training expenses 
100
G 62	 Female/male employees
(new entries worldwide 2014)
103
G 63	 Age structure (new entries worldwide 2014)
103
G 64	 Age structure (Infineon worldwide 2014)
103
G 65	 Development of the Infineon Technologies AG 
share compared to Germany’s DAX Index 
and Philadelphia Semiconductor Index (SOX) 
and the Dow Jones US Semiconductor Index 
from the beginning of the 2014 fiscal year 
(daily closing prices)
107
G 66	 Revenue by segment
117
G 67	 Revenue by region
118
G 68	 Orders received and revenue
119
G 69	 Gross profit and gross margin
119
G 70	 R&D expenses 
120
G 71	 Selling, general and administrative expenses 
121
G 72	 Assets
123
G 73	 Liabilities and equity
123
G 74	 RoCE
125
G 75	 Cash flow
127
G 76	 Free cash flow
128
G 77	 Liquidity position as of September 30, 2014 
and 2013 by comparison
129
G 78	 Risk assessment matrix
138

275
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
Financial glossary
FINANCIAL GLOSSARY
ADS 
American Depositary Shares – ADSs are U.S.-traded securities 
represented by an American Depositary Receipt for non-U.S. 
issuers. These securities simplify the access to U.S. capital 
markets for non-U.S.-based companies, and in turn provide 
U.S. investors with investment opportunities in non-U.S. secu­
rities. Since the delisting from the New York Stock Exchange 
(“NYSE”), the Infineon ADSs have been traded over the counter 
on the OTCQX International Premier market as a sponsored 
Level 1 program with the ticker symbol IFNNY.
Associated Companies
An entity in which the Company has significant influence, 
but not a controlling interest, over the operating and financial 
management policy decisions of the entity. Significant influ­
ence is generally presumed when the Company holds between 
20 percent and 50 percent of the voting rights.
Carve-Out
Legal separation of business operations (e.g. business units).
Cash flow
The cash-effective balance arising from inflows and outflows 
of funds over the fiscal year. The Consolidated Statement of 
Cash Flows is part of the Consolidated Financial Statements 
and shows how the Company generated cash during the 
period and where it spent cash, in terms of operating activities 
(cash the Company made by purchasing/selling goods and 
services), investing activities (cash the Company spent for 
investment, or cash it raised from divestitures), and financing 
activities (cash the Company raised by selling stocks, bonds 
and loans or spent for the redemption of stocks or bonds).
Convertible bond
Convertible notes/bonds are interest-bearing securities which 
normally – in addition to the right to receive interest and 
repayment of the nominal amount – give the bearer a conver­
sion option. During the term of the option (conversion period), 
the bearer can exchange the convertible bond/note for a 
specified number of shares of the issuing entity. The conversion 
ratio is stipulated and is typically adjusted for transactions 
affecting the shareholders, such as dividend payments. If the 
bondholder/noteholder does not convert the bond/note 
into shares during the conversion period, the issuer redeems 
the bond/note at the end of the term at its nominal amount.
DAX 
Deutscher Aktienindex – The German Stock Index tracking the 
30 major German companies traded on the Frankfurt Stock 
Exchange, in terms of order volume or market capitalization.
Deferred tax
Since tax laws often differ from the recognition and measure­
ment requirements of financial accounting standards, differ­
ences can arise between (a) the amount of taxable income 
and pre-tax financial income for a year and (b) the tax bases 
of assets or liabilities and their reported amounts in financial 
statements. A deferred tax liability and corresponding expense 
results from income that has already been earned for account­
ing purposes but not for tax purposes. Conversely, a deferred 
tax asset and corresponding benefit results from amounts 
deductible in future years for tax purposes but that have already 
been recognized for accounting purposes.
Defined benefit obligations (DBO)
A measure of a pension plans’ liability at the calculation date 
assuming that the plan is ongoing and will not terminate in 
the foreseeable future. 
Derivate
A financial instrument that derives its value from the price, 
price fluctuations or expected price of an underlying asset 
(e.g. a security, currency or bond).
EPS 
Earnings Per Share. Basic earnings per share is calculated by 
dividing net income (loss) by the weighted average number 
of ordinary shares outstanding during the period. For the 
calculation of diluted earnings per share the weighted average 
number of ordinary shares outstanding is increased by all 
additional ordinary shares that would have been outstanding 
if potentially dilutive instruments had been converted into 
ordinary shares.
Equity Method
Valuation method for interests in associated companies in 
which the investor has the ability to exercise significant 
influence over the investee’s operating and financial policies.
Fair Value
The fair value is defined as price that would be received to sell 
an asset or paid to transfer a liability in an orderly transaction 
between market participants at the measurement date. 
Forward contract
A forward transaction taking place on a set future date with 
individually negotiated contract terms where the delivery and 
payment of a security is effected with the rate set on the day 
the transaction is concluded; in the case of a foreign exchange 
forward, the exchange of one currency for another at a fixed rate.
Free cash flow
Cash flow from operating and investing activities from continu­
ing operations excluding cash flows related to the purchase 
or sale of financial investments.

