Infineon Technologies : Austria Umwelterklärung 2022

For a sustainable and digital future

Updated Environmental Statement 2023 Infineon Technologies Austria, Villach site

www.infineon.com/austria

Responsibility for today and tomorrow

Easier, safer and greener - this is the guideline that shapes Infineon's energy-­ efficient products as well as its corporate actions.

For Infineon, sustainability means maintaining a balance between successful economic activities and caring for people and the environment - this shapes our corporate culture.

This updated Environmental Statement 2023 applies to the Villach site of Infineon Technologies Austria AG (IFAT). The reporting period covers the fiscal year 2022/23 - from 1 October 2022 to 30 September 2023.

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Contents

Preface	5	Environmental Protection in Action	52
		Our Goal of CO2 Neutrality	53
Projects and contributions that keep us moving	6	IMPRES Goals	53
Topics that are important to us	7	Our environmental projects	54
Our contribution to the environment
and climate	10	Glossary	58
Our contribution to our region and society	12	Explanation of Terms	58
Our contribution for employees	14	Measurement Units	62
		Declaration of validity	62
Infineon Technologies Austria	16	Date of the Next Environmental Statement	62
The guideline for sustainable growth	17
The Infineon site in Villach	18	We stand behind it	64
Infineon at a glance	19	Contacts	63
Our Environmental
Management System	22
The IMPRES Policy	23
Organization of the Environmental
Management System	24
Compliance with Statutory Environmental
Provisions	24
Emergency Precautions and Emergency
Management	25
Environmental Aspects	26
Evaluation of Environmental Aspects	27
Direct Environmental Aspects	30
‒ Energy consumption	31
‒ Air emissions	33
‒ Chemicals and gases	36
‒ Waste	37
‒ Land use and biodiversity	41
‒ Water consumption and waste water	43
‒ Noise	45
Indirect
Environmental Aspects	46

Since 1997, the Villach site of Infineon Technologies Austria AG has been audited and certified according to the EMAS Eco-Management and Audit Scheme, the world's most demanding environmental management system. By participating, we receive valuable feedback from an external organization to continuously improve our environmental management.

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The Board of Infineon Technologies Austria AG:

Sabine Herlitschka (center), CEO and Technology Director

Area of responsibility: Research & Development, Human Resources, Communications

Jörg Eisenschmied (right), CFO since 1 November 2023

Area of responsibility: Finance, IT, Purchasing, Business Continuity and Compliance and financial business responsibility for the "Green Energy Control" area of the Green Industrial Power (GIP) division

Thomas Reisinger (left), Operations Director

Area of responsibility: Production, Technology, Quality Management, Infrastructure and Logistics

Oliver Heinrich (not in the picture): CFO until 31 October 2023, transferred to the Group headquarters in Munich on 1 November 2023, where he took over as Head of Finance of the Infineon Frontend Cluster

Our mission:

We make life easier, safer and greener - with technology that achieves more, consumes less, and is accessible to everyone.

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Preface

When we talk about solar or wind energy, energy efficiency, green mobility or security in the Internet of Things, we are also talking about semiconductors, or microchips for short. Without them, almost nothing works. With them, you can do almost anything. Semiconductors are essential for decarbonization, digitalization and meeting the climate targets. They are key elements in shaping a sustainable world that offers as many people as possible the prospect of a future worth living.

As a leading semiconductor manufacturer, Infineon is aware of its responsibility. In addition to our technological leadership, we aim to be a pioneer in sustainability, combining economic success with environmental and social responsibility. To this end, Infineon Austria has clearly anchored the topic of sustainability in the target area "Sustainability at all levels" in its Strategy 2030 "Our profitable growth path" and has intensified its efforts to advance decarbonization.

Through our products, processes and actions, we are actively shaping the environmental and digital transformation. Our power electronics solutions help customers, industries and entire economies drive digital innovation for climate and energy transformation and make products more energy and resource efficient. An example: In specific applications, Infineon power semiconductors can save around

10 million tons of CO2 - that is 25 times the emissions caused by chip production at Infineon Austria. We want to continue to improve this balance and actively contribute to the Group's goal of CO2 neutrality by 2030.

In recent years, Infineon Austria's growth and site expansion have also posed environmental challenges in terms of energy, land use and resource consump- tion. We are constantly implementing measures to "do more with less," make processes more efficient and conserve resources. We are committed to continuous improvement and doing our part to protect the climate. External audits and assessments document our progress, but also show where we need - and want - to improve.

Our employees make a valuable contribution to all of these activities. With an open, social culture that values diversity and inclusion, supports work-lifebalance, and promotes health and sustainability, we can offer our employees and future specialists an environment where they can contribute to the green, digital transformation while working responsibly.

We create added value for the people in the region and for the environment and connect with regional stakeholders and partners such as Arge Naturschutz, AfB - Arbeit für Menschen mit Behinderung and Caritas Learning Cafés through our commitment to education, biodiversity and the circular economy.

