- Q1 FY 2021: REVENUE €2,631 MILLION; SEGMENT RESULT €489 MILLION; SEGMENT RESULT MARGIN 18.6 PERCENT

- OUTLOOK FOR Q2 FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.20 TO THE EURO REVENUE BETWEEN €2.5 BILLION AND €2.8 BILLION PREDICTED. AT THE MID-POINT OF THE GUIDED REVENUE RANGE, SEGMENT RESULT MARGIN IS EXPECTED TO COME IN AT AROUND 16.5 PERCENT

- OUTLOOK FOR FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.20 TO THE EURO, REVENUE OF AROUND €10.8 BILLION (PLUS OR MINUS 5 PERCENT). AT THE MID-POINT OF THE GUIDED REVENUE RANGE, SEGMENT RESULT MARGIN IS PREDICTED TO COME IN AT AROUND 17.5 PERCENT. INVESTMENTS OF AROUND 1.6 BILLION ARE PLANNED. FREE CASH FLOW IS PREDICTED TO EXCEED €800 MILLION

Neubiberg, Germany, 4 February 2021 - Today, Infineon Technologies AG is reporting its results for the first quarter of the 2021 fiscal year (period ended 31 December 2020).

"Infineon has made a good start to the new fiscal year. Despite headwinds from a weak US dollar, we recorded significant increases in both revenue and earnings in the first quarter. In addition to the economic recovery in some regions, we continue to benefit from the digitalization push affecting all areas of life. Semiconductors are needed more than ever," said Dr. Reinhard Ploss, CEO of Infineon. "We are monitoring ongoing risks closely. Nevertheless, in view of dynamic ordering momentum and manufacturing plants running at good utilization rates in the majority of product areas, we are making a slight upward adjustment to our outlook for the full year. We are increasing our investments in manufacturing capacity and bringing forward the starting date for the new power semiconductor plant in Villach to the last quarter of the current fiscal year."

¹ The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.

² The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com.

GROUP PERFORMANCE IN FIRST QUARTER OF 2021 FISCAL YEAR
Revenue for the three-month period increased from €2,490 million to €2,631 million quarter-on-quarter, with all segments contributing to the 6 percent growth despite the weaker US dollar. Revenue grew particularly strongly in the Automotive (ATV) segment. The Industrial Power Control (IPC) and Power & Sensor Systems (PSS) segments also recorded marked increases, while the Connected Secure Systems (CSS) saw a slight improvement compared to the previous quarter.

Infineon's gross margin rose from 31.8 percent in the previous three-month period to 37.4 percent in the first quarter of the current fiscal year. The adjusted gross margin improved from 36.6 percent to 40.3 percent quarter-on-quarter.

The Segment Result rose considerably from €379 million to €489 million, pushing up the Segment Result Margin for the quarter from 15.2 percent to 18.6 percent. In addition to a sharp decrease in underutilization costs, non-recurring items - such as research subsidies received and patent-related revenue - also contributed to the improvement.

The non-segment result for the three-month period was a net loss of €157 million, compared to a net loss of €197 million in the final quarter of the previous fiscal year. The negative effects from the acquisition and consolidation of Cypress, which are primarily related to the purchase price allocation, were lower than one quarter earlier, as expected. The non-segment result for the three-month period contained €75 million of cost of goods sold, €60 million of selling, general and administrative expenses and €8 million of research and development expenses. Net other operating expenses amounting to €14 million were also recorded in the first quarter.

Operating income rose from €182 million to €332 million quarter-on-quarter.

The financial result improved from negative €28 million to negative €26 million.

The tax expense for the three-month period amounted to €49 million, compared to €33 million one quarter earlier.

Income from continuing operations for the first quarter of the 2021 fiscal year increased to €256 million, up from the previous quarter's corresponding figure of €112 million. Income from discontinued operations in the first quarter was break-even, compared to a loss of €3 million in the preceding three-month period. Net income improved from €109 million to €256 million compared to the previous quarter.

Earnings per share from continuing operations improved from €0.08 (basic and diluted) to €0.19 quarter-on-quarter. Adjusted earnings per share³ (diluted) for the three-month period went up from €0.20 to €0.28.

Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of other intangible assets and capitalized development costs - totaled €283 in the first quarter of the current fiscal year, compared with €332 million in the preceding three-month period. Depreciation and amortization decreased from €379 million to €368 million quarter-on-quarter.

Free cash flow generated totaled €313 million, down from €387 million one quarter earlier. Net cash provided by operating activities from continuing operations amounted to €588 million, compared to €747 million in the final quarter of the preceding fiscal year.

