FINGERPRINT SENSOR FOR MASS MARKET APPLICATIONS

Transcription

1 FINGERPRINT SENSOR FOR MASS MARKET APPLICATIONS April 2015 Ralph W. Bernstein (Consultant) IDEX ASA and AmberCon Mobile:

2 IDEX ASA OVERVIEW PRODUCTS MARKETS Fingerprint solutions for mass markets Leader in off-chip touch sensors Flexible substrate swipe sensors Mobile, Smart Cards, IoT SmartFinger sensors STRONG PATENTS 215 granted and Apple cross-license Across 22 registered families >40 patents pending SmartFinger algorithms GLOBAL OPERATIONS HQ Norway, US, Far East; >50 staff PUBLICLY LISTED Oslo Axess exchange; >1500 shareholders Market cap: NOK 2,500M $310M SmartFinger solutions INSTITUTIONAL & STRATEGIC INVESTORS INVESCO, Woodford Investment and World Wide Touch 2 14/04/2015

3 MAIN MASS MARKET APPLICATIONS 4.8 billion biometric mobile devices 2020 Acuity Research, January 2015 Mobile devices Supporting mega trends Password replacement Payment Government ID Access control Security Cards ID & smart Internet of Things (IOT) over 9 billion payment cards in circulation globally increasing to 16 billion by 2020 Company data more than 80 billion Internet-connected devices projected to be in use in 2024 IHS, Top 10 technologies transforming the world 3 14/04/2015

4 STRONG VALIDATION OF FINGERPRINT SENSOR MASS ADOPTION Rapid mobile penetration and industry leader commitments Sensors on flagship models (300M+ terminals) Microsoft with biometrics Windows 10 Payment and mainstream applications embracing fingerprint Mobile payment: Apple Pay, Alipay Wallet, Samsung Pay Banks to allow account access Mastercard support on card biometrics STRONG MARKET VALIDATION Research analysts confirm biometric mass adoption IHS: Biometrics and Sensors in top ten technologies transforming the world Acuity Market Research: 4.8B biometric mobile devices 2020; $6B sensor revenue Juniper Research: Securing Your Data: The Time for Encryption, Tokenisation & Biometric Authentication #1 of 10 tech trends 2015 Source: Company websites 4 14/04/2015

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6 NEW PRODUCT DEVELOPMENT MOBILE MARKET DRIVEN PRE 2013 Conventional large area Touch H Apple iphone 5S Touch in button H Samsung Galaxy S5 Swipe in button H Huawei MATE Touch at rear Q Samsung Galaxy S6 with Rectangle Touch in button Fingerprint Sensor Enabled Mobile Device Launch Milestones Apple s entry into the fingerprint market: Capacitive fingerprint de-facto standard Laid the foundation for fingerprint enabled payment On-device authentication accepted Small sized touch sensor Not compliant with any established standards Patent protection became vital 6 14/04/2015 Source: Company websites; IDC Worldwide Quarterly Mobile Phone Tracker, January 29, 2015

7 The internet of everything (IoE): CONNECTIVITY ANYTIME AND ANYPLACE FOR ANYTHING Every device will become intelligent Every intelligent device will become connected Every connected device will become a transaction terminal Every device will become biometric 7 14/04/2015

8 ADDITIONAL SECURITY FACTORS REQUIRED IoE empowers surveillance, monitoring and tracking of everything Smart devices with sensors and smart tags allows tracking of a person s movements, transactions and even habits and behavior Fingerprint biometrics is bridges the identity gap between the digital IoE and the analog human being Biometric verification enables connected objects to recognize and verify authorized users IoT applications demands biometric systems to be an integral part devices and things Secure, safe and simple multifactor authentication: - Something you have (device) - Something you know (PIN) - Something you are (fingerprint)

