Majeed Ahmad
New member
Digital imaging chipmaker OmniVision Technologies Inc. has been acquired by a consortium comprising of Hua Capital Management, CITIC Capital Holdings and GoldStone Investments for approximately $1.9 billion. The Santa Clara, California-based OmniVision is one of the leading suppliers of image sensors and industry watchers see its purchase by a group of equity groups from China as an important development.
First and foremost, the deal is important from IP and supply chain standpoints. Image sensors are going to be key in the emerging Internet of Things (IoT) segments like wearable electronics and connected cars. Here, a China-based player owning digital imaging IP and technology know-how could prove vital in China's bid to catch up on the IoT juggernaut.
Second, the fact that CMOS image sensors are all about economy of scale, the production of OmniVision silicon devices could eventually move to a fab in China, like SMIC in Shanghai.
In a nutshell, the deal marks the continuation of China chipmakers' aggressive stance on cutting-edge semiconductor IP and access to advanced technologies. There could be more deals like this in the coming months.
First and foremost, the deal is important from IP and supply chain standpoints. Image sensors are going to be key in the emerging Internet of Things (IoT) segments like wearable electronics and connected cars. Here, a China-based player owning digital imaging IP and technology know-how could prove vital in China's bid to catch up on the IoT juggernaut.
Second, the fact that CMOS image sensors are all about economy of scale, the production of OmniVision silicon devices could eventually move to a fab in China, like SMIC in Shanghai.
In a nutshell, the deal marks the continuation of China chipmakers' aggressive stance on cutting-edge semiconductor IP and access to advanced technologies. There could be more deals like this in the coming months.