1. Hans Argenton Fritz Kink Infineon IT September 04 Page 1 Copyright © Infineon Technologies 2004. All rights reserved. Best Practices in Internal Billbacks & Usage Tracking Hans Argenton Fritz Kink Infineon Technologies IT

2. Hans Argenton Fritz Kink Infineon IT September 04 Page 2 Copyright © Infineon Technologies 2004. All rights reserved. Overview Infineon at a Glance Infineon Global License Management Infineon Global License Usage Tracking The Challenge of Internal Billbacks Infineon’s Billback Solution for Touch-and-Pay Licenses Deployment Results and Experiences Outlook and Further Research

3. Hans Argenton Fritz Kink Infineon IT September 04 Page 3 Copyright © Infineon Technologies 2004. All rights reserved. Worldwide Semiconductor Ranking 1st HY 2004 and 2003 Rank 1st HY 2004 1st HY 2004 1st HY 2003 +22% +80% +41% +35% +28% +20% +30% +43% +26% Rank CY 2003 (1) (2) (3) (4) (7) (5) (6) (8) (9) (10) 1. Intel 3. TI 5. Infineon 6. Toshiba 2. Samsung 4. Renesas* 8. TSMC** 10. Freescale*** 7. STM 9. NEC Source: IC Insights, July 2004 * Merger of Mitsubishi and Hitachi **Pure-play foundry ***Ex-Motorola Semi Revenues in US $ bn +26%

4. Hans Argenton Fritz Kink Infineon IT September 04 Page 4 Copyright © Infineon Technologies 2004. All rights reserved. Infineon at a Glance Infineon - a top 10 semiconductor company Revenues of 5.202 EUR bn in the first 9 months fiscal year 2004; revenues growth of 18% year-on-year Fastest growing semiconductor enterprise in 2003 Approx. 34,400 employees (incl. 6,900 R&D staff) as of June 30, 2004 Strong technology portfolio with more than 37,000 patents and applications; 46 major R&D locations world-wide Most advanced fab cluster and world leader in 300mm production Focus on communications, automotive and memory products

5. Hans Argenton Fritz Kink Infineon IT September 04 Page 5 Copyright © Infineon Technologies 2004. All rights reserved. Infineon Global License Management Salzgitter Mobile Phones Software Duisburg Automotive Solutions Horten Tire pressure sensors Düsseldorf DataCom Cordless Bluetooth Warstein High Power Aalborg Wireless Systems Kista Wireless syst. Communic. Augsburg Security Software Sophia Antipolis Libraries Wireless ASICs Dublin Security Software Karlsruhe Emulators for Microcontr. Bristol High Perform. Cores Ulm RF ICs for GSM Base Band RF Devices Porto Memories Corbeil- Essonnes Hamburg Chemnitz Wireless Applications Dresden DRAM fabs & cell / Flash Erlangen Memories Berlin Fiber Optics Hannover Wireless Braun- schweig Linkoeping Wireless Nuremberg GSM software Linz UMTS/GSM/ GPRS/EDGE Wireless Contr. Graz Security Autom. Sense&Control RFID Solutions Villach Mixed Signal Cores Telecom Munich Mixed Signal Cores Autom. Power Regens- burg Interconnect. Packaging Padova Automotive & Indust. Power Automotive Power Wireless Discretes IP-Cores Mixed Signal Memory Security Technology Design Flow

6. Hans Argenton Fritz Kink Infineon IT September 04 Page 6 Copyright © Infineon Technologies 2004. All rights reserved. Infineon Global License Management Netanya Telecom. Flash Memory Burlington DRAM Product dev. Longmont Fiber Optics Xi'an Super Design Fab San Jose Optical Networking Albany Nanotechnology Cary DRAM Product dev. Bangalore Software Development East Fishkill Logic 65/45 MRAM Singapore 8/32 bit µC Telecom Network & Computer Storage Shanghai Wireless Systems Tempe RF Power Devices Taipei Broadband CPE System development Morgan Hill RF Power Transistors Austin Sematech

7. Hans Argenton Fritz Kink Infineon IT September 04 Page 7 Copyright © Infineon Technologies 2004. All rights reserved. site-specific capacity planning Infineon Global License Usage Tracking Site C Site A Site B Site D Reporting Engine Result Common Database Filter

8. Hans Argenton Fritz Kink Infineon IT September 04 Page 8 Copyright © Infineon Technologies 2004. All rights reserved. Infineon Global License Usage Tracking

9. Hans Argenton Fritz Kink Infineon IT September 04 Page 9 Copyright © Infineon Technologies 2004. All rights reserved. Global picture Global forecast Consolidated license landscape Single point of contact to vendor Infineon Global License Usage Tracking Opportunity: Switch to global pay per use contracts

10. Hans Argenton Fritz Kink Infineon IT September 04 Page 10 Copyright © Infineon Technologies 2004. All rights reserved. The Challenge of Internal Billbacks How to bill back global license costs to all participating cost centers worldwide transparently and cause-oriented? To make it more challenging Touch and Pay Once a license has been checked out for the first time, it has to be paid, regardless of the total number of check-outs and their durations.

11. Hans Argenton Fritz Kink Infineon IT September 04 Page 11 Copyright © Infineon Technologies 2004. All rights reserved. The Challenge of Internal Billbacks

12. Hans Argenton Fritz Kink Infineon IT September 04 Page 12 Copyright © Infineon Technologies 2004. All rights reserved. Infineon’s Billback Solution for Touch-and-Pay Licenses Peak of UG 4 Peak of UG 3 Peak of UG 1 Peak of UG 2 = Overall Peak Corresponding cost slice allocated to UG 2 Corresponding cost slice allocated to UG 1, UG 2 Corresponding cost slice allo- cated to UG 1, UG 2, UG 3 Corresponding cost slices allocated to UG 1, UG 2, UG 3, UG 4

13. Hans Argenton Fritz Kink Infineon IT September 04 Page 13 Copyright © Infineon Technologies 2004. All rights reserved. Solution Deployment: Results Global acceptance and deployment Global contracts now meet real license needs Cost centers now are able to react to accrued license costs within days Impartial monitoring of license costs per individual project

14. Hans Argenton Fritz Kink Infineon IT September 04 Page 14 Copyright © Infineon Technologies 2004. All rights reserved. Solution Deployment: Experiences However, strong control and limitation of license peaks still required in order to meet cost targets Impartial break down of global license costs to individual projects improved significantly forecasting and planning of project costs Sharpens cost awareness

15. Hans Argenton Fritz Kink Infineon IT September 04 Page 15 Copyright © Infineon Technologies 2004. All rights reserved. Outlook and Further Research Deployment of generalized cost-allocation algorithm for business-related hierarchies (e.g., geographical regions, business groups) Apply experiences and benefits of consolidated license landscape to Infineon compute farms for further increasing license efficiency and cost effectiveness (e.g., most expensive software on fastest CPU’s?)

16. Hans Argenton Fritz Kink Infineon IT September 04 Page 16 Copyright © Infineon Technologies 2004. All rights reserved. Backup

17. Hans Argenton Fritz Kink Infineon IT September 04 Page 17 Copyright © Infineon Technologies 2004. All rights reserved. Infineon’s Billback Solution for Touch-and-Pay Licenses Peak Range for Common Allocation Costs