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Goodwill
An intangible asset of the Company that results from a busi­
ness acquisition, representing the excess of the purchase price 
(cost) paid for the acquired business over the fair value of 
the separately identifiable assets acquired and liabilities and 
contingencies assumed. Under IFRS, goodwill is not reduced 
through scheduled amortization, but rather written down to its 
fair value if impaired. An impairment assessment is performed 
at least once a year.
Gross cash position
Total of cash and cash equivalents plus financial investments.
Gross profit 
Revenues less cost of goods sold.
IFRS 
International Financial Reporting Standards; Infineon prepares 
its Consolidated Financial Statements in accordance with IFRS, 
as adopted by the European Union.
Joint Venture
A contractual arrangement whereby two or more parties 
undertake an economic activity that is subject to joint control. 
Net cash position
Gross cash position less short-term and long-term debt.
OTCQX
One of three marketplaces for trading over-the-counter stocks 
provided and operated by the OTC Markets Group.
Profit or loss and capital-share attributable to 
non-controlling interests
Proportional share in net income and equity attributable to 
outside shareholders, and not to shareholders of the Infineon 
Group’s parent company.
Put options
In the case of a put option, the buyer acquires a contractual 
right to sell a stipulated quantity of an underlying asset 
(e.g. a share) at a predetermined date (European option) at a 
specified price (underlying price). In return, the issuer receives 
an option premium from the buyer of the put option.
Registered shares
Shares registered in the name of a certain person. This 
person’s details and number of shares are registered in 
the Company’s share ledger in accordance with securities 
regulations. Only individuals registered in the Company’s 
share ledger are considered shareholders of the Company and 
are, for example, able to exercise their rights at the Company’s 
Annual General Meeting.
RoCE
Return on Capital Employed is defined as the operating 
result after tax from continuing operations divided by capital 
employed. RoCE shows the linkage between profitability and 
capital resources required to run the business.
Segment Result
Infineon defines Segment Result as operating income (loss) 
excluding: asset impairments (net of reversals); the impact on 
earnings of restructuring and closures; share-based compen­
sation expense; acquisition-related depreciation/amortization 
and other expenses; gains (losses) on sales of assets, businesses, 
or interests in subsidiaries as well as other income (expense), 
including litigation costs. This is the measure that Infineon 
uses to evaluate the operating performance of its segments.
Segment Result Margin
An indicator of operating performance, calculated as the 
percentage of Segment Result in relation to revenue.
Working capital
Working capital consists of current assets less cash and cash 
equivalents, financial investments and assets held for sale 
less current liabilities excluding short-term debt and current 
maturities of long-term debt excluding liabilities classified as 
held for sale.

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300-millimeter technology
Comprehensive term for the manufacture and processing of 
wafers with a diameter of 300 millimeters.
40-/65-/90-nanometer technology
Manufacturing technology can be described by feature size, 
such as 90, 65, or 40 nanometers. The smaller the structures, 
e.g. lines and pitches, the smaller the chip and the cheaper 
it’s manufacturing. The 40 nanometer technology succeeds 
the 65 nanometer technology, which followed the 90 nano­
meter technology.
ABS
The anti-lock braking system is an electronic vehicle safety 
feature that prevents the wheels from locking during 
heavy braking.
AC/DC conversion
Alternating Current/Direct Current conversion. This is a 
generic term for power supplies in which alternating current 
from the mains is converted to direct current, which often 
then needs to be precisely converted to a lower current 
(see also ‘DC/DC conversion’).
Analog/mixed-signal
“Mixed-signal” is a generic term for integrated circuits that 
operate simultaneously with analog and digital signals. Owing 
to similar requirements in terms of development and manu­
facturing processes, they are generally grouped together with 
integrated circuits operating exclusively with analog signals, 
hence giving rise to the combination “analog/mixed-signal”.
ASIC
Application Specific Integrated Circuit. Logic IC specially 
constructed for a specific application and customer; 
implemented on an integrated circuit.
ASSP
Application Specific Standard Product. Standard product 
designed for a specific use that can be used by many customers; 
implemented on an integrated circuit.
AURIX™
Infineon brand name for the 32-bit multicore automotive 
microcontroller family.
Authentication
Authentication means the ability to prove one’s own identity, 
i.e., proof of the authentic original. However, authentication 
does not necessarily refer to people only, but also to any 
tangible or intangible object, such as a device or an electronic 
document. A user can be authenticated in any one of three 
different ways: 1.) By providing a certain piece of information, 
i.e., the user knows something, such as a password; 2.) Through 
the use of a possession, i.e., the user possesses something, 
such as a key; 3.) Through the direct presence of the user, 
i.e., the user is someone or something, such as in the form of 
a biometric feature.
Backend manufacturing
The part of the semiconductor manufacturing process that 
happens after the wafer has left the cleanroom (frontend 
manufacturing). This includes testing the chips at wafer 
level, repairing the chips if necessary, dicing the wafers and 
packaging the individual chips. There is a growing trend among 
semiconductor manufacturers to outsource the assembly, 
and sometimes even the testing, to independent assembly 
companies. Much of the assembly capacity is based in the 
Pacific Rim countries.
Band gap
The term band gap, also known as energy gap, has its origins in 
the quantum mechanical band model and describes the energy 
difference between the valence band and the conduction band 
of a solid. The unit of measurement is the electron volt (eV). 
Conductors do not have band gaps, whereas insulators have 
band gaps greater than 4 eV. Semiconductors have band gaps 
ranging from 0.1 eV to around 4 eV (Si: 1.12 eV; SiC: 2.36 to 
3.03 eV; GaN: 3.37 eV).
Bare die
A bare die is a single, unpackaged chip. Bare die business 
means the sale of fully processed, unpackaged chips. The 
packaging and subsequent testing of the packaged chips 
is performed by the customer. Bare die business is mostly 
conducted with IGBT module manufacturers that produce 
their own modules but not their own semiconductors.
BCD process
A special process for manufacturing high-voltage low power ICs. 
The abbreviation BCD stands for “bipolar CMOS with DMOS”.
Bipolar
A power bipolar transistor is a specialized version of a bipolar 
transistor that is optimized for conducting and blocking large 
electric currents (up to several hundred amperes) and very 
high voltages (up to several 1,000 volts). In industry, the power 
bipolar transistor – like the power MOSFET (see MOSFET) often 
used as an alternative – constitutes an important industrial 
semiconductor component for influencing electric current.
TECHNOLOGY GLOSSARY

