UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

INFINEON TECHNOLOGIES AG

Am Campeon 1-12
D-85579 Neubiberg/Munich
Federal Republic of Germany
Tel: +49-89-234-0
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ      Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o      No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-               .

 

 

Infineon Technologies AG (the “Company”) is submitting on this Report on Form 6-K a press release dated July 29, 2009 announcing its results for the third quarter of the 2009 fiscal year.

The press release submitted on this Report on Form 6-K is being furnished for informational purposes only and is not incorporated by reference into, and does not form a part of, the Registration Statement on Form F-3 filed by the Company on July 16, 2009 in connection with a rights offering of up to 337,000,000 ordinary shares, including ordinary shares represented by American depositary shares.

News Release/Presseinformation

Infineon reports third quarter revenues up 13 percent quarter-on-quarter and significant improvement in earnings

Free cash flow from continuing operations of Euro 152 million

Neubiberg, Germany – July 29, 2009 – Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today reported results for the third quarter of the 2009 fiscal year, ended June 30, 2009.

Infineon’s revenues in the third quarter were Euro 845 million, up 13 percent compared to the second quarter and down 18 percent year-over-year. Infineon’s third quarter Segment Result¹ improved significantly compared to the previous quarter, net loss was Euro 23 million.

		3 months				year-on-				3 months								3 months
		ended				year				ended				sequential				ended
in Euro million		Jun 30, 08				+/- in %				Mar 31, 09				+/- in %				Jun 30, 09
Revenue			1,029				(18	)			747				13				845
Income (loss) from continuing operations			50				—				(150	)			87				(20	)
Loss from discontinued operations, net of income taxes			(429	)			99				(108	)			97				(3	)
Net loss			(379	)			94				(258	)			91				(23	)
Basic and diluted earnings (loss) per share from continuing operations (in Euro)			0.06				—				(0.20	)			85				(0.03	)
Basic and diluted loss per share from discontinued operations (in Euro)			(0.45	)			100				(0.12	)			100				–
Basic and diluted loss per share (in Euro)			(0.39	)			92				(0.32	)			91				(0.03	)

“Thanks to higher sales, higher factory loading and the cost savings from our IFX10+ cost-reduction program, we improved our operational performance considerably during the third quarter compared to the previous quarter. Together with strict cash management, we generated positive free cash flow from continuing operations² of Euro 152 million and reduced our net debt position significantly”, said Peter Bauer, CEO of Infineon Technologies AG.

For the Finance and Business Press: INFXX200907-071e
Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

During the third quarter, Infineon implemented a series of measures to improve its balance sheet and to achieve a more focussed product portfolio. The company launched a cash tender offer for a portion of its outstanding bonds and issued new convertible bonds. In July 2009, it announced the sale of its Wireline Communications business and launched the pending rights offering, backstopped by Apollo. “If successful, these steps would complete the refinancing of the company”, said Peter Bauer.

The sequential increase in revenues reflects increased revenues in all of the company’s five operating segments. The Wireless Solutions (WLS) segment achieved by far the strongest percentage increase in revenues, with the segments Industrial & Multimarket (IMM), Automotive (ATV), Wireline Communications (WLC), and Chip Card & Security (CCS) following at some distance.

Third quarter earnings improved significantly compared to the second quarter. The drivers of the improvement included significant cost reductions, mainly due to the IFX10+ cost-reduction program, higher factory loading as Infineon carefully adjusted production according to the improved demand environment, and higher sales levels driven by the company’s strong product portfolio. All of the company’s operating segments achieved positive Segment Result, except the ATV segment which posted a Segment Result of negative Euro 17 million.

Net loss from continuing operations for the third quarter was Euro 20 million, resulting in basic and diluted loss per share from continuing operations of Euro 0.03. For the second quarter, net loss from continuing operations was Euro 150 million, and basic and diluted loss per share from continuing operations was Euro 0.20.

Infineon reported loss from discontinued operations, net of income taxes, of Euro 3 million for the third quarter. As a result of Qimonda’s application to open insolvency proceedings on January 23, 2009, Infineon deconsolidated Qimonda during the second quarter.

For the third quarter, Infineon reported group net loss of Euro 23 million, and basic and diluted loss per share of Euro 0.03.

