The increasing number of suppliers of fingerprint identification sensors heralds keen competition in the sector's short-term future. Furthermore, the offering of integrated IC parts that combine LCD driver IC, touch-controller IC and fingerprint sensor in one chip could bring a sharp slide in prices of fingerprint sensors overnight.
Synaptics, which acquired Validity Sensor at the end of 2013 and then the LCD driver IC unit of Renesas Electronics in 2014, is able to wage against rival companies since the firm is now capable of offering LCD driver ICs, touch-controller IC and fingerprint sensors for one-stop shopping.
Taiwan-based FocalTech Systems has adopted the same strategy by acquiring fellow LCD IC driver vendor Orise Technology and making FocalTech the only IC design house in China and Taiwan that can also offer fingerprint, LCD driver and touch-controller solutions. FocalTech is expected to participate vigorously in price competition to justify its acquisition of Orise.
Taiwan-based touchscreen controller IC vendor Elan Microelectronics has stepped into the fingerprint sensor segment and will further enhance its competitiveness by introducing its in-house developed algorithm.
Fingerprint sensor supplier Egis Technology has shown off its competitiveness by securing orders from a leading Korea-based handset vendor. The company's growth momentum will grow stronger in 2015 supported by its upcoming next generation chips.
China-based Goodix, in which MediaTek holds a stake, is also expected to spearhead the price battle on behalf of its fellow companies in China. Some Taiwan-based IC design houses have argued that the fingerprint sensor solutions from Goodix have not yet matured, particularly in terms of algorithm. However, MediaTek is expected to render technology support to address the issue shortly.
Goodix has a proven record of being able to survive fierce price competition and could emerge from behind as a tough competitor in the fingerprint sensor sector.
