Leading chip maker Samsung Electronics Co. Ltd. has announced a near field communications (NFC) chip with embedded flash memory intended for use in mobile handsets.

The company claimed that its part is the first NFC device to offer embedded non-volatile memory. This would allow developers to upgrade software or firmware.

NFC can be used to establish a wireless peer-to-peer connection prior to handover to Bluetooth and/or WiFi connections for fast, convenient data transmission. Samsung also provides a software protocol stack and technology services for antenna design and tuning.

NFC only operates at up to 10-cm or 4-inches distance but can play a role as a contactless smartcard in use for public transportation payments for bus and subway fares and mobile banking payments. It can also read RFID tags in retail stores or on outdoor billboards for data access.

The mobile phone market is forecast to grow from 1.4 billon units in 2011 to 1.8 billion units in 2015 at a compound annual growth rate of seven percent, according to market research firm, IMS Research. In 2011, NFC-enabled phone models are expected to gain pace and the ratio of mobile phones with NFC capabilities is expected to reach 26 percent in 2015.

Samsung's new NFC chip is scheduled for mass production in the first quarter of 2011.