July 5, 2001 – Hitachi is on the way to creating new and more powerful ways of authenticating and tracking currency, bank notes, legal documents, and other products with a micro radio-frequency identification chip it unveiled this week.

Called "Meu," the chip is only 0.4mm square – literally the size of a "speck" – can be embedded in paper, and transmit data over the 2.45 GHz band. Besides being tiny and tough enough to withstanding folding, the chip also features encryption technology and 128 bits of read-only memory – all elements that make it capable of limiting counterfeit attempts, according to experts.

Hitachi said the Meu-chip also opens new possibilities in electronic and mobile commerce, especially in the financial, distribution, manufacturing, sports, and entertainment sectors. To speed development and marketing, Hitachi formed the Meu Solutions group to provide expertise on integration, components, systems and solutions for the new chip.

Hitachi's announcement of its new micro-chip comes at a time when the world's chip makers are facing a market slowdown. Companies announcing recent cost-cutting measures and reduced factory output include Japan's Toshiba Corp., Germany's Infineon, and America's Transmeta.

On Tuesday, Hitachi President Etsuhiko Shoyama announced that business activity in the April-June quarter was weaker than expected due to a slowdown its electronics components business. However, Etsuhiko said Hitachi still expects to meet profit targets for its business year.