An RFID chip is an integrated circuit used to store and send information.
RFID chips can be incorporated into labels. Labels with RFID chips are called RFID labels and offer multiple advantages over traditional labels.
RFID chips work together with RFID readers. In most cases, the RFID reader uses induction coils to generate a high frequency electromagnetic field with a short range. This not only allows for data to be transferred from the RFID chip to the reader, but also supplies the chip with energy.
When RFID chips are powered by an RFID reader, they are called passive RFID chips. So-called active RFID chips (which possess their own power supply) also exist, but are generally only used when there is the need to scan at greater distances and the cost of the chips is not a critical factor.
RFID chips have several advantages, including the following:
These advantages are making manufacturers gradually abandon the traditional barcode labels and adopt the RFID technology for their labeling activities.
When it comes to the identification and traceability of products and packaging, an RFID chip can be readily incorporated into a label. This allows the wireless tracing of goods and containers, even if they are not visible. Moreover, several RFID chips can be scanned simultaneously or shortly after each other, considerably reducing information collection time.