Goodix, a major provider of fingerprint sensors and touch controllers in China, is reportedly planning a series of mergers and acquisitions overseas, Chinese tech media reported.
David Zhang, Goodix founder and CEO, said recently at CES 2017 that his company was seeking to become the world’s largest fingerprint sensor supplier.
Goodix, in which Taiwan’s IC designer MediaTek has a 21.34 percent stake, is reportedly seeking to shed its image as a supplier of cheap products by expanding capital investment.
Zhang added at the CES that going into 2017, if the company can maintain the rapid growth it posted in the first nine months of 2016, its 2017 revenue may double.
As part of its overseas expansion, Goodix is putting together a marketing team in the U.S., which will be responsible for marketing outside of China and Taiwan.
Meanwhile, Goodix is also reportedly in talks with Amazon to expand its chipset supply for future Kindle products. Goodix is currently a chip provider for Amazon’s tablets.
Goodix began producing touch controllers in 2006 and later on moved on to manufacturer fingerprint chipsets. Taiwan’s MediaTek purchased a stake in the Chinese company in 2011 and MediaTek now owns 21.34 percent of Goodix’s shares. Goodix officially listed on the Shanghai Stock Exchange on Sept. 17; since its IPO, its share price has grown six times to its current level. The company’s market value also reached US$6 billion.
Goodix accounted for 28.32 percent of the Chinese market in terms of PCAP touch controllers in 2014. Ranked second, Goodix was the only Chinese company among the top five touch controller providers in China. In 2015, Goodix shipped 10 million units of its fingerprint recognition systems. Its 2015 revenue reached 1.12 billion yuan, up 31.15 percent from 2014. Net profit was 378 million, down 1.43 percent from a year earlier.
Currently, over 70 percent of Goodix’s sales come from touch IC products. The company estimated its fingerprint chipset shipment in 2016 to reach 60 million units; in that case, sales of fingerprint recognition systems would account for 23.3 percent of the company’s total revenue.
(Photo courtesy of TechNews)