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Market Intelligence & Consulting Institute http://www.marketresearch.com/market Intelligencev3289/ Publisher Sample Phone: 800.298.5699 (US) or +1.240.747.3093 or +1.240.747.3093 (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST

Industry Intelligence Program Communications Mobile Phone Camera Module: Industry, Market and Key Technology Development Abstract Mobile phone camera module shipment volume has continued to grow, fueled by increased demand for phone cameras thanks to the rise of social networks. Due to the current mobile phone market homogeneity, phone brands have been centering on camera upgrades as a way to create product differentiation. New modules such as OIS (Optical Image Stabilization) and MEMS (Micro-Electro-Mechanical System) and array modules have pushed into the mobile phone supply chain. Accompanying with increased smartphone shipments, the supply chain of Chinese smartphone components also grows in importance. This report examines in more detail the forces underlying the growing importance of mobile phone camera modules and how new module technologies are affecting the industry. by Nina Ko Document Code: Publication Date: May 2014 Check out MIC on the Internet! http://mic.iii.org.tw/english

Mobile Phone Camera Module: Industry, Market and Key Technology Development i Table of Contents Page 1. Development of Mobile Phone Camera Module Market... 1 1.1 Camera Module Market Growth Poised to Ramp Up Again on Rising Demand for 3D Tracking... 1 1.2 Camera Pixel Size Growing in Importance... 2 2. Development of Mobile Phone Camera Module Supply Chain... 3 2.1 Requirements for High Resolution and Lens Module Thickness to Increase Entry Barriers... 4 2.2 Image Sensor Industry Remains Stable Due to High Technology Barriers to Entry... 5 3. Key Technology Development of Mobile Phone Camera Modules... 5 3.1 OIS' Future Depends on Whether Capacity Constraints Can be Overcome... 5 3.2 Monopoly Supplier and Inadequate Production Issues to Thwart MEMS Camera Module Development... 5 Appendix... 8 2014 Market Intelligence & Consulting Institute May 2014

ii Industry Intelligence Program - Communications List of Figures Page Figure 1 Worldwide Mobile Phone Camera Module Market Volume, 2012-2015... 2 Figure 2 Worldwide Mobile Phone Camera Module Shipment Share by Pixel Count, 2012-2015... 2 Figure 3 Mobile Phone Camera Module Industry's Supply Chain in Taiwan, Japan, Korea, and China... 3 Figure 4 Sony's Stacked CMOS Image Sensor Diagram... 5 Figure 5 An Exploded View of MEMS Camera Module... 6 Figure 6 An Exploded View of Array Camera Diagram... 6 May 2014 2014 Market Intelligence & Consulting Institute

Mobile Phone Camera Module: Industry, Market and Key Technology Development iii List of Tables Page Tablet 1 Specification Comparison of MEMS and VCM Camera Modules... 6 2014 Market Intelligence & Consulting Institute May 2014

Mobile Phone Camera Module: Industry, Market and Key Technology Development 1 1. Development of Mobile Phone Camera Module Market 1.1 Camera Module Market Growth Poised to Ramp Up Again on Rising Demand for 3D Tracking In recent years, mobile phone camera modules not only have improved pixel resolution and image quality but also have packed with additional features like anti-shake, fast focusing and large aperture lens. As a result, digital cameras are being gradually replaced by mobile phone cameras. In January 20, 2014, Google launched Project Tango, a prototype smartphone fitted with 3D sensors which can build a detailed map of the surrounding space and motion. The next Project Tango prototype smartphone is purportedly to contain customized hardware and software and six cameras to track the full 3D motion of an object by making 250,000 3D measurements per second to achieve a true-to-life understanding of space and motion. In 2014, several mobile phone brands also plan to unveil new models equipped with two and more main camera modules, also known as rear-facing modules, to track eye movements and hand gestures and support a wide range of diversified mobile applications. In 2013 global mobile phone camera module market volume totaled around 2.47 billion units, up 20.1% compared to 2012. Adoption share of main cameras reached 88.2% in 2013. The camera function has been highly regarded as a key point of differentiation among mobile phones, and the share of main cameras adopted by mobile phones is therefore forecast to see a further rise in the future. In addition, about 860 million of sub cameras, also known as front-facing cameras, were shipped in 2013, accounting for 35% of the total mobile phone camera modules and advancing 6% year-on-year. Driven by increased demand for 3G and 4G real-time mobile video streaming as well as taking selfies, shipment share of sub cameras is expected to enjoy a steady growth. As the smartphone market continues to be volatile, mobile phone brands are seen to further expand the hardware competition to phone cameras. Therefore, global mobile phone camera module shipment volume is forecast to hit about 3 billion in 2015. 2014 Market Intelligence & Consulting Institute May 2014

