(Touch IC designers are banking on fingerprint sensors to shore up profitability)
With
China handset brand vendors starting to launch flagship products with
fingerprint sensors in the second half of 2014, touch controller IC
players who have seen thinning profitability have been aggressively
developing fingerprint sensor solutions.
During
a recent visit to Southern China's touch control supply chain,
Digitimes Research found that China-based touch solution developer
Goodix will be able to receive fingerprint sensor
solution orders for mid-range smartphones from China brand vendors in
the second half of 2015 thanks to its glass-covered fingerprint sensor technology, and the company will also surpass Sweden-based FPC to become the largest fingerprint sensor solution provider in China.
China's
major online payment players such as Alipay and China UnionPay are
coming close to finalizing fingerprint-certified payment standards. In
addition to unlocking smartphones, the fingerprint data input will also
serve as a certification method for online payment, prompting China's
smartphone brand vendors to adopt fingerprint sensor functionality into their CNY1,000 (US$161) mid-range smartphones.
Therefore,
creating a fingerprint sensor technology that is reliable and low cost
has become a major task for related players in the fingerprint sensor
industry in the second half of 2015.
Among
fingerprint sensor technologies in terms of contact surfaces, four major
solutions - from top-end to entry-level - are commonly used by
developers: sapphire, glass, ceramic and film coating. In 2014, sapphire
and film coating solutions both entered mass production and were
adopted in several mobile devices.
However,
sapphire solutions carry high costs and film coating can easily flake
off. The chance of glass and ceramic solutions' penetration into the
midrange smartphone segment in second-half 2015 will depend on the
R&D and mass production schedules for such technologies.
Currently,
within China's major touch controller IC designers, Goodix mainly
focuses on glass-type solutions; Holitech Technology, which has a tight
partnership with BYD, is only capable of providing film coating-based
solutions and is estimated to focus on the white-box smartphone segment;
and Silead is mainly developing ceramic-based solutions.
Thanks
to its solutions' high sensitivity and protection layer of over 300μm,
Goodix is currently the only player worldwide with the ability to mass
produce glass-based fingerprint sensor solutions.
Glass
has a good optical behavior and strong wear- and impact-resistance, and
it is much cheaper than sapphire. Glass solutions have received orders
from China-based major smartphone brand vendors such as Xiaomi and
Huawei and will be adopted into their mid-range smartphones in the
second half of 2015.
In 2014, Huawei used FPC's
fingerprint sensors, but the competition from Goodix in the mid-range
smartphone market in 2015 is expected to greatly threaten FPC's
leadership in China's fingerprint sensor industry.
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