He cited two reasons for this prediction.
“First, weak links exist throughout the supply chain because IT usage is not widespread and, second, adding RFID tags to products will result in lower profit margins, especially for inexpensive items,” Jiang said.
He noted chipmakers Philips, Texas Instruments and EUM faced competition from Chinese firms Tongfang, Zhongdian, Datang and Huahong. The tag, reader and service sectors are all dominated by Chinese companies.
“Second-generation ID cards are a key application for RFID in China, and local companies are better positioned,” he said, adding that “for some applications, foreign vendors maintain a market edge based on product quality.”
Last month, a number of Chinese government departments worked on a white paper covering the development of radio frequency identification (RFID) technology, which would make keeping track of products easier.
RFID is a wireless technology that allows producers and suppliers to trace their products through wireless and integrated circuit technologies, and thus increase the efficiency of their logistics.
With its importance to logistics, retailing and manufacturing industries, and the potentially huge future consumption of electronic tags and chips, RFID has grabbed global attention.
Ministry of Commerce - China
marketing@alchempro.com
