Infineon plans to create two focused and independent companies, one for Logic and one for Memory Products. The Memory Products business will be carved out as a legally independent entity by July 1, 2006. As a next step, Infineon will consider an IPO of the Memory Products Company as the preferred option. Infineon, as the parent company, will focus on the Logic business, comprised of the business groups Automotive, Industrial Electronics and Multimarket (AIM) and Communications (COM). The new company will retain its operational headquarters in Germany. Dresden will remain the technology development center for the planned company. Kin Wah Loh, member of the Management Board for Infineon AG and responsible for Memory Products, is designated to lead the new company.

In the future, Infineon will pursue a selective manufacturing strategy in the Logic business: The Company will continue to invest in development and manufacturing capacities for advanced technologies.