Chip makers still uncertain of plunge into NFC -- Proprietary..., 2004 WLNR 16808159
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`11/15/04 Electronic Engineering Times 6
`2004 WLNR 16808159
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`Electronic Engineering Times
`Copyright © 2004 CMP Media LLC
`
`November 15, 2004
`
`Section: News
`Section: 1347
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`Chip makers still uncertain of plunge into NFC -- Proprietary
`interface is one hurdle for vendors mulling Philips' Near Field Comms
`
`Junko Yoshida
`
`Paris - With the backing of such leading cell phone suppliers as Motorola, Nokia and Samsung, Philips' Near Field
`Communication (NFC) short-range wireless technology appears poised for widespread adoption. Each of the three handset
`suppliers is preparing to introduce commercial or prototype versions of NFC-capable mobile phones this year or next, enabling
`a range of capabilities such as ticketing, e-shopping or the configuring of other, longer-range wireless communication protocols.
`But one thing is missing from the NFC bandwagon and could derail its momentum: No chip maker aside from Philips
`Semiconductors has yet agreed to supply NFC chips.
`
`Even the urging of Nokia Corp., which showed its first commercial mobile phone with an "NFC shell" attached to the back at
`the Cartes & IT Security conference here earlier this month, has not convinced Infineon Technologies AG to become a second
`source. "We still have doubts about some NFC application scenarios," said Axel Deininger, the head of product-marketing
`security at Infineon.
`
`But a number of IC companies, including Infineon, Matsushita, Renesas and STMicroelectronics, are intently looking at NFC,
`sources said last week at the Electronica trade show in Munich, Germany. While none has publicly committed to NFC as yet,
`several industry sources said, negotiations are under way as companies jockey for position in an emerging market.
`
`Still, some chip makers were described as having lingering doubts about the technology. Specifically, they expressed concern
`with the proprietary, Philips-defined interface between NFC chips and smart-card controllers. Other trouble areas included
`NFC's scant support from consumer electronics equipment and the technology's use of both active and passive reading modes.
`
`ABI Research projects that shipments of NFC-capable handsets will increase from 50 million units in 2006 to 200 million units
`by 2009. NFC offers handset makers a contactless link to the established smart-card infrastructure, a feat that could turn each
`NFC-enabled phone into a contactless payment and ticketing device.
`
`Handset makers are particularly hopeful that peer-to-peer NFC will allow two devices in close proximity to automate a
`connection setup and, possibly, make services available. NFC would configure and initialize other wireless protocols without
`requiring a user to navigate complicated menus, proponents say. This would sidestep the difficulties that protocols like Bluetooth
`
` © 2021 Thomson Reuters. No claim to original U.S. Government Works.
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`Chip makers still uncertain of plunge into NFC -- Proprietary..., 2004 WLNR 16808159
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`or Wi-Fi have in selecting the correct device and providing the proper connection parameters. NFC simplifies the procedure
`because one device need only touch another, according to Nokia.
`
`Ten to 15 percent of mobile operators' revenue today comes from consumers downloading ring tones or small Java-based games,
`Nokia said. But gaining access is neither easy nor intuitive for most consumers, and often requires numerous keystrokes and
`much scrolling on a tiny screen. NFC could be the answer, Nokia said.
`
`The company is convinced that "a new touch paradigm"-in which a consumer holds an NFC-capable handset up to an NFC-
`based tag or object-"is a key element for bringing relevant data and services to the masses," said Heikki Huomo, director of
`technology development at Nokia.
`
`Some semiconductor companies see a red flag in the proprietary interface between an NFC chip and a smart-card controller
`chip. Despite a promise by the NFC Forum-an industry alliance founded by Philips, Sony and Nokia-that NFC licensing will be
`open and nondiscriminatory, nonmember companies complain of difficulty obtaining detailed technical specs for the interface.
`"We see a potential pitfall in such a proprietary interface," said Infineon's Deininger.
`
`Skeptics also see NFC's support of both active and passive communication modes as a possible drawback. For active
`communication, two NFC devices generate their own RF field to carry data. In passive mode, one device generates the RF field
`while the other uses load modulation to transfer data. The NFC protocol specifies that the initiator device generates the RF field.
`
`Infineon believes the active-reader function may not be necessary at this time because no TVs, PCs, cameras or set-top boxes
`using NFC exist on the market. Without other NFC-capable devices with which to exchange data, "Why do we need an
`active-reader function?" Deininger asked. If anyone wants to use an NFC-capable mobile phone for payment and ticketing,
`for example, "incorporating an RFID antenna and a dual SIM [subscriber identity module]-capable of contactless and contact
`communications-in a handset is enough."
`
`Further, mobile money applications with smart Visa cards or MasterCards, for example, are already protected by clear security
`requirements, Deininger said. So when two NFC devices want to exchange data, "security functions are not necessary," he said.
`"You shouldn't mix two different applications under one NFC technology."
