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Despite Sluggish Growth, Taiwan's RFID Industry Remains Committed
Taiwan's RFID industry grew sharply between 2006 and 2007—jumping 62 percent in sales of hardware, software and services, to NT$2 billion (US$68 million). This outpaced the industry's growth in other parts of the world during that same year, and Taiwanese firms held high hopes that this trend would continue. In 2007, the Taiwan External Trade Development Council (TAITRA) reported that it expected the country's RFID industry to reach NT$12 billion (US$374 million) in 2010. But last year, the industry was valued at only NT$2.7 billion (US$84 million)—with EPC Gen 2 UHF (860 to 960 MHz) passive tags and readers making up 25 percent of sales, still trailing the largest sector, HF (13.56 MHz) passive tags and readers, at 31 percent. LF (125 kHz and 134 kHz) technology accounts for 20 percent.
In light of slower-than-expected growth, TAITRA now predicts the Taiwanese RFID market will hit a significantly lower target of NT$3 billion (US$93 million) in 2010, and NT$4.6 billion (US$143 million) in 2014. But the organization will continue to highlight the nation's role in the RFID industry at the upcoming fourth annual Taiwan International RFID Applications Show (being held on Oct. 11 to 14), by focusing on a wide range of RFID applications, from ticketing to livestock tracking, as it has in previous years (see Taiwan RFID Technology, Applications Showcased at International Exhibit). While many applications, such as access control and livestock tracking, are not new, end users are beginning to shift from shorter-range passive tags (such as those utilizing the low-frequency or high-frequency RF bands) that historically have been used for these applications, to longer-range, UHF EPC Gen 2 tags.
Favite, an RFID hardware manufacturer in Hsinchu County, has been busy getting ready for growth, producing a broad product lineup of RFID chips, tags and readers, including an EPC tag chip (see Taiwanese Company Unveils EPC Gen 2 Chip With 128-kbit Memory) and several types of RFID-based remote controllers designed to replace traditional infrared models for consumer electronics, such as TVs and DVD players (see TV Remote Controller Uses RFID to Become Battery-Free). But the company has yet to announce any customers using its RFID products.
Favite was founded in 2000 to manufacture automatic optical inspection and measurement machinery, which performs automated inspections of electrical components, such as circuit boards. The company launched its RFID division in 2007, in order to produce passive EPC Gen 2 RFID tags, and has since expanded into readers and converting tags into adhesive labels. The firm makes its own tag antennas, using screen-printing and electroplating, and also employs a flip-chip bonding machine to manufacture strap assemblies that it uses for its own inlays, but also sells to other tag makers. In fact, much of Favite's RFID business is as an original-equipment and original-design manufacturer. But Vince Liang, a sales specialist with the company's RFID division, says he would like to see that change. "We have all of the equipment to manufacture and convert, and we have RFID readers," he states. "Now, we just need customers."
Customers are coming, Liang says, noting that Favite is presently in the final testing stages with a number of television manufacturers that plan to offer the RFID remote controllers with future TV models. But it's obvious to Liang that the industry demand for EPC tags and readers has not yet reached the expectations that the firm had when it first entered the market.
And yet, lower-than-expected demand has not stifled innovations in Taiwan, as RFID remains an important area of study in that country, at ITRI and at companies such as Favite, which recently released an EPC Gen 2 fixed-position reader with a 50-foot read range, a 1.6 GHz Intel processor and up to 2 gigabytes of RAM memory. Other Taiwanese firms, such as Getac and Champtek, are also developing new RFID hardware and solutions. More information on these companies and their RFID applications is expected to be available soon.
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In light of slower-than-expected growth, TAITRA now predicts the Taiwanese RFID market will hit a significantly lower target of NT$3 billion (US$93 million) in 2010, and NT$4.6 billion (US$143 million) in 2014. But the organization will continue to highlight the nation's role in the RFID industry at the upcoming fourth annual Taiwan International RFID Applications Show (being held on Oct. 11 to 14), by focusing on a wide range of RFID applications, from ticketing to livestock tracking, as it has in previous years (see Taiwan RFID Technology, Applications Showcased at International Exhibit). While many applications, such as access control and livestock tracking, are not new, end users are beginning to shift from shorter-range passive tags (such as those utilizing the low-frequency or high-frequency RF bands) that historically have been used for these applications, to longer-range, UHF EPC Gen 2 tags.
Favite, an RFID hardware manufacturer in Hsinchu County, has been busy getting ready for growth, producing a broad product lineup of RFID chips, tags and readers, including an EPC tag chip (see Taiwanese Company Unveils EPC Gen 2 Chip With 128-kbit Memory) and several types of RFID-based remote controllers designed to replace traditional infrared models for consumer electronics, such as TVs and DVD players (see TV Remote Controller Uses RFID to Become Battery-Free). But the company has yet to announce any customers using its RFID products.
Favite was founded in 2000 to manufacture automatic optical inspection and measurement machinery, which performs automated inspections of electrical components, such as circuit boards. The company launched its RFID division in 2007, in order to produce passive EPC Gen 2 RFID tags, and has since expanded into readers and converting tags into adhesive labels. The firm makes its own tag antennas, using screen-printing and electroplating, and also employs a flip-chip bonding machine to manufacture strap assemblies that it uses for its own inlays, but also sells to other tag makers. In fact, much of Favite's RFID business is as an original-equipment and original-design manufacturer. But Vince Liang, a sales specialist with the company's RFID division, says he would like to see that change. "We have all of the equipment to manufacture and convert, and we have RFID readers," he states. "Now, we just need customers."
And yet, lower-than-expected demand has not stifled innovations in Taiwan, as RFID remains an important area of study in that country, at ITRI and at companies such as Favite, which recently released an EPC Gen 2 fixed-position reader with a 50-foot read range, a 1.6 GHz Intel processor and up to 2 gigabytes of RAM memory. Other Taiwanese firms, such as Getac and Champtek, are also developing new RFID hardware and solutions. More information on these companies and their RFID applications is expected to be available soon.
