The tiny, powerful chips may revolutionize the supply side of merchandizing. They are called "smart tags," and North Dakota State University is at the forefront of the new technology.

Some may say the university is actually moving out ahead of the curve, because it will soon be the site of the world's first "smart tag" manufacturing plant.

Alien Technology Corp., Morgan Hill, Calif., announced July 11 that it has chosen the NDSU Research and Technology Park to build a plant to produce billions of the chips. The plant could be in operation as early as 2005, with about 300 employees by 2006-07.

Members of North Dakota's team along with Alien Technology representatives on a recent visit to North Dakota. Left to right: Tony Grindberg, RTP; ND Representative Pam Gulleson, Dick Rayl, NDSU; John Hemingway, VP Finance for Alien Technology; Brian Walters, Fargo Cass County EDC; Paul Dzaic, VP Advanced Development Programs Alien Technology; Mary Beth Miller, Director, System Support Alien Technology.

"This is a huge, positive event for NDSU, the state and the region," said NDSU President Joseph A. Chapman, who has committed the university to expanding the region's economy through faculty and student research and development capacity. "NDSU has been working hard to develop the Research and Technology Park so that exciting announcements of this very type can occur."

Formally known as "Radio Frequency Identification" tags, they send information about a certain product via radio transmissions. For example, a tag allows a supply center to know in an instant where a certain pallet is located in a warehouse and how many cases of a certain product are available. The tags are seen as an answer to the emerging market for ultra-low cost and high volume wireless identification and tracking.

There was worldwide competition for plant, but a major reason Alien picked the NDSU location is that the company and the university had already developed a strong partnership. They first teamed up in 2000 through efforts by U.S. Sen. Byron Dorgan, who appropriated federal funds for collaboration on research for the Pentagon.

"We have been delighted with the relationships we have developed in North Dakota," said Stav Prodromou, Alien chief executive officer. "We look forward to building on the foundation that we have with NDSU by establishing an advanced manufacturing technology center "

An even more exciting part of all this is that the plant could be just the beginning.

According to Chapman, the facility is expected to become a hub for economic development, attracting other high-tech companies to locate nearby. "The plant opens the door for additional businesses," he said. "This has the potential to bring worldwide attention and investment to our area."

Gov. John Hoeven said, "Alien Technology is exactly the kind of job creation we intended to stimulate with our Centers of Excellence initiative. The work we've done to bring the company to NDSU showcases the kinds of tools and programs we have been working hard to assemble in our economic development efforts to make expansions like this possible."

The plant also fits perfectly with the concept of a Red River Valley research corridor, which Dorgan promotes. The Alien/NDSU partnership is "leading to the creation of a substantial number of good-paying, high tech, private sector jobs. It is just the tip of the iceberg. More projects just like it are on line and moving through the pipeline," Dorgan said.

The proposal to attract the firm to Fargo was compiled through the support and input of Hoeven, Dorgan, the Fargo/Cass County Economic Development Corp., the North Dakota Department of Commerce, the North Dakota Development Fund, Growth Initiative Fund, local banks, the City of Fargo, NDSU and the Bank of North Dakota.