In the third quarter, Infineon’s free cash flow from continuing operations was Euro 152 million, compared to a free cash flow from continuing operations of negative Euro 22

For the Finance and Business Press: INFXX200907-071e
Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

million in the second quarter. This strong improvement was driven by improved operating results and the company’s strict cash management.

	§		Through the company’s IFX10+ cost-reduction program, Infineon achieved significant cost reductions, also in the third quarter. Infineon’s operating expenses decreased by Euro 88 million compared to the fourth quarter of the 2008 fiscal year, which the company believes was principally due to the IFX10+ cost-reduction program. This figure includes cost savings resulting from reduced working hours and unpaid leave.
	§		In addition, Infineon contained capital expenditures (CapEx) to Euro 27 million in the third quarter, including capitalized intangible assets, while depreciation and amortization was Euro 133 million.
	§		Within working capital 3, each of trade and other receivables, and inventories declined by Euro 22 million in the third quarter, while trade and other payables increased by Euro 63 million, compared to the previous quarter. In total, the company reduced net working capital by Euro 36 million during the third quarter.
	§		Free cash flow from continuing operations of Euro 152 million for the third quarter also included cash inflow of Euro 17 million from the German bank deposit protection fund following the insolvency of Lehman Brothers and cash outflows of approximately Euro 25 million in connection with the IFX10+ cost-reduction program.

Due to the strong free cash flow, Infineon reduced its net debt position at book values by Euro 170 million to Euro 151 million on June 30, 2009 compared to Euro 321 million on March 31, 2009.

Outlook for the fourth quarter

Reflecting the pending sale of the WLC business, Infineon will classify this business as discontinued operations in its consolidated financial statements for the fiscal quarter and fiscal year ending September 30, 2009, effective as of the fourth quarter.

Infineon expects group revenues to grow in the fourth quarter compared to the third quarter — on a comparable basis, excluding the WLC segment. The company anticipates the revenue increase to be driven in particular by the segments ATV and IMM.

For the Finance and Business Press: INFXX200907-071e
Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

Infineon plans continued, but cautious increases in production levels in the fourth quarter as it adapts capacity loadings to the improved demand. Together with the benefits of anticipated higher sales levels and continued tight cost control, the company therefore expects Segment Result — on a comparable basis, excluding the WLC segment — to improve as well.

For the 2009 fiscal year, Infineon now expects depreciation and amortization to exceed the previous forecast level of Euro 500 million.

The successful sale of the WLC business and the successful completion of the rights offering are expected to lead to a solid balance sheet. Infineon intends to use this strength and concentrate its resources on the four remaining segments, exploiting the growth potential offered by the overall drivers of energy efficiency, communications, and security. At the same time, the company plans to maintain a high level of cost and cash flow discipline.

All segments posted improved revenues and Segment Result in the third quarter

		3 months								3 months								3 months
		ended				year-on-year				ended				sequential				ended				in % of
in Euro million		Jun 30, 2008				+/- in %				Mar 31, 2009				+/- in %				Jun 30, 2009				revenue
Infineon Total
Revenue			1,029				(18	)			747				13				845				100
Total Segment Result			52				(85	)			(110	)			+++				8
Automotive (ATV)
Segment Revenues			311				(34	)			189				9				206				24
Segment Result			36				—				(65	)			74				(17	)
Industrial & Multimarket (IMM)
Segment Revenues			279				(21	)			193				15				221				26
Segment Result			29				(69	)			(7	)			+++				9
Chip Card & Security (CCS)
Segment Revenues			113				(27	)			80				3				82				10
Segment Result			10				(60	)			(8	)			+++				4
Wireless Solutions (WLS)
Segment Revenues			205				22				204				23				251				30
Segment Result			(23	)			+++				(29	)			+++				19
Wireline Communications (WLC)
Segment Revenues			108				(22	)			79				6				84				10
Segment Result			5				40				1				+++				7
Other Operating Segments (OOS)
Segment Revenues			25				(96	)			2				(50	)			1				0
Segment Result			(4	)			75				(3	)			67				(1	)
Corporate and Eliminations (C&E)
Segment Revenues			(12	)			100				—				—				—				0
Segment Result			(1	)			—				1				—				(13	)

In the third quarter, revenues in the ATV segment increased compared to the previous quarter, mainly due to improved demand worldwide for smaller-sized cars in the context

For the Finance and Business Press: INFXX200907-071e
Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

- 5 - 

of national car-scrap bonus programs in Europe and an economic stimulus program in China. In Europe and Japan, the end of customers’ de-stocking in the supply chain and slightly increased customer demand added to the segment’s revenue increase, whereas the US car market was still affected by continued market weakness. ATV Segment Result improved strongly on a sequential basis, due to the positive effects of higher production levels, cost savings, and the increase in revenues.

