HP and Philips to Drive Adoption of Second Generation RFID Solutions

September 13, 2005

HP and Royal Philips Electronics today announced that they are partnering to accelerate the adoption of the latest global RFID standard, which is designed to provide customers with interoperable technology, solutions and services for migration from previous RFID standards.

This new global EPC Class 1 Generation2 (Gen2) standard allows a single tag to now travel globally and still be read by most readers, something that wasn't previously possible. For example, most first-generation Class 1 RFID tags used in the United States cannot be read in Europe due to bandwidth limitations. Gen2 makes it possible to track a tag sent from the United States through Europe with ease.

Having already successfully embraced RFID technology in their respective supply chains, both companies will leverage their complementary leadership in RFID chip development, business process design and systems integration to further drive adoption of Gen2 RFID technology. Announced at the EPC Global Conference, the joint effort is primarily focused on the consumer products/retail, high-tech and pharmaceutical industries.

"As RFID technology continues to evolve, a needs-focused analysis of business processes, systems architecture and resource capabilities is required to identify the investment options available for an RFID strategy," said Mike Witty, program director, Manufacturing Insights. "Enterprises want to leverage their existing RFID investments without sacrificing the benefits offered by Gen2."

The goal of the HP and Philips collaboration is to ensure that adopters of RFID achieve a seamless migration from the previous infrastructure while capitalizing on the global interoperability and increased performance that Gen2 offers.

A key part of the collaboration will take place at HP's Sao Paolo, Brazil facility, where testing of advanced RFID supply chain concepts occurs and through which new technologies are introduced to HP's vast supply chain. HP will use Philips' Gen2 RFID technology at the location, replacing the UCODE EPC 1.19 currently in use. HP plans to use the Philips technology in other locations in the future.

"By working closely with Philips, HP will help assure customers that Philips Gen2 chips and their existing solutions work together effectively," said Frank Lanza, worldwide director, RFID, HP Services. "As a result, customers will be more able to achieve the cost-savings and strategic advantage offered by next-generation RFID technologies."

A leading provider of RFID chip technology, Philips has applied its depth of expertise and industry relationships to ensure interoperability of its Gen2 solutions with those of both its partners and competitors, encouraging market adoption.

Through its extensive knowledge and background in RFID technology development and systems integration, both for customers and in its own business operations, HP helps customers implement Gen2 solutions to achieve a manageable, reliable and cost-effective RFID solution framework.

"Philips and HP have a legacy of complementary solutions and collaboration. By joining forces to drive industry standardization and system optimization, we're breaking down the barriers to wide-scale adoption of Gen2 technology," said Christophe Duverne, vice president, Marketing and Sales, Business Line Identification, Philips Semiconductors. "Supply chain management is key to the success of companies in the retail and high-tech industries and being able to easily implement the Gen2 technology will help give them a competitive edge."