The Morgan Hill, California-based company is currently expanding a production facility at Fargo, North Dakota that will eventually have the capacity to produce 10 billion RFID tags a year on each of its two production lines.

With a reduction of the cost of each RFID tag below the $0.05 mark crucial to widespread adoption of the technology, Alien claims its advantage over other suppliers is the use of Fluidic Self Assembly, which allows for the efficient placement of very large numbers of small components across a surface in a single operation.

Alien recently won a partnership deal with Microsoft Corp, which will use its RFID technology in the development of its Microsoft .NET RFID products.

Joining lead investor SunBridge Partners in the new round of funding were existing investors Advanced Equities, Digital Bandwidth, Equitek Capital, Lago Ventures, and Miami Valley Venture Fund.