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According to Taiwan Media United News Network, Samsung Electronics and UMC recently signed a cooperation agreement to expand the production of image sensors.

It is reported that Samsung decided to transfer the production of mobile phone image processor (ISP) and related panel driver chips (IC) to UMC, and launched a new cooperation model of its own investment in equipment, UMC to provide factories and OEM operations.

UMC's supply chain revealed that in order to expand the market share of image sensors and challenge Sony's leading position, Samsung has planned to contribute funds to assist UMC's Nanke P6 plant to expand production. It is reported that Samsung will purchase 400 sets of equipment including etching, thin film, yellow light, diffusion and other equipment for the plant. UMC will use the 28-nanometer process for Samsung's OEM, and plans to start construction this season and mass production in 2023. The target monthly production capacity Up to 27,000 pieces.

UMC recently stated that the Nanke P6 plant will have a new operating model. As for the cooperation partners and investment details, they are still under negotiation, so it is inconvenient to disclose.

Last year, Sony formally reached a cooperative relationship with TSMC, and for the first time some key chips of the image sensor (CIS) were handed over to TSMC's foundry. Samsung also ordered a small number of panel driver chips to UMC more than a year ago. This cooperation means that Samsung has officially started to catch up in the CIS field.

According to data from Strategy Analytics, a market research organization, Sony will rank first in the smartphone image sensor market with a revenue share of 46% in 2020, followed by Samsung LSI and OmniVision Technologies. The top three suppliers together account for nearly 85% of the global revenue share. However, whether Samsung can threaten Sony's leading position through cooperation with UMC remains to be seen.