US TPM TRUSTED COMPUTER Investor's Business Daily: Firms Add 'Trust' To Computers

Firms Add 'Trust' To Computers

Posted 3/6/2007

A "trusted" name — with the backing of many top tech companies — will try to boost online security.

A technology called trusted platform module, or TPM, is being introduced to provide computer security. TPM is a security software-chip package that can be included in computers to aid in tasks related to making sure only authorized persons can log on to a computer or a network.

Security remains a top concern of tech industries. The U.S. Computer Emergency Readiness Team, a unit of the Department of Homeland Security, says it received 23,000 reports of cyber attacks in 2006, up from 5,000 in 2005.

"We see security as one of the top three concerns of our customers," said Ford Tamer, an executive with chip and network gear maker Broadcom. (BRCM) "And recently it's much closer to the top of the three."

Broadcom is a member of the Trusted Computing Group, which developed the current TPM standard. The group formed in 2003 to seek ways to makecomputers and networks more secure. TCG founders include Advanced Micro Devices, (AMD) Hewlett-Packard, (HPQ) IBM, (IBM) Infineon (IFX) and Intel. (INTC) Other charter members are Microsoft, (MSFT) Sun Microsystems (SUNW) and China's Lenovo.

The TPM basically is a controller chip that stores passwords, digital keys and certificates. These items are all used to guarantee that only an authorized person is using acomputer or is logging on to a network. The TPM goes onto a computer's motherboard, or main circuit board.

TPM got a boost with the release of Microsoft's Vista PC operating software in January. Vista includes software called BitLocker that works with TPMs. Analysts say it will spur sales of TPM chips.

Research firm IDC estimates chip companies sold roughly 50 million TPM chips in 2006. With Vista's help, IDC forecasts that number will rise to 100 million units this year and 250 million by 2010.

There are six main TPM sellers: Atmel, (ATML) Broadcom, Infineon, Sinosun, STMicroelectronics (STM) and Winbond. They all benefit from adoption of TPM, while most members of the Trusted Computing Group simply want the standard to take hold to make people more comfortable using networks, leading to more sales ofcomputers, network gear and network services.

The chips themselves sell for less than $5 each. So total revenue from TPM sales is relatively low. But some companies have more upside with TPM because they sell extra software that is packaged with the chips. Such companies include Infineon and Wave Systems. (WAVX) Wave says its software packages that include TPM and other elements can run as much as $50.

Vista will be the catalyst that finally jump-starts what has been a slow TPM market, says Paolo Cocchiglia, a vice president for Infineon North America.

"It's definitely been a slow adoption," he said. "But security is becoming more and more important," so companies are starting to buy and use TPMs.

"You will see a big portion (on) the U.S. government side move to improve security," he said. "Definitely when you talk about security, TPM is a big contributor."

Broadcom has taken another tack. It bundles TPM circuits into its chips, and it buys TPM software from Infineon to run on its chips.

Tamer says Broadcom is putting TPM and other security circuits into Ethernet network controllers and complex biometrics.

Broadcom plans to roll out new security chip sets later this year. "We'll have an announcement midyear," Tamer said.

TPM will boost security, says Roger Kay, president of consulting firm Endpoint Technologies in Wayland, Mass. He says so-called software "sniffers" can often hack into what is supposed to be secure software.

"But with the TPM, there's no way to do that," Kay said.

Looming over this chip market, as it does so many others, is Intel. Kay says he believes that Intel will put TPM into its microprocessors. If that happens, that could cripple TPM sales for Atmel, Broadcom and others.

An Intel spokesman declined to comment. But a source close to Intel, who spoke on condition of anonymity, says it is not likely the company will put TPM into its microprocessors, acomputer 's main chip. Instead, the source says, the company might put it into its chip sets the groups of chips that assist the main processor. But this move, too, would likely hurt Atmel, Broadcom and other TPM sellers.