4. The future of RFID production

4.1 Cost of silicon

Integrated circuit development (research & development of the chip) is costly, and the product's lifespan is limited. The greater the volumes sold, the lower the impact of R&D cost amortization.

In other words, the aim is to reduce the margins that currently ensure the profitability of developments. In a mass market, as expected for the UHF market, for example, silicon costs are set to fall significantly and steadily.

In 2005, a UHF-RFID IC cost around €6-7 cents. Today, the same IC with added functionality...