Credit: Shutterstock photoInfineon Technologies AGIFNNY , in partnership with Beijing-based Mobile Payment Solutions Co. Ltd. ("MPS"), recently launched the smallest NFC security module series that will improve the performance of smart wearables by minimizing their printed circuit board ("PCB") footprint.
Built on Infineon's Boosted NFC Secure Element, the latest module does not require the use of separate NFC controllers that is otherwise needed in traditional offerings to run card emulation functionality on a device. Having dimensions as small as 4mm X 4mm, the smallest module of the series can slash PCB footprint by 75%.
Powered by the Java security card operating system, the Boosted NFC security module allows users to load multiple Java-based applications (applets) on smart devices seamlessly. Using this module, secure payment function can also be incorporated into existing smart devices that previously did not contain any such feature. Infineon's flagship SLE78 security chip has been deployed to engineer the NFC security module as it offers high-performance and sufficient storage capacity.
The latest plug-and-play solution from the Infineon family will improve design of device manufacturers by integrating high-performance Infineon security chips with NFC antenna components and software on a very small PCB space. For end-users, this translates into storing user credentials safely and using a single device to perform the functions of multiple cards including payment cards, public transport tickets and online payment tokens.
Infineon believes minimal PCB footprint and power consumption are integral for the success of smart wearables which are rapidly incorporating the mobile payment functionality to enhance performance standards. Meanwhile, makers of wearable devices like fitness trackers, smart keys to chains, watches and wristbands are tasked with the formidable challenge of equipping small devices with advanced security and NFC technologies.
MPS, manufacturing the Boosted NFC security module series, has also clinched the Mobile Finance Secure Element Certificate from the China Financial Authentication body of the People's Bank of China (PBOC). This will help Infineon and its partner penetrate the fast-growing mobile payment market in China thereby augmenting growth. Increasing popularity of mobile payments on smart devices will stoke demand for new system architectures that help to integrate trustworthy hardware security into devices.
Of late, Infineon's CCS segment which produces solutions like chip-based credit cards has been performing significantly well, thereby boosting its competitive position. Greater usage of higher-end SIM cards for mobile payments, payment cards and government ID authentication solutions adds to the growth of CCS segment. We believe such solid potential across all the markets will greatly supplement the company's top line, going forward.
However, intensifying competition from existing rivals like Intel Corporation INTC , QUALCOMM Inc. QCOM and Broadcom Limited AVGO are proving to be major concerns for the company. Moreover, strong seasonal fluctuations in product supply and demand are also adding to Infineon's woes.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
