The Forum - 04/30/2004
Alien helps to land tech firm for NDSU
By Gerry Glimour, The Forum
Alien Technology's landing in Fargo has brought North Dakota State University to the attention of another upstart tech company.
"We're looking at combining our technology with readers, making RFID smaller and more cost effective," said Bruce McWilliamson, chairman, president and CEO of Tessera Technologies Inc. of San Jose, Calif.
McWilliams was the keynote speaker Thursday as more than 500 business, government and academic leaders gathered at the Fargodome for R&D Showcase III.
Gov. John Hoeven said state university "centers of excellence" have brought firms such as Phoenix International and Alien to North Dakota.
University of North Dakota president Charles Kupchella said out-of-state investments at his university total more than $70 million a year. UND is involved in private research partnerships through its Aerospace Sciences and Medical Science programs and its Energy and Environmental Research Center and Center for Innovation.
Kuphcella estimates the economic impact of private partnerships with the state's universities, including spin-off businesses, has a $1 billion annual impact on the state.
"What we are doing so far is small compared to the potential," Kupchella said. "I'm excited about what could come next."
Phoenix, owned today by John Deere International, rolled out a hydrogen fuel cell vehicle equipped with controls, sensors and electronic parts assembled in Fargo.
Tessera's McWilliamson said his company was made aware of Fargo and Alien Technology's RFID (Radio Frequency Identification) technology work at NDSU by U.S. Sen. Byron Dorgan, D-N.D.
"We're sending some engineers up here to get capabilities up and running," McWilliams said, praising the university's Research & Technology Park as one of the finest in the nation. "These guys here are tremendous at making things happen," he said.
Tessera, last year's most successful initial public offering on Wall Street, works on "chip packaging" with the likes of Intel, Texas Instruments, Toshiba and Hitachi.
Paul Drzaic, vice president of advanced development for Alien Technologies in Morgan Hills, Calif., said his company is participating with Tessera on a U.S. Department of Defense project administered by NDSU.
The project involves the use of micro sensors for battlefield management, Drzaic said, adding that he couldn't elaborate further.
Alien Technologies is a leader in RFID technology. The privately held company is currently turning out 600,000 RFID components a month at its plant in Morgan Hills, Drzaic said. Meanwhile, it's starting up a Fargo operation in the former Corporate Technologies building on 42nd Avenue South.
Alien is a leader in "smart-tag" RFID technology, which employs miniature transmitters for everything from merchandise to security to animal identification. Its production is being used by companies such as WalMart, Target, Gillette, Albertson's and the Department of Defense, according to Drzaic.
Alien will employ 15 people in Fargo by the end of the June and 30 by the end of the year, Drzaic said. Alien plans construction of an RFID manufacturing facility, breaking ground next year in the NDSU research park, that could produce as many as 2 billion RFID components by 2006, Drzaic said.
The RFID industry, estimated at $365 million this year, is projected to grow to $7 billion by 2008, according to Jeff Evanson, an industry analyst with Dougherty & Co. of Minneapolis.
Brian Walters of the Fargo-Cass County Economic Development Corp. and Tony Grindberg of NDSU's research park said they are working to make NDSU and Fargo a national RFID "hub," capable of attracting other companies involved in the emerging technology.
"These companies pay well above state and national averages, and they fit real well with the universities and work force we have here," Walters said.
Readers can reach Forum reporter Gerry Gilmour at (701) 241-5560
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