The supply of biometric access control systems has just started to grow in mainland China. At present, annual exports are estimated to be no more than 100,000 units but makers forecast that supply from the mainland will increase by more than 100 percent in 2005.

Many companies have started their research on fingerprint technology very early. Some of them are lock makers like Shenzhen Ideal Microelectronics Co. Ltd, which had invested on R&D since 1998. However, the production costs for access control products were too expensive and the line did not gain popularity until 2004. Today, many players are entering this arena, while the existing ones are expanding their production.

According to Linda Lai, sales manager from Ideal, the company started large-scale production of fingerprint locks since mid-2004. Yantai Sanhuan, one of the largest lock makers in the mainland, is set to manufacture 10,000 fingerprint locks in 2005.

Ideal claims that fingerprint access control systems make up half of its product line. To Foshan Nanhai Level Intelligent Lock Industrial Co. Ltd, the percentage is less than 30 percent, while for Sunneo Biometrics Co. Ltd, almost 100 percent of output are fingerprint access control systems.

Nanhai Level owns nine workshops and hires over 300 workers. It devotes 70 percent of production to fingerprint May 2005 Electronics 343 access control products for hotel use, and plans to expand this in 2005. Linda Lai says Ideal expects its output of fingerprint products to rise by 100 percent to 200 percent this year. Sunneo forecasts that its growth in this sector will be more than 40 percent in 2005.

Fingerprint locks or access control systems vary from each other. The high-end products use tougher materials and more sophisticated software than low-end models. Generally, highend models use high performance steel and CMOS sensor with resolutions as high as 500dpi. Some models apply integrated control and memory module to replace PC controllers. LCDs also enhance products' added functionality. Ideal employs the knowledge of designers from the United States and Europe for its products' cosmetic designs.

Traditional lock makers either establish in-house teams or cooperate with local universities for R&D. High-quality locks' false rejection rate (FRR) is usually less than 0.01 percent, while their false acceptance rate (FAR) is less than 0.00001 percent. A fingerprint lock for household use is able to store 30 to 50 fingerprints. Software can help to extend the number to 150 to 200 if requested.

For business use, access control systems often allow storage of more than 1,000 fingerprints. These business-use models also integrate functions like attendance recording, time computation and guest management. Foshan Nanhai Level Intelligent Lock Industrial Co. Ltd representative Nancy Zhou said her company is considering integrating a proximity card reader in its fingerprint access control system.

Increased material costs in the past year imposed great pressure on lock makers. Fortunately, software cost makes up a big proportion of access control systems ' cost so fingerprint locks were less affected. Interviewed manufacturers expect that though there must be more competition this year, prices of fingerprint locks and other access control systems will be stable.

Lai said most of Ideals' products are priced between $120 and $150. Qinghunt's locks are quoted from $180 to $210. Some high-end products in the market sell for $400 to $600.

Software is a key determinant of the end products' price. This gives advantage to software companies, which aim to export to developed nations.

Ideal is now exporting mainly to the United States, Canada and Mexico. The company has some distributors in those regions and mainly sells through distributors and agencies. It targets Europe to become one of its export destinations soon.

Sunneo is exporting fingerprint products to the United States, Southeast Asia, Middle East and Germany. Qinghunt Software Corp. and Aotusoft are both eyeing Japan as a potential market for their products.

More than 50 makers make up the manufacturing base, turning out either standalone fingerprint scanners or integrated doorlock systems. Many of them innovate by developing proprietary software to meet specific applications of the users.

Supply has been growing and makers are bullish that demand will continue to soar in the coming years.

Shimizu Products (HK) Ltd, for instance, will double its present production capacity up to 300,000 units monthly. "Currently, we output around 10,000 units per month. But the output volume is rocketing at the rate of 50 percent monthly," said Joesia Wong, general manager. High growth areas come from time attendance applications.

ACTAtek Ltd has a similar forecast as Shimizu. It estimates a compound annual growth rate of 50 percent in the next five to 10 years. On the other hand, D2 Technology Ltd's managing director, Gloria Leung, estimated the growth rate would be up to 15 percent annually. D2's Monthly output is around 1,000 units.

Fingerprint access control products from Hong Kong mostly use optical scanners. Makers estimate these take up 70 percent of their total output.

Many of the makers purchase optical scanners from other specialists, although some of them, such as Shimizu, make its own. The company also produces modules in form of system development kit (SKD) for other peer makers.

ACTAtek Ltd also designs optical scanner, though production is subcontracted to makers in mainland China. The company also sells SKD.