Revenues in the IMM segment increased compared to the second quarter, driven by stronger end customer demand for computing, communications and industrial products. IMM Segment Result improved significantly compared to the previous quarter and was positive. The principal drivers were besides cost savings again the higher sales volumes as well as improved factory loading.

Revenues in the CCS segment increased slightly compared to the second quarter, as stronger revenues in the segment’s SIM card business were partially offset by lower revenues in the segment’s ID business. The segment achieved positive Segment Result in the third quarter with a significant increase in sequential earnings, reflecting principally the overall increase in factory utilization.

In the third quarter, revenues in the WLS segment increased significantly on a sequential basis, mainly due to increased demand of some major mobile phone platform customers for both HSDPA and Ultra Low Cost solutions. WLS Segment Result increased significantly and was positive, reflecting the increase in revenues and higher production levels.

Revenues in the WLC segment in the third quarter increased compared to the second quarter, mostly driven by the Customer Premises Equipment (CPE) business. Here, the segment ramped several high-end Integrated Access Devices (IAD) projects at major European carriers, and continued to ramp its system-on-a-chip for the low-cost ADSL market. WLC Segment Result increased on a sequential basis, mainly due to the increase in revenues and improved factory loading. On July 7, 2009, Infineon entered into an asset purchase agreement with an entity affiliated with Golden Gate Private Equity, Inc. to sell the WLC business. This sale is expected to close in the fall of 2009.

All amounts are unaudited. Following the publication of its prospectus on July 16, 2009 and until the completion of its announced rights offering, the Company is subject to certain legal restrictions with respect to the presentation of non-GAAP financial measures and forward-looking information. As such, the presentation of certain information in this press release may differ from the company’s usual practice.

For the Finance and Business Press: INFXX200907-071e

Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

- 6 - 

FINANCIAL INFORMATION
According to IFRS — Unaudited

Condensed Consolidated Statements of Operations

		3 months ended													9 months ended
in Euro million		Jun 30, 08				Mar 31, 09				Jun 30, 09					Jun 30, 08				Jun 30, 09
Revenue			1,029				747				845					3,168				2,422
Cost of goods sold			(673	)			(634	)			(610	)				(2,063	)			(1,922	)
Gross profit			356				113				235					1,105				500
Research and development expenses			(169	)			(122	)			(125	)				(520	)			(396	)
Selling, general and administrative expenses			(145	)			(110	)			(108	)				(415	)			(330	)
Other operating income			55				15				4					103				22
Other operating expense			(12	)			(39	)			(11	)				(51	)			(61	)
Operating income (loss)			85				(143	)			(5	)				222				(265	)
Financial income			6				21				19					37				100
Financial expense			(37	)			(32	)			(31	)				(125	)			(119	)
Income from investments accounted for using the equity method, net			1				2				2					3				5
Income (loss) from continuing operations before income taxes			55				(152	)			(15	)				137				(279	)
Income tax benefit (expense)			(5	)			2				(5	)				(28	)			(7	)
Income (loss) from continuing operations			50				(150	)			(20	)				109				(286	)
Loss from discontinued operations, net of income taxes			(429	)			(108	)			(3	)				(2,972	)			(399	)
Net loss			(379	)			(258	)			(23	)				(2,863	)			(685	)
Attributable to:
Minority interests			(87	)			(19	)			1					(639	)			(48	)
Shareholders of Infineon Technologies AG			(292	)			(239	)			(24	)				(2,224	)			(637	)
Basic and diluted earnings (loss) per share attributable to shareholders of Infineon Technologies AG (in Euro)*:
Weighted average shares outstanding (in million) — basic and diluted			750				750				750					750				750
Basic and diluted earnings (loss) per share from continuing operations			0.06				(0.20	)			(0.03	)				0.11				(0.38	)
Basic and diluted loss per share from discontinued operations			(0.45	)			(0.12	)			—					(3.08	)			(0.47	)
Basic and diluted loss per share			(0.39	)			(0.32	)			(0.03	)				(2.97	)			(0.85	)

