Channels may be formed in the inlay substrate of a transponder, such as by laser ablation, and the antenna wire may subsequently be laid in the channels. Laying the wire in a channel ensures that it substantially fully embedded in the substrate, thereby eliminating a need for pressing the wire into the substrate. The channels may be tapered, or profiled, to enhance adhesion of a self-bonding wire. A recess for the chip module can also be formed using laser ablation, and insulation may be removed from end portions of the antenna wire using laser ablation. Laser ablation may also be used to create various mechanical and security features.