Merck researching materials to lower RFID tag costs

Merck KGaA, a Darmstadt, Germany-based pharmaceuticals supplier, is partnering with the Technical University (TU) of Darmstadt for cheaper, more versatile RFID technology based on inorganic composite materials. Merck is investing $1 million euro in the joint venture's first year of operation. The goal is to develop new components that can be imprinted directly into packaging materials using conventional print technology.

"We see the possibility that RFID can replace bar codes if the price is reasonable enough," says Phyllis Carter, manager of corporate media relations at Merck, adding, "Our goal is to see if that can happen."

Merck is doing in-house R&D on both organic and inorganic materials for use in RFID, but is focusing solely on inorganic composites with TU Darmstadt.

"The alliance with TU Darmstadt in high-tech applications of RFID chips is another strong example of how the chemicals business of Merck is developing new products for future market requirements through intelligent alliances with competent partners," explains Dr. Michael Roemer, chairman of Merck's executive board.

"The dream for inorganic RFID is that it will work at a higher frequency, with a stronger electronic charge, and come in under the price of organic tags," says Dr. Peter Harrop, chairman of U.K.-based analyst firm IDTechEx. "Organic electronics has come along in leaps and bounds. It gets all the money. But what isn't mentioned is that the cost is many more times the cost of gold. Nobody has mastered inorganic yet." That's a challenge that Merck and TU Darmstadt are ready to tackle.