Philips sets sights on 2008 Olympics
By Li Weitao (China Business Weekly)
Updated: 2004-09-07 13:57

Europe's No 3 chip maker, Philips Semiconductors, is setting its sights on the 2008 Beijing Olympics. The company is vying to win technology infrastructure projects in the run-up to the grand games.

"We are excited about the business opportunities to be brought by the 2008 Olympics," said Tony Lear, senior vice-president and general manager of Philips Semiconductors China.

Philips Semiconductors, a division of Philips Electronics, is "closely watching" infrastructure projects in the run-up to the 2008 Olympics.

Lear last week said Beijing Municipal Administration and Communications Card Co Ltd (BMAC) is using its contact free chip technology in a new e-ticketing system for the Great Wall of China at Badaling, near Beijing.

The new e-ticketing system is compatible with Beijing's existing One-Card ticketing system, which will be used at the 2008 Olympics.

Visitors will get access to the Great Wall by using chip-based smart cards as tokens and later the Beijing One-Card, eliminating the need for cash payments while tourist bureaux will benefit from the improved collection of statistical data.

Each year, more than 4 million people from around the world visit the Great Wall.

The new contact free, proxy card system, which Philips has billed as a landmark, will streamline access by reducing ticketing jams, fraud, and system maintenance.

"Proxy card access at the Great Wall of China will serve as an important case study for implementation in other venues and events around China, most notably the Olympics," said Derrick Robinson, senior research analyst with IMS Research.

Lear declined to disclose the value of the deal with BMAC.

"We hope proxy cards will also be used in other tourist attractions and retail stores in Beijing," he said.

"Our business in China is growing faster than elsewhere and we are very optimistic about our performance in the run-up to the 2008 Olympics."

Philips is the world's No 1 firm in contact free identification technologies and has sold 1 billion contact free ICs (integrated circuits) worldwide.

It has sold 100 million such cards to nearly 70 cities in China. They are used in buses, taxies, ferries, subways, road toll systems, and car park management systems.

Beijing is upgrading its infrastructure to meet demand caused by the upcoming Olympics, which are expected to provide a boon to technology vendors.

According to the city's One-Card plan, 15 million smart cards will be issued before the end of 2007.

By then, citizens, visitors, tourists and participants at the Olympics will pay bus, subway and taxi fares using just one smart card.

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