Germany's Muehlbauer technology group has received its first order for a complete RFID Smart Label production line for the Chinese market.

The company reports it has recently enhanced its RFID-portfolio with a new converting line and is able to offer complete solutions for the production of RFID smart labels from one source, in addition to the technology it already sells in the smart cards and ePassports market.

Since expanding its RFID portfolio, the company has received orders from four customers for its production equipment. The China-based Semtech RFID, a wholly owned subsidiary of Sino-Tech International Holdings, is the first company to order the Smart Label production line for the Chinese market. This includes a flip chip line for the production of inlays and a converting line for the fabrication of self-adhesive labels or RFID tickets.

"China is a very important market for us," says Thomas Betz, member of the board of Muehlbauer. "We appreciate the opportunity to support Semtech with our long technological experience for the production of Smart Labels. This offer is proof for us that acting as a turnkey supplier in the market is the right direction."

Semtech predicts that the global demand for RFID labels and tickets will start to grow significantly by 2007, and therefore decided to invest in a new production system. According to Alphonso Soong, general manager of Semtech RFID, the company will start installation of the production lines in the first quarter of 2007.

Soong says that these e-tags they made through this production line will be mainly sold to Chinese RFID application developers and integrators. He also discloses that Semtech will cooperate with Sino-Tech, an RFID dice manufacturer, who has had close cooperations with Sony, Samsung, Panasonic and LG.

Semtech Corporation is a leading supplier of high-quality analog and mixed-signal semiconductor products. The company is dedicated to providing customers with proprietary solutions and breakthrough technology in power management, protection, advanced communications, human interface, test & measurement, as well as wireless and sensing products.

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