For the Finance and Business Press: INFXX200907-071e

Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

- 7 -

Segment Revenues and Segment Results

We define Segment Result as operating income (loss) excluding asset impairments, net of reversals, restructuring and other related closure costs, share-based compensation expense, acquisition-related amortization and gains (losses), gains (losses) on sales of assets, businesses, or interests in subsidiaries, and other income (expense), including litigation settlement costs. Gains (losses) on sales of assets, businesses, or interests in subsidiaries, include, among others, gains or losses that may be realized from potential sales of investments and activities.

Segment Results and Revenues
for the three and nine months ended June 30, 2008 and 2009

		3 months ended													9 months ended
Revenue in Euro million		Jun 30, 08				Jun 30, 09				+/- in %					Jun 30, 08				Jun 30, 09				+/- in %
Automotive			311				206				(34	)				945				601				(36	)
Industrial & Multimarket			279				221				(21	)				846				648				(23	)
Chip Card & Security			113				82				(27	)				350				253				(28	)
Wireless Solutions(1)			205				251				22					655				652				(0	)
Wireline Communications(2)			108				84				(22	)				316				251				(21	)
Other Operating Segments(3)			25				1				(96	)				148				11				(93	)
Corporate and Eliminations(4)			(12	)			—				100					(92	)			6				+++
Total			1,029				845				(18	)				3,168				2,422				(24	)

		3 months ended													9 months ended
Segment Result in Euro million		Jun 30, 08				Jun 30, 09				+/- in %					Jun 30, 08				Jun 30, 09				+/- in %
Automotive			36				(17	)			—					84				(138	)			—
Industrial & Multimarket			29				9				(69	)				78				4				(95	)
Chip Card & Security			10				4				(60	)				46				(5	)			—
Wireless Solutions			(23	)			19				+++					(21	)			(54	)			—
Wireline Communications(2)			5				7				40					12				10				(17	)
Other Operating Segments			(4	)			(1	)			75					3				(5	)			—
Corporate and Eliminations			(1	)			(13	)			—					(3	)			(16	)			—
Total			52				8				(85	)				199				(204	)			—

(1)		Includes revenue of €1 million for the three months ended June 30, 2008, and €9 million and €1 million for the nine months ended June 30, 2008 and 2009, respectively, from sales of wireless communication applications to Qimonda.
(2)		On July 7, 2009, the Company entered into an asset purchase agreement to sell the Wireline Communications business, and such sale is expected to close in the fall of 2009.
(3)		Includes revenue of €8 million for the three months ended June 30, 2008 and €78 million for the nine months ended June 30, 2008 from sales of wafers from Infineon’s 200-millimeter facility in Dresden to Qimonda under a foundry agreement.
(4)		Includes the elimination of revenue of €9 million for the three months ended June 30, 2008 and €87 million and €1 million for the nine months ended June 30, 2008 and 2009, respectively, since these revenues were not part of the Qimonda disposal plan.

For the Finance and Business Press: INFXX200907-071e

Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

- 8 -

Segment Results and Revenues

for the three months ended March 31, 2009 and June 30, 2009

		3 months ended
Revenue in Euro million		Mar 31, 09				Jun 30, 09				+/- in %
Automotive			189				206				9
Industrial & Multimarket			193				221				15
Chip Card & Security			80				82				3
Wireless Solutions			204				251				23
Wireline Communications(1)			79				84				6
Other Operating Segments			2				1				(50	)
Corporate and Eliminations			—				—				—
Total			747				845				13

		3 months ended
Segment Result in Euro million		Mar 31, 09				Jun 30, 09				+/- in %
Automotive			(65	)			(17	)			74
Industrial & Multimarket			(7	)			9				+++
Chip Card & Security			(8	)			4				+++
Wireless Solutions			(29	)			19				+++
Wireline Communications(1)			1				7				+++
Other Operating Segments			(3	)			(1	)			67
Corporate and Eliminations			1				(13	)			—
Total			(110	)			8				+++