9 MARKET REQUIREMENTS AND CHALLENGES Mobile Small sized low cost (touch) sensors User-friendly and good-looking in-design Biometric performance (FAR/FRR) Secure authentication: FIDO, TEE, TrustZone, Trustonic, secure elements etc. Cards Low cost flexible sensors Authentication within secure element (smartcard chip) Very low power consumption for contactless cards Standardization (card form factors, biometric templates etc.) Embedded/IoT Small size swipe or touch Connectivity Low power consumption Low footprint software 9 14/04/2015

10 THE LANDSCAPE WE EXPLORE IDEX single line sensor array : 0,05-0,085 mm Human fingerprint : ~ 0,35-0,6 mm Picture by James Sullivan 10

11 ON-CHIP and OFF-CHIP SENSOR PRICINPLES SUBS Typical on-chip silicon touch sensor 8 x 8 mm image IDEX patented off-chip touch sensor 8 x 8 mm image Silicon IC 80mm 2 Silicon area fingerprint sensing area Polymer sensing area Miniature Silicon IC <15 mm 2 >30% lower cost IDEX one of two capacitive vendors Silicon area = 25% of fingerprint sensing area 5x smaller IC We note IDEX will be able to offer a lower cost sensor than traditional silicon based sensor competitors because the sensor is decoupled from the chip and a large area chip is not required Analyst Charles Anderson, Dougherty & Company 11 14/04/2015

12 NEW ALGORITHMS NEEDED FOR SMALL SIZED TOUCH SENSORS Image area reduced from 200 sq. mm to 30 sq. mm 25 False reject rate % Hybrid minutia IDEX Ridge pattern 5 0 Acceptable level Image Area Square mm New algorithm delivers superior user metrics in reduced sizes 14/04/2015

13 IDEX & CARDTECH: INDUSTRY FIRST ISO STANDARD CARD Secure, safe, and simple authentication Fingerprint sensor AND fingerprint information at the card Fingerprint information never leaves the card Privacy No centralized fingerprint databases Secure data handling Compatibility with existing infrastructure Payment Cloud and internet security Governmental ID Access control systems 13 14/04/2015

14 ECOSYSTEM BUILT TO DELIVER TO TIER 1 CUSTOMERS Mobile Device Providers Semiconductor Integrators Module & Packaging Integrators Capacitive Fingerprint Sensor Component Vendors Silicon ASIC Semiconductor Manufacturers Sold to Apple for $350M Sold to Synaptics for $250M 14 14/04/2015

15 NEW PRODUCT DEVELOPMENT MOBILE MARKET DRIVEN PRE 2013 Conventional large area Touch H Apple iphone 5S Touch in button H Samsung Galaxy S5 Swipe in button H Huawei MATE Touch at rear Q Samsung Galaxy S6 with Rectangle Touch in button Fingerprint Sensor Enabled Mobile Device Launch Milestones IDEX products ready for market uptake in /04/2015 Swipe for IOT and cards Investment into mobile Acquired touch IP PicoField Mobile swipe Source: Company websites; IDC Worldwide Quarterly Mobile Phone Tracker, January 29, 2015 Mobile silicon touch with CrucialTec IDEX Mobile Sensor Product Launch Milestones Mobile off chip touch with Cypress Multiple form factors

16 SUMMARY Mass market deployment of biometric authentication triggered by introduction of TouchID TM in iphone 5S. CAGR of biometric smart devices 65% expected towards main mass market application areas emerging: - Mobile devices - Smartcards - IoT Capacitive fingerprint sensing has become the de-facto standard for biometric authentication in consumer market A massive amount of new services and businesses will become enabled by biometric authentication - using personal, connected, portable biometric devices carrying biometric information and a person s credentials - empowering mobile payment, cloud services, Bring Your Own Device (BYOD), NFC, access control and much more New technologies, products, services and standards will be required. IDEX: Launched new touch sensor at MWC in March with Cypress Extensive sampling to mobile OEMs with partners to win programs in Q2 Demonstrated progress with glass swipe sensor technology at MWC Flex touch product development to enable ID/payment biometric cards Product sampling to meet emerging demand for IoT applications 16 14/04/2015