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To: Mike K who wrote (639)	4/16/2000 3:25:00 PM
From: tech101	Read Replies (1) \| Respond to of 1056

Billions and Billions Chips Needed for Future Smart Cardboard Boxes Coming soon: 'smart' cardboard boxes with RFID chips from Motorola Semiconductor Business News (04/14/00, 09:08:10 AM EDT) PURCHASE, N.Y -- International Paper Co. and Motorola Inc. have struck a deal to embed identification chips on cardboard boxes to help automate inventory control and tracking of shipments in supply-chain management. International Paper, based here, believes the agreement will result in the industry's first "smart" shipping boxes. "The breakthrough here is the marriage of electronics and paper, which will produce huge customer service enhancements while virtually eliminating much of the supply chain inefficiencies now burdening manufacturers and retailers," said Bill Slowikowski, senior vice president of consumer packaging at International Paper, based in Purchase. Slowikowski estimated that $250 billion is wasted in the U.S. alone in inefficient distribution of products from manufacturers to consumers. Under the agreement, Motorola will supply its new BiStatix radio-frequency identification (RFID) technology, which uses RF technology and EEPROM chips to store information about the contents of boxes. The EEPROMs will hold 1,000 bits of nonvolatile data. A wireless interface is used to read and modify the data. Motorola did not release a value on the contract. International Paper is expected to make the smart boxes available in the first quarter of 2001. "Motorola has not yet set the pricing on the chips, but we expect them to be substantially below $1," said Richard Kruege, director of Motorola's RFID business, based in San Jose. International Paper officials estimated that retail counterfeiting results in $70 billion a year. "Because the BiStatix tags are tamper-resistant and difficult to duplicate, they are expected to dramatically reduce this problem over the next few years and gradually eliminate it," predicted Peter Lee, vice president of R&D at International Paper. " Motorola's Smartcard Solutions Division believes its new BiStatix technology will be more cost effective in the "smart box" application than earlier generations of RFID systems, which require metal coil and resonant capacitors. Motorola said its BiStatix smart labels can be read after being folded, crumpled and even ripped. They are also fully disposable, according to Motorola.