At the end of the first quarter of the 2021 fiscal year, the gross cash position stood at €3,334 million, compared to €3,227 million at 30 September 2020, while the net debt improved by €437 million from €3,806 million to €3,369 million. Financial debt was reduced from €7,033 to €6,703 million during the three-month period. In addition to the repayment of financial debt of €174 million, the decline in the value of the US dollar against the euro - and hence the lower amount of US dollar-denominated debt - had a positive effect.

OUTLOOK FOR THE SECOND QUARTER OF THE 2021 FISCAL YEAR
Based on an assumed exchange rate of US$1.20 to the euro, Infineon expects to generate revenue of between €2.5 billion and €2.8 billion in the second quarter of the 2021 fiscal year. Revenue generated by the ATV and PSS segments is predicted to grow by a low-single digit percentage compared to the previous quarter. Revenue in IPC is expected to remain at a similar level to the previous quarter while revenue of the CSS segment should see a low-single digit percentage decline quarter-on-quarter. At the mid-point of the guided revenue range, the Segment Result Margin is expected to come in at about 16.5 percent.

OUTLOOK FOR THE 2021 FISCAL YEAR
Based on an assumed exchange rate of US$1.20 to the euro, Infineon expects to generate revenue of around €10.8 billion (plus or minus 5 percent) in the 2021 fiscal year. Particularly for the ATV and PSS segments, revenue is expected to grow during the second half of the fiscal year, driven by continued market momentum. At the mid-point of the guided revenue range the Segment Result Margin is expected to come in at about 17.5 percent.

Investments in property, plant and equipment and other intangible assets, including capitalized development costs, are planned to be around €1.6 billion for the 2021 fiscal year. Depreciation and amortization are expected to amount to between €1.5 billion and €1.6 billion, of which approximately €500 million is attributable to depreciation and amortization from purchase price allocations arising mainly in connection with the acquisition of Cypress and to a lesser extent with the acquisition of International Rectifier. Free cash flow is predicted to exceed €800 million.

Besides geopolitical and macroeconomic factors, the economic disruption caused by the coronavirus pandemic makes accurate prediction difficult. Key factors influencing the expected development of revenue and earnings during the pandemic will be the progression of global infection rates over time, possible restrictions on economic activities, effects on production and supply chains and the level and effectiveness of governmental stimulus programs.

³ Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS.

Infineon's segments' performance in the first quarter of the 2021 fiscal year can be found in the quarterly information at www.infineon.com.

All figures in this quarterly information are preliminary and unaudited.

ANALYST TELEPHONE CONFERENCE AND TELEPHONE PRESS CONFERENCE
The Management Board of Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 4 February 2021 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company's results for the first quarter of the 2021 fiscal year as well as the outlook for the second quarter and the 2021 fiscal year. In addition, the Management Board will host a telephone press conference with the media at 11:00 am (CET), 5:00 am (EST). It can be followed over the Internet in both English and German. Both conferences will also be available live and for download on Infineon's website at www.infineon.com/investor.

The Q1 Investor Presentation is available (in English only) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/

INFINEON FINANCIAL CALENDAR (* preliminary)

- 10 - 11 Feb 2021 Goldman Sachs Technology & Internet Conference,
San Francisco (virtual)

- 25 Feb 2021 Annual General Meeting, Neubiberg (virtual)

- 1 Mar 2021 dbAccess ESG Engagement Day (virtual)

- 3 Mar 2021 CSS Call along with embedded World trade show, Nuremberg (virtual)

- 9 - 10 Mar 2021 UBS Technology One-on-One Virtual Conference, London (virtual)

- 11 Mar 2021 ODDO BHF 5^th Digital TMT Forum (virtual)

- 24 Mar 2021 JPMorgan Fireside Chat (virtual)

- 4 May 2021* Earnings Release for the Second Quarter of the 2021
Fiscal Year

- 6 May 2021 IPC Call along with PCIM trade show, Nuremberg (virtual)

- 8 - 9 Jun 2021 23^rd Exane BNP Paribas European CEO Conference,
Paris (virtual)

- 10 Jun 2021 Bank of America Global Technology Conference, San Francisco (virtual)

- 17 Jun 2021 GS European Digital Economy Conference (virtual)

- 1 Jul 2021 PSS Call along with MWC trade show, Barcelona (virtual)

- 3 Aug 2021* Earnings Release for the Third Quarter of the 2021
Fiscal Year

ABOUT INFINEON
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon are the key to a better future. In the 2020 fiscal year (ending 30 September), Infineon reported revenue of more than €8.5 billion with a workforce of some 46,700 people worldwide. Following the acquisition of the US company Cypress Semiconductor Corporation in April 2020, Infineon is now a global top 10 semiconductor company.
Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com
This press release is available online at www.infineon.com/press

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D I S C L A I M E R
This press release 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.

Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.