Die cutting is the process of using to sheer webs of low strength material (rubber, cloth, paper, plastics, etc). Die cutting can be done a flatbed or rotary press. Flatbed die cutting is usually slower, but the tools for it are cheaper.
Rotary die cutting uses a cylindrical die on a rotary press. Material is fed through an area called the station, which holds the tool. Gears push the die at the same speed the rotary cylinder is moving, cutting the material. Additionally, there can be multiple stations with their own dies which cut different shapes according to the printing specifications.