Infineon Automotiv Division Call User Manual

Automotive Division Call

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Peter Schiefer, Division President Automotive (ATV) 5 October 2020

Market position and

short- and mid-term outlook

Infineon’s automotive semiconductor revenue (in USD for CY; based on market figures by Strategy Analytics)

Infineon has been growing by 10% p.a. in automotive semis over the last two decades and hence steadily gaining market share

740

1818

1307

2270

2890

4210

4987

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

1000

2000

3000

4000

5000

6000

revenue

Infineon International Rectifier Cypress

[USD m]

Source: Strategy Analytics: Automotive Semiconductor Vendor Market Shares. 2001 through 2020

CAGR

(00-18)

: +10.1%

4157

830

13.4%

7.9% − 11.2%

6.7%

market position

market share

Infineon’s top market position is built on system competence based on an industry-leading product portfolio

› New #1 in the total market post acquisition of Cypress › Solid #1 in power despite xEV subsidies cut in China in H2 CY19

› Undisputed #1 in automotive NOR Flash memory

› Fostering #2 in sensors (from 10.4%

CY12

to 13.5%

CY19

)

› Significant market share gain in microcontroller – both organically

(strong demand for AURIX™) and via Cypress acquisition

13.4%

11.3%

8.7%

8.1%

7.6%

Infineon

NXP

Renesas

STMicro

Automotive semiconductors (2019 total market: $37.2bn)

6.7%

7.0%

8.0%

13.5%

14.1%

Melexis

NXP

ON Semi

Infineon

Bosch

Sensors

Source: Strategy Analytics: Automotive Semiconductor Vendor Market Shares v2. May 2020. The market shares shown here are the combined market shares of Infineon and Cypress based on their individual figures.

6.6%

9.8%

27.0%

27.2%

Microchip

Infineon

Renesas

NXP

16.2%

Microcontrollers

Power semiconductors

5.4%

8.2%

9.1%

13.9%

25.5%

ON Semi

Bosch

STMicro

Infineon

Market recovery expected to continue across all regions; high demand for xEV in Europe; L1/L2/L2+ penetration on schedule

Market Outlook for Q4 CY20 Market Outlook for CY21

Car units

xEV

ADAS/AD

› Continued recovery of car sales and production › Y-Y recovery with unit growth at mid-teens %

› Strong momentum in Europe › Some recovery in the US and China

› No major change in OEMs’ plans in near-term › L2 growth to continue

› Further increase in L2 penetration expected › L2+ shipments at low volumes

› Incentives and CO2regulations should keep

demand high; especially in Europe

› Improving consumer sentiment around

sustainability theme

› Steady investments in EV charging infra-structure

further lowering reservation towards EVs

Source: Infineon; based on or includes content supplied by IHS Markit, Automotive Group: Light Vehicle Production Forecast. September 2020.

After nearly 20% y-y decline globally in CY20 due to COVID-19, all regions are forecast to snap back in CY21

Light vehicle production (year-over-year growth)

North America (16.3m units in 2019) Europe (21.1m units in 2019)

Greater China (24.7m units in 2019)

2019 2020 2021 2021-2025

RoW (13.7m units in 2019)

World (88.9m units in 2019)

Japan / Korea (13.1m units in 2019)

2019 2020 2021 2021-2025 2019 2020 2021 2021-2025

2019 2020 2021 2021-2025

Source: Based on or includes content supplied by IHS Markit, Automotive Group: Light Vehicle Production Forecast. September 2020.

-3.8%

-20.9%

17.6%

1.8% p.a.

-3.8%

-24.1%

16.7%

2.5% p.a.

-8.1%

-9.1%

6.3%

4.7% p.a.

-0.7%

-17.1%

7.2%

1.5% p.a.

-9.6%

-31.2%

24.5%

8.1% p.a.

-5.6%

-19.4%

13.2%

3.8% p.a.

Electro-mobility

Trends toward electrification of cars remain unchanged; driven by more stringent legal guidelines

Passenger car CO2emission development and regional regulations CO2emission by degree of electrification

120

102

0 0

ICE 48 V

MHEV

FHEV PHEV BEV FCEV

emission (g/km

)

-15%

-30% -77%

-100% -100%

› EU continues towards stringent emission

standards

› Recently, the governor of California signed an

executive order mandating that all new cars to be sold in California from 2035 must be zero-emission vehicles

Source: The International Council on Clean Transportation (ICCT): Passenger vehicle fuel economy. May 2020.

100

150

200

2010 2015 2020 2025 2030

US Japan China EU

enacted target

historical performance

-15% vs 2021

-37.5% vs 2021

US (2026): 108g/km

Japan (2030):

73.5g/km

EU (2030): 59g/km

China (2025): 93.4g/km

emission values (g/km; normalized to NEDC

CO2emission: Tank-to-wheel

The longer-term trend towards xEV is unchanged; most likely even accelerating due to incentive programs and green deals

Car production by fuel type

25%

50%

75%

100%

2016 2018 2020 2022 2024 2026 2028 2030 2032

ICE Mild Hybrids Full & Plug-in Hybrids and BEVs Fuel Cell

Source: Based on or includes content supplied by IHS Markit, Automotive Group: Alternative propulsion forecast. July 2020.

xEV penetration: >25% by 2023

xEV penetration: >50% by 2027

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