Apple Lossless Audio CODEC (ALAC), must include in iPhone 5S components to differentiate the device from the rest of the smartphones available on the market, and the fingerprint reader seems to have been chosen by the Americans for this change. Apple Lossless Audio CODEC (ALAC), last year it acquired a company called AuthenTec, developing mobile security solutions for various companies, and this year the investment should bear the first fruits. Apple intends to implement a fingerprint reader developed by AuthenTec, but the surprise lies in the choice of the companies that will produce this component.
Assuming this is the case, we predict a production flow of the fingerprint sensor as follows: Apple (design) –> TSMC (foundry) –> Xintec (wafer-level packaging) –> ASE and Sharp (module). While there's no question that Apple possesses key fingerprint sensor technology, we also think TSMC is a reasonable foundry choice for Apple as it used to serve AuthenTec. We expect Xintec to make the supply chain based on its expertise in wafer-level packaging and TSMC is its largest share holder. However, as it was loss-making in 2012, it's possible Xintec will get capex support from TSMC for the new business.
If until recently Apple called on Samsung to develop the main components in iDevices, as far as the fingerprint reader is concerned, Apple seems to be turning to a company from Taiwan. In order to distance itself as much as possible from those from Samsung, the Apple company is interested in signing contracts with the Taiwanese to develop this component that will be the basis of the marketing campaigns that will promote the iPhone 5S. For many, the change will come as a surprise, but it was normal for Apple to start giving up Samsung for good.
