Seoul, February 5, 2013 – Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY), a leading global manufacturer of semiconductor solutions for payment applications, today announced the innovative ‘Coil on Module’ chip package for dual interface bank and credit cards. Dual interface cards are used in contact-based and contactless applications and demand is increasing worldwide.

The new ‘Coil on Module’ package integrates the security chip and antenna, connecting via RF to an antenna embedded in the plastic card. Using an RF link rather than the typical mechanical-electrical connection between the card antenna and the module not only improves the robustness of the payment card, but also simplifies card design and manufacturing, improving efficiency and enabling production up to five times faster than traditional technologies.

“We expect that Infineon’s ‘Coil on Module’ technology will significantly accelerate the worldwide adoption of contactless payment applications,” said Dr. Stefan Hofschen, President of the Chip Card & Security Division of Infineon Technologies AG. “With our new chip module, card manufacturers can produce dual interface cards much faster and more efficiently. “Based on comprehensive semiconductor and module expertise as well as a deep understanding of card manufacturers’ systems and requirements, the innovative ‘Coil on Module’ package once again demonstrates Infineon’s technology leadership,” he said.

The cardholder's personal data is stored in the security chip of the dual interface card and is uploaded only when a payment is made. The dual interface card also includes a card antenna that supports contactless communication with the card reader at the point of sale. In the case of the traditional card manufacturing process, the chip module is connected to the card antenna through mechanical-electrical processes such as soldering connections or conductive paste. This method is very complex and requires changes to the antenna design for each chip module.

'Coil on Module' technology simplifies this process. An auxiliary antenna integrated into the rear of the chip module transmits the data to the card antenna via inductive coupling technology, i.e. a wireless connection. The card becomes more robust because the traditional connection between the chip module and the card antenna, which can damage the card due to mechanical stress, is eliminated. In addition, card manufacturers can embed 'Coil on Module' chip modules in the card much more quickly and economically than when using traditional dual interface modules. In addition, manufacturers can use all Infineon chip/module combinations with the universal card antenna. This will reduce the complexity of the dual interface card manufacturing process.

Card manufacturers can take advantage of ‘coil-on-module’ packaging technology in a number of ways:
- By simplifying the production process, yields can be increased, which in turn reduces manufacturing costs.
- Existing contact-based chip card production plants can be used to manufacture dual interface cards without additional investment.
- Previous manufacturing methods required changes to the card antenna design for each individual chip. All Infineon's 'Coil on Module' chips/modules now use the same form factor of the card antenna. This allows card manufacturers to reduce design and test costs and simplify inventory management.
- By using inductive coupling technology, chip modules can be embedded into cards up to five times faster than traditional production methods.

Infineon's 'Coil on Module' chip package is initially available for bank cards and credit cards. However, it is also optimized for other forms of contactless or dual interface smart cards, such as electronic access control, public transport ticketing, electronic identification cards, etc.

According to IMS Research, a market research firm, the share of dual interface cards in the global chip card market in 2012 was estimated at 19% (672 million units), and it is expected to increase to 6.1 billion units, or 71%, by 2017.

Supply period
The 'Coil-on-Module' chip package is currently sampling.

Security technologies for a connected world
With its core competencies in security, contactless communication and integrated microcontroller solutions, Infineon offers a comprehensive portfolio of semiconductor security products for a wide range of chip card and security applications. With this expertise, Infineon enhances security in an increasingly connected world, for example in mobile payment, system security and secure certified electronic documents. Infineon has been developing innovative solutions in chip-based security technology for 25 years and has been a global market leader for 15 years.

Further information on Infineon’s chip card and security solutions is available at: www.infineon.com/chip-card-and-security