April 23, 2024

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[THE INVESTOR] Chinese fingerprint sensor and module firms are stepping up competition in the global fingerprint technology sector, posing challenges to traditional powerhouses in the segment.

The global fingerprint sensor market has been largely dominated by Apple and Fingerprint Cards AB of Sweden, but Chinese upstarts, such as Goodix, are rapidly increasing their presence in China and other global markets.

Huawei P9

According to a recent report published by market researcher Nomura Securities, Apple and Synaptics are estimated to see their global market share, which stood at approximately 56 percent and 20 percent respectively in 2015, drop 22 percent and 15 percent in 2018.

The significant market share drop will be caused mainly by an increasing clout of Goodix and Egis Technology of Taiwan in the fingerprint tech segment, the securities firm forecast.

Goodix’s market share is forecast to grow from 17 percent in 2016 to 28 percent in 2018 while that of Egis will likely increase from 4 percent in 2016 to 15 percent in 2018.

“More than 10 companies from China, except for Goodix and Egis, are trying to make headway into the global fingerprint sensor market,” said the securities firm in the report.

As a result, some biometric sensor and module firms in Korea, which have supplied their products to Chinese smartphone makers for the past few years, are facing a tougher competition due to those Chinese rivals.

They claimed that their Chinese firms tacitly receive preferential treatment from Chinese smartphone makers and the Chinese government due largely to the recent Korean government’s decision to deploy the Terminal High Altitude Area Defense System, an anti-ballistic missile system, on its soil.

“Korean firms have been affected by the Chinese government’s retaliation over the THAAD issue, and the impact is worse than expected,” an official from a local fingerprint sensor firm said.

Goodix is said to have won a supply contract with major Chinese smartphone makers, including Xiaomi, Lenovo, ZTE, Huawei and vivo, beating other firms including Fingerprint Cards and those in Korea.

Growing fast on their home turf thanks, presumably, to the backing of the Chinese government, fingerprint sensor manufacturers from China and Taiwan are also setting their eyes on the Korean market.

Egis provided fingerprint sensors for Samsung’s mid-range smartphone series, including the Galaxy A and C. Previously, Samsung Electronics only used fingerprint sensing modules made by US-based Synaptics for its high-end Galaxy S smartphones. Goodix offered fingerprint sensors to LG Electronics Stylus3 and K10.

By Kim Young-won (wone010@heraldcorp.com)