2008-2009 Annual Report on China’s IC Card Industry

Report Contents

Chapter One IC card and relevant knowledge     1
Section One History, definition and classification of IC card       1
First, history of IC card      1
Second, definition of IC card     2
Third, classification of IC card   4
Section Two Related policy of IC card     13
First, promotion policy of IC card industry      13
Second, preferential policy of IC investment  15
Third, local policy 16
Fourth, new support policies of semiconductor will issue soon  19
Section Three Application pattern of IC card 22
First, application of health insurance card     22
Second, application of telecommunication aspect       24
Third, application of financial aspect      28
Fourth, application of intelligent building       33
Fifth, application of transportation aspect      37
Sixth, application of non-profit organization aspect      38
Section Four New tendency of IC card application       53
First, application subdivision and expedite the emergence of "a card of multi-purpose"      53
Second, the RFID market starts comprehensively       54
Third, prospect of the union of motion payment and IC card is broad     56
Fourth, development trend of IC card in the other application domain    57

Chapter Two RFID technology     60
Section One Overview of RFID 60
First, technology description of RFID      60
Second, distinction of IC card and radio frequency card    62
Third, China's RFID application development       64
Fourth, the strategy that China develop RFID technology  73
Fifth, China's RFID technology development and the priority areas of application       77
Sixth, the macro-environmental construction that China develop RFID technology      82
Section Two Future development trend of RFID   84
First, five tendency of RFID industry in 2008 84
Second, application scale of China’s RFID in 2008     86
Third, feel the pulse of the development of China’s RFID in 2008    89
Fourth, future of RFID in China       93
Fifth, development trend of global RFID 95

Chapter Three Current development state of EMV    98
Section One Development process of EMV migration  98
First, profiles of EMV migration 98
Second, development course of EMV migration   98
Section Two Background and current situation of international EMV migration     99
First, background of international EMV migration 99
Second, mode of EMV migration      100
Third, global progress and impact of EMV migration   101
Fourth, three echelon of global EMV migration in 2007      106
Section Three Problems which exist in China's EMV migration  107
First, reason about EMV migration of banking of our country    107
Second, problems which exist in EMV migration of China's bank card     108
Section Four EMV migration status of China's bank card   110
First, battle of standard in the standard  110
Second, the latest information of China EMV migration in 2008       115

Chapter Four Development of international IC card  118
Section One Development of international IC card      118
First, telecom market  118
Second, bank card market 121
Third, government and health care market    134
Fourth, transport card       135
Section Two International standards of IC card     136
First, standard of non-contact IC card    136
Second, standard of non-contact IC card      137
Section Three Current situation of global IC card market   138
First, current situation of application of global smart card  138
Second, Analysis of world 10 major FRID affairs in 2007    146
Third, development of NFC in 2007 156
Section Four International dynamics of IC card    160
First, Korea Telecom launch non-contact payment services      160
Second, Japanese Seiko HSDPA Communications card select Infineon UMTS RF Transceiver  161
Third, European Air Bus Company chooses ODIN as the cooperative partner      163
Fourth, forecast of global mobile payments market in 2011       164

Chapter Five Industry chain analysis of IC card   165
Section One Supply and demand analysis of IC card chip  165
First, China's IC industry profile in 2007 165
Second, current situation of the development of the domestic and international integrated circuit technology      169
Third, analysis of China's IC industry      176
Fourth, forecasts of China's integrated circuit industry in 2008-2012      190
Section Two Analysis of IC design industry    191
First, development overview of IC design industry in 2007 192
Second, the investigation of design ability and level of China's electronics engineers in 2007  197
Third, SWOT analysis of IC design industry  210
Fourth, IC design industry step into a rational adjustment  229
Fifth, development strategy analysis of IC Design Industry in 2008  233
Section Three IC card packaging and testing industry       238
First, profile analysis of IC card packaging and testing industry in 2007 238
Second, opportunities and problems of packaging and testing industry  251
Third, development overview of IC packaging and testing industry  256
Fourth, development trend of global packaging and testing industry in 2008-2009     261
Section Four Overview analysis of Taiwan IC card industry chain in 2007      268
First, IC design industry     269
Second, IC manufacturing industry  270
Third, IC packaging, testing industry      271
Fourth.prospect in 2008    272
Section Five Overview analysis of the upper reaches enterprise of international IC card    273
First, current situation of Infineon scientific & technological corporation and prospect of 2008  273
Second, Management overview of ATMEL Company   286
Third, management state of Samsung Electronics Co., Ltd. in 2007       297
Fourth, current situation and prospect analysis of STM     302
Fifth, current situation and development of Freescale integrated circuit Co., Ltd. 321
Sixth, current situation of Japan Renesas scientific & technological corporation and strategy analysis of 2008     328
Section Six Main IC card companies of our country     335
First, Zhuhai Actions Semiconductor Design Co., Ltd. 335
Second,Vimicro microelectronics Company   344
Third,CEC Huada Electronic Design Co., Ltd.      346
Fourth,Hangzhou Silan microelectronics Limited Company       348
Fifth, Beijing Tongfang Microelectronics Co.,Ltd.  353
Sixth, Shanghai Fm Microelectronics stock Co.,Ltd.    355
Seventh, Shanghai Belling Limited Company       361

