The sources were partially bearing out a report to that effect in the business daily Handelsblatt which said that Infineon was set to win the contract along with a Chinese partner.

"We don't how much the contract will be worth, nor how many companies will be involved," the sources said.

A company spokesman refused to comment on the information.

The Chinese authorities hope to issue about one billion chip-carrying passports over the next five to six years to help fight forgeries.

They would start being issued in big cities from the beginning of next year. Infineon employs around 800 people in China.

SPACE.WIRE