NXP, Infineon, Gemalto, and G&D Look Set to Prosper from New Opportunities in China’s Smart Card Market

31 Jul 2012

​China has traditionally been a fairly closed loop market with only local vendors chosen to participate in the deployment of government issued credentials to its citizens. However, China’s desire to adopt higher-level microprocessor contactless technology has allowed the likes of Infineon and NXP to win new contracts ahead of the domestic competition.

China continues to be an integral part of the market, accounting for approximately 13% of all worldwide smart government ID shipments in 2011. It currently has the largest single national ID project with an installed base of over 900 million. It is also migrating to e-passports and introducing new social security/payment cards, up to 800 million of which will be deployed by 2015.

Both Infineon and NXP have demonstrated that accessing the Chinese market is possible. As the Chinese government looks to make use of high-end technology, expanding the supplier base has become a necessity to fill the need for security and memory capacity.

Research analyst Phil Sealy comments, “In the short to mid-term, NXP and Infineon will have success in the Chinese region with the deployment of e-passport ICs. They are both strong contenders to become suppliers for China’s new dual interface social security card with payment functionality. Gemalto and G&D are also operational with the deployment of PBOC 2.0 payment cards, showing that China is certainly softening its approach towards international vendors. It is important for companies looking at China to act now before local vendors develop a comparable solution.”

Security & ID practice director John Devlin adds: “The primary driver for bringing in international vendors is the desire to adopt the highest level technology; the leading IC suppliers believe China is 3–4 years away from developing a comparable solution. It will be interesting to see if China’s adoption of cutting-edge technology outweighs recent policy favoring local vendors, such as Eastcompeace, Tongfang Microelectronics, and CEC Huada.”

ABI Research’s report, “China Presents New Opportunities for International Smart Card and IC Vendors with Migration to High End Technology” provides a focused analysis of the Chinese Government, Healthcare, and Citizen ID market. The report also discusses what barriers and potential opportunities the market can offer foreign investors.

These findings are part of ABI Research’s Government & Healthcare ID Technologies Research Service.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.


About ABI Research

ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

Contact ABI Research

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670

Related Service