Reconciliation of operating income (loss) to Segment Result

		3 months ended													9 months ended
in Euro million		Jun 30, 08				Mar 31, 09				Jun 30, 09					Jun 30, 08				Jun 30, 09
Operating income (loss)			85				(143	)			(5	)				222				(265	)
Asset impairments, net of reversals			2				1				(2	)				—				(1	)
Restructuring charges, net of reversal, and other related closure costs			2				3				(7	)				11				(1	)
Share-based compensation expense			1				1				1					4				2
Acquisition-related amortization and losses			7				6				6					21				18
(Gains) losses on sales of assets, businesses or interests in subsidiaries			(45	)			16				1					(59	)			18
Other expense (income), net			—				6				14					—				25
Total			52				(110	)			8					199				(204	)

Working Capital

Working Capital in Euro million		March 31, 2009				June 30, 2009
Total current assets			1,883				2,048
Cash and cash equivalents			(532	)			(767	)
Available-for-sale financial assets			(133	)			(104	)
Assets classified as held for disposal			(6	)			(5	)
Total current liabilities			(1,240	)			(1,700	)
Short-term debt and current maturities of long-term debt			170				634
Liabilities associated with assets classified as held for diposal			—				—
Total			142				106

For the Finance and Business Press: INFXX200907-071e

Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

- 9 -

Condensed Consolidated Balance Sheets

in Euro million		Sep 30, 08					Jun 30, 09
Assets
Current assets:
Cash and cash equivalents			749					767
Available-for-sale financial assets			134					104
Trade and other receivables			799					496
Inventories			665					521
Income tax receivable			29					13
Other current financial assets			19					29
Other current assets			124					113
Assets classified as held for disposal			2,129					5
Total current assets			4,648					2,048
Property, plant and equipment			1,310					1,011
Goodwill and other intangible assets			443					423
Investments accounted for using the equity method			20					24
Deferred tax assets			400					396
Other financial assets			133					114
Other assets			28					21
Total assets			6,982					4,037

in Euro million		Sep 30, 08					Jun 30, 09
Liabilities and equity
Current liabilities:
Short-term debt and current maturities of long-term debt			207					634
Trade and other payables			506					365
Current provisions			424					415
Income tax payable			87					97
Other current financial liabilities			63					43
Other current liabilities			263					146
Liabilities associated with assets classified as held for disposal			2,123					—
Total current liabilities			3,673					1,700
Long-term debt			963					388
Pension plans and similar commitments			43					35
Deferred tax liabilities			19					15
Long-term provisions			27					105
Other financial liabilities			20					6
Other liabilities			76					84
Total liabilities			4,821					2,333
Shareholders’ equity:
Ordinary share capital			1,499					1,499
Additional paid-in capital			6,008					6,041
Accumulated deficit			(5,252	)				(5,889	)
Other components of equity			(164	)				(3	)
Total equity attributable to shareholders of Infineon Technologies AG			2,091					1,648
Minority interests			70					56
Total equity			2,161					1,704
Total liabilities and equity			6,982					4,037

For the Finance and Business Press: INFXX200907-071e

Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

Infineon Regional Sales Development

		3 months ended													9 months ended
Regional sales in %		Jun 30, 08				Mar 31, 09				Jun 30, 09					Jun 30, 08				Jun 30, 09
Germany			21	%			20	%			17	%				21	%			19	%
Other Europe			20	%			19	%			17	%				19	%			18	%
North America			12	%			9	%			13	%				13	%			11	%
Asia/Pacific			41	%			47	%			48	%				40	%			46	%
Japan			4	%			4	%			4	%				5	%			5	%
Other			2	%			1	%			1	%				2	%			1	%
Total			100	%			100	%			100	%				100	%			100	%
Europe			41	%			39	%			34	%				40	%			37	%
Outside Europe			59	%			61	%			66	%				60	%			63	%

Employees

		June 30, 08				Mar 31, 09				Jun 30, 09
Infineon (1)			29,356				26,362				26,108

