Sony, Infineon join to develop non-contact IC cards

TOKYO: Electronics giant Sony Corp and German chip maker Infineon

Technologies AG said on Tuesday they would jointly develop integrated circuits

for the expanding market for contactless chip cards.

Contactless cards, which contain a tiny chip and antenna that allow users to

pass the card over a reader rather than insert it into a slot, are already used

in some transport systems and are expected to replace identification, banking

and credit cards.

Sony and Infineon said in a statement the advanced chip technology in the

cards would provide more secure transactions and efficient storage of

information. The goal is to make the cards available by the end of 2002.

Sony said that it had already shipped 25 million contactless chip cards based

on its technology, with a significant number already being used in Hong Kong's

subway system.

It is also being deployed in one of Tokyo's main train systems from this

month. Infineon said it estimated the market for chip cards to reach up to 4.5

billion cards by 2006, with a quarter of those being contactless.

Under the agreement, Sony will provide its contactless chip card technology,

called "FeliCa", and Infineon will provide expertise in secure

integrated circuits.

Sony shares closed 0.21 per cent down in Tokyo at 4,800 yen, in line with the

broader market. Infineon shares were up 4.17 per cent in early European trade.

(C) Reuters Limited.