Radio-Frequency Identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects. An RFID system consists of a tiny radio transponder, a radio receiver and transmitter. When triggered by an electromagnetic interrogation pulse from a nearby RFID reader device, the tag transmits digital data, usually an identifying inventory number, back to the reader. This number can be used to track inventory goods.

There are two types of such tags:

  • Passive tags are powered by energy from the RFID reader’s interrogating radio waves.
  • Active tags are powered by a battery and thus can be read at a greater range from the RFID reader, up to hundreds of meters.

Unlike a barcode, the tag does not need to be within the line of sight of the reader, so it may be embedded in the tracked object. RFID is one method of automatic identification and data capture (AIDC).

RFID tags are used in many industries. For example, an RFID tag attached to an automobile during production can be used to track its progress through the assembly line, RFID-tagged pharmaceuticals can be tracked through warehouses, and implanting microchips in livestock and pets enables positive identification of animals. Tags can also be used in shops to expedite checkout, and to prevent theft by customers and employees.

Since tags can be attached to physical money, clothing, and possessions, or implanted in animals and people, the possibility of reading personally-linked information without consent has raised serious privacy concerns. These concerns resulted in standard specifications development addressing privacy and security issues. ISO/IEC 18000 and ISO/IEC 29167 use on-chip cryptography methods for untraceability, tag and reader authentication, and over-the-air privacy. ISO/IEC 20248 specifies a digital signature data structure for RFID and barcodes providing data, source and read method authenticity. This work is done within ISO/IEC JTC 1/SC 31 Automatic identification and data capture techniques.

In 2014, the world market was worth US$8.89 billion, up from US$7.77 billion in 2013 and US$6.96 billion in 2012. This figure includes tags, readers, and software/services for RFID cards, labels, fobs, and all other form factors. The market value is expected to rise from US$12.08 billion in 2020 to US$16.23 billion by 2029.

Within the electronics industry, UHF RFID label tags are commonly applied to a piece of equipment once assembly is complete. A new approach allows implementation of the tag directly on the printed circuit board (PCB) early in the production process. From the manufacturers’ perspective, implementation of a PCB RFID tag can provide management with tracking information as specific as the individual printed circuit board to better identify where the product is, where this product is stored and detect bottlenecks within the manufacturing process. A properly executed system can greatly improve efficiencies, control costs and streamline overall production processes. Additional benefits of applying the RFID tag at the PCB level is to assist in inventory control, aftermarket service, warrantee returns and counterfeiting prevention.