Condensed Consolidated Statements of Cash Flows

Gross and Net Cash/(Debt) Position*

Infineon defines gross cash position as cash and cash equivalents and available-for-sale financial assets, and net cash/(debt) position as gross cash position less short-term debt and current maturities of long-term debt, and long-term debt. Since Infineon holds a portion of its available monetary resources in the form of readily available-for-sale financial assets, which for IFRS purposes are not considered to be “cash”, it reports its gross and net cash/(debt) positions to provide investors with an understanding of the Company’s overall liquidity. The gross and net cash/(debt) position is determined as follows from the condensed consolidated balance sheets, without adjustment to the IFRS amounts presented:

in Euro million		Jun 30, 08				Mar 31, 09				Jun 30, 09
Cash and cash equivalents			408				532				767
Available-for-sale financial assets			429				133				104
Gross Cash Position			837				665				871
Less: Short-term debt and current maturities of long-term debt			193				170				634
Long-term debt			974				816				388
Net Cash/(Debt) Position			(330	)			(321	)			(151	)

Free Cash Flow*

Infineon defines free cash flow as net cash from operating and investing activities excluding purchases or sales of available-for-sale financial assets. Since Infineon holds a portion of its available monetary resources in the form of available-for-sale financial assets, and operates in a capital intensive industry, it reports free cash flow to provide investors with a measure that can be used to evaluate changes in liquidity after taking capital expenditures into account. Free cash flow is not intended to represent the residual cash flow available for discretionary expenditures, since debt service requirements or other non-discretionary expenditures are not deducted. The free cash flow is determined as follows from the condensed consolidated cash flow statements:

		3 months ended													9 months ended
in Euro million		Jun 30, 08				Mar 31, 09				Jun 30, 09					Jun 30, 08				Jun 30, 09
Net cash provided by (used in) operating activities from continuing operations			156				(70	)			172					305				107
Net cash provided by (used in) investing activities from continuing operations			137				53				(2	)				(757	)			29
Adjusted for: Net proceeds from (sales) purchases of available-for-sale financial assets			(171	)			(5	)			(18	)				246				(28	)
Free Cash Flow			122				(22	)			152					(206	)			108

For the Finance and Business Press: INFXX200907-071e

Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

 - 11 -

Condensed Consolidated Statements of Cash Flows (in Euro million)

		3 months ended
		Jun 30, 08				Mar 31, 09				Jun 30, 09
Net loss			(379	)			(258	)			(23	)
Less: net loss from discontinued operations			429				108				3
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Net cash provided by (used in) operating activities
Depreciation and amortization			142				137				133
Provision for (recovery of) doubtful accounts			1				(2	)			(1	)
(Losses) gains on sales of current available-for-sale financial assets			1				—				2
Losses (gains) on sales of businesses and interests in subsidiaries			(38	)			17				—
Losses on disposals of property, plant, and equipment			(4	)			—				1
Income from investments accounted for using the equity method			(1	)			(2	)			(2	)
Impairment charges			—				1				(2	)
Stock-based compensation			1				1				1
Deferred income taxes			(7	)			(4	)			—
Changes in operating assets and liabilities:
Trade and other receivables			61				(89	)			7
Inventories			(68	)			119				23
Other current assets			(20	)			25				1
Trade and other payables			14				(17	)			66
Provisions			25				(47	)			(4	)
Other current liabilities			23				(63	)			(13	)
Other assets and liabilities			14				4				18
Interest received			11				6				1
Interest paid			(41	)			(4	)			(35	)
Income tax received			(8	)			(2	)			(4	)
Net cash provided by (used in) operating activities from continuing operations			156				(70	)			172
Net cash used in operating activities from discontinued operations			(147	)			(44	)			(10	)
Net cash used in operating activities			9				(114	)			162
Cash flows from investing activities:
Purchases of available-for-sale financial assets			(80	)			—				(30	)
Proceeds from sales of available-for-sale financial assets			251				5				48
Proceeds from sales of businesses and interests in subsidiaries			61				4				—
Business acquisitions, net of cash acquired			(32	)			—				—
Purchases of intangible assets, and other assets			(11	)			(11	)			(14	)
Purchases of property, plant and equipment			(57	)			(40	)			(13	)
Proceeds from sales of property, plant and equipment, and other assets			5				95				7
Net cash provided by (used in) investing activities from continuing operations			137				53				(2	)
Net cash used in investing activities from discontinued operations			74				(286	)			—
Net cash used in investing activities			211				(233	)			(2	)
Cash flows from financing activities:
Net change in short-term debt			—				3				(13	)
Net change in related party financial receivables and payables			1				1				—
Proceeds from issuance of long-term debt			1				—				181
Principal repayments of long-term debt			(112	)			(98	)			(86	)
Change in restricted cash			—				1				(7	)
Dividend payments to minority interests			(4	)			(6	)			—
Net cash used in financing activities from continuing operations			(114	)			(99	)			75
Net cash provided by financing activities from discontinued operations			47				(59	)			—
Net cash provided by (used in) financing activities			(67	)			(158	)			75
Net decrease in cash and cash equivalents			153				(505	)			235
Effect of foreign exchange rate changes on cash and cash equivalents			(2	)			1				—
Cash and cash equivalents at beginning of period			—				1.036				—
Cash and cash equivalents at end of period			151				532				235
Less: Cash and cash equivalents at end of period from discontinued operations			(30	)			—				—
Cash and cash equivalents at end of period from continuing operations			181				532				235

