The collaboration will see Infineon's HD security microcontroller to be integrated with Intel's NOR flash memory technology ranging from 4MB to 64MB. As part of the venture, Infineon will develop a 32-bit security microcontroller based on its existing SLE 88 family for use with HD SIM cards.

Recent market research from Frost & Sullivan indicates that HD SIM cards would account for 6 to 8 percent if the total SIM card market of 3.8 billion units by 2010, up from about 2.5 billion units this year. According to Anoop Ubhey, who tracks the smart card sector at the market research group , the venture gives the two firms "an opportunity to shape the HD SIM market in an exciting way."

"The NOR memory and microcontroller option for high-density SIM cards opens the door for new business models and a greater reach for mobile network operators," Frost & Sullivan's Ubhey added.

Glen Hawk, general manager of Intel's Flash Products Group. commented: "It is our and Infineon's common vision that high-density SIM cards will grow significantly as MNOs launch new application-driven services using a rich multimedia user interface and carrier branding, that are handset agnostic."

Helmut Gassell, VP and general manager of Infineon's chip card and security ICs group, added in a statement issued during the first day of the Cartes trade show Tuesday (Nov 13): "Hardware-based security and memory in the double-digit megabyte range are a necessity for enhanced address books, location-based services and other innovative applications based on smart card web server technology. Infineon is committed to serving these applications with the right level of performance and security."

Current generation SIM cards handle network security and basic user functionality, such as standard phone book in a mobile device. By late 2008, the new USB interface of SIM cards will enable additional data-intensive mobile applications, services and over-the-air downloads.

The companies also suggest NOR flash technology is expected to be the primary memory used for HD SIM cards as it provides low price points due to small cell size thus extending HD SIM solutions to a broader reach of subscribers.

NOR flash solutions fit in the existing SIM card cavity, are customizable to a number of densities below 128MB, and require no Error Correction Code (ECC).