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NXP is top supplier of contactless ICs, NFC apps

Posted: 23 Jun 2008     Print Version  Bookmark and Share

Keywords:contactless cards  Near Field Communications  contactless IC vendors 

NXP Semiconductors is the leading supplier of chips for contactless cards and NFC (Near Field Communications) applications according to a vendor matrix of the sector from London-based ABI Research.

Inside Contactless and Infineon Technologies claimed the second and third spots in the market research group's most recent evaluation of worldwide contactless IC vendors.

The Vendor Matrix focus is specifically on ICs developed for and delivered to the contactless payment, ticketing and NFC markets.

The study examined vendors' product and manufacturing innovations, their experience, leadership, and knowledge transfer, their relevance to the global market, and the breadth of their product offerings.

Under the "implementation," part of the study, ABI Research scrutinised criteria such as companies' share of the potential and addressed markets, their global sales and support capabilities, the breadth of the contactless markets they serve, and the reach of their multi-regional product delivery.

Separately, another market research group predicted this week that the global market for NFC solutions, which was said to be worth about Rs.40.02 crore ($10 million) in 2007 (with 61,000 NFC enabled devices shipped), would show a compound annual growth rate of 143 per cent through 2012, and reach Rs.3,509.85 crore ($877 million) in revenues by then.

According to VDC (Matick, MA.), NFC adoption is slow today because it is hamstrung by a lack of supporting infrastructure, technical standards, cooperation among value chain participants, and market misperceptions.

VDC notes there is a host of different companies involved in the NFC value chain, each with their own interest, roles and business models. There is a great deal of uncertainty as to how a globally-accepted NFC business model will be defined and implemented, as several stakeholders are "competing" for control of the ever-expanding markets for non-cash transactions.

"In a too-familiar Catch-22,", cites Louis Bianchin, Senior Analyst of VDC's AIDC/RFID Practice, "NFC device end users are limited as to where they can use it, while enterprises are not investing heavily into the technology because they feel that there is a limited supply of NFC-enabled devices and users."

- John Walko
EE Times Europe

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