Chapter Six Advantage enterprise's analysis of IC card industry  368
Section One Gemalto Company      368
First, company's profile      368
Second, enterprise trends in 2008  368
Third, management tactics of enterprise in 2008  373
Section Two Oberthur card systems Co.,Ltd. 376
First, company's profile      376
Second, enterprise’s trends      378
Section Three G&D Company  379
First, company's profile      379
Second, enterprise’s trends      381
Section Four Watch Data systematic Co., Ltd.      386
First, company's profile      386
Second, development tactics of enterprise in 2008     387
Third, enterprise's trends  390
Section Five Datang Microelectronics Technology Co.,Ltd.       394
First, company's profile      394
Second, market trend 396
Third, management tactics of enterprise in 2008  397
Section Six ShangHai Huahong Jt smart card systematic limited company     401
First, company's profile      401
Second, products system  402
Third, enterprise trends in 2008      403
Section Seven HengBao Co.,Ltd.    405
First, company's profile      405
Second, production qualification      407
Third, management state of enterprise in 2007    408
Section Eight Aerospace Information Co.,Ltd.       411
First, company's profile      411
Second, development tactics    413
Third, enterprise trends in 2008      415

Chapter Seven Analysis of relevant economic key elements of IC card development 418
Section One Semiconductor industry's development analysis   418
First, operation analysis of semiconductor in 2007      418
Second, analysis of development state and prospect of semiconductor apparatus industry of 2007       421
Third, new opportunity of development of the semiconductor industry    425
Fourth, analysis of development bottleneck and tactics of semiconductor industry      434
Fifth, prediction of the development trend of semiconductor of 2008      444
Section Two Development analysis of retail industry   446
First, overview of Chinese retail business of 2007       446
Second, main enterprise's brief analysis of Chinese retail business 449
Third, future main body perspect of retail business     450
Fourth, prospect analysis of Chinese retail business  455
Section Three Development analysis of information industry    456
First, development situation of information industry of our country in the present stage     456
Second, main characteristic that information industry of our country present 460
Third, development environment that industry's development face  466
Fourth, development trend of future industry       467
Section Four Development analysis of financial industry    470
First, current situation analysis of financial industry    470
Second, reform direction of financial industry in 2008 479

Chapter Eight Present situation and development trend analysis of IC card market of our country      489
Section One Profile of Chinese FRID market in 2007  489
First, the government program was still the propelling force of RFID application   489
Second, the standard formulation of ultra-high frequency RFID makes the breakthrough  490
Third, new developing application market of NFC rises gradually     491
Fourth, RFID industry evaluation of the year in 2007  491
Section Two Competition pattern of Chinese IC card market     495
First, competition condition of Chinese IC card market in 2007 495
Second, competition pattern evolvement of domestic and foreign IC card manufacturer     502
Third, profound change of IC card market pattern of our country     504
Section Three Development and tendency forecast of Chinese IC card market in 2008     508
First, the application domain of IC card consummates unceasingly  508
Second, manufacturer condition of Chinese IC card market      510
Third, potential of Chinese IC card market is huge      511
Fourth, development tendency of Chinese IC card market in 2008  512

