Jan/Feb 2004

Computer giant IBM has thrown its weight into the fast-developing RFID (radio frequency identification) market by establishing a partnership with Philips, already a leader in the game.

The two companies say they are going to develop a range of RFID-based solutions for supply-chain, retail and asset management, as well as creating smartcard solutions for finance, e-government, transport and event ticketing.

Philips already claims to be the worldwide leader in high-security smartcard controller integrated circuits and RFID chip solutions, while IBM has an existing RFID consultancy within its Global Services division. Together they expect to give more impetus to the underlying technologies, capitalising in the growing interest among users.

Their initial joint initiative will be to mount an RFID implementation for Philips' own business, focusing on its semiconductors division. The first step involves tagging wafer cases and carton packages at Philips' Kao Hsiung manufacturing site in Taiwan and distribution centre in Hong Kong. The should be fully live during the course of this year.