Infineon Technologies AG · XETR:IFX
Infineon Technologies — Investor Day (October 2003)
33 slides from Infineon Technologies's investor day presentation, Oct 1, 2003
Slide 1: Worldwide Integrated Manufacturing Model & Memory Strategy
Infineon Infineon Capital Markets Day October 1, 2003 – New York Worldwide Integrated Manufacturing Model & Memory Strategy Dr. Andreas von Zitzewitz Executive Vice President and Capital Markets Chief Operating Officer Day 2003 Never stop thinking. Dr. A . v. Zitzewitz Page 1
Slide 2: Disclaimer
Disclaimer Please note that while you are reviewing this information, this presentation was created as of the date listed, and reflected management views as of that date. This presentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that
Slide 3: Agenda
Agenda Worldwide Worldwide Integrated Integrated Manufacturing Manufacturing Model Model Memory Memory Strategy Strategy Capital Markets Day 2003 Dr. A . v. Zitzewitz Page 3
Slide 4: Cornerstones of Infineon's Manufacturing Strategy
Cornerstones of Infineon's Manufacturing Strategy IFX's Agenda 5-to-1 Managing Operations Industry Excellence Partnerships Capital Markets Day 2003 Dr. A . v. Zitzewitz Page 4
Slide 5: Meeting the Challenges of the Agenda 5-to-1
Meeting the Challenges of the Agenda 5-to-1 IFX's Agenda 5-to-1 Managing Operations Industry Excellence Partnerships Capital Markets Day 2003 Dr. A . v. Zitzewitz Page 5
Slide 6: Manufacturing Challenges for Becoming 5-to-1
Manufacturing Challenges for Becoming ... 5-to-1 Top 4 Semiconductor Player Provide the spectrum of technologies that the targeted market share demands Provide the corresponding manufacturing capacity and logistics performance Top 3 in Each Segments Served Manage diversity of technology demand
Slide 7: Manufacturing Challenges to Achieve 5-to-1
Manufacturing Challenges to Achieve ... 5-to-1 Top 2 Financial Performance in Each Segment Secure best-in-class performance and cost position of front-end and back-end manufacturing Expand market position in memory products through technology/cost leadership and partnerships Further increase t
Slide 8: Managing a Global Network of Infineon Facilities and Industry Partnerships
Managing a Global Network of Infineon Facilities and Industry Partnerships IFX's Agenda 5-to-1 Managing Operations Industry Excellence Partnerships Capital Markets Day 2003 Dr. A . v. Zitzewitz Page 8
Slide 9: Infineon Business Demands a Broad Spectrum of Technologies
Infineon Business Demands a Broad Spectrum of Technologies Industry Partnerships Mixed Mixed Logic Logic DRAM DRAM Signal Signal Flash Flash RF RF FO FO Power Power CMOS CMOS CMOS CMOS Capital Markets Day 2003 Dr. A . v. Zitzewitz Page 9
Slide 10: From Integrated Component Manufacturer to Vertical Supply Chain Networks
Leading the Expansion from Integrated Component Manufacturer to Manager of Vertical Supply Chain Networks Industry Partnerships Integrated Device Manufacturer Vertical Supply Chain Network Components A B C Technology System Solutions Fully integrated with Design Disintegrated network: proprietary te
Slide 11: Business Benefits of Partnerships and Outsourcing
Business Benefits of Partnerships and Outsourcing Industry Partnerships Partnerships Access to additional IP, resources, and production capacity Cost sharing Reduced risks Extended portfolio Asset lite Outsourcing Flexibility Extended portfolio No assets Capital Markets Day 2003 Dr.
