Radio Frequency Identification (RFID) has revolutionized the way businesses track, manage, and protect assets. From RFID tags in retail to RFID sensors in smart factories, RFID can be found in many scenarios. Next, we will explore what RFID is, how RFID works, and its breakthrough applications.

What is RFID?

RFID (Radio Frequency Identification) is a wireless technology that uses electromagnetic fields to automatically identify and track objects equipped with RFID chips. Unlike barcodes, RFID does not require direct line of sight and can quickly scan multiple items at the same time. A basic RFID system includes:

  • RFID tag (or RF identification tag): a tiny chip that stores unique data.
  • RFID reader: a device that sends/receives signals.
  • Antenna: facilitates communication between the tag and the reader.

This RFID technology supports industries such as logistics, healthcare, and retail, providing real-time visibility and efficiency.

How does RFID work?

Understanding how RFID works is key to realizing its potential:

  • Energy transmission: The reader transmits radio waves through the antenna.
  • Tag Activation: Passive RFID tags harvest energy from these waves to power their chips.
  • Data Transfer: The tag sends stored data (e.g., serial number) back to the reader.
  • System Integration: Data is relayed to software for processing and action.

Active tags come with built-in batteries, providing greater range, while passive tags rely entirely on the reader for energy.

Components of an RFID System

  1. RFID Tags and Chips

  • Passive Tags: Cost-effective (average RFID tag cost: $0.10–$20), ideal for inventory tracking.
  • Active Tags: Battery-powered, used for long-distance tracking (e.g., vehicle monitoring).
  • Specialty Tags: RFID sensor tags with environmental monitoring capabilities (temperature, humidity).

  1. RFID Readers

  • Fixed readers for warehouse automation.
  • Handheld devices for flexible use in field work.

Special RFID tag products:

Innovative applications of RFID technology:

  1. Smart logistics using UHF RFID

  • JD Logistics: Tracking more than 10 million packages per day using RFID tags, reducing error rates by 30%.
  • SF Express: Implementing temperature-sensitive RFID sensors for drug transportation.

  1. Healthcare advancements

Shanghai Children’s Hospital: Newborns wear RFID wristbands to prevent mismatching and enhance safety.

  1. Industrial IoT integration

    smallest rfid tag

    smallest rfid tag

Foxconn: Embedding RFID chips in tools to monitor usage and reduce factory losses.

Factors that affect RFID tag cost

RFID tag cost depends on the following factors:

  • Type: Passive tag (0.2–2$) vs. Active tag (15–50$).
  • Customization: Special materials and processes such as waterproof or high temperature resistance will increase costs.
  • Quantity: Large batch orders can reduce unit prices.

For example, some e-commerce platforms purchase high-quality passive UHF tags at $0.1 per unit (with a minimum order quantity of 100,000) for inventory management.

Why RFID?

With its ability to automate processes and provide real-time data, RFID technology is the foundation of Industry 4.0. From improving supply chain efficiency to enhancing patient safety, RFID has mature applications in multiple industries.

RFID Industry Applications