Maximum security through new product platforms for chip cards
Secure Mobile Solutions offers an extensive line of wireless applications and serves the entire security chip card market. Included in its portfolio are not only numerous semiconductor components for cordless phones and cell phones, but also operating software and applications for cell-phone manufacturers who procure system solutions. The business group also offers Bluetooth chips for wireless transmission of data over short distances and chips for cellular base stations. The UMTS third generation wireless system provides cell-phone users with multimedia services in addition to telephony. Since the introduction of this technology, the UMTS cellular base station business has been gaining momentum as well. The capacities of conventional GSM and GPRS networks are also being expanded or - as is the case in parts of Eastern Europe, South America and India - are being deployed for the first time. Our security chips are used in a wide range of applications: for example, in SIM cards for identifying users in cellular networks, as well as in PayTV, bank and credit cards and for ID cards and passports.
Business situation
The cellular market is characterized by two trends: on the one hand, multimedia telephones require ever more powerful processors and increasingly complex software and system solutions. On the other hand, the important mass markets in Asia, Eastern Europe and South America are demanding economical low-end models. There is a growing demand for complete reference designs, including the software solutions, which we can tailor to meet specific customer needs.
Growth drivers in the area of security chips are personal identification applications (passports, ID cards, health insurance cards) and payment cards (debit and credit cards). In these high-security areas, very high standards for both contact and contactless chip cards are required in terms of security and performance. As in the past, SIM cards continue to account for the majority of revenues.
These markets pose several challenges: the cell-phone industry is characterized by short innovation cycles as well as shifts in supply chain structures. Cell-phone manufacturers are increasingly moving their development and production operations abroad; mobile suppliers are to a greater extent defining their own cell-phone specifications and are contracting out production. The number of applications for security chips is continuously growing; in addition, there are constant requests for new security functions in existing applications.
Strategic orientation
The platform business is regarded as an important growth market in the cell-phone segment. In view of this, Infineon has promoted software and system development. Today, Infineon delivers a comprehensive range of services. In addition to providing telephone platforms with the required range of functions, Infineon also offers support during testing and production ramp-up. The company is also expanding its market leadership in the area of radio frequency components.
State-of-the-art technologies, innovation, and a highly competitive product spectrum help to strengthen our wireless infrastructure business as does the consistent expansion of our customer base.
We are striving to maintain and expand our market leadership in the area of security chips and solutions by introducing the high performance 16-/32-bit product platforms with additional security features as well as a new contactless controller family. Infineon is enlarging its application spectrum and customer base with RFID chips for identification tasks and TPMs (Trusted Platform Modules) for PC and network security.