Infineon Invests RM 500 Million to Expand R&D and Manufacturing in Malaysia

Melaka, Malaysia – July 9, 2012 – Infineon Technologies announced at the groundbreaking for a new development centre today that it is investing RM 500 million to expand R&D and manufacturing activities over two years in Melaka, the site of Infineon’s largest backend manufacturing operation.

The groundbreaking ceremony was attended by the Chief Minister of Melaka, Datuk Seri Mohd Ali Rustam, His Excellency Dr. Guenter Gruber, the German Ambassador to Malaysia and President & Managing Director of Infineon Technologies (Malaysia) Sdn Bhd, Dr. Matthias Ludwig.

Melaka State Officials and Infineon Executives at the ground breaking of infineon’s new Development Centre (L-R): Dr. Thomas Rathgeber, VP, Infineon Technologies; Chew Chee Khow, Senior Director, Infineon Technologies; Markus Reisinger, CFO, Infineon Technologies; His Excellency Dr. Guenter Gruber, the German Ambassador to Malaysia; YAB Datuk Seri Hj. Mohd Ali bin Mohd Rustam, Chief Minister of Melaka; Dr. Matthias Ludwig, President & MD of Infineon Technologies; YB Datuk Wira Hj.Abdul Ghafaar bin Atan, Chairman of the Melaka Industrial Trade, Entrepreneur Development and State Cooperative Committee; and YB Tuan Hj. Amiruddin bin Yusop, Deputy Chairman of the Melaka Industrial Trade, Entrepreneur Development and State Cooperative Committee

Besides manufacturing capacity expansion and facilities upgrading, Infineon will add another 140 R&D engineers to reach a total of 400 R&D staff by the end 2013 depending on the global market condition and business demand. This includes the construction of a new development centre with a total build up area of 3,000 square meters that will house state of the art development labs and office space for R&D staff. The new building is expected to be completed by April 2013.

“Innovation is one of the key success factors for Infineon. Our focus on sustainable development fits well with Malaysia’s Economic Transformation Program and goal of becoming a high income nation,” said Dr. Matthias Ludwig, President and Managing Director of Infineon Technologies (Malaysia) Sdn Bhd. “We will continue to develop competencies in our people to drive innovation and add economic value”.

R&D activities in Melaka began in 2005 with development of innovative integrated circuit (IC) packaging solutions. To ensure efficient support for new product development, product transfer and technologies changes, R&D expanded to include test and product development in over years. The company is presently focusing on building competencies and setting up R&D activities in Application Engineering and Test Technology & Innovation.

Infineon Supplies Security Chips for New Identity Cards in Malaysia

Neubiberg, Germany, June 27, 2012 – Infineon Technologies (FSE: IFX / OTCQX: IFNNY) announced today it is supplying the security chips for Malaysia’s new national electronic identity cards. Popularly known as ‘MyKad’, the new generation smart card features Infineon`s SLE 78 security controller with Infineon’s award winning ‘Integrity Guard’ security technology. Malaysia takes advantage of this new security technology combined with SOLID FLASH™ for fast deployment capability.

MyKad is a multi-application national electronic identity card, including biometric identification, which will allow the implementation of numerous additional functions such as Driving License, Health, ATM, eSignature and eGovernment services. In the past years, Malaysia issued approximately two million new identity cards each year.

Identity cards are used for many years and are subject to intense wear. This is why they must meet specific high requirements. In particular, the bearer’s personal data should be secured during the entire life of the card.

“We have already proven the robustness and reliability of our security chips for identity documents in many projects worldwide,” says Dr. Stefan Hofschen, President of the Division Chip Card & Security at Infineon Technologies. “The MyKad program clearly follows the industrial trend to move from MASK ROM based smart card ICs towards secure and certified state-of-the-art flash controllers like Infineon’s SOLID FLASH products. Therewith we can fulfil the future challenges of government and payment projects while providing a competitive total cost of ownership.”

The utilized Infineon SOLID FLASH product combines the highest level of flexibility provided by dedicated Non Volatile Memory (Flash, EEPROM) technologies with outstanding reliability and a sophisticated security concept. The security certified Flash product allows a faster reaction to market changes through short lead times and flexible product usage, and offers many advantages in logistics, development and throughout the certification process. A full range of SOLID FLASH products are Common Criteria certified by the BSI (Federal Office for Security in Information Technology) in Germany as well as type approved by EMVCo making it the choice for many applications while keeping full flexibility for upcoming changes.

MyKad also uses Infineon’s Integrity Guard security technology. For identification documents with high demands on security and robustness, it offers long lasting security with encrypted Dual CPU-core, setting a new benchmark for secure electronic documents. With this technology, data is encrypted along the entire data path during processing. The security controller core has two processing units, constantly checking each other’s correct function by utilizing sophisticated error detection. Infineon’s highly secure SLE 78 product family with Integrity Guard is used in all important eGovernment applications, such as the electronic health card, the electronic identification card and in residence permits with biometric data.

According to the industrial association Eurosmart 240 million security chips for security documents were delivered in 2011. Infineon’s share of this market segment amounts round 40 percent. Besides, Infineon is the only semiconductor supplier who has been shipping to the electronic passport projects of the world’s five most populous countries in 2011, namely: China, India, USA, Indonesia and Brazil.

Further information on Infineon’s SLE 78 products is available

Based on its core competencies in the fields of security, contactless communication and integrated microcontroller solutions (Embedded Control), Infineon offers a comprehensive portfolio of semiconductor-based security products for many chip card and security applications. Infineon uses this expertise to increase security in an increasingly mobile and networked world, e.g. for mobile payments, system security and secure electronic sovereign documents. Infineon has developed innovative, hardware-based security solutions for over 25 years and has been the world market leader for 14 years.

Further information on Infineon’s chip card and security solutions is available at