Geneva, September 15, 2003 - STMicroelectronics (NYSE:STM)
today announced it has signed an agreement with Alien Technology Corporation
to collaborate on the development and manufacturing of integrated
circuits (ICs) for ultra-low cost radio frequency identification (RFID)
tags.
Low-cost RFID systems will be instrumental in creating new supply
chain, logistics, and authentication solutions that will provide improved
efficiency, accuracy, and security to major manufacturers, retailers,
and their customers.
ST Microelectronics and Alien Technology are members of the Auto-ID
Center, an industry consortium dedicated to creating and implementing
next-generation automatic identification solutions, primarily RFID.
The Center's members include The Gillette Company, Procter & Gamble,
Johnson & Johnson, Unilever, Pepsi, Pfizer, Coca Cola, Wal-Mart, Target,
Tesco, Metro AG, UPS, and the US Post Office. The Center has created
a new open specification, EPC Class 1, for RFID that is the basis
for the companies' collaboration. Alien has developed the first IC
that operates according to the EPC Class 1 specification.
"ST has a very high respect for the know-how accumulated by Alien's
team of RF engineers over many years and its pioneering work with
the Auto-ID Center," commented Claude Dardanne, General Manager of
ST's EEPROM and Serial NVM Division, Memory Products Group. "Alien's
expertise is an excellent complement to ST's knowledge, process technology
and leadership in smart card and RFID ICs, in addition to its world-class
manufacturing strengths. ST sees the potential of RFID to revolutionize
many business processes, and is looking forward to working with Alien
to develop products in support of the Auto-ID Center's vision."
As part of the cooperation, Alien will make available to ST its RFID
IC and system design experience, and ST will provide RF engineering
and IC development expertise, process technology and manufacturing
capability. The goal of the collaboration is to design and produce
an ultra-low cost, high-performance RFID IC that will ultimately cost
less than a penny, establishing the two companies at the forefront
of RFID technology development and deployment. The cooperation also
includes a multi-year volume supply agreement between the companies.
The first product associated with this agreement is expected to be
available in the first quarter of 2004.
"As one of the largest semiconductor companies in the world, with
extensive RF, analog and mixed signal IC design experience, ST will
add a great deal of momentum to the adoption of EPC Class 1 RFID Technology
by providing a reliable source of ICs," said Stav Prodromou, CEO of
Alien Technology Corporation.
By establishing a second source for Alien Technology's EPC Class 1
IC product, STMicroelectronics will support the growing market demand
for RFID products created by Wal Mart's announcement for its top 100
suppliers to adopt RFID technology by 2005. In addition, Alien will
partner with ST to meet its own customer requirements for RFID product.
ST will be on booth #616 at the Frontline International Supply
Chain Week Expo, McCormick Place, Chicago, IL., this week from September
15 to 18, 2003.
About Alien Technology
Alien Technology is the leading provider of reliable, high-volume
low cost EPC Compliant Radio Frequency Identification (RFID) products.
Using Fluidic Self Assembly (FSA), a patented manufacturing process,
Alien manufactures ultra low cost electronic product code (EPC) tags
used in a variety of applications including supply chain management,
logistics operations and anti-counterfeiting to improve inventory
management and reduce operating costs. Alien Technology is an active
member of the Auto ID Center. More information about Alien Technology
can be found on the Company's website at www.alientechnology.com.
About STMicroelectronics
STMicroelectronics is a global leader in developing and delivering
semiconductor solutions across the spectrum of microelectronics applications.
An unrivalled combination of silicon and system expertise, manufacturing
strength, Intellectual Property (IP) portfolio and strategic partners
positions the Company at the forefront of System-on-Chip (SoC) technology
and its products play a key role in enabling today's convergence markets.
The Company's shares are traded on the New York Stock Exchange, on
Euronext Paris and on the Milan Stock Exchange. In 2002, the Company's
net revenues were $6.32 billion and net earnings were $429.4 million.
Further information on ST can be found at http://www.st.com.
