Samsung Aims To Boost Smartphone Profits With Own Fingerprint Sensor

Samsung is moving to strengthen their smartphone component business with the Korean Company set to manufacture their own fingerprint sensor processor.

This is not the first time that Samsung has moved to bolster profits by building rather than buying components.

According to a new report coming out of South Korea, Samsung has been developing fingerprint sensor chips since last year, it’s tipped to be used in the new Galaxy S8

The chips are reportedly being created by Samsung’s System LSI business, which builds components destined for electronic devices.

It’s the latest news in what appears to be a series of Samsung efforts to keep third-party suppliers at arm’s length. The most notable example in recent times was Samsung’s decision to start using its own custom-built Exynos processors in the flagship Galaxy S6 and Galaxy S7 smartphones, rather than solely relying on market leading chip maker Qualcomm.

But Samsung also manufactures its own displays, batteries, and other vital smartphone components that give it a leg up over rivals. Apple has made similar moves, recently opting to include Intel-built modems in the iPhone 7, rather than relying on Qualcomm modems, as it has historically done.

Samsung currently sources its fingerprint sensors from Synaptics, a market giant that shares industry dominance with Sweden’s FPC. If Samsung can build its own chips, it will mean future Galaxy smartphones could cost less to produce – a move that will bolster Samsung profitability.

Samsung is also likely to sell its new fingerprint processor to other third-parties, giving the giant an additional revenue stream.

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David Richards

David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.