Lenovo selects OmniVision as strategic supplier

OmniVision Technologies Inc. has signed a long-term agreement with Lenovo Group Ltd to be the strategic supplier of CMOS camera chips for Lenovo's cellphone business in China.

Prior to the exclusive agreement, OmniVision has supplied Lenovo with nearly two million CMOS sensors since Q4, 2004; a number that is expected to increase significantly under the new agreement.

China's camera phone market, currently estimated at 34 million units annually, is growing at a rapid pace. According to market research firm TSR of Japan, by next year, more than 78 million or 56 percent of the estimated 140 million handsets sold in China will have one or more cameras in them. By 2008, 116 million or more than 70 percent of all cellphones sold in China will be camera phones.

"The market potential in China is huge, so teaming up with a recognized handset maker like Lenovo is a major milestone for OmniVision and key to expanding our position in the China market," said Raymond Wu, EVP at OmniVision.