Fingerprint sensor prices have fallen below US$5 recently, and are likely to drop further in 2016, according to industry sources. Prices of fingerprint sensors have come down from US$7-8 in early 2015 to less than US$5 - an about 50% cut in less than a year.

In addition to an increase in the number of suppliers, which has dragged down the chip prices, products provided by China- and Taiwan-based players with high performance/cost ratio are putting further downward pressure on the prices, the sources observed.

China- and Taiwan-based fingerprint sensor suppliers were far less competitive in terms of product quality and production yield than their international peers in the past. However, considerable improvement has been witnessed in their production yields and product features. By focusing on providing products with high performance/price ratio, some of the players are able to expand their global presence, the sources noted.

Egis Technology (Egistec), for example, has reportedly obtained fingerprint sensor orders for Samsung Electronics' mid-range smartphone series, while Goodix Technology has grabbed new orders from China's brand-name handset vendors.

With competition becoming fierce, fingerprint sensor prices will likely approach US$3 in 2016, the sources indicated. The manufacturing cost for fingerprint sensors built using 8-inch, 0.18-micron process is less than US$2, the sources said.

By: DocMemory
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