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Bit
Information unit; can take one of two values “true”/“false” 
or “0”/“1”.
Breakthrough voltage
The breakthrough voltage for semiconductor components is 
the voltage that, when exceeded, the current increases sharply 
and can ultimately lead to the destruction of the component. 
The breakthrough voltage can be determined by the doping of 
the semiconductor layers.
Byte
Unit of information in data processing components. One byte 
is equivalent to eight bits (see bit). 
Cloud computing
Cloud computing is the provision of processing capacity, 
data storage, network capacity and ready-to-use software 
via a network with supply matched dynamically to demand. 
The IT infrastructure functions accessed appear remote and 
opaque from the user’s perspective, as if enveloped in a cloud. 
The remote systems of the cloud are accessed via a network, 
usually the Internet, using a terminal such as a netbook or 
tablet (see tablet).
CMOS
Complementary Metal Oxide Semiconductor. Standard semi­
conductor manufacturing technology used to manufacture 
microchips with low power usage and a high level of integration.
Common Criteria
Common Criteria for Information Technology Security Evalua­
tion, generally known as Common Criteria for short, constitute 
an international standard for evaluating and certifying the 
security of computer systems with regard to data security. The 
Common Criteria define seven levels of reliability (Evaluation 
Assurance Level, EAL1 to EAL7, i.e., the highest level), which 
describe the correctness of the implementation and the depth 
of inspection of the system being evaluated.
Commutation
Commutation is the reversal of polarity in electric motors, an 
important type of which are known as brushless DC motors 
(BLDC motors). Commutation in BLDC motors is performed 
electronically, depending on the rotor position, the rotor speed 
and the torque. The rotor position and torque can be mea­
sured via sensors, such as magnetic field sensors. Depending 
on this positional information, the windings, which generate 
the torque in the rotor, are controlled via appropriate power 
semiconductors.
The electronic commutation typical in BLDC motors does not 
cause wear and tear, such as in standard DC motors. Moreover, 
BLDC motors do not require maintenance. Major advances 
in the field of power electronics and circuit design in recent 
years have made it possible to manufacture BLDC motors at 
a reasonable market price.
Converter
Control unit that can convert AC voltages of various rates and 
frequencies. This is achieved by means of power electronics. 
Converters are used in wind turbines, for example, in order to 
feed fluctuating wind energy into the power network with 
a voltage of constant frequency. In electric drive technology, 
for example in engine controllers and trains, a converter is 
used to generate an output voltage of variable, load-dependent 
frequency from a mains supply of constant frequency.
CoolMOS™
High-voltage power transistor for voltages from 300 to 1,200 V.
DC/DC conversion
Direct Current/Direct Current conversion. A high DC input 
voltage is converted to a mostly lower, highly precise DC out­
put voltage. The DC/DC conversion is usually positioned on 
the motherboard in close proximity to the electrical consumer. 
These consumers can be, for example, the microprocessors 
of a PC or server, the graphics controller of a graphics card or 
the network processor of a telecommunications facility.
Embedded flash
A nonvolatile memory that is integrated on a chip together 
with a microcontroller processor core. The nonvolatile memory 
contains the program code.
Epitaxy
From the Greek epi ‘upon’ and taxis ‘arrangement’ or ‘orien­
tation’. Epitaxy is a form of crystalline growth that occurs 
both in nature (such as in minerals) and in the technical world. 
In semiconductor technology, epitaxy is the artificial growth 
of crystalline layers on a substrate, which is usually a wafer. 
Epitaxy enables various doping profiles for transistors to be 
created, which are not feasible using other methods such as 
diffusion or ion implantation.
EPS
Electric Power Steering is an electrically driven power steering 
system, which is equipped with an electric motor as opposed 
to hydraulically driven systems. The advantage is that the 
power steering can be tailored to suit the current requirement. 
In other words, it is only activated as needed during steering 
operations, which leads to greater fuel economy compared with 
hydraulic power steering systems.

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ESD
Electrostatic discharge. ESD is a spark or disruptive discharge 
caused by a large potential difference in an electrically iso­
lating material that causes a very short, high electrical current 
impulse capable of destroying electronic devices such as mobile 
telephones. The cause of the potential difference is mostly 
a static electricity charge, which can happen, for example, 
when walking over a carpet and can charge a person with up 
to 30,000 volts.
ESC
Electronic Stability Control. A vehicular technology system 
that uses sensors and computers to brake individual wheels 
in order to prevent skidding.
Euro NCAP
European New Car Assessment Programme. The Euro NCAP 
carries out crash tests and provides automobile buyers with 
a realistic, independent assessment of the safety features 
of many of the most sold vehicles in Europe. Euro NCAP was 
founded in 1997 and is meanwhile supported by seven 
European governments as well as automobile and consumer 
organizations from all EU states.
Exa
A decimal prefix for usage in the international system of units, 
Exa stands for 10  ¹⁸ = 1 quintillion, abbreviated “E”, for example 
exabyte (EByte).
FACTS
Flexible AC Transmission System – control systems used in 
electrical engineering. They are used in the field of electrical 
power supply to specifically control power transmission and 
distribution in AC networks, in which in principle components 
of power electronics and therefore power semiconductors 
such as IGBT modules are used. The controlling of power 
transfers can be implemented in alternating current networks 
by changing the idle and active power by means of capacitor 
batteries or compensation coils.
Firmware
Firmware is software that is embedded in electronic devices. 
It is mostly embedded in the memory of a microcontroller and 
cannot usually be replaced by the user. The terms derives from 
the fact that firmware is functionally firmly connected with 
the hardware, which means that neither one can function 
without the other. It occupies an intermediate position 
between hardware and the application software.
Frontend manufacturing
Frontend process is the designation for all process steps in 
cleanrooms that the entire wafer must complete. These are 
lithography, diffusion, ion implantation and application of 
circuitry levels. Some stations must be completed a number 
of times. At the end of the frontend process, the wafer may 
have been through as many as 500 individual process steps. 
After the conclusion of the frontend manufacturing, the 
processed wafers are transferred to backend manufacturing 
for testing and packaging (see Backend manufacturing).
Gallium nitride
Gallium nitride (abbreviated to GaN) is a compound semicon­
ductor material made from gallium (chemical symbol Ga) and 
nitrogen (chemical symbol N). GaN is used for components 
including radio-frequency power MOSFETs (see MOSFET) on 
account of the material’s special properties (such as good 
thermal conductivity and high electron mobility).
Giga
A decimal prefix for usage in the international system of units, 
Giga stands for 10  ⁹ = 1 billion, abbreviated to “G”, for example 
gigabyte (GByte).
GMR
Giant Magneto-Resistance. The GMR effect is utilized in sensors 
for the purpose of measuring magnetic fields. GMR sensors 
are employed in a range of applications, e.g. as steering angle 
sensors in automobiles.
GPS
Global Positioning System. Satellite-based location identifi­
cation and positioning system based on the transit time 
differences of received signals.
Hall sensor
A sensor based on the hall principle, used for measuring 
magnetic fields, named after the US physicist Edwin Herbert 
Hall (1855 – 1938). Hall sensors are used in automobiles, 
for example, for detecting pedal positions or for measuring 
the speed at which shafts rotate.
Hertz
Hertz (Hz) is the unit for frequency, and is named after the 
German physicist Heinrich Rudolf Hertz (1857 – 1894). The 
Hertz determines the number of oscillations per second, or 
more generally speaking, the number of repetitive processes 
per second. Frequently used units are kilohertz (one thousand 
oscillations per second), megahertz (one million oscillations 
per second) and gigahertz (one billion oscillations per second).
HEV/EV
Hybrid electric vehicle/electric vehicle: collective terms 
for vehicles powered partly or entirely by an electric motor 
(see hybrid car).