CHART CONTENTS
Chart: Performance comparison of several kinds of card   5
Chart: Application and classification of IC card     8
Chart: Utilization of smart card in construction aspect 34
Chart: Application scope of company card     34
Chart: Application that smart card use in company’s resources utilization      36
Chart: Application of smart card in cafeteria management  36
Chart: IC card meter’s management pattern  40
Chart: IC card meter’s work schematic diagram    45
Chart: Introduction of selling electricity management system of Beijing Power supply bureau    49
Chart: User card’s file structure       52
Chart: ESAM module’s file structure       52
Chart: The flow map that management system sends the card 53
Chart: Development process of RFID technology 62
Chart: Members of RFID standard working group 71
Chart: EMV’s migration process table     99
Chart: Global payment card market in 2005  134
Chart: Distribution structure of world smart card market in 2007      160
Chart: China top 10 IC design companies of 2006      189
Chart: China top 10 IC and discrete devices manufacturing companies of 2006   189
Chart: China top 10 integrated circuit packaging and testing companies of 2006 190
Chart: Digital ASIC researches and develops the main products for China IC design company 195
Chart: The design type of Chinese IC design companies develop    195
Chart: Overview of China IC design company's design level of 2006      195
Chart: consumption electronics is mainstream applications of China's IC products      196
Chart: Overview of some multimedia IC of native country   196
Chart: Design object which China IC Company start in 2006     197
Chart: The proportion of Chinese design engineer's number to the total number of person of enterprise staff in 2007       197
Chart: The proportion of Chinese design engineer who engaged in relevant work of design and development in 2007       198
Chart: The proportion of electronic product category that Chinese electronic design engineer designed in 2007 198
Chart: Electronic design engineer's proportion in the electronic manufacturing company of different business properties in China of 2007      199
Chart: The distribution of Chinese electronic design engineers in the country of 2007       199
Chart: An average work experience of Chinese electronic design engineers in 2007   200
Chart: The proportion of the items number that Chinese engineers involved in the design in 2007  200
Chart: The proportion that Chinese electronic design engineers involved in the design of the new projects in 2007       201
Chart: The proportion of Chinese electronic design engineers in the improved project base on the existing design in 2007      201
Chart: The proportion of design project that Chinese electronic design engineers based on the outside system design cases in 2007      202
Chart: The situation that Chinese electronic design engineers face the challenge in 2007 202
Chart: Aspects that Chinese electronic design engineers focused on the design of those projects of 2007   203
Chart: The proportion of the number of people that Chinese electronic design engineer base on the original basis to improve in 2007   203
Chart: The average time that Chinese electronic design engineers complete a project spent in 2007     204
Chart: China's standards that Chinese electronic design engineers concern in the future two years in 2007 204
Chart: The proportion that China's electronic design engineers have design capacity in 2007  205
Chart: Chinese electronic design engineer plan to apply the following technology to the design object in the next two years in 2007       205
Chart: The proportion that Chinese electronic design engineers face the challenge of ordinary design in 2007   206
Chart: The proportion of the source of the resources that Chinese electronic design engineers design the project used in 2007  206
Chart: The proportion of attitude that Chinese electronic design engineer refer to the tools of the design solution in 2007      207
Chart: The situation that Chinese electronic design engineer participate in the choosing course of components and parts of the inaugural company in 2007 207
Chart: The channel situation that Chinese electronic design engineer understand the latest technology in 2007 208
Chart: Channel that the electronic design engineer in China depends on while choosing the components and parts of 2007      208
Chart: The occupancy situation of foreign brand of IC that Chinese electronic design engineer uses in 2007      209
Chart: The situation of foreign brand of the discrete components and parts that Chinese electronic design engineer uses in 2007 209
Chart: The production source situation of ASIC which the electronic design engineer in China uses in 2007 210
Chart: The packaging form of main domestic owned enterprises     249
Chart: The packaging form of main domestic joint ventures      250
Chart: The packaging form of main domestic packaging enterprises      250
Chart: The proportions that professional factory of processing take the place of total packaging market in 2005-2007       258
Chart: Gross profit rate of 6 big packaging and testing enterprise in the whole world in 2006   259
