Infineon Technologies AG · XETR:IFX
Infineon Technologies — Merrill Lynch Telecommunications, Media & Technology Conference 2005
27 slides from Infineon Technologies's conference presentation, Jun 8, 2005
Slide 1: Merrill Lynch Telecommunications, Media & Technology Conference 2005
Merrill Lynch Telecommunications, Media & Technology Conference 2005 June 8, 2005 − London Memory Products Group Thomas Seifert Senior Executive Vice President Merrill Lynch Telecommunications, Media & Technology and Group Manager, Conference 2005 Thomas Seifert June 8, 2005 Memory Products Group -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 Market Market Positioning Positioning and and Development Development New New Organization Organization Infineon Infineon MP’s MP’s Strengths Strengths and and Potentials Potentials Merrill Lynch Telecommunications, Media & Technology Conference 2005 Thomas Seifert June 8, 2005 -3- Copyright
Slide 4: Agenda
Agenda Market Market Positioning Positioning and and Development Development New New Organization Organization Infineon Infineon MP’s MP’s Strengths Strengths and and Potentials Potentials Merrill Lynch Telecommunications, Media & Technology Conference 2005 Thomas Seifert June 8, 2005 -4- Copyright
Slide 5: Infineon: Leading European semiconductor company in 2004
Infineon: Leading European semiconductor company in 2004 Gartner Gartner iSuppli iSuppli IC IC Insights Insights revs. revs. in in revs. revs. in in revs. revs. in in Rank Rank Company Company USD Company Company Company Company USD bnbn USD USD bnbn USD USD bnbn 11 Intel Intel 30.5 30.5 Intel Intel
Slide 6: Worldwide DRAM Revenue Ranking 2004 and 2003
Worldwide DRAM Revenue Ranking 2004 and 2003 Rank Revenues [USD bn] 2004 0 2 4 6 8 1. Samsung 28.5%* 2. Hynix 16.2% 3. Micron 15.9% 13.9% 4. Infineon Top 4 in 2004 based on Trench technology 6.8% account for 75% 5. Elpida of the market. 6. Powerchip 5.0% Infineon’s trench 7. Nanya 4.5% technology: S
Slide 7: Infineon MP growth: from 3% to 14% market share
Infineon MP growth: from 3% to 14% market share Infineon Infineon DRAM DRAM world world market market share share in in % % 16 14 12 10 8 6 4 2 0 Merrill Lynch Telecommunications, 1996 2000 2004 Media & Technology Conference 2005 Thomas Seifert June 8, 2005 -7- Source: Dataquest/IDC/iSuppli Copyrigh
Slide 8: The Market Place – New Memory Applications
The Market Place – New Memory Applications Game Game Console Console Mobile Mobile Phone Phone Set Set Top Top Box Box Desktop Desktop PC PC PDA PDA MP3 MP3 Player Player Server Server Notebook Tablet Tablet PC PC Notebook PC PC DSC DSC Router, Router, Switch Switch DVD DVD Player Player Merrill Lyn
Slide 9: PC's dominated the DRAM Market in 2004
PC’s dominated the DRAM Market in 2004 2004 2004 application application market market share share by by bit-consumption* bit-consumption* Mobile Communication Others 1% 1% Consumer Graphics 5% 6% Infra- PC‘s and structure upgrade 22% modules 65% Merrill Lynch Telecommunications, Media & Technology
Slide 10: Applications to dominate in Growth in the Future
Applications to dominate in Growth in the Future Expected Expected CAGR CAGR 2004 2004 –– 2008 2008 of of Bit-Demand* Bit-Demand* Deskbound 50% PC Mobile PC 52% DVD Video Recorder 60% Entry-Level 77% PC Server Digital TV 94% Mobile 121% Handset Top DRAM supplier's challenge is the right mix of: ! Vo
Slide 11: DRAM demand inelasticity increasing
Not all DRAMs are the same increasing Consumer High-End Game Feature Graphics Console phones Storage / Networking Mainstream DRAM demand inelasticity Graphics Servers PDA and Smart phones PC OEM Source: MP Strategic Marketing PC White Box DRAM price stability increasing Merrill Lynch Telecommunicati
Slide 12: Agenda
Agenda Market Market positioning positioning and and development development New New organization organization Infineon Infineon MP’s MP’s strengths strengths and and potentials potentials Merrill Lynch Telecommunications, Media & Technology Conference 2005 Thomas Seifert June 8, 2005 - 12 - Copyrig
Slide 13: The New Organization of Memory Products: Focus on Applications and Market Segments
The New Organization of Memory Products: Focus on Applications and Market Segments Business Business Computing Computing Graphics Graphics Consumer Consumer & & Flash Flash Units Units Mobile Mobile " Desktop PC " Graphics " Mobile Phones " Desktop PC " Mobile Phones " Notebook PC " Game " Set-Top-B
Slide 14: Agenda
Agenda Market Market positioning positioning and and development development New New organization organization Infineon Infineon MP’s MP’s strengths strengths and and potentials potentials Merrill Lynch Telecommunications, Media & Technology Conference 2005 Thomas Seifert June 8, 2005 - 14 - Copyrig