Slide 12: Implementing VSCNs through Partnerships and Centers of Competencies
Infineon Manufacturing Implements VSCNs through a Network of Partnerships and Center of Competencies Industry Partnerships Memory Products Advanced Logic Power & Discrete Products Products Technology R&D Mask Development and Fabrication Front-end Production Back-end Production Modules & Solutions Su
Slide 13: DRAM Fab Cluster - a Global Family is Being Extended
DRAM Fab Cluster - a Global Family is Being ExtendedPartnerships Industry DRAM Fab Cluster Front- Front-end Front-end Dresden 200mm Dresden 300mm Richmond 200mm Inotera 300mm Identical Identical Technology Technology Roadmaps Roadmaps Global Global Process Process Synchronization Synchronization and
Slide 14: Advanced Logic Front-end Cluster - A Virtual Fab across Partners
Advanced Logic Front-end Cluster - A Virtual Fab across Partners Industry Partnerships Advanced Logic Cluster Dresden 200mm Altis JV / Essonnes UMC IBM EFK 300 250nm Al Synergy Synergy from from Cooperation Cooperation in in R&D R&D and and Manufacturing Manufacturing 180nm Cu Common Common Technolo
Slide 15: Infineon Pioneering Alliances in the New Global Semiconductor Landscape
Infineon is Successfully Pioneering Alliances in the New Global Semiconductor Landscape Industry Partnerships Cumulative Capex 2001-2003 in billion US $ $15.71 bn $15.51 bn $11.32 bn Challenge Challenge Cluster Cluster11 Cluster Cluster22 Infineon IBM $3.75 TSMC STMicro $3.30 $4.83 $3.70 Intel Sony
Slide 16: Partnering for Mask Development and Next Generation Si Process Technology
Partnering for Most Advanced Mask Development and Partnering for next generation Si process technology Development Partnerships Industry AA dd vv aa nn cc ee dd M M aa ss kk IBM-Chartered-Infineon IBM-Chartered-Infineon (ICI) (ICI) TT ee cc hh nn oo ll oo gg yy CC ee nn tt ee rr Next Next generation
Slide 17: Optimized Capacity Utilization from Manufacturing Flexibility
Flexibility Optimized Capacity Utilization from Manufacturing Flexibility Operations Excellence Flexibility = Maximize Opportunities of Upturns and Minimize Impact of Downturns Internal flexibility: DRAM cluster, Logic cluster, and flexibility in between External flexibility: silicon foundries a
Slide 18: Flexibility: Extended Equipment Commonality between DRAM and Logic IC
Flexibility Flexibility: Extended Equipment Commonality between DRAM and Logic IC Operations Excellence Logic IC Process-specific Equipment/Investment Metal N up to Metal 2 only Metal 2 Common Equipment/Investment Metal 1 Metal 1 Metal 0 Metal 0 ca. 80% DRAM Process-specific Silicon Silicon Substrat
Slide 19: DRAM - Logic Flexibility as an Operational and Strategic Concept
Flexibility DRAM - Logic Flexibility as an Operational and Strategic Concept Operations Excellence Operational Advantages DRAM as a forerunner in lithography and advanced tool learning DRAM as ramp-up and volume vehicle with excellent debug capabilities to tune and stabilize processes (logistics
Slide 20: Agenda
Agenda Worldwide Worldwide Integrated Integrated Manufacturing Manufacturing Model Model Memory Memory Strategy Strategy Capital Markets Day 2003 Dr. A . v. Zitzewitz Page 20
Slide 21: Memory Products Vision and Strategy
Memory Products Vision and Strategy To create Semiconductor Memory solutions enabling the Vision Vision Technology Lifestyle of the Individual in the 21st Century Fundamental Fundamental Strategy Strategy Aspects Aspects Be a strategic supplier to major OEMs on a worldwide basis Extend the memor
Slide 22: Worldwide DRAM Revenue Ranking Q2 2003 vs. Q1 2003
