MAKING MULTITECHNOLOGY CARDS MORE RELIABLE SMART-HERA FOR DI " Dipl.-Ing. Martin Kuschewski" Washington D.C. 29 th of November 2012"

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1 MAKING MULTITECHNOLOGY CARDS MORE RELIABLE SMART-HERA FOR DI " Dipl.-Ing. Martin Kuschewski" Washington D.C. 29 th of November 2012"

2 CONTENT" 1. About SMARTRAC! 2. Cards! 3. C less Cards! 4. Dual-Interface Cards! 4.1 Technologies! 5. SMART-HERA Solution! 6. Conclusion! Page 2!

3 CONTENT" 1. About SMARTRAC! 2. Cards! 3. C less Cards! 4. Dual-Interface Cards! 4.1 Technologies! 5. SMART-HERA Solution! 6. Conclusion! Page 3!

4 1. SMARTRAC LEADING MARKET POSITION" SMARTRAC The leading RFID! transponder manufacturer! " " SMARTRAC is the leading developer, manufacturer and supplier of RFID transponders, dedicated to delivering high-quality, smart and secure products to customers worldwide." ICMA EuroForum /29. October 2010 Page 4 Page 4!

5 1. SMARTRAC FACTS AND FIGURES" Founding year:" 2000" " Headquarters:" Amsterdam, the Netherlands" " Operating figures:"! Sales 2011: 168 Mio. "! EBITDA 2011: 15 Mio. "! Number of employees: approx. 4,000" " Leadership:"! over 370 patents and patent applications"! Largest production capacity over all frequencies in the RFID industry"! over 2,6 billion RFID transponders produced and supplied (Nov. 2012)" " ICMA EuroForum /29. October 2010 Page 5 Page 5!

6 1. SMARTRAC MANAGEMENT: PROFESSIONALS WITH EXTENSIVE INDUSTRY EXPERTISE" Dr. Christian Fischer!! Member of the Management Board"! Joined SMARTRAC in 2005, will leave the company as of December 31,2012" Wolfgang Schneider!! Member of the Management Board"! Responsible for Corporate Sales & Head of Business Unit epi"! Joined SMARTRAC in 2001" Christian Uhl!! Member of the Group Executive Team"! Group Chief Financial Officer (Group CFO)"! Joined SMARTRAC in 2006" Nigel Sealey!! Member of the Group Executive Team"! Group Chief Operations Officer (Group COO)"! Joined SMARTRAC in 2012" Martin Kuschewski!! Member of the Group Executive Team"! Head of Business Unit eid"! Joined SMARTRAC in 2001" Thomas Hitzer!! Member of the Group Executive Team"! Head of Business Unit Cards"! Joined SMARTRAC in 2011 in the course of the KSW acquisition" " Markus Spreng!! Member of the Group Executive Team"! Head of Business Unit Industry & Logistics"! Joined SMARTRAC in 2008 in the course of the Sokymat Automotive acquisition" Page 6!

7 1. SMARTRAC GLOBAL FOOTPRINT" " Australia" " Brazil" " China" " Finland" " Germany" " India" " Japan" " Malaysia" " Mexico" " Netherlands" " Singapore" " South Africa" " South Korea" " Thailand" " U.K." " U.S." Sales & Other entities" Production" HQ: Amsterdam" High Secure Factory" Page 7!

8 CONTENT" 1. About SMARTRAC! 2. Cards! 3. C less Cards! 4. Dual-Interface Cards! 4.1 Technologies! 5. SMART-HERA Solution! 6. Conclusion! Page 8!

9 2. CARDS TYPES IN THE MARKET TODAY" magnetical / optical information storage Cards with Magstripe and / or Barcode LaserCard technology ID-1 cards (all kind of materials) uchip information storage Cards with electronic chip Contactless cards Dual- Interface cards Material: Polycarbonate (PC) Contact cards Page 9!

10 2. CARDS - A WORD ABOUT POLYCARBONAT" The trend: The secure document world goes PC" The material itself is good for 10 years lifetime " It is more difficult to process than other materials like PVC" It is rather expensive" Laser perso highly acknowledged process" If we want to extend the 10 years lifetime of PC to the whole card, we need to take measures when implanting the uchips! ICMA EuroForum /29. October 2010 Page 10 Page 10!

11 2. CARDS - THE CHALLENGE FOR PC C LESS CARDS" The chip in a c less card is an alien " Impact- / notch impact strength weakness of PC can lead to micro cracks in the structure " Cracks spread and cause braking of the cards and popping out of the chip/ module" For 10 years lifetime of apc c less cards it is of utmost importance to take measures against micro cracks on the inlay level! See also the SMARTRAC SMART-AC concept! ICMA EuroForum /29. October 2010 Page 11!

12 2. CARDS - THE CHALLENGE FOR PC C LESS CARDS" Overlay film" covering chip/ module" Chip/module" with lead frame" 30 min. Fuel-B test" ICMA EuroForum /29. October 2010 Page 12!

13 CONTENT" 1. About SMARTRAC! 2. Cards! 3. C less Cards! 4. Dual-Interface Cards! 4.1 Technologies! 5. SMART-HERA Solution! 6. Conclusion! Page 13!

