Text embroidered on garment tags??

I have been researching embroidery of very small text, the pain points and possible solutions. I watched a video yesterday that brought new perspective to the problem by showing the gauge of the needle over the stitch path.

I was discussing the issue with a colleague when I noticed his jacket's garment tag as it was draped over the back of his chair. It appeared to be embroidered, but the text is SOOO tiny. How in the world do they accomplish that resolution?? Are the needles and thread just extremely tiny?

Often they are woven. but if it is actually embroidery they usually are using flat type embroidery machines probably with ribbon/nametape frames, The right type of needles ie smaller ballpoint needles such as 65/9, 60/8, thin treads 60wt, 75wt. And very very careful digitizing.