MUNICH and NEW DELHI, India -- Infineon TechnologiesAG, a global semiconductor supplier for communications, automobile, securityand industry applications has signed a Memorandum of Understanding (MoU)with the Hindustan Semiconductor Manufacturing Corporation (HSMC), a newlyestablished semiconductor company, to license its leading-edge 130nm CMOSprocess technology. This MoU will help build a foundation for the production ofintegrated circuits for mobile phones, ID cards and automotives in India for theIndian market. This move will further strengthen Infineon’s position as a leadingplayer in the Indian semiconductor market where it has been active for ten years.

According to the MoU, Infineon will license its 130nm CMOS basic processtechnology, along with its process technologies for radio frequency, embeddedflash for chip card applications, and embedded flash for automotive applicationsto HSMC. Furthermore, Infineon will offer expertise and advice for the technologytransfer, and setup of the HSMC Fab. Infineon will also license its fully qualifiedand silicon/ product-proven design libraries. This will enable a faster ramp-up ofproduct development for HSMC.

“We look forward to our cooperation with HSMC,” said Dr. Wolfgang Ziebart,CEO of Infineon. “With this cooperation, we position ourselves as a reliablepartner for the prosperous Indian semiconductor market. By bringing our processtechnology to the Indian market, we help build the foundation for the productionof integrated circuits for the Indian market in the years to come. With ourstrategic direction towards the segments energy efficiency, connectivity andsecurity, we are a perfect fit for the Indian market.”

Dr. Deven Verma, Chairman of the Board of HSMC said: "We have strategicallyselected Infineon, a leading supplier of chip sets for mobile phones, smart cardsand automotive applications. This initiative will lead India to become a destinationof choice for the future of manufacturing hi-tech products. While India’s GDP isaround 9 percent, the development of semiconductor manufacturing will helpcatapult the GDP to approximately 10-11 percent per year."

Infineon Technologies AG (NYSE/Frankfurt: IFX)