NXP Semiconductors and Sony Plan Joint Venture for Contactless IC Business


EINDHOVEN, The Netherlands and TOKYO, November 20--- Creators of Near Field Communication Technology Team up to Develop Secure Chips for Contactless Transactions

NXP Semiconductors, formerly Philips Semiconductors, and Sony Corporation
have signed a memorandum of understanding (MOU) to establish by mid-year 2007
a joint venture (JV) that will drive global adoption of contactless smart
card applications in mobile phones. The anticipated JV will plan, develop,
produce and market a secure chip that will include both MIFARE® and
FeliCa(TM) operating systems and applications, as well as other contactless
card operating systems and applications.

By combining this secure chip with an NFC chip a universal contactless IC
platform can be created for mobile phones. As a result, mobile device
manufacturers and service providers around the world will be able to design
products and services which are compatible with the different contactless IC
protocols and operating systems that are already deployed in different
countries. Therefore consumers will be able to enjoy multiple applications
such as payment and transport ticketing from various service providers on one
device.

Marc de Jong, Executive Vice President and General Manager, NXP
Semiconductors said: "This joint venture signals the evolution of
interoperable mobile services, regardless of technology platform or
geography. Combining MIFARE and FeliCa contactless technologies in a single
chip opens a vast array of opportunities for consumers using the
technologies, as well as for developers creating new applications for global
markets. Soon service providers will be able to roll out great new services
to end users on a global scale, ensuring a broad range of offerings to keep
customers happy wherever they are."

Mr. Hiromasa Otsuka, Corporate Executive and SVP, Sony Corporation
commented: "With FeliCa, Sony has established a contactless IC business model
whereby mobile phone wallet services are deployed in multi-application,
multi-handset and multi-carrier modes. The new JV will introduce customers
around the world to a new lifestyle where simply touching a terminal with a
mobile phone gives access to a wide range of services. And it will contribute
to Sony's vision of a network consumer electronics entertainment world."

NFC is a combination of contactless identification and interconnection
technology that enables wireless short-range communication between mobile
devices, consumer electronics, PCs and smart objects. NFC has proven popular
in trials around the world. Its interoperability with MIFARE, FeliCa and
ISO14443 infrastructures promises to make mobile phones become wallets and
transport tickets.

MIFARE is the most widely installed contactless smart card technology in
the world with about 1.2 billion smart card chips and more than seven million
reader modules sold. Current shipments of FeliCa ICs stand at 170 million
units and of these 30 million are mobile FeliCa chips for use in mobile
phones in Japan. Sony is creating a unique business model for the use of
contactless IC for mobile phones. NXP and Sony will individually offer chips
and applications based on their respective technology platforms MIFARE and
FeliCa, while both companies will continue to develop NFC technologies
jointly.

For further press information please contact:

NXP Semiconductors Europe:
Alexander Tarzi - Tel. +43-1-60101-1649,
alexander.tarzi@NXP.com;

Sony: Shusuke Kanai - Tel. +44-(0)7786-115086,
Shusuke.Kanai@eu.sony.com.

Or visit the press room at www.NXP.com

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