Omron Boosts RFID Inlay Manufacturing Capacity To 250 Million Per Year

Omron Corporation, a $5.5 billion Japanese manufacturer of automation and sensing products, has just revealed more specific plans related to the November 2005 announcement of a $20 million worldwide investment in the RFID business over a two-year period.

The company announced that RFID inlay manufacturing capacity will be increased to support production of more than 250 million inlays per year at its Minakuchi factory in Shiga, Japan. This factory location was chosen to take advantage of its more than 30 years of experience with semiconductors and class 10000 clean room standards. The inlays produced at Minakuchi are marketed and distributed globally by Omron's RFID division (www.omronrfid.com).

The plant expansion plans announced today "should give a clear indication that Omron RFID is stepping up its capabilities, responding to the increasing market demand and aggressively pursuing the global RFID market," said Bill Arnold, chief strategist for Omron RFID.

Omron RFID inlays are manufactured using a patented process called "Jomful." Instead of applying adhesives, "Jomful" utilizes an ultrasonic welding method to bond the chip and strap to the substrate. Inlays are produced up to 10 times faster than adhesive-based processes and contain a more robust electrical connection. The results are higher survivability and reliability for label conversion and application for the supply chain.

Arnold added, "Armed with Jomful-quality RFID inlays now enhanced by production in class 10000 clean room standards, Omron is ready to supply the high volumes needed for the supply chain market and lower the total cost for RFID tags."

Omron will continue to add inlay production capacity to further increase annual production above 350 million inlays within the next 12 months.

About Omron
Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the field of automation with $5.5 billion in annual revenue. Established in 1933 and headed by President and CEO Hisao Sakuta, OMRON has more than 26,000 employees in over 35 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components, social systems (ticket gate machines, ticket vending machines, and traffic control), and healthcare.

For further information, please visit the OMRON home page at: www.omron.com.