the smart card integrated circuit ecosystem in the americas – ready for a turnaround?
DESCRIPTION
A presentation on the smart card market, including a detailed analysis of the integrated circuit market.TRANSCRIPT
The Smart Card Integrated Circuit Ecosystem in the Americas – Ready for a Turnaround?
Peter Finalle, Research Analyst
Smart Cards
June 24, 2009
2
Agenda
Smart Card Market Overview (as it applies to integrated circuits)
-Current State of the integrated circuit market
-Smart Card/Integrated Circuit Comparison
-Integrated Circuit Features in Demand
-Ecosystem
-Life Cycle Overview
Integrated Circuit Market Overview
-Market Participants
-Drivers and Restraints
-Microcontroller/Memory chip
-Chip and Rom size
-Types of memory overview
-Types of memory details
-Crypto processors
Conclusion
3
Economic Effects on the Smart Card Integrated Circuit Market
•Limited IT budgets will hinder current and near-term future smart card deployments
•New projects in any market will be limited
•Many card roll-outs will be delayed or canceled
•New or high-end technology will be the least sold (low-cost will be the focus)
•Lower cost technologies are highly entrenched in the NA and LA regions
•Ubiquity of magnetic strips and readers
•Smart card adoption in the United States has been slow
•U.S. has not experienced fraud levels of that in other regions
•Smart cards will need to make a clear and obvious case for their added value
4
Smart Card Trends as they relate to Integrated Circuits
Low Cost as a Driver
Demand for a Higher Level of Security
More Advanced Applications
Smaller Power Draw
Contactless Technology Demand
Large Markets (Government & SIM)
Overall Smart Card Growth
Competing Technologies
Public Distrust
Low cost Integrated Circuits
Advanced Chips have Advanced Security
Increased Memory Size
Smaller Physical Size
Contactless Circuits
Large Integrated Circuit Roll-Outs
Growing Demand for Integrated Circuits
Lower Integrated Circuit Costs
Distrust for Integrated circuits
Smart Cards Integrated Circuits
5
North and Latin American Emphasis on Features
Power Consumption Low Cost Contactless Support Security Capabilities
6
Smart Card Integrated Circuit Ecosystem Demand
<<< Features >>>
<<
<S
ecurity
>>
>
Vendors
Regional Standards
Consumer Demand
Competition / Technology
7
Average Smart Card System Lifecycle
14
Short Life Cycle Average Life Cycle Long Life Cycle
Government
Corporate
Payment
Transit
Retail
12
10
08
06
04
02
00
Average Lifecycle for the Entire Smart Card System based on application
Nu
mb
er o
f Ye
ars
for th
e T
ota
l Syste
m L
ife-c
ycle
8
The Integrated Circuit Market
9
Competitive Landscape
10
Drivers and Restraints for the NA and LA Regions
Low Cost Solutions
<<< Severity >>>
Financial Projects
Government Projects
Broadband Penetration
GSM Dominance
Liability Shift
Multi Function Support
High Costs
No Local Manufacturing
Payphone Decline
Frost & Sullivan. 2009 Smart Cards Integrated Chipsets (North and Latin America)
Drivers and Restraints Chart
Re
stra
ints
Driv
ers
11
Shift from Memory to Microcontroller Integrated Circuits
Microcontroller Integrated
Circuits
Memory Integrated Circuits
Current Year
Market Shift
Frost & Sullivan. 2009 Smart Cards Integrated Chipsets (North & Latin America)
Dynamic Shift from Memory Integrated Circuits to Microcontroller Integrated Circuits
12
Average Chip Size and EEPROM size
250nm
32kb-64kb
EEPROM
250nm +
8kb-16kb
EEPROM
250nm
128kb
EEPROM
130nm
256kb
EEPROM
130nm
512kb
EEPROM
90nm
128kb
EEPROM
90nm
256kb
EEPROM
64nm
512kb
EEPROM
<<<Legacy Technology Advanced
Technology>>>
40%
35%
30%
25%
20%
15%
10%
05%
00%
Chip Size
EEPROM
Chip size correlation with EEPROM size, by technology level -2008 (Including SIM)
Pe
rcen
tage
of c
ard
s
13
Limitations with Current Smart Card Memory: the Eventual Replacement of EEPROM as the Standard
<<
<M
atu
rity In
Sm
art C
ard
Ap
plic
atio
ns
>>
>
MRAM
EEPROM
Flash
FRAM
<<< Practical Transaction Speed >>>
14
Memory Standards: Breakdown
EEPROM
Flash RAM
Ferroelectric RAM
Magnetoresistive RAM
• Hardware limitations• Slow performance
• Shorter lifecycle• Few smart card deployments with this technology
• Costly technology• Could have security vulnerabilities
• Costly technology• Significant lack of technology maturity
• The current standard• In wide use• Easy to program for
• Significantly faster than EEPROM• In wide use for other applications• Used in some smart card applications
• Over 20% faster than Flash RAM
• Faster than the other three memory technologies
Strengths Weaknesses
15
Crypto-Processor Popularity
NorthAmerica
90%
80%
70%
60%
50%
40%
30%
20%
10%
00%
LatinAmerica
EMEA APAC
Approximate percentage of cards equipped with Crypto-Processors by
region
Pe
rcen
tage
of c
ard
s
16
Conclusions
Smart Card integrated circuits are in a state of growth in the North and Latin
American regions
Microprocessor integrated circuits are on the rise
New memory technology is beginning to show up in smart card projects
Crypto-processors are not in high demand in the United States
Low cost is the current driver in all North and Latin American countries
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For Additional Information
Jake Wengroff
Corporate Communications(210) [email protected]
Craig Hays
Sales ManagerInformation & Communication Technologies
(210) [email protected]
Shyam Krishnan
Research Manager
Smart Cards
(210) 348-1018