Infineon Supplies Security Chips for New Identity Cards in Malaysia

Neubiberg, Germany, June 27, 2012 – Infineon Technologies (FSE: IFX / OTCQX: IFNNY) announced today it is supplying the security chips for Malaysia’s new national electronic identity cards. Popularly known as ‘MyKad’, the new generation smart card features Infineon`s SLE 78 security controller with Infineon’s award winning ‘Integrity Guard’ security technology. Malaysia takes advantage of this new security technology combined with SOLID FLASH™ for fast deployment capability.

MyKad is a multi-application national electronic identity card, including biometric identification, which will allow the implementation of numerous additional functions such as Driving License, Health, ATM, eSignature and eGovernment services. In the past years, Malaysia issued approximately two million new identity cards each year.

Identity cards are used for many years and are subject to intense wear. This is why they must meet specific high requirements. In particular, the bearer’s personal data should be secured during the entire life of the card.

“We have already proven the robustness and reliability of our security chips for identity documents in many projects worldwide,” says Dr. Stefan Hofschen, President of the Division Chip Card & Security at Infineon Technologies. “The MyKad program clearly follows the industrial trend to move from MASK ROM based smart card ICs towards secure and certified state-of-the-art flash controllers like Infineon’s SOLID FLASH products. Therewith we can fulfil the future challenges of government and payment projects while providing a competitive total cost of ownership.”

The utilized Infineon SOLID FLASH product combines the highest level of flexibility provided by dedicated Non Volatile Memory (Flash, EEPROM) technologies with outstanding reliability and a sophisticated security concept. The security certified Flash product allows a faster reaction to market changes through short lead times and flexible product usage, and offers many advantages in logistics, development and throughout the certification process. A full range of SOLID FLASH products are Common Criteria certified by the BSI (Federal Office for Security in Information Technology) in Germany as well as type approved by EMVCo making it the choice for many applications while keeping full flexibility for upcoming changes.

MyKad also uses Infineon’s Integrity Guard security technology. For identification documents with high demands on security and robustness, it offers long lasting security with encrypted Dual CPU-core, setting a new benchmark for secure electronic documents. With this technology, data is encrypted along the entire data path during processing. The security controller core has two processing units, constantly checking each other’s correct function by utilizing sophisticated error detection. Infineon’s highly secure SLE 78 product family with Integrity Guard is used in all important eGovernment applications, such as the electronic health card, the electronic identification card and in residence permits with biometric data.

According to the industrial association Eurosmart 240 million security chips for security documents were delivered in 2011. Infineon’s share of this market segment amounts round 40 percent. Besides, Infineon is the only semiconductor supplier who has been shipping to the electronic passport projects of the world’s five most populous countries in 2011, namely: China, India, USA, Indonesia and Brazil.

Further information on Infineon’s SLE 78 products is available atwww.infineon.com/sle78

Based on its core competencies in the fields of security, contactless communication and integrated microcontroller solutions (Embedded Control), Infineon offers a comprehensive portfolio of semiconductor-based security products for many chip card and security applications. Infineon uses this expertise to increase security in an increasingly mobile and networked world, e.g. for mobile payments, system security and secure electronic sovereign documents. Infineon has developed innovative, hardware-based security solutions for over 25 years and has been the world market leader for 14 years.

Further information on Infineon’s chip card and security solutions is available at www.infineon.com/security

87% of Businesses in Malaysia Might Not be Able to Recover Lost Data and Systems

New independent research sponsored by EMC points to outdated backup and recovery infrastructure

Malaysia – June 21th, 2012 

News Summary:

  • 87% of organizations in Malaysia are not very confident that they can fully recover after a disaster, according to a new survey of 2,500 companies in Asia Pacific and Japan
  • 69% of Malaysian organizations surveyed have lost data and/or suffered systems downtime in the last year
  • Hardware failure (51%) data corruption (51%) and loss of power (50%) were cited as the primary causes of data loss and downtime for Malaysian organizations
  • 40% of Malaysian organizations cite loss of employee productivity as the most likely consequence of downtime
  • 43% of Malaysian organizations who store a backup copy offsite for disaster recovery still use tape for recovery, and 35% still use CD ROM (although 61% now use disk-based storage)
  • 80% of these organizations want to replace tape all together, highlighting the need for next generation backup and recovery

EMC Corporation (NYSE: EMC) today announced results of ‘The Disaster Recovery Survey 2012: Asia Pacific and Japan’, which found that 87% of companies in Malaysia are not very confident that they can fully recover systems or data in the event of a disaster, and that 69% of Malaysian organizations lost data or suffered systems downtime in the last 12 months. These findings highlight the need for backup transformation from antiquated technologies that are not suited for today’s data growth or availability expectations. A move to next-generation backup and recovery solutions ensure continued business operations in the event of a natural disaster, malicious activity or more routine and common disruptions to IT systems. In fact, the research has shown that the causes of systems downtime are often the commonplace disruptions to IT, such as hardware failure or data corruption, rather than natural disasters or other major incidents.

Commissioned by EMC and conducted by independent research company Vanson Bourne ‘The Disaster Recovery Survey 2012: Asia Pacific and Japan’ looks at the state of backup and disaster recovery in the region to understand how well companies are prepared for data loss and systems downtime. 

Survey Findings:

Disruption happens: downtime and data loss more likely from an IT problem than a natural disaster

EMC Survey 2012 infographic

The research showed that it is not the extraordinary that creates problems, and it can take just a little to cause a lot of disruption, even something as simple as data corruption.  The three most common causes of data loss and downtime in Malaysia are:

  1. Hardware failure: 51%
  2. Data corruption: 51%
  3. Loss of power: 50%

This compares to just 13% of respondents citing natural disasters as a cause of systems downtime or data loss, and 16% of respondents attributing systems downtime or data loss to employee sabotage.   Regardless of the cause, 61% of Malaysian organizations reviewed and changed their procedures for backup and recovery in response to an incident.

