A radio frequency identification system employing a thin, flexible electronic radio frequency identification (RFID) tag having an overall thickness not exceeding approximately 280 microns and the process for its manufacture is disclosed. The RFID tag includes an insulating, flexible substrate having an aperture formed therein for receiving an RFID circuit chip. An antenna forming an integral part of the substrate is electrically connected to circuit chip. A cured adhesive having a portion substantially parallel with the substrate encapsulates the circuit chip so that the chip is operably retained within the substrate aperture.