Germany-based smart card company Giesecke & Devrient and Taiwan-based flash memory chip supplier Phison Electronics have dissolved their joint venture that had targeted the market for microSD cards to store mobile-payment applications.
The two companies formed the joint venture, Giesecke & Devrient Secure Flash Solutions, in October of 2009, together investing an estimated €3 million (US$4.5 million). G&D owned a reported 70% of the company, while Phison held the remainder. Phison in 2009 confirmed it had invested €900,000 for its 30% stake, which would indicate G&D put up €2.1 million in initial funding.
To enable mobile payment, the venture had originally intended to produce microSDs with an embedded antenna that could give non-NFC phones a contactless interface. It later switched its development to microSDs that could connect via a single-wire protocol, or SWP, connection to NFC chips and antennas in full NFC phones.