Philips Semiconductors plans to deploy millions of its radio frequency identification (RFID) microchips in China's fast-growing retail sector, according to president and chief executive Scott McGregor.
The move comes after an announcement last week of a worldwide project with casual clothing manufacturer Benetton.
Mr McGregor said: 'We have made some strides penetrating the China market, starting with the transportation sector. But the retail industry provides even larger opportunities for our RFID integrated circuits.'
The Netherlands-based chipmaker, along with partners Lab ID and Psion Teklogix, is undertaking one of the world's largest and most comprehensive item-level implementations of RFID technology in the retail market.
Clothes produced under Benetton's core brand, Sisley, have been fitted with RFID labels based on Philips Semiconductors I.CODE chips. Benetton will use these 'smart labels' to track garments across its supply chain using I.CODE-compatible readers and wireless local area network-linked pads, which were developed and manufactured by Lab ID and Psion Teklogix.
'Philips Semiconductors' work for Benetton proves to the supply chain management community that RFID technology is now being used in large volumes for item-tracking, and is beginning to reach the consumer,' Mr McGregor said.