Biometrics Market & Technology in Taiwan and Thailand

1. Biometrics Market & Technology in Taiwan and Thailand Dr. Wen-Hsing Hsu Professor of National Tsing Hua University Consultant of Startek Eng. Inc. E-mail:whhsu@mail.startek-eng.com Sept. 2004

2. Division of Biometrics Market

3. Source: International Biometric Industry Association（IBIA） Revenue of Biometrics Market

4. Biometric Market Size • Revenue: • 2003 revenue: $719M USD • 2006 projected revenue: $2.7B USD • 2008 projected revenue: $4.8B USD • From: • Law enforcement • Public sector identification / Authentication • ID Card / E-passport / Immigration

5. Technology Growth Comparison x4 x8 Source: IBG’s “Biometrics Market and Industry Report 2004-2008”

6. Future • More & more competitors! • The Gorilla Game! • Microsoft influence(Windows Longhorn, 2005-2006)(Appendix A) • Price war!

7. Inside the Tornado.. main street tornado bowling alley chasm early market 1995 2003 2005 2008

8. Market size (in yen) 1012 Network user authentication Information system authentication 1011 (千億) Authentication service business Entrance and exit management PC Login 1010 (100億) System integration business 109 (10億) Equipment/library business (year) 2005 1980 1995 2010 2025 Source: Biometrics Security consortium Business Model

9. Time Division • 1990-: access control & PC login • 1995-: info. system authentication • 2005-: network user authentication • Taiwan market: • 2005: $10M USD(equipment), $3M~$30M (system)

10. Fingerprint Startek: Optical Reader Access Control & Time attendance API/Software license Embedded fingerprint processor LighTuning Tech. Chip Sensor (Array, Line) Gauss Access Control Face Recognition Symtron Tech. Industrial Technology & Research Institute Academia Sinica University (NTHU, NCKU, NCTU, NTU) PenPower Iris Recognition : NCNU Speaker Verification : ITRI, NTHU, NCKU Biometric Vender & Research Institutes in Taiwan

11. Market: Access Control (Taiwan) (2005) • Market scale: $10M USD / 5000 units • Market requirement: • Repeated uses for one device • Severe demand on stability • High quality for services • Professional partner for integration • Provider: (Startek, Gauss) Startek Product • FG70 (access control networking) & FM200 (reader) • FG75 (access control with Mifare card) • Main customers: • Government / Time and Attendance

12. Market: Information System Authentication (Taiwan, 2005) • Market scale: $3M~$30M USD (ID card, etc.) • Market requirements: • Integrator: multi-workstations, service to citizens, fingerprint database, network connection, secure info. access. • High quality reader • Entire client-server architecture • Implementation for related standards • Projects: • Immigration System for people from Mainland China (The Immigration Office National Police Agency) ($ 3M) • ID Card Project <$ 30M> • e-Passport <$2 M> ( ): Fixed < >: on planning

13. ID card based projects • ID card based project • Fingerprint + smart card • Civil Administration • Working Permission • E-passport • Fingerprint + smart card • Fast Immigration • Fingerprint + MIFARE card • Visa issuing • Fingerprint + 2D barcode

14. When Selected Countries Expect to Issue Electronic Passports Source: U.S. House Judiciary Committee

15. Market: Network User Authentication 2005~ • Market requirement: • M-business: cell phone, PDA, N/B • E-business: smart-card, ATM, P.O.S • Projected solution: (By Startek) • Software license for TI DSP • Fingerprint ASIC for personal devices • FCP300 for financial devices

16. Drive to Market • E-passport with face & fingerprint check at the immigration. • Civil administration & work permit application for fingerprint verification/identification. • Verification for 3G cell phone with fingerprint. Since 911，national security becomes the major consideration. Therefore, a large quantity of biometric solution is in demands. The growth of biometric market is expected to be over 40% annually. The market scale of 2007 is predicted to be approximate 4 billion USD.

17. Strategy of Startek • Core fingerprint technology holds 6 patents • Software license to varies platforms (PC, mobile devices, IT field) • Alliances for fingerprint related market exploitation • Certified high quality reader and API for Homeland security market and ID cards market.

18. SDK for IT Series PC Peripheral ? Other readers acceptable STARTEK Algorithm fpcode pcode enrolled template (minutia only) temporary template (minutia only) Enrollment reader CBEFF compliant Various readers for client use BioAPI v1.1 supported <BAPI>

19. Civil Administration ID card Application FC200 full fingerprint scan fingerprint enrollment User Make ID card Fill form Enrollment client Take picture Database Server verified User + ( ID card ) rejected Matching client FC200; X300 or FM200 matching

20. FADTSoftware License For cell-phone market Matching Algorithm FADT Standard DSP Starter Module (Evaluation Module) Mobile 5510 PDA Fingerprint Reader

21. Business Model • License to cell phone and PDA market • OEM to PC, NB maker • Embedded to P.O.S., ATM, Car • Integrated by S.I. Company • Integrated to security system

22. Broad Market Applications ( ):year 2004 total volume in K units. Computer (158,790) PDA (25,197) Biometric Access Control Time & Attendance (8,700) Automotive (62,400) Cell Phone (560,000) P.O.S. & ATM (30,000)