Chart: Gross profit rate of 6 big packaging and testing enterprise in the whole world in he first quarter of 2006   259
Chart: 10 big packaging Company's ranks in the world of 2006       259
Chart: Growth trend of global semiconductor market in 2007    262
Chart: Market scale and trend global semiconductor packaging and testing in 2007-2009 262
Chart: Products proportion of Taiwan packaging industry in 2007    265
Chart: Trend of output value of Taiwan IC packaging industry of 2005-2009  265
Chart: Taiwan testing industry's products proportion in 2007    266
Chart: The trend of output value of Taiwan IC testing industry in 2005-2009 266
Chart: Tendency picture of DRAM price of the first half of 2007       268
Chart: Business income of Infineon scientific and technological joint-stock company in the first quarter of 2008   277
Chart: Interest pretax profit of Infineon scientific and technological joint-stock company in the first quarter of 2008       277
Chart: Increase and decrease situation of per share of Infineon scientific and technological joint-stock company of 2007-2008    278
Chart: Financial situation of Infineon AIM department of 2007-2008 278
Chart: Financial situation of Infineon COM department of 2007-2008     279
Chart: Adjusted business income of Infineon other business segments / enterprise in 2007-2008    279
Chart: Adjusted pretax profit of Infineon other business segments / enterprise in 2007-2008    279
Chart: The amalgamated financial statement of Infineon scientific and technological joint-stock company in 2007-2008       280
Chart: The amalgamated financial statement of Infineon scientific and technological joint-stock company in 2007-2008       280
Chart: Net income and net expenses in amalgamated financial statement of Infineon scientific and technological joint-stock company in 2007-2008   281
Chart: Net sales amount of every business domain of Infineon scientific and technological joint-stock company of 2007-2008    281
Chart: Pretax profit of every business field of Infineon scientific and technological joint-stock company of 2007-2008       282
Chart: Every area of Infineon scientific and technological joint-stock company take the proportion of the sales amount in 2007  282
Chart: Simple table of aggregate balance sheet of Infineon scientific and technological joint-stock company in 2007(1)       283
Chart: Simple table of aggregate balance sheet of Infineon scientific and technological joint-stock company in 2007(2)       284
Chart: The simple form of cash flow statement of Infineon scientific and technological joint-stock company in 2007-2008       285
Chart: Gross cash position and net cash position of Infineon scientific and technological joint-stock company in 2007-2008    285
Chart: Free cash flow of Infineon scientific and technological joint-stock company in 2007-2008     286
Chart: Staff quantity of Infineon scientific and technological joint-stock company in 2007   286
Chart: Samsung’s investment plan of 2008   300
Chart: Renesas Company's overview     328
Chart: Business income situation of Zhuhai Actions in 2007      343
Chart: Institutional framework of Huada Electronic       348
Chart: Main business indicator of Hangzhou Silan microelectronics Limited Company in 2007  353
Chart: The newest unusual fluctuation of Hangzhou Silan microelectronics Limited Company in 2007    353
Chart: Brief financial index over the years of Shanghai Belling Limited Company 365
Chart: Shanghai Belling Limited Company's profit form and profit ability in 2004-2007       365
Chart: Shanghai Belling Limited Company’s management and development capacity in 2004-2007       366
Chart: Shanghai Belling Limited Company's assets and debt of 2004-2007   366
Chart: Shanghai Belling Limited Company's cash flow of 2004-2007      367
Chart: Shanghai Belling Limited Company's unusual fluctuation financial index in 2004-2007   367
Chart: Brief index of the financial affairs of HengBao Co., Ltd. over the years      409
Chart: Profit forms and profit ability of HengBao Co., Ltd. in 2004-2007 409
Chart: Management and development capacity of HengBao Co., Ltd. in 2004-2007    410
Chart: Assets and debt of HengBao Co., Ltd.in 2004-2007       410
Chart: Cash flow of HengBao Co., Ltd. in 2004-2007  411
Chart: China smart card market scale in 2003-2007   470
Chart: Market scale and growth of Chinese RFID in 2004-2007       490
Chart: Top ten successful application case which have most influence in Chinese RFID industry in 2007      492
Chart: Top ten products which have most influence in Chinese RFID industry in 2007 493
Chart: Top ten events which have most influence in Chinese RFID industry in 2007    493
Chart: Top ten enterprises which have most influence in Chinese RFID industry in 2007    494
Chart: Market structure of Chinese IC card in 2007     494
Chart: Manufacturer’s brand structure of Chinese IC card market in 2007     504
Chart: Increase of sales volume and export amount of IC that China mainland produce in 2003-2007    508
Chart: Output of IC that China mainland produce in 2003-2007       508
Chart: Scale and growth of sales revenue of Chinese IC card industry in 2004-2006  511