Chip vs Chipless RFID Smart Labels

The many inventions in low cost RFID split into tags that either do or do not contain a microchip. With radical differences in cost/performance, for the time being at least, they should rarely compete with each other. Chip tags cost more and do more with data. They can hold larger amounts of data, but due to the price of silicon and the processes involved in making the chips these are currently relatively expensive: roughly speaking, chip tags are not usually available below 10 cents if ordered in quantities of less than one million. Chipless tags, of which there are many different technologies working on different physical principles, are much cheaper because their price is only limited by the cost of the materials used, which are in most cases basic and readily available in large quantities. Chipless tags are usually 1 to 20 cents even for orders of as few as 100,000 or less. Some chipless tags are likely to be offered for between 0.1 and 1 cent for billions ordered. Chipless tags have the price advantage over chip tags, but few can yet hold more than 24 bits of data and have a range of one meter or more without being excessively large.

 

Where data handling is the primary challenge, chip tags are usually best: where certain physical properties are vital and/or tag price is extremely critical as with very high volumes and disposable tags on very cheap products, chipless tags are often best. However, this is not a black and white situation.