China to Test Homegrown RFID Chips rather than Buying from Foreign Companies

China to Test Homegrown RFID Chips rather than Buying for Foreign CompaniesThe Chinese government will be testing domestic versions of the chips embedded in passports and identification cards as they plan to replace the old ones that care bought from foreign companies. The Ministry of Public Security is searching for a province to test the new radio frequency identification or RFID chips that was developed as part of a national plan to reduce reliance on foreign technology.

A researcher for the ministry’s First Research Institute, the plan threatens to erode the dominance of such companies in the market such as Infineon Technologies AG and NXP Semiconductors NV. Localization of the chips is a way to protect the safety of the citizens and the break the monotony where only foreign companies control the technology. The program will illustrate the scope of the Chinese campaign to promote local suppliers of using safe and controllable technology. Authorities aim to stop using devices, software and components that are manufactured by overseas companies.

RFID chips that are found in passports, licenses and credit card that store numbers or biometric data can be scanned to confirm identity or verify purchases. China will issue around 40 million RIFD annually and if trials are successful the issuance can be expanded nationwide and to be used in ID cards of Chinese citizens to present to immigration officials when traveling. The Ministry of Public Security is planning to have local companies to manufacture the homegrown chips using China’s national encryption standards.

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