Designated the UCODE EPC G2, the chip is expected to meet growing mandates from major retailers and organizations such as the Pentagon, consumer packaged-goods companies and other global suppliers implementing RFID technology in their supply chains.

Philips has been active in RFID, having deployed RFID tags in its own Asian supply chain. Now, the company appears primed to expand its technology worldwide.

With the availability of Class 1 G2 solutions, both prior UHF (ultra-high frequency) technology solutions (Class 0 and Class 1 Generation 1) standardized by EPCglobal can now be replaced. Mandating organizations, such as large retailers and their suppliers, will be able to install readers and use tag solutions that support the global spec.

EPC G2 also addresses the differing regional regulations for UHF bands allocated for RFID, allowing the band to be used worldwide and enabling deployment of a unified global RFID supply chain infrastructure.

In order to reduce the time need to introduce new products based on the EPC G2 spec, Philips said it has created a industry task force to develop a solution. Participating companies are ASK, Checkpoint, Deister Electronic, Feig, Intermec, Omron, SAMSys, Thingmagic, UPM Rafsec and X-Ident.

The organizations will develop labels and hardware based on Philips' EPC G2 product during the current quarter. Availability of the first components is expected the third quarter.

Philips said its UCODE EPC G2 chip has a one-time programmable memory for the 96-bit EPC, covers all mandatory commands and provides a selection of optional commands as specified in the Class 1 G2 standard. It uses an anti-collision algorithm that can read up to 600 labels per second under current European regulations.

The chip is slated for mass production in the third quarter. It will be priced at 9 cents each in 10,000-piece quantities.