In this Environmental Statement, we set out our environmental, social and governance policies as well as the actions we are taking to implement our sustainability strategy. Because for us, sustainability in practice also means future viability - that is what we are working on.

Sabine Herlitschka

Jörg Eisenschmid

Thomas Reisinger

see Glossary, from page 58

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HIGHLIGHTS

Projects and contributions that keep us moving

As the largest private employer in Carinthia and a leading digital

company­ in Austria, responsible development in terms of corporate social responsibility is a high priority for our company, the region and society as a whole.

We would like to take this opportunity to shine a spotlight on a few projects and contributions that stand out.

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HIGHLIGHTS

Topics that are important to us

Decarbonization and digitalization

Semiconductors are essential to meeting the

challenges­ of our time and helping to shape the digital transformation. As the world's leading supplier of semiconductor systems, we enable pioneering solutions for green and efficient energy, clean and safe mobility, and a smart and secure Internet of Things. With Villach focusing on power electronics, also known as "energy-saving chips", concrete solutions are at hand to achieve climate and energy goals. That is why we at Infineon are doing everything we can to actively drive decarbonization and digitali- zation. Together with our customers and partners. For a better future.

Investing in sustainability

As part of the site expansion and, where structurally feasible, in existing buildings, we invest in sustainability and energy efficiency with a "green building" mindset.

• Installation of state-of-the-art exhaust air purifica- tion systems for effective emission prevention
• Use of refrigerants with low greenhouse gas potential, such as ammonia
• Use of and investment in heat recovery systems for site supply, thereby eliminating the emission
  of approximately 20,000 tons of CO2/year* (extrapolated)

• according to subsidy notice KPC (Kommunalkredit Public Consulting) Supported by funds from the Ministry of Climate Protection.

see Glossary, from page 58

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A strong site

Since its foundation in 1970, Infineon Austria in Villach has grown from an extended workbench with 24 employees to a leading digital company in Austria with more than 5,880 skilled employees. Innovation and execution capabilities have been and continue to be major driving forces behind this development. The new high-tech chip factory went into operation in 2021 and will be continuously ramped up over the next few years. This €1.6 billion investment will enable Infineon to better meet the global demand for energy-saving chips. The "learning factory" relies on full automation and digitalization and increases resource and energy efficiency.

Site infrastructure & mobility

Infineon is committed to sustainable site development:

• Since 2016: Infineon mobility program "Green Way" (see "Environment and climate")
• Design of the surrounding infrastructure by the city of Villach with the Infineonstraße, roundabouts, environmental protection measures and tunnels for small animals
• 2023 Construction of the new logistics building with green building certification
• State-of-the-artplant fire department at Infineon's Villach site
• Parking garage with space-efficient floors to reduce soil sealing

High-tech jobs in Austria

Infineon Austria continuously invests in sustainable growth and high-tech jobs. More than 3,300 new jobs have been created since 2008. One job at Infineon generates three more in the region.* The expansions at Infineon will create more than 1,000 new high-tech jobs in Austria in the medium term.

• Value creation study by Industriewissenschaftliches Institut (IWI) March 2023 based on the fiscal year 2021/22.

R&D competence in Austria

Infineon Austria combines the competencies for research and development, production and global business responsibility for twelve product lines.

• Our site in Villach: global competence centers for power electronics, global competence center for WBG semiconductor materials (SiC and GaN) and EPI competence center implemented since 2023
• Our site in Graz: Development center for contactless technologies
• Our site in Linz: Development center for high-frequency technologies
• Our site in Innsbruck: Competence center for systems integration

Infineon Technologies Austria's CO2 balance

This CO2 balance shows the CO2 savings in the application areas (automotive electronics, industrial drives, photovoltaics or wind energy) over the useful life of the power semiconductors manufactured in Villach: That is 25 times the emissions caused by chip production at Infineon Austria. (see also page 34)

CO2 burden1	CO2 savings2
approx. 0.4 million tons	approx. 10 million tons
CO2 equivalent (Scope 1-3)	CO2 equivalent

1		25
	Ratio of approx. 1:25

Net ecological benefit:

CO2 reduction by approx.

9,5 million tons

This balance is based on the Sustainability Report 2023 of Infineon Technologies AG, audited by the auditor of the Infineon Group's sustainability reporting, and the sustainability figures of Infineon Austria, www.infineon.com/cms/en/ about-infineon/sustainability/.

1 This figure factors in Scope 1-3(market-based) manufactur- ing, transportation, company vehicles and travel activities, supplier-specific emissions, water/waste water, direct emissions, energy consumption, waste, etc., as well as direct and indirect energy-related emissions from manufacturing service providers. It is based on internally collected data and publicly available conversion factors. All data relate to the fiscal year 2023.

