July 3, 2014, Seoul — NXP Semiconductors (NASDAQ: NXPI), a global semiconductor company, announced that it has strengthened its market leadership by increasing its share of the payment card security IC market from 32% in 2012 to 48% in 2013. Global market research firm IHS announced in its recently released 'Payment and Banking Cards Report – 2014' that NXP's revenue increased significantly.

This report predicted that although the use of security ICs is not yet widespread, the adoption rate of credit and debit cards is increasing significantly, and the use of security ICs will continue to grow over the next five years.

The report stated that approximately 10 billion credit and debit cards are in circulation worldwide, with nearly 50% of them being secure IC cards, commonly known as EMV cards. It also noted that the adoption of secure IC cards is continuing in China, the world's largest single market with 3.3 billion cards in circulation, and explained that the United States is also driving the growth of secure IC cards by recently switching to EMV.

In addition, advanced markets such as Europe and Australia are also showing additional growth as they transition to dual interface or contactless technology, and it is expected to account for 76% of total bank card shipments in 2017.

NXP, which provides complete security IC solutions in the smart card market, recorded a 49% market share, widening the gap with the second-place competitor to 20% and securing a clear advantage in the security IC market. Furthermore, NXP also widened the gap with all other companies mentioned in the report. From an estimated 1.4 billion units shipped in 2012 to 1.88 billion units shipped in 2013, it grew by 49% year-on-year, showing a higher growth rate than the overall market, which recorded a growth rate of 34%.

“NXP is very pleased to be recognized for its significant contribution to the security of the global financial system as a global market leader in supplying security ICs within the payment card sector,” said Brintha Koether, Director at NXP Semiconductors. “NXP will focus on developing the best innovative and secure solutions in the rapidly growing EMV payment card market.”