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HVDC
High-voltage direct-current transmission. HVDC transmission 
is a method of transmitting electrical energy at high direct-
current voltages of up to 800,000 volts over distances of more 
than 1,000 kilometers. HVDC transmission is also used for 
connecting offshore wind farms to the electricity grid on the 
mainland.
Hybrid car
A hybrid car is usually understood to be a motor vehicle that 
is driven by at least one electric motor, as well as a combustion 
engine. The hybrid drive is used in standard car construction 
to enhance efficiency, reduce consumption of fossil fuels or 
increase performance at lower engine speeds. In full hybrid 
cars the vehicle can be driven solely by the electric motor. In 
mild hybrid cars, the electric motor is simply used to support 
the combustion engine, for example when accelerating.
Hybrid technology
The word “hybrid” comes from the Greek for “mixed” or 
“originating from two different sources”. It has come to be 
used to denote the heart of a new drive technology in the 
automotive industry: hybrid vehicles operate with a combi­
nation of a diesel or gas engine and an electric motor.
IC
Integrated Circuit. Electronic Component parts composed of 
semiconductor materials such as silicon; numerous compo­
nents, including transistors, resistors, capacitors and diodes 
can be integrated into ICs and interconnected.
IGBT Module
Insulated Gate Bipolar Transistor Module. IGBTs are semi­
conductor components used increasingly in power electronics 
due to their robustness, high blocking voltage, and their 
ability to be triggered with negligible power. Modules are 
formed using several IGBTs in parallel within a single casing. 
These modules are used to drive electric motors both in 
automotive and industrial applications. Motor speed and 
torque can be regulated along a gradual scale. Trains such 
as Germany’s ICE and France’s TGV use IGBT modules for an 
efficient and rapid electrical drive control.
Industrial Internet, Industry 4.0
Industrial Internet, in Germany commonly referred to as 
“Industrie 4.0”, describes the gradual evolution towards the 
smart, efficient and flexible factory of the future. It is character­
ized by high degrees of automation, deep horizontal and 
vertical integration of production and logistics processes, 
and the use of advanced “big data” analytics. Or simply put: 
Industrial Internet = Industrial Automation + Internet of Things 
(see Internet of Things).
Internet of Things
The Internet of Things (IoT) is the network of physical objects 
that contain embedded electronics to compute, sense, actuate 
and communicate. There is no clearly defined “IoT market”, 
instead the term IoT describes an ongoing and long-term trend 
that affects many applications, some of which exist today 
with different names and many additional applications that 
might exist sometime in the future. For Infineon we currently 
see IoT-related opportunities mainly in mobility, industry, 
energy, consumer and ICT (Information and Communication 
Technology) infrastructure markets.
Integrity Guard
Integrity Guard (IG) is a revolutionary security technology 
designed for chip cards and security applications, with which 
Infineon is ringing in a new era in the field of hardware-based 
security. IG was specially developed for sophisticated, long-
life applications such as payment cards and government 
identification documents. IG enables a security controller for 
the first time to provide complete error detection and com­
prehensive encryption of all chip functions across the entire 
data path within the chip. For this reason it is known as ‘digital 
security’. IG is used in the security controllers of the SLE 77 
and 78 families and has won numerous international awards.
Inverter
An inverter, also called a DC/AC converter, is an electrical 
device for converting DC voltage into AC voltage, or direct 
current into alternating current. Inverters are used in solar 
power plants, for example, for converting the DC voltage 
generated in the solar modules into AC voltage, which is then 
fed into the electricity network.
ISO 26262
ISO 26262 is an ISO standard for safety-related electrical 
and electronic systems in various types of vehicle. ISO 26262 
defines a procedure model together with required activities 
and methods to be used in development and production. 
The implementation of the standard is designed to guarantee 
the functional safety of systems that include electrical and 
electronic components in vehicles. The standard is used by 
carmakers, automotive suppliers and testing institutions.

