Status of the CMOS Image Sensors Industry - Yole

1 January2015 Statusof the cmos Image SensorsIndustry2015 ReportDriven by consumer and automotive applications, the cmos Image sensor market is forecasted at $16B in 2020 with a CAGR of over the 2014-2020 OmnivisionCourtesyof ValeoCourtesyof On SemiCourtesyof GoproCourtesyof SonyJanuary2015 2 Whatwegetright, WhatwegetwrongTechnology& Marketforecastchallenge Over the years Yole D veloppementhas managed to keep consistent forecast. Looking back, we have slightly undervalued global CIS market. As we research over time the same market, some new applications such as Tablets impact the veloppement January 2015 January2015 34th cmos Image Sensorreport WhenYoleD veloppementpresenteditsfirstreportin2010 ,TheimagingindustrywasataturningpointasC MOS imagesensorrevenueswerebreakingthe50%thr esholdinrespecttoCCD.

2 Sincethisfirstreport, ,the50%revenuethresholdisalsobrokenforBS Itechnology. Mobile and tablets are currently the key applications for CIS, they are demanding in term of volume and performance therefore keeping price at a good level for the top notch technology. The Industry has reached $ in 2014 and with CAGR forecasted for the 2014-2020 period, it will reach $ in 2020. Currently the most dynamic CIS market is features and performance are needed to serve this new market. Are we shifting from vision for Imaging to vision for Sensing?

3 One thing is certain, every one in the Industry is working on 4 Image Sensors : Triple Disruption History186519451985200520152020 First color pictures from emulsion plates in1860 sTube technologyNever took over FilmTechnology x Market PenetrationCCD technologyTook over Film in the 2000 sCMOS technologyTook over CCD in 2010 Acceleration : The speed in technology changes doubles every technology shiftEra of DigitalPhotographyEra of Film PhotographyEra of MobilePhotography5 years10 years20 years40 years80 yearsJanuary2015 5 cmos Image sensor ApplicationsMobile is currently driving the market of CIS Smartphone secondary camera adoption made Mobile sub-segment very significant.

4 It should take an even greater importance in the future as their ASP increase. Tabletsappear to be part of computing, even tough the technology came from Mobile.$ $ $ EndMobileYoleD veloppement January2015 January2015 6 cmos Image sensor EcosystemThe Industry is currently consolidatingFoundryFablessFab-liteIDMFo r Sale?JVFor Sale?IPO?IPO?2014 activityJanuary2015 7 CIS Revenue Forecast 2014-2020by Market (in $M) Revenues are dominated by Mobile, Consumer and Computing which represent 91%.of all CIS revenues in 2014. Mobile alone represent 60%.

5 From 2014 to 2020, global revenue growth will remain at ~ veloppement January 2015 CAGR2014-2020 TOTALyoyGrowth4 286 5 150 5 794 6 910 8 016 8 871 10 015 10 987 12 154 13 448 14 779 16 240 20%13%19%16%11%13%10%11%11%10%10%14%17%1 0%37%0%2%13% 82014 CIS Revenue Market BreakdownMarket by PlayerMarket breakdown analysis in specific application segmentsJanuary2015 9 Mobile Market TrendSmartphone Thickness vs. Camera Module SpecificationGalaxy S28Mp veloppement January2015 CybershotS00616Mp System PlusJanuary2015 10 Mobile Market TrendMain rear Camera & Sub Front Camera RoadmapLogImage size m2020 OISSubCameraResolution5 MpPixel size mSubCameraResolution8 MpPixel size mMain CamerasResolution8 MpPixel size mOISOISMain CamerasResolution8Mp-16 MpPixel size mMain CameraResolution16Mp+Pixel size mDual CamerasResolution2x 8 MpPixel size m+Size constraints &Drive for better images & Features.

6 More pixels Smaller modules Image Stabilization (OIS)January2015 11 Automotive Market TrendFrom feature to key enabling technology 360 surround view Dash camera recorder Rear view camera Night vision Cross traffic detection Fatigue Warning Headlight control Traffic sign recognition Line departure warning Blind spot detection Collision avoidance Pedestrian detection Adaptive speed control Highway line keeping2010201520203 to 5 years adoption rateFeatureAssistSemi-auto7 to 10 years adoption rate10+ years adoption rate2025 ADAS1 to 4 Camerasfor Display1 to 4 Cameras + Advanced Image

7 AnalysisJanuary2015 12 cmos Image sensor TechnologyPenetration of BSI in respect to FSI BackSideIlluminated(BSI)sensorswereiniti allyintroducedforsmartphones,whichaskedf orhigherresolutionwithsamecameramodulefo otprintthanthepre-existingmobilephones(n owcalled featurephones )thathadconventionalFrontSideIlluminated (FSI) Sensors . BSI technology is now following the same path as basic FSI CIS. As performance improvements get valorised in higher end markets, we can easily forecast a brilliant future of BSI in most market 13 Backside illumination will enable ~ 100% fill-factor!

8 Front-Side illuminated (FSI)Main Technology trend in CISFromFSI to BSI to 3D stackedBSI Pixel Level3D StackedBSIS iliconBulkSilicon BulkBacksideilluminated (BSI)Bonding InterfaceSilicon BulkUpper WaferLower Wafer20102012<2010 January2015 14 Backside illumination will enable ~ 100% fill-factor!Main Technology trends in CISThe 3D StackedBSI coulduse Hybridbondingin a short future3D StackedBSIS ilicon BulkTSVTSV Backside illumination will enable ~ 100% fill-factor!3D HybridBSIS iliconBulkInterco upper to lower waferInterco upper to lower waferConnection within pixels become possibleJanuary2015 15 About the Autorsof This Report (nowcalledIrlynx) 16 Yole D veloppementFrom Technology to MarketJanuary2015 17 Fields of expertiseYole D veloppement s 30 analysts operate in the following areas.

9 MEMS & SensorsLEDC ompound PackagingPVPower ElectronicsJanuary2015 18 ConsultingandAnalysis Market data & research, marketing analysis Technologyanalysis Strategyconsulting Reverseengineering&costing Reports Market & Technology reports Patent Investigation and patent infrigmentrisk analysis Teardowns & Reverse Costing Analysis YoleFinanceservices M&A(buyingandselling) Due diligence Fundraising Maturation of companies IP portfolio management & Media @Micronews e-newsletter Technology magazines Communication & webcast services business modelsJanuary2015 19A group of companiesMarket.

10 Technology and strategy costs analysisTeardown and reverse of companiesM&A operationsDue analysisPatent 20 Our global activityYole JapanYole Korea30% of our business is in North America30% of our business is in Asia40% of our business is in EU countriesJanuary2015 21 Serving the entire value chainYole D veloppement analysts provide market analysis, technology evaluation, and business plan along the entire value end-usersDevicemakersSuppliers: material, equipment, OSAT, investors, R&D centersJanuary2015 22 Contact InformationConsulting and SpecificAnalysis North America: Steve LaferriereEmail: Japan: Yutaka Katano, General Manager, Yole Japan & President, Yole : RoW: Jean-Christophe Eloy, President & CEO, Yole D veloppementEmail: business North America: Steve LaferriereEmail: Europe: David Jourdan, Headquarter Sales Coordination & Customer Service Email: Japan & Asia: Takashi Onozawa, Sales Asia & General Manager, Yole : Korea.