`
`Semiconductor companies with a strong presence in the RFID and smart-card controller IC markets are natural candidates
`to supply NFC chips. One potential supplier, Renesas Technology Corp., is "watching NFC carefully," said Nicolas Prawitz,
`segment marketing manager for the mobile-security business group at Renesas Technology Europe.
`
`Maximilian Humber, president of Sharp Microelectronics Europe, said last week at Electronica that Sharp is not likely to get
`into NFC chips. "It's going to be a very crowded market soon," he said. "It would be difficult for us to become one of the top
`three vendors in that segment."
`
`The NFC shell on the mobile phone Nokia demonstrated at Cartes & IT Security places Philips Semiconductors' NFC chip and
`SmartMX smart-card controller chip on the same printed-wiring board. The two chips are connected via Philips' proprietary
`S2C interface. If a handset vendor other than Nokia wanted to implement the NFC chip and establish an interface with a SIM
`card-already installed in today's GSM phones-no standardized interface spec is available to connect the two.
`
`Holger Kunkat, manager of products and NFC with the Mobile Secure RFID Solution Program of Philips Semiconductors,
`defended use of the proprietary S2C interface "for competitive reasons." Nevertheless, "sooner or later, we will need to open
`that up," he said.
`
` © 2021 Thomson Reuters. No claim to original U.S. Government Works.
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`Chip makers still uncertain of plunge into NFC -- Proprietary..., 2004 WLNR 16808159
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`Philips Semiconductors sells NFC chips in two flavors. The PN511 offers a pure analog function for NFC, while the PN531
`integrates Philips' 8051 microcontroller, allowing the NFC chip to support low-level NFC protocol layers to a host CPU in a
`handset.
`
`Renesas' Prawitz observed that the potential beauty of NFC is that it can remove analog-design issues from the equation when
`combining an RF antenna and a dual-interface SIM card in a handset. "NFC makes the interface between the two pure digital-
`making the life of a handset designer simpler." Without a standard like NFC, he said, each SIM-card IC may need an antenna
`closely coupled with its very silicon. That could be a nightmarish scenario for service operators and mobile-phone users who
`may want to mix and match their SIM card with a different NFC-enabled handset.
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`http://www.eet.com
`
`Copyright 2004 CMP Media LLC
`
`---- Index References ----
`
`Company: UNITED BUSINESS MEDIA PLC; STMICROELECTRONICS NV; NOKIA OYJ; STMICROELECTRONICS
`NV ADR; INFINEON TECHNOLOGIES AG; RENESAS TECHNOLOGY CORP; SAMSUNG CORP; KONINKLIJKE
`PHILIPS ELECTRONICS NV
`
`News Subject: (Major Corporations (1MA93))
`
`Industry: (Short-Range Wireless (1SH41); Telecom Consumer Equipment (1TE03); Consumer Phones & Answering
`Machines (1CO78); Semiconductor (1SE88); Manufacturing (1MA74); Wireless Semiconductors & Components (1WI91);
`Semiconductors in Communications Applications (1SE84); Networking Technology (1NE74); I.T. Vertical Markets (1IT38);
`Consumer Electronics Standards (1CO37); Wireless Equipment (1WI69); I.T. (1IT96); Semiconductors in Consumer
`Applications (1SE76); Wireless Pagers & Handsets (1WI07); Semiconductor Applications (1SE81); Consumer Electronics
`(1CO61); I.T. in Telecom (1IT42); Electronics (1EL16); Networking (1NE45); Next Generation Wireless Technology (1NE48);
`Telecom (1TE27); Semiconductors in PCs & Peripherals (1SE95); I.T. in Security (1IT64); Semiconductor Products (1SE02))
`
`Region: (Western Europe (1WE41); Germany (1GE16); Northern Europe (1NO01); Europe (1EU83); Central Europe (1CE50);
`Scandinavia (1SC27))
`
`Language: EN
`
`Other Indexing: (ABI RESEARCH; CMP MEDIA LLC; CPU; GSM; IC; INFINEON; INFINEON TECHNOLOGIES
`AG; MATSUSHITA; MOBILE SECURE RFID SOLUTION PROGRAM; MOTOROLA NOKIA; NFC; NFC FORUM;
`NOKIA; NOKIA CORP; PHILIPS; PHILIPS SEMICONDUCTORS; RENESAS; RENESAS TECHNOLOGY CORP;
`RENESAS TECHNOLOGY EUROPE; RF; RFID; SAMSUNG; SHARP MICROELECTRONICS EUROPE; SIM; SONY;
`STMICROELECTRONICS; WI FI) (Axel Deininger; Deininger; Heikki Huomo; Holger Kunkat; Maximilian Humber; Nicolas
`Prawitz; Prawitz; Skeptics; Specifically; Ten)
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`Word Count: 1426
`
`End of Document
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`© 2021 Thomson Reuters. No claim to original U.S. Government Works.
`
` © 2021 Thomson Reuters. No claim to original U.S. Government Works.
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