Goldkey Technology was the world’s first SIM (subscriber identity module) card chip designer to release Java 2.1 cards, and in addition to mobile communications, Java cards are being applied to the financial industry. The company is applying for certification from Visa, and volume shipments are expected to begin in the first half of 2002.
In 2001, over 30% of SIM cards are Java cards, and the proportion is expected to reach nearly 50% in 2002. Goldkey remarked that the market for credit cards is much larger than that for SIM cards, and of the credit card market, Visa has a 60% share.
Moreover, Goldkey is promoting the opening of the SIM card platform. At present, mobile communications operators need card manufacturers to develop STK (SIM tool kit) programs on SIM cards for them when they intend to provide value-added services. Therefore, the performance of value-added services is usually restricted to card manufacturers, and product rollout times are thus delayed. Goldkey’s STK program development tools can help mobile communications firms develop value-added software themselves, and the developed software can be applied to Java SIM cards from all manufacturers, preventing the dominance of a few players.
The Java card platform is similar to the operating system in PCs, and under a unified platform, all software companies would be able to develop applications. The success of NTT DoCoMo’s i-mode system is attributed to its opening of the platform to value-added service providers. Therefore, only by opening the SIM card platform to mobile value-added service providers can a diversity of services be achieved, the company said.
Goldkey sold 9 million SIM card chips and 1 million SIM cards in 2000. This year, despite the sluggish economy and unsatisfactory inventory digestion speeds, chip sales may still reach 2 million units and SIM cards 3 million, and memory capacity will advance to 32K from 8K.
Gemplus, the world’s largest SIM card provider, contributed 60% of Goldkey’s revenues in 2000. However, the SIM card market has not expanded as quickly as it expected. It purchased too many chips last year and still holds an inventory of 50 million units now. Revenues from Gemplus are expected to account for only 10% of Goldkey’s revenues this year, and Taiwan will turn out to be the company’s largest market, with revenues growing three to four-fold from last year.
In addition to the Taiwan market, Goldkey will visit potential clients in China, including card manufacturers, software service suppliers and telecom carriers.
Article translated by Liu Yi-fang and edited by Ken Dawson