For the Finance and Business Press: INFXX200907-071e

Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

 - 12 -

Analyst and press telephone conferences

Due to special legal restrictions about communications in conjunction with the announced rights offering and the publication of the prospectus on July 16, 2009, Infineon will not conduct an analyst and press conference call on the 2009 fiscal third quarter results today. Infineon’s investor and media relations teams will be available for questions following the publication of the earnings announcement.

IFX financial calendar (*preliminary date)

Ø       Nov 19, 2009*     Earnings Release for the Fourth Quarter and Full 2009 Fiscal Year

New in the IFX pod cast section at www.infineon.com/podcast

Ø      Press conference call about the sale of the Infineon Wireline Communications business

About Infineon

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, communications, and security. In the 2008 fiscal year (ending September), the company reported sales of Euro 4.3 billion with approximately 29,100 employees worldwide in continuing operations. With a global presence, Infineon operates through its subsidiaries in the U.S. from Milpitas, CA, in the Asia-Pacific region from Singapore, and in Japan from Tokyo. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY).

DISCLAIMER

This press release includes forward-looking statements and assumptions about the future of Infineon’s business and the industry in which we operate. These include statements and assumptions relating to general economic conditions, future developments in the world semiconductor market, our ability to manage our costs and to achieve our savings and growth targets, the resolution of Qimonda’s insolvency proceedings and the liabilities we may face as a result of Qimonda’s insolvency, the benefits of research and development alliances and activities, our planned levels of future investment, the introduction of new technology at our facilities, the continuing transitioning of our production processes to smaller structure sizes, our ability to continue to offer commercially viable products, and our expected or projected future results.

These forward-looking statements are subject to a number of uncertainties, including broader economic developments, including the duration and depth of the current economic downturn; trends in demand and prices for semiconductors generally and for our products in particular, as well as for the end-products, such as automobiles and consumer electronics, that incorporate our products; the success of our development efforts, both alone and with partners; the success of our efforts to introduce new production processes at our facilities; the actions of competitors; the availability of funds, including for the re-financing of our indebtedness; the outcome of antitrust investigations and litigation matters; and the outcome of Qimonda’s insolvency proceedings; as well as the other factors mentioned in this press release and those described in the “Risk Factors” section of the prospectus relating to our pending rights offering (a form of which was approved by the German Federal Financial Supervisory Authority (BaFin) on July 16, 2009 and a form of which is contained in the registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission on July 16, 2009).

As a result, Infineon’s actual results could differ materially from those contained in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Infineon does not undertake any obligation to publicly update or revise any forward-looking statements in light of developments which differ from those anticipated.

For the Finance and Business Press: INFXX200907-071e

Worldwide Headquarters:		Name:		Phone:		Email:
Media Relations		Kay Laudien		+49 89 234 28481		kay.laudien@infineon.com
Investor Relations		EU/APAC/USA/CAN		+49 89 234 26655		investor.relations@infineon.com

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.