D2 Technology Ltd uses optical scanners from mainland China makers, although Leung stressed that the processing chips are sourced from the United States.

An alternative to optical scanner is the chipset sensor. Both ACTAtek and Shimizu offer products with such device. Common sources include Fujitsu from Japan and Authentic from the United States.

Compared to optical sensors, chipset sensors come in smaller size but costs at least double.

Most Hong Kong makers said they are inclined to use optical scanners in the future. "Apart from being more expensive, chipset sensor cannot stand electrostatics, making it work only on dry skin," said Leung from D2. Optical sensor, on the other hand, has the ability to detect a fingerprint with moisture.

In order to increase the accuracy, makers are increasing the resolution of optical scanners. Shimizu, for example, has raised the scanning resolution from 500dpi up to 800dpi for its top model. The company now provides an accuracy level of up to 1/100,000 for FAR and 1/100 for FRR.

FAR of D2's products is lower than 0.0001 percent, while FRR is smaller than 0.1 percent. "Our optical sensor is able to verify fingerprints by detecting the presence of sweat line," said Leung.

Recognition algorithms, which compute and distinguish the fingerprint patterns, also tell the difference in quality.

D2 develops its algorithm in-house, by analyzing major cross points in the fingerprint. With this, D2's fingerprint scanner can detect the finger even if it is rotated 360 degrees. Leung added the company's products can detect user's age group. "We are able to detect fingerprints from age six to 65," she added.

ACTAtek uses an algorithm called Minutiaea. "The algorithm has fast recognition time and accuracy," said CEO, Thomas Wan.

To enhance the security level, some makers have combined other security devices like proximity cards or smart cards with their fingerprint scanners.

ACTAtek has integrated a card reader, a keypad and a barcode reader as options with its fingerprint sensor. One of its upcoming projects is to add a CMOS sensor, which captures the images of the entrants, to its models.

D2 is also planning to add proximity cards using Mifare technology in its fingerprint scanners by Q3 2005. According to Leung, a card reader can serve as an ultimate verifier for the users' identity.

Shimizu has developed a model to protect computer systems. The fingerprint scanner comes in the form of a USB device or is simply incorporated in the mouse.

According to Wong, the devices are ideally used in corporate applications such as banking.

ACTAtek has also developed products for PC access control by releasing USB-interfaced fingerprint scanners.

R&D is focused on reducing the size of fingerprint scanners. For instance, the smallest optical scanner from Shimizu measures only 42 x 26 x 14mm.

Most makers have in-house capability to develop proprietary software for users. This includes time attendance software, which logs employees' attendance and calculates leave balances and payroll systems.

ACTAtek supplies its application software interface in either ODBC or JDBC platforms. The company is cooperating with a system integrator to develop the appropriate software for particular users.

Software bundled with the USB fingerprint scanner from Shimizu enables the users to encrypt a particular file in a PC or access control for the whole PC system.

Backed by decades of experience in biometric access control industry, manufacturers from Taiwan focus on providing OEM and ODM services to their overseas clients.

Aimgene Technology Co. Ltd specializes in developing and manufacturing computer applications with fingerprint authentication function. Its monthly capacity reaches 10,000 units, and its QC team ensures that all its fingerprint ID devices, bearing CE and FCC, undergo a 24-hour bench test before they are delivered to its respective customers worldwide.

Yisen Technology Co. Ltd is one of the leading auto security manufacturers in Taiwan. Aside from biometric access control products, its range of products include car alarms with immobilizers, battery back up sirens, pagers, ultrasonic sensors, shock sensors, glass break sensors, boot release solenoids and motorcycle alarms.

Established in 1997, Avlinx Inc. began supplying audio and video system integrations to major brand clients. Backed by their computer and technology experience, they have gained a good reputation from global customers. In 1999, Avlinx started to extend it s know-how to biometric fingerprint security applications and products.

Startek Engineering Inc. was established in 1989. Located at the Science-Based Industrial Park in Hsinchu, Taiwan, the company has more than a decade of experience in fingerprint verification technology, and is currently developing total solutions for its customers. It cooperates with its partners in Japan, Italy, South Africa and America in establishing its product lines.

Because of the expected rise in production volume, Wong from Shimizu forecasts that prices would drop by around 5 percent in the next 12 months. The selling price of an optical scanner from Shimizu ranges from $30 to $35.

A door lock with fingerprint scanner from D2 is priced at $99. Since chip costs have fallen, Leung also projected prices would fall to about $60 by 2007.