14 4. DUAL INTERFACE CARDS" the 10 years enemy Dual Interface usage is growing for some applications" Good for contact infrastructure and parallel introduction of c less functionality" Micro cracks are not an issue as there is no chip/ module inside during hotlamination" For 10 years PC dual interface cards we needed to solve the interconnection durability issue! ICMA EuroForum /29. October 2010 Page 14 Page 14!

15 CONTENT" 1. About SMARTRAC! 2. Cards! 3. C less Cards! 4. Dual-Interface Cards! 4.1 DI Technologies! 5. SMART-HERA Solution! 6. Conclusion! Page 15!

16 4.1 DI TECHNOLOGIES WHAT S OUT IN THE MARKET?" Basic " Technology" Mill & Fill! DIF Prelam! Inductive! Coupling! Direct! Connect! Interconnection " Technology" Conductive Glue, Tape, Paste, Polymer! Thermo Compression Bond (TC)! None! Soldering,! TC-Bonding! Antenna " technology" Embedded" Wire" Embedded " Wire & Pad" Etched " Antenna" Printed" Antenna" SMARTRAC N.V.! SMARTRAC 2012! Slide 16!

17 4.1 DI TECHNOLOGIES MILL & FILL"! Today most common technology! Medium to high equipment cost! Interconnection by conductive glue / tape conductive polymer (liquid or solid)! Main challenges process control consumable cost aging interconnection media and durability SMARTRAC N.V.! SMARTRAC 2012! Slide 17!

18 4.1 DI TECHNOLOGIES DI INLAYS" DI-Prelam Technology ( preinserted DIF module) "! Low cost on equipment side! Popular for start-ups! Electrically very reliable! Main challenge yield loss control SMARTRAC N.V.! SMARTRAC 2012! Slide 18!

19 4.1 DI TECHNOLOGIES INDUCTIVE COUPLING"! Low cost on equipment side! Popular for start-ups! Main challenges currently high cost read/write holes cause problems in many applications complex supply chain IP challenges SMARTRAC N.V.! SMARTRAC 2012! Slide 19!

20 4.1 DI TECHNOLOGIES MANUAL SOLDERING"! Very reliable interconnection! Low to high investment cost (depending on automation degree)! Current usage limited to certain regions! Main challenges high labor cost human factor / process control SMARTRAC took this technology further to overcome the deficits! SMARTRAC N.V.! SMARTRAC 2012! Slide 20!

21 CONTENT" 1. About SMARTRAC! 2. Cards! 3. C less Cards! 4. Dual-Interface Cards! 4.1 Technologies! 5. SMART-HERA Solution! 6. Conclusion! Page 21!

22 5. SMART-HERA SOLUTION" The Solution: SMARTRAC SMART-HERA " FULLY AUTOMATED SOLDERING PROCESS " - Fold! Very reliable interconnection! Fully automated process! Fully integrated process possible (optional incl. cavity milling and chip init) SMARTRAC N.V.! SMARTRAC 2012! Slide 22!

23 5. SMART-HERA SOLUTION THE PROCESS FLOW" Inlay manufacturing Card body manufacturing Module cavity milling (Exposing of connection pads) Strap to antenna soldering Strap to module soldering Testing (e.g. Pull test) Module implanting Sourcing or in-house Equipment which card manufacturers have already in any case Equipment existing, needs potential upgrade or can be integrated in HERA line All further steps covered by SMARTHERA machine Complete strap soldering DIF card manufacturing process " After milling a solder paste is applied to connector pads and module " Then the straps are soldered to the connector pads " Next the module is soldered to the straps " After testing the strap is folded and integrated into module SMARTRAC N.V.! SMARTRAC 2012! Slide 23!

24 CONTENT" 1. About SMARTRAC! 2. Cards! 3. C less Cards! 4. Dual-Interface Cards! 4.1 Technologies! 5. SMART-HERA Solution! 6. Conclusion! Page 24!

25 6. CONCLUSION WHAT SMART-HERA PROVIDES" " Unique 10+ year lifetime warranty for DI Cards (various materials)" Fully automatic DI bonding by soldering and module implanting" Full solution consisting of SMART-HERA machine and inlay" Machine System Integration, Support & Maintenance " SMART-HERA Production Services as workbench supplier!!! SMARTRAC N.V.! SMARTRAC 2012! Slide 25!

26 6. CONCLUSION SMARTRACS COMPREHENSIVE OFFER FOR DI CARDS" Basic " Technology" Interconnection " Technology" Antenna " technology" DI inlays for standard processes and Mill & Fill! standard lifetime" Conductive Glue, Tape, Paste, Polymer! Embedded" Wire" DIF Prelam! Thermo Compression Bond (TC)! Embedded " Wire & Pad" DI inlays with preinserted module" (intermetallic connection)" Inductive! Coupling! None! Etched " Antenna" Direct! Connect! SMART-HERA concept " (intermetallic connection)" Soldering,! TC-Bonding! Printed" Antenna" SMARTRAC" offers" zig-zag / pad Inlays SMART-DI Inlays SMART-HERA solution Durability and sophistication SMARTRAC N.V.! SMARTRAC 2012! Slide 26!

27 Dipl.-Ing. Martin Kuschewski! Head of the BU eid, " Member of the Group Executive Team" " Albstrasse 14" Stuttgart" Germany" "

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