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Kilo
A decimal prefix for usage in the international system of units, 
kilo stands for 10  ³ = 1,000, or abbreviated to “k”. In the world 
of information technology, Kilo stands for 2  ¹⁰ = 1,024, or “K” 
for short, e.g. kilobyte (KByte).
LDMOS
Laterally Diffused MOS transistor. The increasingly stringent 
standards concerning the electrical properties of field-effect 
transistors (MOSFETs) have led to the development of variations 
of the planar MOSFET in recent decades. They frequently 
differ in the design of their doping profile or the selection of 
material. For instance, there is a difference between lateral 
(i.e., those aligned parallel to the surface) and vertical designs. 
Whereas lateral transistors (LDMOS) are primarily used in 
radio-frequency applications for telecommunications, the 
vertical design is mainly used in the field of power electronics.
Mega
Decimal prefix for usage in the international system of units. 
Mega stands for 10  ⁶ = 1,000,000 = 1 million, or “M” for short. 
In the world of information technology, Mega stands for 
2²⁰ = 1,048,576, e.g. megabyte (MByte).
MEMS
Micro-electro-mechanical system. A micro-electro-mechanical 
system, or simply a microsystem, is a miniaturized device, 
assembly or part that contains components of minute dimen­
sions (only measurable in micrometers) that work together 
as a system. Usually a microsystem consists of one or more 
sensors, actuators and control electronics on one chip. 
Infineon manufactures microphones as MEMS. Due to their 
diminutive size, low power consumption, good shielding from 
interfering signals and low-cost production, these types of 
microphone are being increasingly installed in mobile devices 
such as smartphones, tablets, cameras, and accessories such 
as headsets and hearing aids.
Microcontroller
A microprocessor integrated into a single IC combined with 
memory and interfaces, which functions as an embedded 
system. Logic circuits of the highest complexity can be 
designed in a microcontroller and controlled by software. 
Micron (Micrometer)
Metric linear measure, corresponding to the millionth part 
of a meter (10  – ⁶). Symbol: µm. As an example, the diameter of 
a single human hair is 0.1 millimeters, or 100 µm.
MOSFET
Metal-Oxide-Semiconductor Field-Effect Transistor. MOSFET 
is currently the most widely used transistor architecture. 
MOSFETs are used both in highly integrated circuits and in 
power electronics as special power MOSFETs.
Nanometer
Metric unit of length. Corresponds to the billionth part of a meter 
(10  – ⁹); the symbol is nm. The diameter of deoxyribonucleic 
acid (DNA) is roughly 2 nanometers. Fabrication features in the 
semiconductor industry are now measured in nanometers 
(see 65-nanometer technology).
NFC
Near field communication. An international communication 
standard for contactless data exchange over short distances. 
The initial drafts of the communication standard appeared 
several years ago, but the technology did not break through 
until 2011 when it was included in the first smartphones. NFC 
can be used as an access key to content on terminals and 
for services such as cashless payment and paperless ticketing.
On-state resistance
The term used to describe the minimal resistance of a field-
effect transistor. The correct way to write it is RDS(on). The R 
stands for the electrical resistance. The index DS stands for 
the connections to the field-effect transistor, which are known 
as Drain (D) and Source (S). “On” stands for the state of the 
field-effect transistor.
OptiMOS™
Infineon’s brand name for low-voltage power transistors for 
voltages between 20 and 300V.
Peta
Decimal prefix for usage in the international system of units. 
Peta stands for 1015 = 1 quadrillion, abbreviated “P”, for example 
petabyte (PByte).
Plug-in hybrid electric vehicle (PHEV)
Plug-in hybrid electric vehicles combine the advantages of 
battery-powered vehicles with those powered by combustion 
engines. On short trips and in urban traffic, the vehicle is driving 
purely electrically, and, therefore, quietly, emission-free and 
economically. The electric power is supplied by the battery. 
The combustion engine is used on longer trips or whenever 
the battery needs recharging, making it possible to drive much 
further. The battery can be charged either using mains power 
or via the recuperation of braking energy.

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Power semiconductor
Over the last 30 years power semiconductors have mostly 
replaced electromechanical solutions in the areas of drive 
technology as well as power management and supply, 
due to their ability to form high energy flows almost at will. 
The advantage of these components is their ability to switch 
extremely rapidly (typically within a fraction of a second) 
between the “open” and the “closed” state. With the fast 
sequences of on/off pulses, almost any form of energy flow 
can be created, e.g. a sinus wave.
Power transistor
Power transistor is a term used in electronics to refer to a 
transistor for switching or controlling large voltages, currents 
and outputs. There is no standard method of differentiating 
between transistors for signal processing and power transistors. 
Power transistors are mainly produced in packages that enable 
installation on heat sinks, as it is otherwise impossible to 
handle the dissipation loss of several kilowatts that occurs 
with some types and applications (see power semiconductor).
Repowering
Repowering in a renewables context generally refers to the 
replacement of old wind turbines with newer, more powerful 
and more efficient models. This is done in order to make 
better use of the available locations and increase the installed 
capacity while simultaneously reducing the number of turbines.
Schottky diode
A special diode that has a metal-semiconductor junction 
rather than a semiconductor-semiconductor junction. The 
most frequently used semiconductor material up to 250 Volts 
is silicon. Silicon carbide (SiC) is used for voltages in excess 
of 300 Volts (see Silicon Carbide). SiC Schottky diodes offer 
a number of advantages over conventional diodes in power 
electronics. When used together with IGBT transistors, it is 
possible to dramatically reduce switching losses in the diode 
itself, as well as in the transistor. The name derives from the 
German physicist Walter Schottky (1886 – 1976).
Semiconductor
Crystalline material. Its electrical conductivity can be changed 
as desired by the application of doping materials (most 
often boron or phosphorus). Semiconductors include silicon 
or germanium. The term is also applied to ICs made of 
these materials.
Shrink
A shrink in the context of semiconductor manufacturing is the 
process of scaling manufacturing down from an existing feature 
size to the next smaller feature size. The move to smaller 
structures generally involves shrinking all semiconductor circuit 
elements equally, although there are some exceptions. Chip 
function is unchanged, but since the chips are smaller, more 
can be squeezed onto each wafer and manufacturing costs fall.
Silicon
A chemical element with semiconducting characteristics. 
Silicon is the most important raw material in the semicon­
ductor industry.
Silicon Carbide
Compound semiconductor made from silicon (chemical 
symbol Si) and carbon (chemical symbol C). The abbreviation 
is SiC. Because of its special material properties (e.g. good 
thermal conductivity), SiC is used for Schottky diodes, as well 
as elsewhere (see Schottky diode).
SIM cards
Subscriber Identity Module cards. Chip cards that are inserted 
into mobile phones in order to identify the user within the 
network. They are used by mobile phone networks to provide 
connections to their customers.
Smartcard
Plastic card with built-in memory chip and/or microcontroller, 
which can be combined with a Personal Identification 
Number (PIN).
Smartphone 
A smartphone is an Internet-ready mobile telephone that 
provides more computer functionality and connectivity than 
a modern conventional mobile telephone. Current smart­
phones generally allow users to upgrade their device with new 
functions by installing additional programs known as apps.

