NXP Semiconductors, the former Philips Semiconductors, and Sony Corporation announced they have signed a memorandum of understanding to establish by the middle of 2007 a joint venture that will drive global adoption of contactless smart card applications in mobile phones. Together, the companies will plan, develop, produce and market a secure chip that will include both MIFARE and FeliCa operating systems and applications, as well as other contactless card operating systems and applications.

By combining this secure chip with an NFC chip, a universal contactless IC platform can be created for mobile phones. As a result, mobile device manufacturers and service providers will be able to design products and services which are compatible with the different contactless IC protocols and operating systems that are already deployed in different countries. This will allow consumers to enjoy multiple applications such as payment and transport ticketing from various service providers on one device.

"With FeliCa, Sony has established a contactless IC business model whereby mobile phone wallet services are deployed in multi-application, multi-handset and multi-carrier modes," said Mr. Hiromasa Otsuka, Corporate Executive and SVP of Sony Corporation. "The new joint venture will introduce customers around the world to a new lifestyle where simply touching a terminal with a mobile phone gives access to a wide range of services."

NFC is a combination of contactless identification and interconnection technology that enables wireless short-range communication between mobile devices, consumer electronics, PCs and smart objects. Its interoperability with MIFARE, FeliCa and ISO14443 infrastructures will enable mobile phones to be used as wallets and transport tickets.

MIFARE is the most widely installed contactless smart card technology, with about 1.2 billion smart card chips and more than seven million reader modules sold. Current shipments of FeliCa ICs stand at 170 million units, with 30 million being FeliCa chips for use in mobile phones in Japan. NXP and Sony will individually offer chips and applications based on their respective technology platforms MIFARE and FeliCa, while both companies will continue to jointly develop NFC technologies.