NXP Semiconductors

Headquarters: 
Netherlands

Co-creator of NFC with Sony, NXP's partnership with Google announced in late 2010 has given it a dominant position in shipments for NFC chips for Android phones. It also has shipped NFC chips for all of Nokia's Symbian phones.

As of the end of 2011, NXP said it had design wins for more than 130 NFC handsets and tablets. Its only competitor during the year was Inside Secure, which sold the NFC chips to Research In Motion for about seven BlackBerry models released in 2011. NXP was believed to have edged out Inside in total NFC chip shipments in 2011, with more than 20 million unit shipments for NXP. All told, there were about 40 million NFC phones shipped by handset makers in 2011 using chips from NXP and Inside. That is lower than NXP had originally projected. 

Back in 2008 and 2009, the economic downturn soured revenue, especially for NXP’s consumer electronics and automobiles. And its aging Mifare Classic technology used in hundreds of millions of cheap and plentiful contactless transport cards worldwide suffered well-publicized but inevitable hacks in 2008. Delays in NFC rollouts upended NXP’s rosy sales projections for the technology in 2008 and 2009 in NXP’s identification division. And in January 2010, rivals Infineon Technologies and Inside Contactless announced with the Nos. 2 and 3 card vendors a plan to offer "open-standard" chips for transit cards using an Infineon-developed authentication scheme that would directly compete with Mifare.

But as 2010 closed out, NXP appeared to be in the driver's seat in the NFC market, with the announced coup that Google would be using its NFC chips and NFC protocol software stack in its new Nexus S and latest Android operating system for smartphones. Samsung Electronics, maker of the Nexus S, later announced it would incorporate NFC (using chips from NXP) in its Galaxy S II smartphone. And NXP's chips are used in such other Android phones as the Galaxy Nexus and Galaxy Note.

As for Mifare, key customer Transport for London was sticking with NXP by upgrading to the chip supplier's top-of-the line DESFire technology for its huge transit-ticketing scheme, Oyster. Competitors are seeking to establish a new transit card technology, Cipurse, but as of late 2011, were still gearing up.

NXP abandoned the idea of selling NFC services and transferred its Mifare4Mobile application management unit to card vendor Gemalto in 2009, but held the rights to the intellectual property.
 
In banking cards, NXP’s SmartMX is used for dual-interface chips used on EMV contactless cards in Europe and beyond. The vendor finally introduced a contactless chip for the U.S contactless bank-card market in mid-2009.

Key figures: 
Financial Results
  2011   2010  Change
Revenue  698  589  18.5%
In millions of US$ for Identification division

Employees
Identification unit: 500 (As of May 2009)

Key NFC Personnel: 
Ruediger Stroh, SVP and general manager, identification
Steve Owen, VP, sales and marketing, identification
Henri Ardevol, general manager, secure transactions
Jeff Miles, VP, mobile transactions
Major NFC and Contactless competitors: 

Inside Secure, STMicroelectronics, Broadcom

Last Updated: 
Jan 2012
Author: 
Balaban

HEADLINE NEWS

Australian Transit Agency to Launch Mobility-as-a-Service Trial as It Pursues Long-Term MaaS Strategy

Plans by Transport for New South Wales, Australia’s largest transit agency, to launch a trial enabling users to plan, book and pay for multimodal rides is the next step toward the agency’s long-ter

Updated: U.S. Transit Agency Seeks to Reduce–Though Not Eliminate–Cash Acceptance with New Fare-Collection System

Updated: The Spokane Transit Authority in Washington state confirmed that its new fare-collection system will include contactless open-loop payments–with a beta test planned for next October, a spokesman told NFC Times' sister publication Mobility Payments.

UK Government Seeks to Bring London-Style Contactless Fare Payments System to Other Regions

The UK government’s plan to equip 700 rail stations over the next three years to accept contactless open-loop payments is a major initiative, as it seeks to replicate the success of London’s contactless pay-as-you go fare payments system elsewhere in the country–a goal that has proved elusive in the past.

More Cities in Finland Expected to Move to Open-Loop Fare Payments

A fourth city in Finland is beginning to roll out contactless open-loop payments, with “more in the pipeline,” according to one supplier on the project, making the Nordic country one of the latest hotspots for the technology.

Moscow Metro Expands Test of ‘Virtual Troika’ in Pays Wallets, as It Continues to Develop Digital-Payments Services

Moscow Metro is recruiting more users to test its “Virtual Troika” card in two NFC wallets, those supporting Google Pay and Samsung Pay, as one of the world’s largest subway operators continues to seek more ways for its customers to pay for rides.

Ohio Transit Agency Expects Significant Revenue Loss as it Builds Equity with Fare Capping

The Central Ohio Transit Authority, or COTA, officially launched its new digital-payments service Monday, including a fare-capping feature that the agency estimates will cost it $1.8 million per year in lost fare revenue, the agency confirmed to Mobility Payments.

Special Report: Interest Grows in ‘White-Label EMV’ for Closed-Loop Transit Cards

As more transit agencies introduce open-loop fare payments, interest is starting to grow in use of white-label EMV cards that agencies can issue in place of proprietary closed-loop cards for riders who don’t have bank cards or don’t want to use them to pay fares.

Swedish Transit Agency Launches Express Mode Feature for Apple Pay, though Most Ticketing Still with Barcode-Based App

Skånetrafiken, the transit agency serving one of Sweden’s largest counties, announced today it has expanded its contactless open-loop payments service to include the Express Mode feature for Apple Pay.

Major Bus Operators in Hong Kong Now Accepting Open-Loop Payments–Adding More Competition for Octopus

Two more bus operators in Hong Kong on Saturday launched acceptance of open-loop contactless fare payments, with both also accepting QR code-based mobile ticketing–as the near ubiquitous closed-loop Octopus card continues to see more competition.

Moscow Metro Launches Full Rollout of ‘Face Pay;’ Largest Biometric Payments Service of Its Kind

Touting it as the largest rollout of biometric payments in the world, Moscow Metro launched its high-profile “Face Pay” service Friday, as expected, and predicted that 10% to 15% would regularly us

Indonesian Capital Seeks to Expand to Multimodal Fare Collection and MaaS

Indonesia’s capital Jakarta, whose metropolitan area is home to more than 30 million people, is notorious for its stifling traffic congestion. In response, the government metro and light-rail networks and now it is funding an expansion of the fare-collection system to enable more multimodal payments and to build a mobility-as-a-service platform.

Exclusive: NFC Wallets Grow as Share of Contactless Fare Payments and Not Only Because of Covid

Transit agencies that have rolled out open-loop contactless payments are seeing growing use of NFC wallets to pay fares, as Covid-wary passengers see convenience in tapping their phones or wearables to pay.