Yole said that the acquisition was a good thing for the CMOS imaging sector as it would enable investment in OmniVision that could in the medium term create competition for market leader Sony.

"First, OmniVision management must fix the technology gap by massively investing in technology with foundry partners TSMC and now with their move to use XMC as main foundry partner," said Yole in a statement.

2014 CMOS image sensor market by volume and price. Source: Yole Developpement.To see a larger version of this chart click here.

Wuhan Xinxin Semiconductor Manufacturing Corp. (XMC), is a 300mm wafer fab that has been better known for its production of flash memory but the company announced in March that it has shipped more than 100 million backside illumination (BSI) CMOS image sensors.

Moving to manufacturing to XMC will help OmniVision build relations with Chinese smartphone and tablet brands such as Xiaomi, Lenovo, Huawei, Coolpad, ZTE, Oppo, and these relations could be highly productive as and when some currently China-only brands go global.

Related links and articles:

News articles:

XMC ships stacked BSI image sensors

OmniVision agrees to become Chinese

Report: CMOS image sensors in short supply

OmniVision goes stacked for image sensing


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