1999-09-02 , ESC-9981
Business News From Philips Semiconductors

Omron Corporation and Philips Semiconductors today announced their co-operation in the emerging field of smart label technology. Under their agreement, Philips Semiconductors is supplying Omron with I·CODE ICs for smart labels, and Omron is developing a comprehensive range of 13.56 MHz readers and transponders. The technology will be suitable for use in all of the emerging smart label market sectors, including airline passenger baggage handling, parcel services, libraries, and retail logistics.

Omron, already a leading player in the field of airport automation, is now able to offer the airline industry RFID (radio frequency identification) Sortation Tunnel Readers, suitable for installation into existing tilt tray and conveyor-based airport baggage handling systems. As members of the IATA Registered Suppliers Program, both Omron and Philips Semiconductors have recently conducted equipment testing for smart label baggage tagging, showing the suitability of I·CODE in this application.

The testing of Omron's latest I·CODE 13.56 MHz Sortation Tunnel Reader, and its new disposable transponder, was conducted by British Airways at a test facility belonging to Crisplant a/s of Aarhus, Denmark. Mike Street, British Airways' Director of Customer Service and Operations, said, "These high tech smart labels have the potential to speed up sorting, transfer and delivery of bags and that means a better service for our customers."

Furthermore, Omron is currently trialing equipment based on Philips Semiconductors' I·CODE technology in retail supply chain management and express parcel service applications.

Smart labels are radio frequency transponders which are thin enough to be laminated between layers of paper or plastic to produce low-cost, consumable labels. This new technology contains read/write memory to store information related to the product, manufacturer, or logistics process. Smart labels can be simultaneously operated by read/write devices at a rate of more than 30 labels per second and, unlike barcodes, they do not require a direct line-of-sight between the reader and label.

Steve Coffey, manager of Omrons New Business Development Group in Europe, said, "Philips Semiconductors' I·CODE chip technology fits perfectly with our open systems strategy. Its overall competencies in identification components and its track record in creating open system platforms make it an outstanding chip supplier and a good partner to develop a comprehensive range of 13.56 MHz readers and transponders."

Christoph Kauer, Product Line Manager at Philips Semiconductors, adds, "We are extremely pleased by Omron's commitment to I·CODE. The partnership of Omron as a leading global automation system supplier and Philips Semiconductors as a market leader in RFID components builds a strong alliance to provide RFID solutions on a worldwide basis."

Omron Corporation is a Kyoto, Japan-headquartered US$5.5 billion global leader in the field of automation. Established in 1933, today over 23,000 employees in over 35 countries around the world work to provide customers in the industrial automation, service automation, healthcare automation and information processing fields with high quality components, systems, service and support. Additional information on Omron is located on the World-Wide Web at  http://www.omron.com

Philips Semiconductors, a division of Royal Philips Electronics, headquartered in Eindhoven, The Netherlands, is the eighth largest semiconductor supplier in the world. 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 systems labs. Additional information on Philips Semiconductors can be obtained by accessing its home page at http://www.semiconductors.philips.com