Smartphone face recognition technology and industry chain

Apple and non-Apple companies are both investing heavily in facial recognition technology, with the industry chain rapidly evolving. The launch of Apple’s iPhone X, marking its 10th anniversary, is expected to accelerate the adoption of facial recognition across the industry, especially among non-Apple brands like Samsung, Huawei, and Xiaomi. This shift could create significant opportunities for companies such as Qualcomm and the "Wonderland" camp, which have been developing key components for 3D sensing. TSMC, a leading foundry for 3D sensor chips, along with lens manufacturers like Da Liguang, are also likely to benefit from this trend. Qualcomm and Wonderland have jointly developed a 3D camera module called "SLiM," designed specifically for facial recognition. This one-stop solution is set to enter mass production in the first quarter of next year, signaling a major step forward in the race for faster and more accurate face recognition technology. The iPhone X features a full-screen design, but due to the current limitations of under-display fingerprint technology, Apple decided to abandon the traditional Touch ID. Instead, it introduced Face ID, which relies on advanced 3D sensing technology. If the iPhone X receives strong pre-orders by late October, it may trigger a wave of new products from non-Apple competitors, further driving demand for facial recognition solutions. From a supply chain perspective, Qualcomm and Wonderland are well-positioned to become key partners for non-Apple brands. Qualcomm's "SLiM" solution, developed in collaboration with Qijing, is being produced by TSMC and combines cutting-edge computer vision algorithms with wafer-level optics, sensors, and driver ICs. This integration ensures high-resolution depth sensing that works efficiently in both indoor and outdoor environments. Qualcomm is optimistic about the future of facial recognition, expecting it to move beyond smartphones into areas like automotive systems, drones, and smart monitors. As the technology matures and becomes more affordable, we can expect to see even broader applications in the coming years.

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