The chip, which is based on encryption technology, will be used to hold personal information on the passport holder in an attempt to reduce travel document fraud and increase security for travelers.

The move comes as governments are seeking to implement smart passports in response to the US visa waiver program, which requires visitors to the country to present a machine readable passport when visiting the country for less than 90 days.

Philips said it is working closely with a network of national governments worldwide to develop products designed around current and future security needs.

Smart passports enable greater levels of security than those provided by current passports, increasing safety for travelers and enabling governments to better protect their borders, said Reinhard Kalla, vice president, business line identification, Philips Semiconductors.