Fingerprint recognition market is robbed of domestic ICs

At present, smart phones carry fingerprint recognition capabilities one after another. From the aspects of security and ease of use, fingerprint identification will become the best solution for mobile payment. Under the background of the development of mobile payment, fingerprint recognition is expected to become the standard function of mobile terminals in the future, and domestic IC manufacturers will also take the lead in gaining opportunities. Key words:

IC manufacturers biometric fingerprinting

Since Apple first introduced the fingerprint recognition function on the IPhone5S in September 2013, Samsung, BBK, HTC, Huawei and other manufacturers have followed suit and have successively installed fingerprint recognition on its mainstream flagship. The introduction of Pay this year has once again strengthened the market position of fingerprint recognition. From the aspects of security and ease of use, fingerprint identification will become the best solution for mobile payment. With the development of mobile payment, fingerprint recognition is expected to become the standard function of mobile terminals in the future.

Smartphone market profit margins

With the introduction of Apple's fingerprint identification system, major mobile phone manufacturers have also added fingerprint identification systems to them. With regard to the annual growth rate of global smart phones, the market space is sufficient. According to the IDC report, global smart phone shipments in 2013 were about 1.004 billion units, and by 2017 it will exceed 1.8 billion units, and the compound growth rate will reach 16%. According to Gartner's forecast, global flat panel shipments will reach 300 million in 14 years, and it is expected to reach 400 million in 17 years, with a compound annual growth rate of 10%. Assume that the penetration rate of fingerprint recognition in smart terminals is 13%, 23%, 40%, and 50% for 14 to 17 years, respectively. The profit for the single-chip packaging and testing of a single chip used for fingerprint recognition of mobile phones is expected to be 4/4/3/3 yuan for 14-17 years. The market profit margin of the entire fingerprint identification chip packaging and testing segment will increase from 434 million yuan in 13 years to 3.332 billion yuan in 17 years, with a compound annual growth rate of 66%.

Chip suppliers at home and abroad began to rush to grab a single action. Following the industry’s announcement, international company Synaptics took the lead in grabbing orders for Samsung Electronics’ mobile phone chips. Recently, the cross-strait IC design industry’s orders for fingerprint identification chips have also become more comprehensive. After the start of the game, the mainland chip maker Huiding Branch and Si Liwei have already seized orders for Meizu, Huawei and ZTE handset chips, and the Taiwan factory is still waiting for customers to place orders.

Taiwan fingerprint identification chip factory pointed out that after Apple introduced iPhone5S equipped with fingerprint recognition function, Android camp mobile phone brand factory has been looking for a better fingerprint identification chip solution, and actively develop related application software and App, especially a new generation of iPad It will also follow-up with fingerprint recognition capabilities, but also forced the Android camp mobile phone brand factory to accelerate the pace, hoping to join its Android product as soon as possible fingerprint recognition.

At present, domestic and foreign chip suppliers continue to accelerate the progress of fingerprint recognition product development, and even their peers have formed alliances with each other and are fully engaged in market opportunities. For example, E-Tong Electronics and Star Friends have cooperated with each other. DunTai has also multinationally acquired IDEX, a fingerprint identification manufacturer, to strengthen its own business. The fingerprint identification chip solution is expected to enter the mass production with customers in the first half of 2015.

It is worth noting that from the perspective of the new generation of products that the mainland mobile phone brand factory plans to launch in the fourth quarter, the mainland’s domestic IC design companies are beginning to show up in addition to the foreign chip makers. , Including Huiding Branch successfully scored Meizu's new flagship mobile phone supply chain, followed by Xiaomi and ZTE will introduce products; as for Slight Micro, it won Huawei's new generation of mobile phone fingerprint identification chip orders, and actively strive for other mainland mobile phone brand factory Order.

The IC design industry pointed out that at present, mainland China seems to have a better chance of winning the single-handedly in the mobile phone fingerprint recognition chip competition. In fact, Taiwan's fingerprint identification chip solution is not inferior to the mainland chip supplier and the product price is very competitive. However, chip makers such as Continental Huiding Branch and Sili Microelectronics have local advantages in the field, making it possible to include Taiwan's fingerprint identification chip factories such as Elan, Duntai, Lianhe, Maocheng and Aegis. Brand factory new orders and sigh.

Facing the mainland industry's fingerprint identification chip will be the first to ship impulse in the fourth quarter, Taiwanese chip solution can only continue to step up to catch up, for customer orders, in particular, some Taiwan factory hopes to take priority orders from international mobile phone manufacturers, because The product certification process is relatively long-term, and it is expected that the first half of 2015 will start mass production. Only then will there be an opportunity to catch up.

IC design industry officials said that despite grabbing the orders of international large-scale target customers' fingerprint identification chips, it will help Taiwan manufacturers to persuade customers to have a certain amount of product quality and yield, and further expand the customer market including mainland mobile phone brand factories. However, in the face of the mainland IC design industry's efforts to target mainland mobile phone brand customers and increase the number of horsepower rush orders and advance volume production strategies, it seems that Taiwanese factories have missed the opportunity. The cross-strait IC design industry has become a sentinel player in the global fingerprint recognition chip market. It is the mainland industry that has scored first.