Worldwide DRAM Revenue Ranking Q2 2003 vs. Q1 2003 27.7% 1. Samsung 31.1% 19.0% 2. Micron 19.6% Q2 2003 3. 16.8% 17.1% Q1 2003 based on Trench technology 14.7% 4. Hynix 12.4% 5.8% 5. Elpida 3.8% 6. MVI 4.7% 3.2% 7. Nanya 4.4% Top 10 in Q1 2003: 96.4% market share 4.4% therein 28.1% Trench based Top
Slide 23: Major Market Share in US Market
Major Market Share in US Market Market Market Share Share Development Development 25% 21.10% in in US US Market Market 20% Market Share 14.80% Continuous market share gains 15% 11.50% in US market for the last 4 years 10% 6.70% 8.20% Steady increase of our Share of TAM 5% at the major OEMs & Dis
Slide 24: DRAM: Focus the Product Portfolio on Infrastructure and Mobile Applications
DRAM: Focus the Product Portfolio on the growth Segments Infrastructure and Mobile Applications CAGR of DRAM Bit Demand 2002-2008 100% CAGR total Computing Infocom DRAM market Infocom (Mobile Applications) 02-08 Desktop PC Mobile Phone 80% Notebook PC Smart Phone Infrastructure Workstation
Slide 25: Enter and Gain Leadership in Non-volatile Memory Technologies
Enter and Gain Leadership in Non-volatile Memory Technologies NOR/NAND Flash Memory Forecast ($Bn) Flash 12 Source: WebFeet Research (6/2003) Customized Product Portfolio 11.7 (Code, Data, Logic) 10 CAGR 11.1 Flash for 18% Code Market [Bill. $] 8 (Intel compatibel) 6.1 CAGR Flash MCP 6 for Mass 52%
Slide 26: Trench Technology Leaders Compared to Single Stack Players
Trench Technology Leaders Compared to Single Stack Players Infineon Market Share Q2 2003 16.8% Source: iSuppli, August 2003 Trench based DRAMs account for Nanya Samsung 4.4% 27.7% 28% market share: largest DRAM MVI 4.7% technology base Winbond 1.8% Others 2.7% Micron Powerchip 19.0% 2.4% Elpida 5.8%
Slide 27: Basis for Cost Leadership
Basis for Cost Leadership Smallest Dies.... Achievements Targets • Reduction of feature and cell size 1998 2001 2005 every 12-15 months based on innovative technologies ⇒ about 30% manufacturing cost reduction per year 0.24µm 0.14µm 0.07µm Cost per Wafer Cost per Die = Dies per Wafer • Smallest Die
Slide 28: Die Size Comparison of Products in Ramp-up
Die Size Comparison of Products in Ramp-up Infineon Die-Sizes for 0.11µm technologies 1Gb 512Mb 256Mb Die Area (mm²) 160 81 43 min. pitch 0.220 0.220 0.220 TTrench renchTechnology TechnologyReview DDr.r.GGeor Review eorggHHirtirt AAndndrereasasSc Schall halleer r Cell area (µm²) 0.10 0.10 0.10 20200
Slide 29: First DRAM Company to Achieve Cost Crossover between 200mm and 300mm
Worldwide first DRAM company to achieve cost crossover between 200mm and 300mm Volume ramp 300mm: Cost Crossover 30 currently 30,000 WSPM Fully Loaded Costs per Bit-equivalent 0m Yield comparable to 200mm m Co Golden wafer > 95% yield sts 200mm Costs More than 30% productivity advantage over 2
Slide 30: Benchmark with a Major Competitor (MC)
Benchmark with a Major Competitor (MC) 1. Technology 5-15% smaller die-sizes both for 0.13/14 and 0.11µ technologies due to better area efficiency of trench technology (at comparable process complexities) 2. Manufacturing Far ahead of MC with 300mm (IFX: cost crossover achieved in FQ1 2003 vs MC
Slide 31: Memory Products Mid- / Longterm Positioning
Memory Products Mid- / Longterm Positioning Achieve 25% market share for DRAM Top supplier at our OEM customers Offer “One-stop-shopping” for customers with various memory needs Maintain leadership in technology and manufacturing Invest optimized manufacturing strategy: 50% internal capaci
Slide 32: Never stop thinking.
Capital Markets Day 2003 Dr. A . v. Zitzewitz Never stop thinking. Page 32
Slide 33: Infineon Capital Markets Day
Infineon Infineon Capital Markets Day October 1, 2003 – New York Capital Markets Day 2003 Never stop thinking. Dr. A . v. Zitzewitz Page 33