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Smart Power Technology
Apart from the generally improved robustness of power 
semiconductor components with regard to high current and 
voltage peaks and the reduction of on-state resistance, an 
increasing number of functions are being integrated in the 
component. These components are then commonly known 
as Smart Power Devices and, apart from protective circuitries 
(such as thermal and overcurrent protection), they also contain 
more complex functions such as simple microcontrollers or 
analog-digital converters. The special technology needed 
to produce Smart Power Devices is known as Smart Power 
Technology, such as SPT9 from Infineon.
Switch-mode power supply
A switch-mode power supply is an electronic module that 
transforms an AC voltage into a DC voltage. Switch-mode 
power supplies are more efficient than mains transformers 
and can be more compact and lighter than conventional 
power supplies containing a heavy transformer with a ferrous 
core. Switch-mode power supplies are mainly used in PCs, 
notebooks and servers. However, they also achieve a very high 
level of efficiency even at low power, so they are increasingly 
found in plug-in power supply units, for example as chargers 
for mobile phones.
Tablet
A portable computer that can be used in a number of ways 
including as a note pad. The tablet is operated by applying 
a stylus or, increasingly, finger contact directly onto a 
touch-sensitive screen. Recently tablets have come to be 
used primarily for Internet access and hence as a terminal 
for cloud computing (see cloud computing).
Tera
Decimal prefix for usage in the international system of units. 
Tera stands for 10  ¹² = 1 trillion, abbreviated “T”, for example 
terabyte (TByte).
Thin wafer
A wafer (see Wafer) is typically around 350 microns (μm; see 
Micron) thick when sawn into individual chips. A thin wafer 
is one that has been polished down to less than 200 microns 
thick (a human hair or a sheet of paper, by comparison, is 
about 60 microns thick). Thin wafer technology offers benefits: 
Thinner chips mean losses can be reduced and the heat gener­
ated can be dissipated more effectively. Another advantage 
is that electrically active patterns can be produced on the 
backside as well, enabling the chip to provide completely new 
functions. Thin wafer chips also allow more compact packages.
TPM
Trusted Platform Module. A chip that adds elementary security 
functions such as license and data protection to a computer 
or similar device. TPMs can be integrated into tablet PCs, 
smartphones and consumer electronics as well as PCs and 
notebooks. A trusted computing platform (see Trusted Com­
puting) can be created by combining a specially configured 
operating system and appropriate software with a device 
containing a TPM.
Transistor
A transistor is an electronic component for switching and 
amplifying electrical signals. Transistors are used in fields 
including telecommunications, computer systems and power 
electronics both as discrete components and by the million 
in integrated circuits.
Trusted Computing
Trusted Computing means that the hardware and software 
used in PCs, as well as other computer-controlled systems, 
such as mobile phones, can be controlled. This is achieved 
by means of an additional chip, the Trusted Platform Module 
(TPM), which can use cryptography to measure the integrity 
of the hardware and of the software data structures, while also 
saving these values in a verifiable way.
VSD
Variable Speed Drive. Electronic control units for controlling 
the speed (revolutions per minute) of electric motors.
Wafer
Thin slice of semiconductor material from which the actual 
chip is produced. Typical diameters for wafers currently 
are 200 millimeters and 300 millimeters.

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FURTHER INFORMATION
284
MEMBERSHIPS AND PARTNERSHIPS
Infineon is engaged in numerous industry associations 
and standardization organizations – some examples:
Industry associations
•	 World Semiconductor Council (WSC; organization of regional semiconductor associations)
•	 European Semiconductor Industry Association (ESIA)
•	 Association representing the Smart Security Industry (EUROSMART)
•	 China Semiconductor Industry Association (CSIA)
•	 Semiconductor Industry Association (SIA)
•	 Federal Association for Information Technology, Telecommunications and New Media (BITKOM)
•	 German Electrical and Electronic Manufacturers’ Association (ZVEI)
Standardization organizations
•	 International Electrotechnical Commission (IEC)
•	 International Organization for Standardization (ISO)
•	 International Technology Roadmap for Semiconductors (ITRS)
•	 JEDEC Solid State Technology Association
•	 TCG-Trusted Computing Group (Computer Security Standards)
•	 European Telecommunications Standards Institute (ETSI) 
•	 Automotive Open System Architecture (AUTOSAR)
•	 German Institute for Standardization (DIN)
•	 German Commission for Electrical, Electronic & Information Technologies of DIN and VDE (DKE)

