OmniVision orders to fall short of target by about 20% in 3Q

A weakening handset market is affecting demand for CMOS image sensors, with CMOS image sensor supplier OmniVision planning on reducing its order volumes to Taiwan Semiconductor Manufacturing Company (TSMC) in the third quarter, according to the market sources.

The sources noted that OmniVision was optimistic about the market for handsets in the second quarter and released too many orders to TSMC and inventory has become an issue, the sources noted.

The company had initially planned to increase its order volumes by 10% to TSMC in the third quarter, but now plans on reducing orders by about 10%, leading to a swing in its planned orders by about 20%, the sources explained.

Although the CMOS image sensor market is not limited to handset applications, the segment is the main reason OmniVision is cutting its order volume, the sources added.

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