NXP taps to foster China's semiconductor usage market
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E-mail China Daily, March 30, 2016
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Zheng Li, NXP's senior vice-president and Greater China president. [Photo provided to chinadaily.com.cn] |
"Tap-to-pay" is set to become new favorite as Apply Pay, Samsung Pay, Mi Pay and Huawei Pay have launched it in sequence to rival the nation's mobile payment market.
Taking Mi Pay, introduced by Chinese smartphone maker Xiaomi in its new flagship Mi 5, as an example, although the Near Field Communication (NFC) solution provided by NXP Semiconductors remains at the early stage for extensive adoption, the collaboration has shown the company's customer-oriented localization strategy and the ability to resources integration.
Being one of the main driving forces behind the scenes of the NFC and secure element solutions, the Dutch manufacturer's technologies are optimally designed to address specific transit use cases and ensure a seamless consumer experience using augmented Radio Frequency performance and security.
Zheng Li, NXP's senior vice-president and Greater China president, sat down with China Daily to call for more cross-border collaborations between upstream and downstream of the supply chain in the semiconductor industry and elaborate on the implementation footprints of NXP's localization strategies.
"By 2020, the shipment volume of smartphones with NFC function will reach to 2.2 billion units," said Zheng, citing statistics from market consulting institute IHS Technology.
According to Zheng, the fundamental drive to push the implementation of NFC technology is from the continually increased demand of the mobile Internet users who require upgraded technologies, better usage experience and privacy protection.
"As of 2015, the market scale of China's third-party mobile payment reached 16.36 trillion yuan ($2.51 trillion), and people have gradually got used to use mobile devices, rather than PC or laptop, to purchase goods," said Zheng. "While more challenges pop up for mobile carriers as the increase of user base and data security issues."
As a leading technology provider in China's Automatic Fare Collection market since its rollout in the 1990s, NXP has been driving the migration from card to mobile.
"Thanks to our industrial globalization, we will provide more high-end international resources and technologies to jointly work with smarphone makers, mobile carriers and banks to promote the usage of NFC," Zheng added.
It is reported that there are currently 400 million transit cards in circulation in China, and many card holders are expected to transition to more convenient and secure payment solutions, such as mobile payments via smartphones.
China's mobile transaction market has seen robust growth in recent years. According to People's Bank of China's statistics, 4.5 billion mobile transactions worth 18 trillion yaun ($2.76 trillion) occurred in Q3 2015, up 253 percent and 194 percent, respectively. As China continues to urbanize over the next decade, the market for smart payment technology in urban transit systems is expected to rapidly increase.
Connected-car
In late November last year, NXP took part in the Shanghai smart connected car pilot program for jointly launched the world's first energy-positive solar-powered family car named Stella Lux.
The car also comes with various vehicle-to-vehicle/infrastructure (V2X) secure connected technologies and micro-controllers supplied by the semiconductor maker.
The technologies are believed to enable vehicles to communicate with each other and infrastructure equipment to improve traffic and driving safety.
"More improvements of the car's performance will be accomplished this year," said Zheng. "Such as speed adjustment, which will allows the car to acquire effective pre-judgment ability for preventing collisions when makes a turn."
Meanwhile, in March this year, NXP announced plans to join the US Department of Transportation's Smart City Challenge as a provider of vehicle-to-vehicle and vehicle-to-infrastructure (V2X) technology.
With this partnership, NXP, together with its partner Cohda Wireless, will provide the contest's winning community with wireless technology that allows cars to securely exchange data, such as hazard warnings, over distances of more than a mile to prevent accidents and improve traffic flow.
According to the company, the Smart City Challenge is a nationwide competition set to award the winning, medium-sized US city a prize of $50 million through the Department of Transportation and its partners, for that city's ideas to develop the connected city of the future and address the challenges that growing populations present to transportation infrastructure.
As part of NXP's partnership with the Department of Transportation, the winning city will also receive advanced NXP technologies, including V2X systems engineered to dramatically enhance the future of transportation.
"We believe that this collaboration model will be introduced into Chinese cities in the near future," said Zheng.
Zheng also pointed out that the company will focus more on the co-operation with rising connected-automobile makers, such as Baidu Inc, LeEco and BYD Co.
Smart home
Also in March, Chinese appliance maker Haier launched a robot named "Ubot" at its "U + wisdom of life 2.0 strategy" conference. The processor solution of the robot is provided by NXP.
With five awareness, including listening, speaking, smelling, perceiving and moving, the robot is able to be a housekeeper, security, family care companion, life assistant and other multiple identities.
According to Zheng, the traditional way, which are reshaping the home appliances with Wi-Fi or Bluetooth connected functions, are not fully recognized by customers as "smart home" devices. The smart home appliance "should be transformed as a terminal that is backed by cloud computing services", and the company has co-worked with Chinese smartphone maker Xiaomi Corp to produce the second generation "Smart Home Gateway" to provide more intelligent service to customers.
"Understanding our customer in terms of the pain points they are experiencing and seeking the weakness that exist in the industry are some of our main goals when doing collaborations with the other enterprises in the supply chain," said Zheng. In a country that reserves incomplete industry chain, "We are keen on stepping forward to the downstream of the industry chain to explore demands from customers."
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