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1 Investor Relations 08 April 2025 Infineon to acquire Marvell’s Automotive Ethernet business
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2 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 Disclaimer Disclaimer This presentation contains forward-looking statements and/or assessments about the business, financial condition, performance and strategy of the Infineon Group. These statements and/or assessments are based on assumptions and management expectation resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks, many of which are partially or entirely beyond Infineon’s control. Infineon’s actual business development, financial condition, performance and strategy may therefore differ materially from what is discussed in this presentation. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements. Specific disclaimer for S&P Global reports, data and information referenced in this document: The S&P Global reports, data and information referenced herein (the "S&P Global Materials") are the copyrighted property of S&P Global Inc. and its subsidiaries (“S&P Global”) and represent data, research, opinions or viewpoints published by S&P Global, and are not representations of fact. The S&P Global Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the S&P Global Materials are subject to change without notice and neither S&P Global nor, as a consequence, Infineon have any duty or responsibility to update the S&P Global Materials or this publication. Moreover, while the S&P Global Materials reproduced herein are from sources considered reliable, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses which are based upon it. S&P Global and the trademarks used in the Data, if any, are trademarks of S&P Global. Other trademarks appearing in the S&P Global Materials are the property of S&P Global or their respective owners.
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3 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 A unique opportunity to further strengthen our number one position in automotive MCUs and boost system capabilities #1 automotive semiconductor company and global leader in automotive MCUs #1 automotive Ethernet leader with complete portfolio for in-vehicle network Accelerate software-defined vehicle (SDV) transition by zonal architecture built on Ethernet-based networks Automotive Ethernet business owned by
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4 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 Infineon global #1 automotive semiconductor provider – again gaining share in MCUs Infineon’s market position in key product segments TechInsights: Automotive Semiconductor Vendor Market Share 2024, March 2025. 1S&P Global: Automotive Semiconductor Market Shares 2023, May 2024. 16.3% 21.5% 22.5% 28.5% 30.8% 20.7% 10.1% 20.7% #2 Automotive Sensors1 #1 Automotive MCUs #1 Automotive power semis #1 Total automotive semiconductor market in 2024 Infineon NXP STMicro Infineon STMicro Texas Instr. Bosch Infineon NXP Renesas Infineon NXP 13.5% 10.5% 8.8% 29.2% 18.5% 15.5% 13.4% 23.4% 32.0% 20.4% 10.1% 20.1% Infineon has strong market share across all regions #2 North America 10.4% market share #2 Japan 13.2% market share #1 South Korea 17.7% market share #1 China 13.9% market share #1 Europe 14.1% market share
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5 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 Marvell is the automotive Ethernet leader with complete portfolio of PHYs, bridges and switches for in-vehicle network Strong global presence at 8 of 10 top OEMs and all major Tier 1s Brightlane – key products: ‒ Switches ‒ Bridges ‒ PHYs #1 market position based on long history of dedicated R&D in automotive Ethernet ~25% revenue CAGR until 2030 ~$4bn lifetime design-win revenue volume Asset-light analog/mixed-signal ICs with differentiated software stack Brightlane product focus
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6 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 Ethernet capabilities allow for larger scope in SDVs, higher BoM, faster T2M for customers – strongly supporting our P2S play ‒ Strengthens Infineon’s market-leading MCU business and enhances offerings for zonal architectures in the context of software-defined vehicles ‒ Expands the scope of Infineon’s MCU portfolio with high-performance networking capabilities ‒ Highly complementary to IFX's current portfolio, extending our reach within the vehicle ecosystem ‒ Highly integrated chip solutions, developed by a team of hundreds of highly skilled employees ‒ Combined expertise – supported by Infineon global reach Key benefits of the transaction for Infineon: Control ECU Complex sensors & actuators Simple sensors & actuators PHY Bridge Switch Components of hierarchical E/E architectures: Zone controller High Performance Computing (HPC) Scope of Acquisition Low-bandwidth network Ethernet
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7 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 Ethernet became the de-facto standard in automotive and is expected to see high growth driven by advanced E/E architectures Automotive Ethernet TAM E/E architecture forecast 2024 2030 0 1 2 2024 2030 Non-SDVSDV 0 100 5x 10x [bn USD] [m units] Marvell estimates based on TechInsights. S&P Global Mobility: Automotive Semiconductor Market Tracker, Dec 2024.
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8 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 Physical AI applications including humanoid robots offer significant potential for Ethernet 2024 2030 2035 0 0 2 4 6 8 10 ~400k ~2.6m Global humanoid robot shipment forecast [m units] 3k BofA Global Research, December 2024 / March 2025. December 2024 March 2025 ~10m ~1m
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9 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 GaN power High-frequency motor control based on CoolGaN enabling compact joints Sensors Internal sensors for actuation and external sensors for orientation and interaction, e.g. radar Ethernet is a key extension to Infineon's comprehensive portfolio for humanoid robots and other forms of physical AI Ethernet Single-Pair Ethernet ideal for space and weight constrained applications Microcontroller Low-latency real-time capable, secure and functionally safe MCUs Further elements Wireless connectivity (WiFi, Bluetooth), power management, battery management, security ICs, memory
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10 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 Compelling financial profile of the acquisition: highly accretive to ATV and supporting profitable growth of Infineon Standalone 2025e revenue: $225m to $250m Gross margin: ~60% Revenue synergies enabled by reach and cost synergies by scale contributing to financial accretion ‒ ~$2.5bn purchase price, all-cash transaction ‒ Financed from existing liquidity, plus additional debt; acquisition financing from banks in place ‒ Clear commitment to investment grade rating and our conservative finance policy ‒ PMI will follow proven script, to be integrated into ATV division ‒ Customary regulatory approvals, closing expected within 2025 Transaction parameters: Key benefits of the transaction – highly accretive to ATV:
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11 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 Key take-aways A unique opportunity to expand our market-leading position in the automotive MCU landscape ‒ 2025e revenue of $225m - $250m, gross margin ~60% ‒ Complete Ethernet product portfolio for in-car communications, covering switches, bridges and PHYs ‒ #1 market position with strong OEM presence ‒ ~25% CAGR / ~€4bn Euro design-win pipeline Highly complementary to current Infineon portfolio ‒ Expand Infineon MCU business with high-performance networking promoting further profitable content growth ‒ Enhance offer for zonal architectures in software-defined vehicles ‒ High growth opportunities in areas like physical AI, including humanoid robots
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13 Copyright © Infineon Technologies AG 2025. All rights reserved.2025-04-08 ‒ Evolution from centralized to decentralized ‒ Power distribution safety element for ‒ freedom from interference ‒ system availability up to ASIL-C for ADAS ‒ fail-operational of ASIL-D for AD and x-by-wire Intelligent power distribution ‒ Evolution to hierarchical / centralized ‒ Application software decoupled from hardware ‒ Management of real-time communication in each zone ‒ Automotive Ethernet as key differentiator Safe and secure computing and high-speed vehicle network Software-defined vehicles are enabled by safe/secure computing, high-speed vehicle networks, and intelligent power distribution new features in safety and security standardization of components reduced complexity and cost of wire harness digital lifecycle management new features in comfort, connectivity and infotainment monetization of functions & data Advantages of software-defined vehicles Slide from December 2024 automotive call