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More sectors are discovering the value of RFID in asset tracking, access control, personal ID and anti-counterfeiting.
Radio frequency identification or RFID is no doubt one of the most important buzzwords in the security industry today. Originally intended to aid retail giants such as Wal-Mart in supply chain and logistics management, the technology is proving itself useful in other areas, particularly safety and security.
RFID is now widely used for asset tracking, access control, personal identification and anti-counterfeiting. Although its use in these areas is still undergoing tests and verifications, some makers are already raking in substantial profits from these RFID applications. Meanwhile, RFID adopters are devoting their R&D efforts to enhancing system stability (tag readability) and minimizing disturbance.
In 2007, the RFID market in Taiwan experienced a 62 percent growth, with total revenues amounting to $6.4 million, according to the Initiative Office for Government RFID Applications of the Ministry of Economic Affairs. Most makers engaged in RFID offer hardware such as antennas, inlays (inlets), readers and tags, while others provide RFID solutions for access control systems and anti-counterfeiting equipment.
Suppliers expect prices of RFID tags to remain stable in 2008. Despite the high cost of implementing customized RFID projects, suppliers believe that the technology’s many benefits will draw buyers and eventually widen its adoption.
RFID tags or transponders posted a 50 percent year-on-year growth in 2007. To date, RFID operates on four radio frequencies, namely, LF (125KHz), HF (13.56MHz), UHF (860MHz to 930MHz) and microwave (2.40GHz and 5.8GHz). For RFID tags, suppliers usually focus on one or two bands then gradually expand either within the same band and/or to other RF bands. Currently considered mainstream are HF products, such as Near Field Communication devices.
Low-priced UHF products are expected to breach the mainstream soon. Some suppliers, however, believe that UHF tags will apply mostly to logistics and supply chain management.
At present, there are about 20 RFID tag makers in Taiwan. Among them is Asia Smart Tag Co. Ltd or ASTAG, a supplier of RFID tags and readers operating on the LF, HF and UHF bands. ASTAG’s product roster includes key-fobs, tags, cards, labels, wristbands, seals, inlays, modules, readers, handhelds and duplicators. The company exports its products to North and South America, Europe, Asia and Oceania, specifically to these regions’ safety and security, defense, access control, transportation and pharmaceutical industries.
Some makers, such as Security Assembly Group Co. Ltd (SAG), believe that RFID tag is a misnomer. “We prefer to call our RFID tags ‘transponders’. Transponders, which are used for transmitting RF signals, may come in different forms,” William Lin of SAG’s product marketing department said. With more than seven years of manufacturing experience, SAG offers a wide range of RFID transponders, which includes cards, key-fobs, labels, sticks, discs, patches, tokens, wristbands and other custom-made items. The company exports its products to Europe and North America.
Other suppliers, such as Syris Technology Corp., provide RFID readers on top of RFID tags. The company has over 15 years of experience in security integration and access control systems. Today, it designs and manufactures active RFID tags, mostly custom-made ones. Thus, it works closely with hardware providers, software platform suppliers, system integrators and actual users. The company exports to OEM/ODM buyers in North and South America, Europe, and East and Southeast Asia, particularly to mainland China.
Meanwhile, some makers are venturing into the production of integrated solutions. Sunlit System Technology Corp., for instance, is a major tag supplier of Hitachi Ltd’s passive RFID chip, the Mu-chip (µ-chip). Reportedly the world’s smallest passive RFID chip at 0.4x0.4mm, the Mu-chip operates on the 2.45GHz band and stores up to 128-bit data. Sunlit offers total RFID solutions covering project planning, design and development, installation and application up to after-sales service. Its RFID tags and readers have been successfully applied in hotel security and used as entry passes to monitor passengers during the 2005 World Exposition in Aichi, Japan.
Syris’ SYTAG245-TM is an active RFID wristband for medical applications. Using microwave (2.40GHz to 2.48GHz), the product has a transmission range of up to 80m, a call button for emergency reporting when patients need medication, and two optional built-in temperature sensors for detecting ambient and skin temperatures. The 42x30x10mm RFID wristband uses a replaceable coin cell battery that can last for one to two years. It has a splash-resistant housing.
Traceability is the key goal of RFID technology in agriculture and livestock breeding. RFID plays an important role, not just in livestock asset tracking, but also in ensuring the nutritional safety of consumers. SAG’s livestock ear tag, for instance, uses a 134.2KHz EM chip (EM4105/EM4569), thus enabling high reliability and performance even in harsh environments. Mainly used for pet control or bird breeding, the product is made of glass fiber and boasts a readability rate of almost 100 percent. The ear tag can assist farm owners in the accurate recording of medicine intake, and feeding and breeding schedules of farm animals. It can also record traits, such as age and breed.
SAG also produces an RFID laundry tag designed for asset tracking in the garments industry. These RFID tags or transponders are compliant with heat, pressure and chemical resistance standards observed in the tracking of garments in textile rental and dry cleaning services. The RFID laundry tag is made of compound plastic and nylon, and comes in 22/17/14mm sizes.
Sunlit offers disposable RFID tags and low-cost solutions for member card or entry pass used for access control and anti-counterfeiting. Andy Lee, executive vice president of Sunlit, explained that their RFID ticketing solutions are designed for monitoring people traffic in ball games, concerts, tradeshows and playgrounds, while their RFID access control solutions are best used in hotels, spas and hot springs, and for learning center member management.
Small size and short battery life are two of the major problems associated with RFID technology. To address them, Syris is focusing on system stability, specifically on minimizing reading failure, and the integration of RFID technology into access control systems. Syris is one of the few companies that plan to pursue the development of Wi-Fi RFID tags.
Another pressing concern is the suitability of certain raw materials. According to SAG, metaland water cause strong disturbances to signal readability. The company is currently developing RFID tags or transponders for harsh and rugged environments. Its Livestock Ear Tag (also called Ear Tag) is used for RFID animal tracking, RFID livestock management, asset management and factory automation. The Ear Tag has been applied in pig livestock management as an electronic animal ID in pig farms in Japan, Taiwan and mainland China.
Makers featured in this report all agreed that EPCglobal is a powerful growth driver for the RFID industry. EPCglobal leads the development of industry-driven standards for the Electronic Product Code to support the use of RFID in trading networks. However, the organization’s influence is limited to logistics and supply chain management.
Most RFID tag makers follow EPCglobal’s standards by using compliant chips from leading IC vendors like NXP, Atmel, EM-Marine, LEGIC, Infineon, STMicroelectronics and TI. “Cost reduction and mass production are not applicable to the current RFID market, due to the de facto high cost of RFID implementations. On the other hand, Japan’s experience in utilizing RFID proved successful. RFID technology was able to bring convenience, security and safety to its people,” Lee pointed out. He added that the Ubiquitous ID Center founded by the Japan government is envisioned to play a significant role in the RFID industry in the near future.