To implement a fully-integrated on-chip CMOS power amplifier (PA) for RFID readers, the resonant frequency of each matching network is derived in detail. The highlight of the design is the adoption of a bonding wire as the output-stage inductor. Compared with the on-chip inductors in a CMOS process, the merit of the bondwire inductor is its high quality factor, leading to a higher output power and efficiency. The disadvantage of the bondwire inductor is that it is hard to control. A highly integrated class-E PA is implemented with 0.18-μm CMOS process. It can provide a maximum output power of 20 dBm and a 1 dB output power of 14.5 dBm. The maximum power-added efficiency (PAE) is 32.1%. Also, the spectral performance of the PA is analyzed for the specified RFID protocol.