SGS-THOMSON and Hyundai Electronics support emerging smartcard markets

Seoul, Korea - June 25, 1996 -

SGS-THOMSON Microelectronics and Hyundai Electronics Industries announce the signing of an agreement aimed to serve customers in the expanding market for Smartcard applications. Many Smartcard applications have until recently been in Europe, but with the recognition of the commercial possibilities and improved security features of Smartcard over traditional magnetic strip cards, they are now growing rapidly in many other parts of the world, such as the fast emerging Korean Smartcard market. The world market for chips for Smartcards is forecasted to double in 1996 from US$225 million in 1995 and a 70% average growth rate is expected to continue past the year 2000.

The agreement between the two companies transfers and licenses SGS-THOMSON's proprietary CMOS technology for the fabrication of advanced Smartcard IC chips. This technology supports the production of devices with MCU, ROM, RAM, EEPROM and logic circuits on a single chip, thus making it ideal for today's generation of Smartcard ICs. HEI will implement this technology in their advanced fabrication facilities and, based on some building blocks of the SGS-THOMSON Smartcard IC family, will start development of an 8KByte EEPROM Smartcard MCU chip. Under the agreement the two companies will be able to commercialize products with different, but equivalent, security features to provide card system developers with a possible alternative.

SGS-THOMSON Microelectronics is a global independent semiconductor company listed on the New York Stock Exchange and on the Bourse de Paris. The company, which in Q1 1996 had net revenues of US$1.03 billion (US$3.55 billion in total 1995, with net profit of US$526 million) designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronics applications, including telecommunication systems, computer systems, consumer products, automotive products and industrial automation and control systems. SGS-THOMSON is the world leader in Smartcard ICs with an estimated 37% market share in 1995. Its products are recognized for their advanced security features and have been chosen for many commercial applications by world leading companies.

Hyundai Electronics Industries Co.,Ltd. (HEI) is a comprehensive electronics company as one of the core affiliates of Hyundai Business Group in Korea. HEI is ranked as the fifth largest DRAM supplier worldwide in 1995 and under its business plan for fiscal 1996 with anticipated turnover of US$9Billion, 72percent higher than 1995. HEI will continue its efforts to lead high-tech industries such as semiconductors, TFT LCD, multimedia, information and telecommunications. Furthermore, with a corporate strategy of strengthening non-momery semiconductors (System IC area) in tune with its already-competitive memory business. HEI is making broad strides into ASSP, ASIC, DSP, MPU and MCU applications and products including Smartcard ICs, under the strategic technology alliances with world-class industry leaders in each business field.

For further information please contact:

Hyundai Electronics Industries
Mr Andy Young, Manager, Strategic Planning, Systems IC Division, Seoul, Korea.

Tel : +82 2 398 4600/4598
Fax : +82 2 398 4626

Tel : +33 50402532
Fax : +33 50402860

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