285
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GRI index
GRI INDEX
GRI Indicator
 Issue
Page
1
STRATEGY AND ANALYSIS
 
1.1
 Statement from the Management Board
6 – 9
1.2
 
Description of key impacts, risks and opportunities
Risks: 140 – 146 
Opportunities: 146 – 148
 
 
 
2
 ORGANIZATION PROFILE
 
2.1
 Name of the organization
Cover page
2.2
 Primary brands, products and/or services
Cover: “Infineon at a glance”
2.3
 Structure of the organization
112 – 113, 267 – 269
2.4
 Headquarters of the organization
112 – 113
2.5
 
Countries where the organization operates
112-113, Explanatory Notes
(www.infineon.com/CSR_Reporting)
2.6
 Nature of ownership and legal form
106 – 107
2.7
 Markets served
43 – 45, 49 – 51, 55 – 57, 61 – 63
2.8
 Scale of the organization
Cover: “Infineon at a glance”
2.9
 Significant changes during the year under report
104 – 105
2.10
 Awards received in the year under report
110 – 111
 
 
 
3
REPORT PARAMETERS
 
3.1 – 3.3
 Report’s profile
2 – 3
3.4
 Contact point 
Back cover
3.5
 Process for defining the content of the report
83
3.6 – 3.11
 
Boundary of the report; limitations on scope
Explanatory Notes 
(www.infineon.com/CSR_Reporting)
3.12
 GRI Content Index
285 – 287
3.13
 
External verification of this report
271, CSR website 
(www.infineon.com/CSR_Reporting)
 
 
 
4
GOVERNANCE, COMMITMENTS, AND ENGAGEMENT
 
4.1 – 4.2
 Governance structure
171 – 176
4.3
 
Independent members of the highest governance body
Not relevant: Infineon has no unitary 
board structure
4.4
 
Mechanisms for shareholders and employees to provide 
recommendations to the highest governance body
83, 167, 172
4.5
 
Linkage between compensation for members of the highest 
governance body and the organization’s performance
177 – 191
4.6
 
Processes in place to ensure that conflicts of interest 
are avoided
176
4.7
 
Qualifications of the members of the highest 
governance body on sustainability topics
171 – 172
4.8
 Mission or values, codes of conduct and principles
92 – 93, 167 – 170
4.9
 
Procedures of the highest governance body 
for overseeing the sustainability performance
92 – 93, 145 – 146, 167 – 191 
4.10
 
Processes for evaluating the highest governance body’s 
own performance with respect to sustainability performance
171 – 172, 175 – 176
4.11
 Consideration of the precautionary approach 
22 – 25, 104 – 105
4.12
 
Externally developed charters, 
initiatives and principles subscribed to
2 – 3
4.13
 Memberships
284

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FURTHER INFORMATION
286
GRI Indicator
 Issue
Page
4
GOVERNANCE, COMMITMENTS, AND ENGAGEMENT
 
4.14 – 4.17

















 
Engagement of stakeholders

















83 
For the definition of our stakeholders we evalu­
ated international sustainability guidelines and 
directives, such as the OECD Guidelines for Multi­
national Enterprises, and applied the EFQM (Euro­
pean Foundation for Quality Management) Model 
for Excellence and the UN Global Compact Blue­
print. For those activities included in the chart 41, 
in which the frequency of engagement is not 
described, Infineon engagement is carried out 
regularly whenever required. Following topics 
require a special frequency of engagement: 
–	 Great Place to Work Assessment: is carried out 
	
every two years.
–	 Suppliers’ evaluation: is carried out for new 
	
suppliers. For specific supplier groups it is also 
	
carried out on an annual basis.
–	 Principles of Purchasing: part of contractual 
	
negotiations.
 
 
 
 
ECONOMIC PERFORMANCE INDICATORS
 
 
Management Approach
6 – 19
EC1
Direct economic value generated and distributed
Cover: “Infineon key data”, 95, 220
EC2
Financial implications due to climate change
146 – 147
EC3
Coverage of the benefit plans
242 – 246
EC4
Financial assistance received from government
220
EC8
Infrastructure investments and services provided 
primarily for public benefit 
101
EC9
Significant indirect economic impacts
137 – 148
 
 
 
 
ENVIRONMENTAL PERFORMANCE INDICATORS
 
 
Management Approach
85
EN3 – 4
Direct and indirect energy consumption by 
primary energy source
87 
information is reported in gigawatt hours
EN6
Initiatives to provide energy-efficient or 
renewable energy-based products
42 – 43, 48 – 49, 90
EN8
Total water withdrawal by source
85
EN10
Percentage of water recycled and reused
86
EN16
Total direct and indirect greenhouse gas emissions 
by weight
88 – 89
EN18
Initiatives to reduce greenhouse gas emissions
88, 90
EN21
Total water discharge 
86
EN22
Total weight of waste by type and disposal method
91
EN26
Initiatives to mitigate environmental impacts of products 
90 – 92
EN29

Significant environmental impacts of 
transporting products and other goods and materials, 
and transporting members of the workforce
89

287
INFINEON TECHNOLOGIES ANNUAL REPORT 2014
GRI INDEX
GRI Indicator
 Issue
Page
 
LABOR PRACTICES
 
 
Management Approach
96
LA1
Total workforce by employment type and region
98, 102 – 103
LA2
Employee turnover by age, gender and region
103
LA3
Benefits provided to full-time employees
101
LA4
Percentage of employees covered by 
collective bargaining agreements
93
LA7
Injuries, occupational diseases, 
lost days and work-related accidents
84
LA8
Education and training regarding serious diseases
84
LA13
Composition and breakdown of employees 
by category according to gender, age group, 
minority group membership
98 – 99
LA14
Wage differences by gender
101
 
 
 
 
HUMAN RIGHTS
 
 
Management Approach
92
HR3
Employee training on human rights 
Infineon carried out 18,400 training hours 
worldwide in the context of the Business Conduct 
Guidelines training, which includes human 
rights information. During the last two years all 
employees received this compulsory training.
 
