1999-09-20 , ESC-9982
Business News From Philips Semiconductors

Vehicle immobilizers, since their introduction in 1994, have time after time thwarted thieves, proving one of the most effective weapons against vehicle crime. Over half all new cars sold are theft protected using Philips Semiconductors' vehicle immobilization transponders and these alone are responsible for reducing new car theft by a massive 50% in Europe.

The largest single market for RFID transponders is vehicle immobilization and Philips Semiconductors' market leadership and proven security in this area have been recognized by leading car manufacturers such as Audi, BMW, Fiat, GM/Opel, Mercedes, Nissan, PSA Group, Renault, Toyota, Volkswagen and Volvo. The company's transponders can be found in a wide variety of models and Philips Semiconductors has already manufactured over 100 million devices.

Vehicle immobilizers are small electronic devices placed inside the car key, which communicate directly with the engine management electronics via a radio frequency (RF) communication link. The immobilizer transponder contains authorisation data which, when missing, prevent the car being started. Even short-circuiting is impossible, as the engine management disables other vital car functions, such as the fuel pump or ignition. Vehicle immobilizers are the most convenient method of theft protection as there is no extra effort required by the driver. As the driver turns the key in the ignition, a reader unit sends out an RF signal to the transponder, which then starts communication with the engine management. Because this process all takes place during the short time when the key is being turned, the driver does not even recognise the 'activity' of the immobilizer.

Immobilizers have evolved considerably since the early read-only transponders with their factory-programmed identification number, which proved very effective when introduced in 1994. Philips Semiconductors' innovations in car access and immobilization include the introduction of encrypted data transmission, challenge-response and mutual authentication algorithms to prevent transponders in car keys being duplicated. Today, new car models are equipped with these security transponders. Philips Semiconductors was also the first company to develop plastic transponder packages - which are now the industry standard - as they are more robust than glass packages and do not break when force is applied.

Car manufacturers currently implement Philips Semiconductors' remote keyless entry (RKE) ICs, which allow the driver to open the car remotely and, in the same IC, include the car immobilization function, which is required to start the car. The combination of these two functions in one IC gives a considerable cost advantage to car manufacturers and enables sophisticated key design and unique features. The future for car security lies in passive entry systems, where the driver simply carries a card that automatically unlocks the doors and boot as he/she approaches the car. Once the driver is in the driver's seat he starts the engine simply by pressing a button. Authorisation, usually given by the key fitting into the lock, is granted automatically by the card or token the driver carries with him.

Philips Semiconductors, a division of Royal Philips Electronics, headquartered in Eindhoven, The Netherlands, is the eighth largest semiconductor supplier based on Dataquest's 1998 report^*). 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 systems labs. Additional information on Philips Semiconductors can be obtained by accessing its home page at http://www.semiconductors.philips.com

^*) Based on Vendor Revenue from Shipments of Total Semiconductors Worldwide according to Dataquest's 1998 Worldwide Semiconductor Market Share report published in May, 1999.