2 This figure is calculated using internally established criteria, which are explained in the explanatory notes. It relates to the calendar year 2022 and is determined for the following areas: automotive electronics, industrial drives, photovoltaics and wind energy. The CO2 savings calculations are based on the savings potential of technologies in which semiconductors are used. The allocation of the CO2 emission savings is based on Infineon's market share and the semiconductor content and lifetime of the respective technologies, which are estimated by internal and external experts. Such complex life cycle assessments are subject to imprecision and some uncertainty, but the result is clear.

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Research projects with added value

Infineon creates value for customers, society and the environment. In 2023, several related R&D projects were launched, in which the Villach site is also actively involved.

‒The EU project EECONE(European ECOsystem for greeN Electronics) is about electronics that use less material, work reliably for longer, and are easier to repair and recycle. Infineon is already using demo boards made from biodegradable natural fibers.

‒In the "AIMS5.0" project, Infineon is networking with partners to make production and delivery processes more resource-efficient and resilient with the help of artificial intelligence.

‒The "All2Gan" projectis working on easy-to-integrateenergy-saving gallium nitride chips to bring further energy efficiency potential into applications as quickly as possible and thus into the mainstream.

Green hydrogen

An integral part of the new chip factory is the local generation of green hydrogen, which is used as a process medium in chip production. The electrolysis plant required for this is being built in a cooperative effort involving industry and science and can produce up to 800 kg of green hydrogen from renewable energy per day. This eliminates the need to deliver gray hydrogen by truck. The system was installed in Villach in mid-2023, with test operations scheduled to start in 2024. In the interest of an intelligent circular economy, hydrogen reuse concepts are also being investigated, for example to power buses. This is groundbreaking pioneering work for other hydrogen projects in the semiconductor industry.

Cutting-edge research

‒More than 2,500 R&D employees

‒€672 million for R&D, making us one of the most research-focused companies in Austria.*

‒222 Initial patent applications

‒175 Research collaborations worldwide

* According to "trend" magazine's company ranking 2023.

see Glossary, from page 58

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HIGHLIGHTS

Our contribution to the environment and climate

Industry 4.0 and energy efficiency

Energy efficiency measures have been in place at the Villach site since 2009. Digital networking of plants, processes and systems creates a self-learning factory that reduces energy con- sumption, increases efficiency and quality, and optimizes the use of resources. Buildings and infrastructure systems are continuously being equipped with smart sensors, control devices and smart meters to precisely match energy consumption to production capacity utilization. Energy-saving LED lighting as well as intelligent heat recovery contribute to energy efficiency and the conservation of resources.

Resource-efficient manufacturing

Villach is a global pioneer in the high-volume production of power semiconductors on

300-millimeter thin wafers. They are as thin as

40 micrometers (0.04 millimeters) and convert energy even more efficiently. Meanwhile, their diameter is 50 percent larger than that of a

200-millimeter wafer. This enables the production of approximately 2.25 times more chips per wafer, which, combined with the use of advanced equipment systems, reduces resource consump- tion.

CO2 neutrality by 2030

This goal applies to the Scope 1 and 2 emissions of the entire Infineon Group and is to be achieved through the following approaches (see also pages 33 and 53):

• Avoidance of direct greenhouse gas emissions and further reduction of energy consumption
• Use of green electricity with guarantee of origin (already implemented at Villach site)
• Offsetting the remaining, smallest possible part through certificates that combine development aid with the avoidance of CO2 emissions

Our commitments

• Sustainable Development Goals (SDGs) and United Nations Global Compact,https://www.infineon.com/cms/ en/about-infineon/sustainability/
• Since 2023, commitment to science-based targets and inclusion of Scope 3 in climate protection efforts
• Since 2010, Infineon has been listed in the Dow Jones Sustainability Index as one of the world's most sustaina- ble companies
• Since 1997, the Villach site has participated in the Euro- pean Union's EMAS (Eco Management and Audit Scheme)
• Audits by the Responsible Business Alliance
• Infineon IMPRES program:
• • Environmental management ISO 14001:2015
  • Occupational safety management ISO 45001:2018
  • Energy management ISO 50001:2018

Nature conservation

By cooperating with Arge Naturschutz and the forestry inspectorate Villach, Infineon supports the protection of the environment and the ecosystem. As part of voluntary reforestation initiatives in the region, a total of 3,700 biologically diverse trees have been planted on an area of 2.6 hectares over the past two years. A weather station with various sensors also provides valuable data for measuring the microclimate. This creates a habitat for people and animals, complementing the 25,000 square meters of high quality reforestation that was done as part of the site expansion. The employees are fully involved, as well: They volunteer to participate in nature conservation campaigns, setting up 100 nesting and roosting sites for birds and bats and actively supporting climate and nature conservation through small animal monitoring.

10	see Glossary, from page 58