SUNNYVALE, Calif., Jan. 29 /PRNewswire-FirstCall/ -- OmniVision Technologies, Inc. , a leading supplier of CMOS image sensors, today reported that it has terminated its Equipment Procurement Agreement ("Equipment Agreement") with XinTec, Inc. Under the Equipment Agreement, dated August 31, 2006, XinTec agreed to provide chip-scale packaging ("CSP") services to the Company, and the Company agreed to procure, through XinTec, up to $50 million of certain equipment to be located at XinTec's facilities for the sole purpose of providing such CSP services to the Company.
OmniVision and XinTec mutually determined that, as a result of the recent acquisition by Taiwan Semiconductor Manufacturing Company Limited ("TSMC") of a controlling interest in XinTec, it was in each company's best interest to terminate the Equipment Agreement, and for XinTec to own and operate the capital equipment which is now in place and running in the same manner as it operates its existing equipment. As a result of the acquisition by TSMC of a controlling interest in XinTec, the Company believes that future expansion of capacity at XinTec to meet the Company's increasing requirement for CSP services will no longer require it to make direct investments in capital equipment.
"XinTec has played a key role in the development of OmniVision's products with chip-scale-packaging," said Shaw Hong, OmniVision's president and chief executive officer. "TSMC's increased involvement with XinTec should further strengthen this important partnership."
XinTec has already returned to OmniVision approximately $32 million. This represents all funds previously remitted to XinTec for the purpose of the equipment purchase contemplated by the Equipment Agreement, plus interest accrued thereon.
About OmniVision
OmniVision Technologies, Inc. designs and markets high-performance semiconductor image sensors. Its OmniPixel(R) and CameraChip(TM) products are highly integrated single-chip CMOS image sensors for mass-market consumer and commercial applications such as mobile phones, digital still cameras, security and surveillance systems, interactive video games, PCs and automotive imaging systems. Additional information is available at http://www.ovt.com/ .
