1998-11-03 , E/IC-1051/39
Product News From Philips Semiconductors

Philips Semiconductors, the largest European semiconductor manufacturer and Gemplus, the largest world-wide manufacturer of smart card and smart label solutions, today announced a co-operation agreement. Under this agreement, Gemplus will develop a full range of smart labels and reader/writer units based on Philips Semiconductors' I•CODE technology.

The I•CODE chip can be programmed with detailed product information, such as the date and place of manufacture, distribution history and warranty details. These characteristics ensure traceability for all types of products and packaging, such as electronic equipment, clothing and baggage, from the production line to the point of sale, while also integrating an anti-theft function.

One of the first Gemplus' products to make use of I•CODE technology is a 'logistics smart label', which is suitable for applications in retail distribution. It will simplify inventory control, contribute to the fight against counterfeit branding and improve throughput speed and accuracy at the check-out counter. Gemplus will also develop reader/writer units for I•CODE, such as handheld readers and long range readers for commercial and logistics use. These new Gemplus products will be launched to the public at ScanTech Expo Europe, held from 3-5 November, the biggest trade show for automatic identification in Europe, and will become available in the first half of 1999.

"We have chosen the Philips Semiconductors' chip because of its excellent response to the requirements of different players in retail distribution, and so as to back the 'open' strategy promoted by Philips Semiconductors, which has made its chip available to all label manufacturers, and actively supports standardisation efforts", said Frédéric CoustĖre, Manager of the Business Unit GEMPLUS Tag.

"This co-operation between our two companies is an excellent example of collaborating to meet market demands", explains Christoph Kauer, Product Line Manager at Philips Semiconductors. "It brings together Philips Semiconductors' expertise in RFID chip development and high volume production together with Gemplus' knowledge of reader systems and contactless card and label manufacturing."

Smart labels are contactless identification devices (RFID). These devices are paper-thin and are able to communicate using radio signals over distances of more than one metre. Smart labels contain a non-volatile read/write memory to store specific information related to the product, manufacturer or distribution process. They can be operated simultaneously by suitable read/write devices at a rate of over 30 labels per second and do not require a direct line of sight between reader and label.

The smart label market is expected to be one of the largest growth areas in the entire automatic identification market. Smart labels also can be used to identify branded goods and to provide reliable protection against product piracy. The overall size of the market is forecasted to be more than 1 billion labels by 2003.

Philips Semiconductors, a division of Philips Electronics NV, headquartered in Eindhoven, The Netherlands, is the ninth largest semiconductor supplier in the world. Philips Semiconductors is a leader with a proven reputation in the development and production of components for radio frequency identification, cryptocontroller and contactless smart card ICs. Philips Semiconductors' innovations in digital audio, video and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets. Sales offices are located in all major markets around the world and are supported by regional application labs.

Gemplus, leading the world for smart cards, is the inventor of the thin, flexible smart label. Gemplus markets a full range of smart labels, interfaces, antennas, readers and software. Gemplus has entered into partnership with different companies to ensure a true turnkey-solutions offering for its different end-user customers. Today, its world-wide network includes a hundred value-added resellers (VARs). Gemplus currently provides labels for applications such as gas-cylinder traceability, tagging of animals, and industrial laundry labelling, among others.