Hitachi consolidating RFID output in chem unit

May 17, 2007 – Hitachi Ltd. is absorbing production of RFID tags using 0.4mm “mu-chips” from 10 outsourced partners back in-house to group company Hitachi Chemical Co., in an effort to reduce costs through economies of scale and gobble up marketshare in the next few years, notes the daily Nikkei paper.

Hitachi Chemical has been ramping its RFID tag production for two years and now has capacity for 10 million units/month, 5x its current level of 2 million units/month. Initial production will first be increased to 5 million units/month, while the division continues to tweak its infrastructure to speed up output and limit defects, the paper notes.

The parent group is eyeing 50% market share for its RFID tags with the mu-chips by 2010, with sales of roughly 6 billion yen (US $49.9 million).


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