Power & Sensor Systems Business Update

1 July 2021

Andreas Urschitz, Division President Power & Sensor Systems

1

PSS at a glance

PSS revenue and Segment Result Margin

[EUR m]

CAGR(FY16-FY20):6.7%

2.800

2.318

2.445

2.650

40%

2.041

2.148

2.300

24%

24%

30%

1.800

23%

1.566

17%

20%

1.300

24%

20%

800

10%

300

-200

FY16

FY17

FY18

FY19

FY20

H1 FY21

0%

PSS revenue

PSS Segment Result Margin

Key customers

FY20 revenue split by product group

other (incl. HiRel)

MOSFETs

(incl. SiC, GaN)

RF & sensors

power ICs

2021-07-01

Copyright © Infineon Technologies AG 2021. All rights reserved.

2

Market outlook for PSS division's target applications

Applications

(% of FY20 segment revenue)*

Computing

~20%

Market Outlook for H2 CY21

  • Acceleration towards cloud computing to continue
  • Pandemic-drivenstay at home and work at home effects continue to favor notebook sales

Market Outlook for CY22

  • Structural drivers expected to stay in cloud computing and good momentum for enterprise servers
  • Demand for CY22 supported by limited supply in CY21 (catch-up effects)

Communication

In general, long-term drivers due to 5G still intact

5G cycle will continue to drive telecom equipment

~9%

However, trade tensions generate some uncertainty

spending in CY22

around speed of roll-out in China and other regions

  • Strong rebound expected driven mainly by economic

Smartphone

recovery and migration towards 5G phones

s

5G replacement cycle expected to continue to drive

~19%

Potential risk due to reduced smartphone growth due to

demand growth

shortages, regional weaker demand (India/ China), 5G

slower boost than expected

  • Consumer electronics, including e.g. game consoles, clear

beneficiaries from stay at home

Consumer

Demand expected to decline in some consumer areas as

~20%

Battery-powered tools continue to show strong momentum

Consumer spending may be re-allocated to more leisure-

TVs in light of re-allocation of consumer spending

oriented activities

Automotive and other industrial segments show strong

Industrial

~23%

recovery; however, automotive production has taken hits

from chip shortages

* does not sum up to 100% due to other applications not shown here

  • Demand in renewable energy, EV charging and automotive expected to be healthy
  • Tailwinds from stimuli packages for EV and green energy in US and EU

2021-07-01

Copyright © Infineon Technologies AG 2021. All rights reserved.

3

PSS - RF and Sensing

4

Main applications addressed by PSS sensors portfolio

MEMS microphone

3D radar (24/60 GHz)

3D ToF image sensor

Environmental

Ultra-low

High

Best audio

Best price /

precision and

power

performance

performance

Small form

consumption

14.0 x 13.6 x 7.5 mm³

factor

Low power

Presence

Face ID

detection/

(biometrics),

Measure CO2

consumption

Vital Sensing

VR/AR

Main applications

Smartphone

Automotive

Smartphone: world-

Heating, ventilation, air

True wireless stereo

Smart home

facing and user-facing

conditioning (HVAC)

Robotics

headsets

TV

Air purifier

Automotive in-cabin

Smart speaker

Security camera

Smart thermostat

sensing

Laptop & Tablet

Smart building

Payment terminals

CO2/virus risk reduction

2021-07-01

Copyright © Infineon Technologies AG 2021. All rights reserved.

5

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Infineon Technologies AG published this content on 01 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 July 2021 13:03:14 UTC.