2 Industry Intelligence Program - Communications Figure 1 Worldwide Mobile Phone Camera Module Market Volume, 2012-2015 Source: MIC, May 2014 1.2 Camera Pixel Size Growing in Importance Figure 2 Worldwide Mobile Phone Camera Module Shipment Share by Pixel Count, 2012-2015 Source: MIC, May 2014 格 式 化 : Title 1 May 2014 2014 Market Intelligence & Consulting Institute

Mobile Phone Camera Module: Industry, Market and Key Technology Development 3 2. Development of Mobile Phone Camera Module Supply Chain Figure 3 Mobile Phone Camera Module Industry's Supply Chain in Taiwan, Japan, Korea, and China Source: MIC, May 2014 2014 Market Intelligence & Consulting Institute May 2014

4 Industry Intelligence Program - Communications 2.1 Requirements for High Resolution and Lens Module Thickness to Increase Entry Barriers May 2014 2014 Market Intelligence & Consulting Institute

Mobile Phone Camera Module: Industry, Market and Key Technology Development 5 2.2 Image Sensor Industry Remains Stable Due to High Technology Barriers to Entry Figure 4 Sony's Stacked CMOS Image Sensor Diagram Source: Sony, compiled by MIC, May 2014 3. Key Technology Development of Mobile Phone Camera Modules 3.1 OIS' Future Depends on Whether Capacity Constraints Can be Overcome 3.2 Monopoly Supplier and Inadequate Production Issues to Thwart MEMS Camera Module Development 2014 Market Intelligence & Consulting Institute May 2014

6 Industry Intelligence Program - Communications Figure 5 An Exploded View of MEMS Camera Module Source: DOC (Digital Optics Corporation), compiled by MIC, May 2014 Table 1 Specification Comparison of MEMS and VCM Camera Modules MEMS VCM Settling time Hysteresis Speed Focus time Optical travel Power Power XY-footprint (1/3 Size format) Z-height at macro Repeatability Precision Dynamic tilt De-centering Reliability cycles Reliability Reliability environmental Source: DOC, compiled by MIC, May 2014 Figure 6 An Exploded View of Array Camera Diagram Source: DOC, compiled by MIC, May 2014 May 2014 2014 Market Intelligence & Consulting Institute

Mobile Phone Camera Module: Industry, Market and Key Technology Development 7 MIC Perspective Camera Modules Becoming Next Battlefield Chinese Smartphones to Trigger Another Round of Price Competition 2014 Market Intelligence & Consulting Institute May 2014

8 Industry Intelligence Program - Communications Appendix Glossary of Terms AF BOM CCM CMOS EIS HD HDR MEMS OIS VCM VGA Auto Focus Bill of Material Compact Camera Module Complementary Metal-Oxide Semiconductor Electronic Image Stabilization High Definition High Dynamic Range Micro-Electro-Mechanical System Optical Image Stabilization Voice Coil Motor Video Graphics Array May 2014 2014 Market Intelligence & Consulting Institute

Mobile Phone Camera Module: Industry, Market and Key Technology Development 9 List of Companies Alps Altel Apple Aptina DigitalOptics Corporation Disotech Foxconn Fujifilm GalaxyCore Genius Electronic GoerTek Google Himax HTC Hynix Kantatsu Largan Precision LG Innotek LiteOn MediaTek Mitsumi O-film OmniVision Primax Qualcomm Samsung Sekonix SEMCO Sharp Sony Sony STMicroelectronics Sunny Optical Superpix 2014 Market Intelligence & Consulting Institute May 2014

10 Industry Intelligence Program - Communications TDK Tessera Technologies Toshiba Truly Semiconductor May 2014 2014 Market Intelligence & Consulting Institute

For more information Service Hotline +886.2.23782306 Fax +886.2.27321351 E-mail Address csmic@iii.org.tw Web Address http://mic.iii.org.tw/english Copyright 2014 Market Intelligence & Consulting Institute, a division of Institute for Information Industry. All rights reserved. Reproduction of this publication without prior written permission is forbidden. The content herein represents our analysis of information generally available to the public or communicated to us by knowledgeable individuals or companies, but is not guaranteed as to its accuracy or completeness.