23. Save to database Fill form Take picture Fingerprint Enrollment Enrollment Overview Enrollment Identity confirmation

24. Matching client Verification Overview Verification Acceptance 1:1 matching Rejection

25. Read from database Matching Server Matching client Identification Identification Acceptance 1:N matching (for two fingers) Right index finger Rejection Left index finger

26. Immigration • Platform: • Fingerprint reader for enrollment & verification • (Matching server for offline identification) • Operation: • Enroll the user when he/she first visits • Verify the user when he/she comes again

27. VISA Issuing • Platform: • Fingerprint reader & 2D-barcode printer for enrollment • Fingerprint reader & 2D-barcode scanner for verification • Operation: • Enroll the user when he/she applies VISA • Verify the user when he/she visits

28. The multi-function smart National ID Card of Thailand : Including: • Personal ID • Fingerprints • Tax • Social welfare • Social security numbers • Agricultural data • Healthcare data Chip Memory :64-KB(32-KB for future applications) O.S.: Java

29. Timeline for Smart National ID Card in Thailand • 1996- Thailand Ministry began implementing the national registry system, a countrywide network. Broken into two phases, the first phase was to put in place the IT infrastructure and connect the country’s 1,077 local registration centers • February 2002 – Smart national ID card project is initiated by Prime Minister Thaksin Shinawatra with the aim of giving Thais the status of "e-citizens".

30. Timeline for Smart National ID Card in Thailand • January 2003 – The Cabinet approves the Interior Ministry's project to computerize the registration system of the Bureau of Registration Administration (Bora) at 1,077 offices. • July 2003 – The Cabinet selects Bora to oversee the smart card project. • August 2003 – Bora awards the six-year, 1.8 billion Baht project to the Control Data Group (with Startek) to implement an online registration system.

31. Timeline for Smart National ID Card in Thailand • October 2003 – The Cabinet transfers the smart ID card project to the ICT Ministry; Gartner asked to conduct workshop about smart ID cards, in which it criticizes the speed and proposed distributed approach to card production. • December 2003 – Deputy Prime Minister Gen Chavalit Yongchaiyudh announces that smart ID cards cards will be ready in April 2004.

32. Timeline for Smart National ID Card in Thailand • January 2004 – A new design of smart ID card is expected to release. • April 2004 – It would begin issuing the first 10,000 smart cards while the testing would continue for a couple of months and provincial governors and district leaders would help promote the use of smart ID card. • July 2004- ICT Ministry awards the issuing of the first 10M smart cards project to ST Micro. http://www.e-lo-go.de/html/modules.php?name=News&file=article&sid=4969 http://www.epic.org/privacy/id_cards/ http://www.intelligentasia.com/ieAsiaViewArt.cfm?artid=19962&catid=9&subcat=215

33. Smart National ID Card in Thailand

34. Conclusion Biometrics industry/market will enter the 3rd stage. -- Network User Authentication • E-Business: ATM, P.O.S. Embedded processor solution • M-Business: Cell phone, PDA Sweep sensor, S/W license • IT security: PC, NB  O.S. Longhorn(BAPI), Bio-mouse, Sweep sensor • Access Control: Optical reader, networking • ID Card: National authentication infrastructure  S.I., Optical Reader, sever matching.

35. Appendix A

36. Microsoft + Biometrics/Fingerprint STARTEK Engineering Inc.

37. Alliance/Partners • I/O Software - Users of Windows will benefit from authentication services, secure biometric data storage and a common user interface for biometric-enabled applications • I/O Software markets biometrics products today for Windows 95, Windows 98 and Windows NT 4.0, with support for Windows 2000 expected by this summer • http://www.microsoft.com/presspass/press/2000/may00/biometicspr.asp

38. WinFX – new programming interface introduced in Windows “Longhorn” • What is Windows “longhorn”? • Next version of Windows operating system • Designed to provide the foundation for a new wave of innovation, enabling businesses to use technology more efficiently • Towards this realization of a new module computing, Windows XP is the first step, “Longhorn” will be the next step.-

39. WinFX – new programming interface introduced in Windows “Longhorn” • What is WinFX (Win Effects)? • In Longhorn, Win32 will no longer be the principal API. WinFX will take Win32’s place. • .NET platform, a superset of .NET Framework • An all-managed API • Integrated with I/O Software’s Biometric API (BAPI) • http://weblogs.asp.net/lkempe/archive/2004/03/16/90711.aspx

40. Appendix B

41. One Stop Service • Install at 1077 District offices in Thailand • Issue ID card and enroll fingerprints within 6 years • Serve 41million Thai citizens Pranakorn District OfficeBangkok Fingerprint system supplier : STARTEK, CDG

42. Pranakorn

43. Pranakorn District office

44. Map of One Stop Service 1-2 : Counter Service 3-4 : Income Service 5 : Finance Service 6-7 : Registration Service 8-9-10 : Identification Card Service 11 : Queing

45. Application Process for Fingerprint ID Card Step1: Fill up the Application Form

46. The Application Form Application Form Front Side Reverse Side

47. Application Process for Fingerprint ID Card Step2: Enroll Fingerprint with FC200 (Startek) Enroll fingerprint

48. Application Process for Fingerprint ID Card Process of Fingerprint Enrollment Administrative personnel enter applicant’s information Complete and set up applicant’s information and fingerprint

49. Application Process for Fingerprint ID Card Step3: Take Photo

50. Application Process for Fingerprint ID Card Step4: Make a Fingerprint ID Card ID card is printed on the spot