Developments in RFID and smart cards

Philips and IBM are to jointly develop customer systems for radio frequency identification (RFID) and smart card applications. They plan to address the growing need for advanced high-security smart cards and RFID technology in day-to-day business processes, operations and consumer lifestyles.

The key end-application areas are RFID solutions for supply chain management, retail and asset management, as well as smart card solutions for finance, egovernment, transportation and event ticketing. Within the scope of the joint cooperation, IBM Global Services will also build an RFID system for Philips Semiconductors division manufacturing and distribution facilities in Taiwan and Hong Kong.

The first joint project between the two companies is the development and implementation of an RFID solution within Philips' Semiconductors division to improve the business processes within the manufacturing and distribution supply chain, inventory management and control as well as to enhance customer satisfaction. In a first step, wafer cases and carton packages will be tagged at Philips Semiconductors Kao Hsiung manufacturing site in Taiwan and the division's distribution centre in Hong Kong. The project started in November '03 and will be fully live during the course of this year.