Intel has sold its RFID reader business to fellow vendor Impinj. Terms of the deal were not disclosed.

The deal will give Impinj control over Intel's R1000 chip, a device which allows 90 per cent of the necessary components of an RFID reader to be placed on a single chip.

The R1000 was developed through Intel's New Business Initiatives incubator programme.

Impinj is a privately held firm based in Seattle. The company specialises in UHF 2 RFID systems and hopes that the deal will give it a leg up over competitors in producing components for new RFID systems.

"Adding the R1000 reader chip to Impinj's market-leading portfolio of tag chips and fixed-reader products allows us to deliver exceptional price-performance," said Impinj president and chief executive William T. Colleran.

"It will enable a new category of customers who are developing their own game-changing products based on Impinj technology."

The company hopes to use the new chip in a number of different RFID systems, including product tracking, supply chain management and security systems.

"The UHF RFID market is a strong opportunity, and we believe this business and its assets are an optimal fit for Impinj," said Rich Wykoff, general manager of the New Business Initiatives unit at Intel.

"The programme is practiced at establishing new businesses in emerging markets, and Impinj's acquisition of the RFID operation demonstrates the incubator's ability to create valued businesses in new technology areas."