Furthermore, 51% of businesses increased their spending on backup and recovery after a disaster. This is against a backdrop where 36% of organizations surveyed did not feel they were spending enough on backup and recovery.  On average, the research found that businesses across Malaysia are spending 9.54% of their IT budgets on backup and recovery.

Economic impacts: Lost revenue attributed to systems downtime 

The study identified that there are measureable business impacts from systems downtime, with the top three cited by Malaysian organizations as:

  1. Loss of employee productivity: 40%
  2. Loss of revenue: 37%
  3. Delay in product/service development: 39%

Systems failure resulted on average in two lost working days for the Malaysian businesses in the survey. Based on an average eight hour working day, this is the equivalent of 32,000 man-hours for a Malaysian company employing approximately 2,000 employees. Additionally, each organization lost an average of 1099GB of data during a 12 month period. Given that 1MB of data is approximately the equivalent of 25 email documents in size, losing 1099GB of data would be the equivalent of losing 27.48.1 million emails.

Despite loss of revenue being rated as a major consequence of systems downtime, the research also revealed that many Malaysian companies are not doing enough to protect essential customer data. 64% of organizations do not have a disaster recovery plan for their CRM systems, while only 5% of organizations who do have a disaster recovery plan for their applications would require their CRM applications to be up and running first following systems downtime.

Furthermore, businesses in Malaysia are failing to take advantage of insurance premium benefits that a comprehensive disaster recovery plan can engender. 62% of companies in Malaysia are obliged by either insurance policies or regulatory requirements to have a disaster recovery plan in place. More importantly, however, 40% of Malaysian organizations surveyed are offered reduced premiums by their insurance provider according to the strength of their IT systems backup/disaster recovery strategy. However, 36% of Malaysian organizations do not know if their insurance provider offers such reduced premiums – or they had never considered it at all – highlighting a missed opportunity for many businesses.

Outdated solutions: 43% still depend on tape and 35% still use CD Rom for backup and recovery, but this looks set to change

For backup and disaster recovery purposes, 43% of Malaysian organizations still rely on tape. Looking at the operational cost associated with tape, organizations in the Asia Pacific and Japan region spend on average more than USD58,821 (RM185,484) including transportation, storage, test and replacement of tape for the purposes of offsite disaster recovery. Meanwhile, 35% of companies rely on outdated CD-ROM for backup storage. Surprisingly, 14% of Malaysian organizations have an employee take a copy of their backup home with them for safekeeping.

However, 61% of businesses in Malaysia are already using modern disk-based backup and recovery solutions. This trend looks set to increase, with 80% of tape-using organizations looking to move beyond tape. The top three reasons cited for this planned move are:

  1. Faster backups: 40%
  2. Speed of data recovery and system restores: 38%
  3. Durability (disk-based methods have a longer lifespan): 31% ; and Total cost of ownership: 31%

Preparedness for routine disruption or more significant incidents starts with a next-generation backup approach that leverages disk with data deduplication and network based replication technologies.  The survey shows the reaction after disruption is to spend more on backup and recovery, but the damage is done in terms of time and money during a downtime as well as longer term damage to customer loyalty.  By raising the visibility of the most common problems facing companies today and the associated economic consequences, organizations can proactively review their own strategies for backup and recovery to ensure they can meet business requirements.

Quotes

“This research raises a number of interesting issues around backup and recovery, not least that businesses need to take a proactive approach to ensuring their systems can cope well before an incident occurs. From our own experiences, it seems clear that a next-generation disk-based approach to backup and recovery is best placed to get business-critical applications up and running immediately, so that the economic impact such events have are minimized. By careful planning and ensuring we make the right investments, we are confident that we are well prepared for systems downtime, whatever the cause.”

Aakash Gandhi, Chief Technology Officer, Infoplex

“It’s not uncommon that we find major organizations that cannot recover a lot of their backups, or rely solely on replication for Disaster Recovery.  With increasing regulatory requirements in most countries, increasing and more aggressive security threats and continual growth of data fuelled by online channels, it is more important than ever that companies have a well defined DR strategy. Companies that do not have an effective strategy risk losing customer data and suffering significant fines from the regulators.  There are new technologies that remove human error, eliminate the potential for losing data (such as backup tapes), provide encryption and automate the monitoring and reporting across the entire data protection environment. These solutions help our customers save money while reducing risk.  This report looks at the risks and shows us that there is a lot of work to do.”

Michael Alp, Vice President, APJ Backup and Recovery Systems Division, EMC

“Asia Pacific and Japan, is not immune to the uncertain economic times facing the rest of the world.  Against this backdrop, it is more important than ever for businesses to ensure that they are protected against systems downtime and data loss or they are to withstand the damaging effects of loss of productivity and revenue. By establishing a well thought-out and strategic approach to backup and recovery that utilizes the next-generation solutions available today, businesses can withstand the consequences of day-to-day outages as well as more serious incidents, while reducing the total cost of ownership of their backup systems.”

Shane Moore, Director  APJ Backup and Recovery System, EMC

Survey Methodology

For ‘The Disaster Recovery Survey 2012: Asia Pacific and Japan’ – commissioned by EMC, Vanson Bourne interviewed 2,500 IT decision-makers in private and public sector organizations in Australia, China, India, Japan, Korea, Indonesia, Malaysia, The Philippines, Singapore and Thailand. Each organization ranged between 250 and 3000-plus employees and represented a variety of industries including manufacturing, retail, financial services and telecoms, among others.

Additional Resources: