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May 28, 2011

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RFID is new buzz word for Shanghai

SHANGHAI has established a complete RFID industry chain, from chip to assembly and testing, to promote the latest wireless technology in medical, transport and the upcoming mobile payment sectors, officials said yesterday.

RFID, or radio frequency identification, is a wireless technology which is widely used in urban infrastructure construction, transport, logistics, retail and other sectors globally. For example, users can pay for tickets and bus fees through their handsets directly through a wireless swipe in front of reader devices.

"Shanghai has developed a good platform and system for RFID industry development, such as a special industry base in Zhangjiang and favorable policies," said Wang Dong, director of Shanghai Zhangjiang RFID Test Center and also a professor at Shanghai Jiao Tong University. "It's time for us to see the result."

At present, the RFID chip designed by the Shanghai SampleRFID Technology is being used in several local hospitals. The decreased cost of the RFID chip is expected to boost the new technology's applications in other sectors, such as public transport and food industries, said Tony Tang, general manager of Shanghai SampleRFID.

In 2010, a high-end RFID chip cost about 0.80 to 3 yuan each on average, compared with more than 10 yuan (US$1.54) in 2005.

Top brand wine makers, such as Moutai and Wuliangye, have adopted the technology to crack down on fake wines, industry insiders said.

The next big wave for the RFID will be mobile payment, which will allow more than 850 million users in China to take phones with RFID chips to replace credit cards and transport cards.

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