DNP Embarks Upon Development of Low Cost RFID Tag for Convenience Stores

In response to expansion of IoT

Dai Nippon Printing Co., Ltd. (DNP) has commenced development of low cost Ultra High-Frequency (UHF) Radio Frequency Identification (RFID) tags in response to the ongoing spread of the Internet of Things (IoT) in Japan and overseas. The Company aims to bring unit costs not more than 5 yen by 2020 and achieve a target of 1 yen per tag in 2025.

[Background and Outline of the Activity]

The Japanese retail industry, including convenience stores is experiencing a serious manpower shortage. In answer to these problem, the Ministry of Economy, Trade and Industry is aiming for the realization of increased efficiency by attaching RFID tags to all products sold at retail outlets as a countermeasure, in checking tasks for best-by dates and expiration dates on individual products, along with operational labor savings via the automation of cash register functions. Feasibility tests incorporating RFID tags into products at convenience stores were conducted in February 2017, and it is expected that over the next few years products incorporating RFID tags will be introduced, and see expanded use.
We are also seeing increased needs to use RFID tags from industries other than the retail sector as part of improving operational efficiencies through the IoT. Having said that, at present the price range for RFID tags is in excess of 10 yen per unit, and the cost is acting as an obstacle to further adoption.
In answer to this challenge, DNP aims to bring unit costs to 5 yen or less by 2020, achieve a target of 1 yen per tag in 2025, and has embarked upon the development of a low cost RFID tag based on the optimization of components and manufacturing techniques.
At present, the size of RFID tag IC is 0.5mm2, but by 2020 in conjunction with IC chip manufacturers, DNP aims to develop an IC chip of 0.3 mm2 in size, and will commercialize RFID tags mounted with this smaller chip.
In addition to convenience stores that are aiming to introduce RFID tags on all products in all stores, DNP will also promote the dissemination of RFID tags to other retail industries, and support the increased operational efficiencies made possible by employing RFID tags.

* Product prices, specification and service contents mentioned in this news release are current as of the date of publication. They may be changed at any time without notice.