Infineon is Global Market Leader in Security Chips for the NFC Technology

Neubiberg, Germany – January 17, 2012 – Infineon Technologies (FSE: IFX / OTCQX: IFNNY) is the world’s leading supplier of security microcontrollers for NFC (Near Field Communication) applications. The current IMS Research study* (January 2012) shows that Infineon holds a 51.5 percent share in the NFC security microcontroller (Secure Element) market.

NFC contactless communication technology transforms smart phones and other mobile devices into wallets, tickets and keys. As a major supplier, Infineon has played a key part in shaping NFC market development and brings the security functions for contactless NFC applications to the mobile device in three ways: via a NFC security microcontroller for the SIM card, via the embedded Secure Element forming part of the mobile phone electronics, and via a Secure Element which can be implemented in a microSD card, for example. This makes Infineon the only semiconductor manufacturer in the world to providing such flexibility in implementing the NFC functionality. Infineon offers NFC solutions that fulfill the strictest requirements for security microcontrollers, including the Common Criteria EAL 5+ “high” international standard and the EMVCo (Europay International, Mastercard, Visa) approval. They’re suitable for all payment applications enabled by mobile devices over NFC.

Infineon’s NFC security microcontrollers are already used in most NFC-enabled smart phones. For some NFC security microcontrollers, Infineon uses its multi-award winning “Integrity Guard” security technology developed specifically for applications such as mobile payment requiring a very high level of protection. This security technology means that the data is stored in encrypted form and remains encrypted for processing along the entire data path – CPUs, memories, caches and buses.

“We are delighted at this leading position and at our customers’ great trust in Infineon’s NFC security chips. We are the only semiconductor manufacturer in the world to support all NFC business models with our broad portfolio of security solutions,” said Dr. Stefan Hofschen, President of the Chip Card & Security Division at Infineon Technologies AG. “Data security is essential for sustained consumer confidence and successful NFC business models. With Infineon’s security microcontrollers, mobile phones offer NFC functionality that is secure, convenient and efficient. In this way, Infineon establishes the technical basis e.g. for secure mobile payment.”

According to IMS Research data, the number of NFC-enabled mobile phones shipped in 2011 was 35 million globally and this figure is set to grow to 80 million by the end of 2012. Showcase events, such as the Summer Olympic Games 2012 in London, will help to promote NFC technology and to demonstrate its benefits for mobile payment or access control, for example. By 2016, mobile payment should become the most popular NFC application by far.
IMS Research puts the number of Secure Elements shipped in 2011 for NFC-enabled mobile phones at 46 million. Embedded Secure Elements accounted for the lion’s share, followed by SIM cards and other solutions such as microSD cards. IMS Research anticipates a very strong annual growth for the NFC security microcontroller market from 2011 through to 2016. The market researchers forecast that 44% of all mobile phones sold in 2016 will be NFC-enabled.

Further information on “Integrity Guard” security technology is available at www.infineon.com/integrityguard
Further information on NFC is to be found at www.infineon.com/nfc

*Source: IMS Research study “The World Market for NFC – 2012 Edition”, January 2012.

About IMS Research

IMS Research is a leading independent supplier of market research and consultancy to the global electronics industry. IMS offers syndicated market studies, bespoke client research and consultancy services to help clients better understand markets and shape strategies. The company was founded in 1989, and now has over 120 analysts worldwide with clients in over 50 countries. Further information is available at www.imsresearch.com

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2011 fiscal year (ending September 30), the company reported sales of Euro 4.0 billion with close to 26,000 employees worldwide. 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). Further information is available at www.infineon.com.