Slide 15: MP – Strengths
MP – Strengths Technology leadership " 90nm technology and 512M DDR product successfully qualified, app. 5% of total capacities converted " First product prototype on 70nm technology Manufacturing leadership " Most advanced global fab cluster " Leader in manufacturing on cost efficient 300mm wafers
Slide 16: 90nm Trench Technology Development successfully finalized
90nm Trench Technology Development successfully finalized Highlights Highlights 90nm 90nm Key Key innovations innovations 90nm 90nm • > 30% more chips per wafer compared to 110nm Checkerboard cell layout • Die size of 512M DDR < 65mm² >1000 chips per 300mm wafer • Smallest 512M DDR in 300mm volume p
Slide 17: DRAM Technology Roadmap
DRAM Technology Roadmap 2004 2004 –– 110nm 110nm 2005 2005 –– 90nm 90nm 2006 2006 –– 70nm 70nm 256M DDR 110nm 512M DDR 90nm 512M DDR2 70nm # More than 80% of # Key innovations: # First prototype on capacity converted to Bottle shaped trench 300mm available 110nm by end of New cell layout September 2
Slide 18: Low-power consumption of DRAMs: Gaining in importance
Low-power consumption of DRAMs: Gaining in importance " Lower power consumption means less heat dissipation DRAM applications like server or notebooks offer increasing performance in an ever smaller space. The dissipation of the generated heat is already challenging. Less power consumption means les
Slide 19: Heat dissipation of Infineon modules in comparison
Heat dissipation of Infineon modules in comparison: Real live measurement shows reduced power consumption Thermal Thermal comparison comparison of of IFX IFX and and 2nd 2nd competitor competitor DDR2 DDR2 SODIMMs SODIMMs Infineon Competitor 1GB 1GB DDR2-533 DDR2-533 SODIMM SODIMM 20% Chipset hotter
Slide 20: Infineon DRAMs are the industry benchmark for low-power
Infineon DRAMs are the industry benchmark for low-power: Windows XP current consumption comparison mA XP Standby Current mA XP Active Current 1 800 0,9 700 0,8 600 0,7 500 0,6 0,5 400 0,4 300 0,3 200 0,2 100 0,1 0 0 Competitor Infineon Competitor Infineon Source: Infineon Both in standby and active
Slide 21: Leader in 300mm DRAM Manufacturing
Leader in 300mm DRAM Manufacturing 2004 Annual 12-inch Wafer Production Market Shares Merrill Lynch Telecommunications, Media & Technology Conference 2005 Thomas Seifert June 8, 2005 Source: iSuppli, Feburary 2005 - 21 - Copyright © Infineon Technologies 2005. All rights reserved.
Slide 22: 110nm: Basis for global 300mm Ramp-up in 2005
110nm: Basis for global 300mm Ramp-up in 2005 Richmond Dresden Beijing Taiwan 100% Share of 300mm-based 80% 60% capacities 40% Inotera 20% Merrill Lynch 0% Telecommunications, FY04 FY05e FY06e FY07e FY08e FY09e Media & Technology Conference 2005 Thomas Seifert June 8, 2005 - 22 - Copyright © Infineo
Slide 23: MP's Alliances: Share Risks and Benefits and optimize Economies of Scale
MP's Alliances: Share Risks and Benefits and optimize Economies of Scale MP MP alliance alliance model model today today Joint development Manufacturing partnerships partnerships Secure mask technology Production of worldwide development leading-edge masks Co-development of 90nm Joint manufacturing
Slide 24: Infineon – worldwide customers
Infineon – worldwide customers Business Groups Customers AIM # Autoliv # Denso # Lear # Axalto # Gemplus # Siemens Automotive, # Bosch # Giesecke & # TRW Industrial & # Conti AS Devrient # Visteon # Delphi # Hella Multimarket # Delta # JCAE # Alcatel # Marconi # Samsung COM # Cisco # Matsushita # Si
Slide 25: Bit-Shipment Share of Non-Computing DRAMs grew by more than 75% YoY
Bit-Shipment Share of Non-Computing DRAMs grew by more than 75% YoY in Q2 FY05 Q2 FY04 Q2 FY05 Non - PC- segment** YoY growth > 75% Non - PC- segment** PC-segment* PC-segment* 80% 63% * Desktop PCs, Notebooks and Workstations; ** Infrastructure, Consumer, Graphics, Mobile Applications ! A leading su
Slide 26: Summary
Summary " We continue to focus on the development of leading-edge technologies and have reached an important milestone with the qualification of our 90nm Trench technology " We are the leader in 300mm manufacturing with financially sound path to almost full conversion within 4 years. " We leverage r
Slide 27: Merrill Lynch Telecommunications, Media & Technology
Merrill Lynch Telecommunications, Media & Technology Conference 2005 Thomas Seifert June 8, 2005 - 27 - Copyright © Infineon Technologies 2005. All rights reserved.
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