Pixart to Spin-Off Part of its Image Sensor Business

Digitimes: PixArt announced that it is going to invest NT$150M (US$ 4.92M) to establish a CMOS image sensor subsidiary, with operation to officially start in 2H'2008. Pixart will hold a 30-40% stake at the new entity, with the remainder to be held by other industry players from both upstream and downstream segments. Pixart expects investors to be ready by late June.

Pixart itself has decided to focus on special CMOS image sensors, such as featuring multi-object tracking (MOT) technology for games consoles and those for optical mice. The new entity will initially focus on standard CMOS image sensors for use in handsets and PCs. The move is interpreted as a way for UMC, Pixart's parent company, to make progress in China's white-box handset component market. Currently OmniVision holds a 70-80% share of the China handset image sensor market, and UMC probably likes to compete there too.