Chinese touchscreen manufacturer O-film has announced that it will begin producing fingerprint recognition modules next year due to intensifying competition for touch panels.
O-film will start manufacturing fingerprint recognition modules for use in smartphones at an initial monthly production capacity of four million units in the second quarter of 2015,reports Digitimes.
The production shift will make O-Film the largest China-based producing fingerprint recognition modules.
O-Film was previously recording 20 million in annual shipments but has since seen that number drop to 15-16 million as competitors like Japan Display (JDI), Sharp, Samsung Display and LG Display have ramped up output.
In November, Planet Biometrics reported that rising orders by China's smartphone makers were helping domestic firms expand their presence in the expanding fingerprint sensor market.
Shanghai-based design firm Silead has secured fingerprint sensor orders from Coolpad and ZTE, with mass shipments already kicking off. Meanwhile, Shenzen-based Goodix is rolling out fingerprint identification chip solutions, and is looking to beat Taiwan-based rivals to win orders from China's brand handset vendors, the sources said.