-Caveat Lector-

 >From ZDNet,
http://news.zdnet.co.uk/story/0,,s2090580,00.html

Hitachi weaves chip into paper money

3rd July 2001
by Matthew Broersma

A tiny identity chip could have massive implications for security - and also
for your privacy

Hitachi has developed a chip that could be woven into paper money to help
identify counterfeits, and which could also have wide ramifications for
identification and surveillance technologies.

The chip, called Mew, measures just 0.4mm on a side, and stores information
such as identification and security code. It includes 128 bits of read-only
memory (ROM) and RF wireless circuitry that allows it to transmit over a
distance of about 30cm. If inserted in money, a reader unit would be able to
instantly detect authentic bills.

Most identity chips are currently several millimetres on a side.

While the chip currently requires a reader unit to work, its size carries
big implications for the future of identity technology. For example, future
chips could be implanted into all paper money and be connected wirelessly to
the Internet, so that authorities would be able to monitor the movement of
all cash.

Such chips could also be embedded in other consumer products to track them
in the event of theft.

Hitachi says it is considering adding rewritable memory to the device, but
for the moment is using ROM to prevent data falsification.

The chip will begin sampling this autumn and Hitachi will begin marketing it
next spring. Mew Solutions, the venture formed by Hitachi to promote the
chip, expects sales of $145m (about £98m) by 2005.

See Chips Central for the latest on processors and the semiconductor
industry.

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