 
 
 
SOCIETY
 
 
Management Approach
95
SO1
Operations that are related to communities' engagement; 
assessment of impacts as well as development programs 
95
SO3
Percentage of employees trained in anti-corruption 
93
SO7
Legal actions for anti-competitive behavior
254
 
 
 
 
PRODUCT RESPONSIBILITY
 
 
Management Approach 
92
PR1
Life-cycle stages in which health and safety impacts 
of products are assessed for improvement
91 – 92

INFINEON TECHNOLOGIES ANNUAL REPORT 2014
FURTHER INFORMATION
288
GRI CERTIFICATE
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ůĂƚĞƌĐŚĂŶŐĞƐƚŽƐƵĐŚŵĂƚĞƌŝĂů͘
Statement
'Z/ƉƉůŝĐĂƟŽŶ>ĞǀĞůŚĞĐŬ 
GRI hereby states that /ŶĮŶĞŽŶdĞĐŚŶŽůŽŐŝĞƐ' has presented its report “Annual Report 2014” to 
'Z/͛ƐZĞƉŽƌƚ^ĞƌǀŝĐĞƐǁŚŝĐŚŚĂǀĞĐŽŶĐůƵĚĞĚƚŚĂƚƚŚĞƌĞƉŽƌƚĨƵůĮůůƐƚŚĞƌĞƋƵŝƌĞŵĞŶƚŽĨƉƉůŝĐĂƟŽŶ>ĞǀĞů
B+.
'Z/ƉƉůŝĐĂƟŽŶ>ĞǀĞůƐĐŽŵŵƵŶŝĐĂƚĞƚŚĞĞǆƚĞŶƚƚŽǁŚŝĐŚƚŚĞĐŽŶƚĞŶƚŽĨƚŚĞ'ϯ͘ϭ'ƵŝĚĞůŝŶĞƐŚĂƐďĞĞŶ
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ƌĞůĞǀĂŶƚĂƐƐƵƌĂŶĐĞƉƌŽǀŝĚĞƌ͘
2013 2013 2013 2013 
2013 2013 2013 2013 
2013 2013 2013 2013 
2013 2013 2013 2013 
2013 2013 2013 2013 
2013 2013 2013 2013 
2013 2013 2013 2013 
2013 2013 2013 2013

Financial calendar
Thursday, January 29, 2015  ¹
Publication of first quarter 2015 results
Thursday, February 12, 2015
Annual General Meeting 2015  
(Start 10:00 a.m. CET) 
ICM – International Congress Center Munich
(Germany)
Tuesday, May 5, 2015  ¹
Publication of second quarter 2015 results
Thursday, July 30, 2015  ¹
Publication of third quarter 2015 results
Thursday, November 26, 2015  ¹
Publication of fourth quarter and  
fiscal year 2015 results
1	preliminary
Imprint
Published by: 	
Infineon Technologies AG, Neubiberg (Germany)
Editors:	
Investor Relations, Consolidation and External Reporting
Copy deadline:	
November 26, 2014
Fiscal year: 	
October 1 to September 30 
Independent auditors: 	
KPMG AG Wirtschaftsprüfungsgesellschaft, Berlin (Germany) 
Designed by:	
HGB Hamburger Geschäftsberichte GmbH & Co. KG, Hamburg (Germany)
Photography:	
Werner Bartsch, Hamburg (Germany), pages 7 and 10
	
Rolf Bewersdorf, Frankfurt/Main (Germany), page 13
	
Robert Bosch GmbH, Gerlingen-Schillerhöhe (Germany), page 40 
	
Fotostudio Reller GmbH, Munich (Germany),  
	
pages 40, 43, 44, 46, 50, 52, 55, 58, 63, 67, 68, 74, 75 and 104
	
Siemens AG, Munich (Germany), pages 46 and 49
	
Midea, Guangdong (China), page 50 
	
Tesla Motors, Inc., Palo Alto, California (USA), page 51
	
Mark Meissmer, Villach (Austria), page 52
	
Fotolia, New York, New York (USA), page 55
	
Tom Trenkle Fotografie, Gräfelfing (Germany), cover picture, pages 56, 57 and 58
	
LSPS, Cheonan (Korea), page 104 
	
Kirsten Johannes Lassig, Dresden (Germany), page 105 
	
DMP, Inc., Redondo Beach, California (USA), page 105
Printing:	
BluePrintGroup, Munich (Germany)
Note
The following were brand names of Infineon Technologies AG in the 2013 fiscal year: Infineon, the Infineon logo,  
AURIX, CoolMOS, DAVE, DrBlade, EconoDUAL, EconoPACK, EiceDRIVER, ModSTACK, OPTIGA, OptiMOS, PrimePACK,  
SOLID FLASH, TRENCHSTOP.
Forward-looking statements
This Report contains forward-looking statements about the business, financial condition and earnings  
performance of the Infineon Group. 
These statements are based on assumptions and projections resting upon currently available information  
and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development  
may therefore differ materially from what has been expected. 
Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update  
forward-looking statements.
Visit us on the web: www.infineon.com

INFINEON TECHNOLOGIES AG
Headquarters: 
 
Am Campeon 1– 12, D-85579 Neubiberg/Munich (Germany), Phone + 49 89 234  -  0
Contact for Investors and Analysts: 
investor.relations@infineon.com, Phone + 49 89 234  - 26655, Fax + 49 89 234  -  955 2987
Media Contact: 
 
media.relations@infineon.com, Phone + 49 89 234  - 28480, Fax + 49 89 234  -  955 4521
Visit us on the web: 
 
www.infineon.com