Visit our Customer Experience Center for all of our latest demos Register Now
OMNIVISION and Xintec amend equipment purchase agreement
Jan 29, 2007

~ Companies Agree That XinTec Will Fund Capital Expansion ~

Sunnyvale, California, January 29, 2007 – OmniVision Technologies, Inc. (Nasdaq: OVTI), 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-scalepackaging,” 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 is a global fabless semiconductor organization that develops advanced digital imaging, analog, and touch & display solutions for multiple applications and industries, including mobile phones; security and surveillance; automotive; computing; medical; and emerging applications. Its award-winning innovative technologies enable a smoother human/machine interface in many of today’s commercial devices. Find out more at www.ovt.com.

OMNIVISION™ and the OMNIVISION logo are trademarks or registered trademarks of OMNIVISION. All other trademarks are the property of their respective owners.