1997-10-29 , E/IC-840/260

EuroCheque-Karte/Geldkarte, the world's largest bank card project, is to issue a new smart card to all bank account holders based on a high security microcontroller chip from Philips Semiconductors, the largest European semiconductor company. Compared to traditional magnetic stripe cards, chip-based cards provide much greater security and enable an increased amount of information to be stored. Philips Semiconductors is one of the main suppliers chosen for the project, under which bank account holders in Germany will be first to benefit from the secure, multi-functional smart card.

Initially, the card will feature both the traditional magnetic stripe used for standard bank card functions and the high security chip-based controller from Philips Semiconductors. This dual technology means that new applications can be gradually introduced into existing banking infrastructures and additional card functions can be added in a secure environment.

While traditional magnetic stripe cards are widespread, the demands for higher security financial transactions and increased amounts of on-card data mean that banks are turning to smart cards for solutions. The Philips Semiconductors chip used on the EuroCheque- Karte/Geldkarte bank card has the ability to store over 28 kbytes of information, compared to 100 bits on a magnetic card. In addition, a number of leading-technology security features are built into the chip including voltage and security sensors and a 32 byte FabKey which make it one of the most secure smart card controllers on the market.

The FabKey is an electronic key used to programme the chips during manufacture and is unique to Philips Semiconductors. The FabKey has a number of functions including the ability to "lock" the chips to ensure security during transport. In addition, the FabKey is used as an identifier to track chips for a specific purpose, such as validation of the card for a defined period and it acts as a quality control marker throughout the chip's life.

Philips Semiconductors, a division of Philips Electronics NV, headquartered in Eindhoven, The Netherlands, is the ninth largest semiconductor supplier in the world. Philips Semiconductors is a leader with a proven reputation in the development and production of cryptocontroller and contactless smart card ICs. Philips Semiconductors' innovations in digital audio, video and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets. Sales offices are located in all major markets around the world and are supported by regional application labs.