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China: 2,135 million cards delivered in 2010

Thursday 5 May 2011

According to this report, in 2010, in terms of the global IC card market, Asia-Pacific Region accounted for 71.5% of the market share, and China’s IC card sales occupied one-third of the total global. Besides, the market share of IC card used in telecom sector exceeded 70%.

ResearchInChina says that China’s sales volume and revenue of IC card reached 2.135 billion pieces and CNY 8.1 billion (EUR 841 million) in 2010, up 8.4% and 13% year-on-year respectively. In traditional application field, the distribution of Second generation ID cards is almost completed; in mobile communication market, the sales volume of China Mobile SIM card increased by 3.2% against previous year. The burgeoning applications in fields like unified national social security card and mobile payment card increased substantially. In 2010, the sales volume growth rate of national social security card topped 126.3%, which enabled it to become the next important application of IC card behind 2nd generation ID card.

Chinese local suppliers of smart card chip mainly consist of Datang Microelectronics Technology, Shanghai Fudan Microelectronics, Beijing Tongfang Microelectronics (acquired by Tangshan Jingyuan Yufeng Electronics in 2011), and Shanghai Huahong Group. ResearchInChina considers that in 2010, IC card sales and market shares of key enterprises were presented as follows:


ResearchInChina says that Watchdata is the fourth largest supplier of telecom card in the Chinese market, whose income from telecom cards took up 50% of its revenue and SIM/USIM card shipments occupied 12% of the total procurement of telecom operators.

In 2010, 45% of SIM card sales of Gemalto, as the largest card maker in Asia and with branches in Beijing and Shanghai, were procured by the three major telecom operators in China.

SIM card income occupied over 70% of the revenue of Eastcompeace in 2010. The newly introduced business of high-end smart cards CMMB and EMV will become the highlight in business growth for Eastcompeace in the future, since the proceeds from the two sources registered CNY 80 million (EUR 8.3 million) and CNY 54 million (EUR 5.6 million) respectively in 2010.

Hengbao business growth was fueled in 2010 by mobile payment IC card (28.4%) and financial IC card (7.2%).

With the completion of 2nd generation ID card distribution and the market shrinkage of IC card for telephone use, the operating income of Datang Microelectronics fell from CNY 923.8 million (EUR 95.9 million)  in 2007 to CNY 529.6 million (EUR 55 million) in 2010. The business of bank IC card and mobile payment card will usher in a bright prospect in 2011; in the meantime, business of social security card will ever grow.