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RFID Label Cost raising due to shortage supply of chip and raw material

Posted by Jessica Liu on

The raw material of RFID labels like RFID chips, PVC, and paper continue to soar due to COVID-19 in 2020. Especially after the announcement of NXP semiconductors letter to mention raising prices. Many rfid label factories in China issued a formal letter to raising rfid label price.

The global chip supply shortage might interrupt automobile production in China but also affect other industries. Since November, rfid label factories in China happened to face a shortage supply of chips yet. This situation is going worse like Higgs3, Monza R6P, which was mass-produced for logistic and supply chain management.

Several months ago, we also faced a dramatically shortage of NTAG215 chips due to the highly increased amiibo NFC tag in the global market. You can imagine that many users are staying at home to play games with their family.

We believe this situation is just temporary. The smart label cost trend will be breakdown due to mass production and application for the coming years. Nowadays, the cheapest RFID label cost is less than 30 cents and will be more affordable day by day.

What is RFID Label?

RFID Label is different from NFC label, which is designed for physical goods tracking and identification management system. Compared with other RFID tags, the strength of the RFID label is the thinner thickness, various sizes, flexibility, and cost-efficient. It can be sealed inside of goods or stick on the device surface with an adhesive layer. The label is optional, with an anti-metal layer to mount and work on the metal surface. GYRFID can produce custom RFID Labels and NFC labels in mass production.

What is the benefit of RFID Labels?

A little RFID label enables the business to improve production efficiency, reduce errors, and dramatically reduce labor costs.You can imagine that 300pcs RFID labels on goods can be read per second upon the 10meter range at the RFID gate or by RFID PDA devices. Furthermore, the RFID label allows users to re-programming the data. Right Now, it is time to consider RFID labels to replace your conventional QR code or barcode for automation and identifications.

What can RFID label be used for?

RFID label has a stimulate reading function at a long distance. Therefore, it is widely applied for inventory management systems, garment management, supply chain systems, and laundry systems. Users can print the RFID label by ribbon printer directly or RFID printers to program data when applied to goods. To apply to different applications, GYRFID developed various rfid labels: jewelry smart label to hang to jewelry or glass, windshield smart label for the vehicle, removable rfid label for shoes, fragile rfid label for the luxurious package and wine bottles.

How much does a RFID Label cost?

The cost of RFID label varies hugely based on the assembly material and quantity. Generally speaking, the rfid label cost can be down to 0.04US dollars for a large quantity more than 100K. The price will be higher for small quantities and customs labels because there is usually a setup cost of $100 to run machines. There will be a slight difference based on different chips, antenna shape, and stock material. The cheapest is coated paper, but some applications require PVC or pet to resist water. GYRFID can supply customized RFID labels products as well as printing and programming services.

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