Asustek Computer will for the first time adopt fingerprint recognition technology for its third-generation ZenFone series smartphones to be launched in May-June 2016, according to Taiwan-based supply chain makers.

Asustek is likely to adopt fingerprint recognition solutions developed by Taiwan-based Elan Microelectronics and China-based Goodix for ZenFone 3, the sources indicated. In terms of application processors, Intel and Qualcomm platforms together have so far accounted for about 80% of ZenFone smartphones and MediaTek's for about 20%, the sources said.

Fingerprint recognition technology was originally adopted for high-end smartphone models, the sources said. As Goodix, Elan, and other Taiwan-based IC design houes, such as Egis Technology and FocalTech Systems, have stepped up development of fingerprint recognition sensors, prices for such ICs have been dropping, and may fall to US$5 per IC in 2016, the sources indicated.

Consequently, adoption of fingerprint recognition technology for smartphones is on the rise and the technology's penetration in the smartphone market is expected to rise from 30% currently to 50% eventually, the sources said.

ZenFone smartphones have been selling well in the Southeast Asia, India, Brazil, Russia and Taiwan markets, and Asustek will also gear up for markets in Myanmar, Cambodia, Bangladesh, Egypt and Nigeria in 2016, the sources noted.

However, Asustek is expected to face strong price competition from China-based smartphone vendors, including Huawei Device, Xiaomi Technology, Lenovo, Oppo, Vivo, Meizu, Coolpad, ZTE and TCL Communication Technology, in emerging markets, the sources indicated.

Asustek is expected to ship 20 million smartphones in 2015 and aims to ship at least 30 million units in 2016.