Auto ID Center articleHere's a link to an article entitled "Towards a 5 cent chip"
www.autoidcenter.org/news.asp
The article was written in November 01 but wasn't released until Feb 02.
The article outlines the steps involved in making a chip and the costs associated with each stage of assembly. The author concludes that a number of hurdles still exist in acheiving a 5 cent chip but it is the Auto ID Centers goal to acheive this milestone over the next 12 months.
It appears that the chip is the current bottleneck to moving this technology forward. It was interesting to note the potential demand for chips integrated into a variety of products by large companies. Its worth the read.