1. www.strategies-u.com© 2009 Strategies Unlimited The Image Sensor Market Tom Hausken, PhD Director, Optoelectronic Components Strategies Unlimited thausken@strategies-u.com 650-941-3438 x28

2. www.strategies-u.com© 2009 Strategies Unlimited Slide 2 The Image Sensor Supply Chain End User Subsystem Vendor System Vendor Component Supplier Subcomponent Supplier

3. www.strategies-u.com© 2009 Strategies Unlimited Slide 3 Electronic imaging history Years Period Before ~1960 Film photography and vacuum tubes 1960-1975 Early CCD and CMOS R&D Digital image processing 1975-1990 CCD Commercialization 1990-Now CMOS re-emergence, amorphous Si Future Consumer, radiography, automotive applications mature; more focus on frame rate and image quality. More intelligence through optic flow, computational optics, image processing.

4. www.strategies-u.com© 2009 Strategies Unlimited Slide 4 The first decline since we started tracking the market

5. www.strategies-u.com© 2009 Strategies Unlimited Slide 5 Growth returns, but more moderately

6. www.strategies-u.com© 2009 Strategies Unlimited Slide 6 Growth returns, but more moderately

7. www.strategies-u.com© 2009 Strategies Unlimited Slide 7 Cycles will become more prominent

8. www.strategies-u.com© 2009 Strategies Unlimited Slide 8 Many opportunities yet to be exploited

9. www.strategies-u.com© 2009 Strategies Unlimited Slide 9 Imaging applications Orange mobile videophone 8x8 Packet8 Tango Video Terminal Adaptor Celluon virtual keyboard Sony PlayStation Eye

10. www.strategies-u.com© 2009 Strategies Unlimited Slide 10 Imaging applications Kokoro Actroid robot Anoto Penit Digital pen with camera Leaf Aptus II 10 56-Mpixel digital camera back

11. www.strategies-u.com© 2009 Strategies Unlimited Slide 11 Imaging applications Source: Hitachi Maxell Toyota Prius Intelligent Parking Assist Lane Keep Assist Bendix XVision IR night vision

12. www.strategies-u.com© 2009 Strategies Unlimited Slide 12 Imaging applications Fujitsu PalmSecure vein scanner Ridata Fingerprint USB drive DALSA 66-Mpixel astronomy sensor Suni Medical Imaging Digital intraoral camera

13. www.strategies-u.com© 2009 Strategies Unlimited Slide 13 Imaging applications Invendo Medical Single-use endoscope camera (Courtesy Cypress Semiconductor) RF System Lab Sayaka Wireless endoscope capsule

14. www.strategies-u.com© 2009 Strategies Unlimited Slide 14 Consumer vs. specialty applications Units Revenues

15. www.strategies-u.com© 2009 Strategies Unlimited Slide 15 General outlook: Consumer apps ApplicationOutlook CameraphonesStill the grand prize. Digital camerasSaturating but still important CamcordersSome new opportunities in an old application WebcamsTaking off Stand-alone videophonesAlways the application of the future Toys, game consolesTaking off Optical miceMaturing, but still some new ideas Scanning appliancesA mature and closed community

16. www.strategies-u.com© 2009 Strategies Unlimited Slide 16 General outlook: Specialty apps ApplicationOutlook Security camerasStrong growth Machine visionA fragmented and specialized market AutomotiveStrong opportunities but a long development cycle Barcode scannersA mature niche market Single-use endoscopyEnabling, but a niche Digital radiographyGood growth for exotic technologies ScientificVery customized R&D applications

17. www.strategies-u.com© 2009 Strategies Unlimited Slide 17 The killer app: Cameraphones

18. www.strategies-u.com© 2009 Strategies Unlimited Slide 18 Products mature with the users Figure of Merit Performance Reliability Functionality & size Price Time

19. www.strategies-u.com© 2009 Strategies Unlimited Slide 19 Pixels size is near the limit

20. www.strategies-u.com© 2009 Strategies Unlimited Slide 20 Optics vs. Moore’s Law

21. www.strategies-u.com© 2009 Strategies Unlimited Slide 21 Segmentation CategoryExamples TypeCCD, CMOS, Hybrid, CID WavelengthVisible, IR, X-ray SubstrateSi, InP Array typeLinear, 2-D Optical formatPixel counts and lens diameters Camera interfaceVGA (digital), PAL (analog) Scanning methodProgressive, interlace Image transferFull frame, frame transfer

22. www.strategies-u.com© 2009 Strategies Unlimited Slide 22 CMOS encroaches on CCDs

23. www.strategies-u.com© 2009 Strategies Unlimited Slide 23 CCD vs. CMOS market share

24. www.strategies-u.com© 2009 Strategies Unlimited Slide 24 Overall market share

25. www.strategies-u.com© 2009 Strategies Unlimited Slide 25 Cameraphone sensor share is consolidating Revenue Share (%) Others Next 3 Top 4

26. www.strategies-u.com© 2009 Strategies Unlimited Slide 26 Top 5 Suppliers

27. www.strategies-u.com© 2009 Strategies Unlimited Slide 27 Number of image sensor suppliers CMOS only Both CCD only

28. www.strategies-u.com© 2009 Strategies Unlimited Slide 28 Regional share

29. www.strategies-u.com© 2009 Strategies Unlimited Slide 29 Key supplier events in 2009 Fujifilm exits CCDs. MagnaChip exits CMOS image sensors. Panasonic suspends plans for new CCD fab. Micron sells stake in Aptina to private equity. Sensata sells vision business to Melexis. Hynix re-enters image sensors; stake in SiliconFile.

30. www.strategies-u.com© 2009 Strategies Unlimited Slide 30 Summary New, more cyclic behavior Consolidation in segments, but not overall Japan dominates CCDs Asia rising in CMOS