Camera module maker Powerlogics, a supplier to Samsung, is planning to enter the optical image stabilization (OIS) market, TheElec has learned.
The move is expected to intensify the competition between the camera suppliers of the South Korean tech giant to win more orders for cameras in smartphones.
Samsung is planning to apply OIS to more smartphones next year and Powerlogics is preparing to meet his increase in demand, sources said.
The component maker has already built a production line and is aiming to begin supplying OIS actuators to the tech giant during the first quarter of 2022.
Rivals such as Coasia are also currently preparing a sample production line for OIS; another competitor Namuga is also considering entering the OIS market.
OIS uses a gyro sensor to balance the lens when taking photos so that the photos don’t become blurry.
The feature is widely used in flagship smartphones, while more lower-end phones are offering the feature as well.
Samsung is planning it apply OIS to the Galaxy A2 smartphone and up next year.
Its other camera module suppliers such as Samsung Electro-Mechanics, Mcnex and Patron already offer OIS.
Meanwhile, Samsung Electro-Mechanics, which offers its own ball guide OIS actuator, is expected to supply more camera modules for the Galaxy A series.
The component arm of Samsung has previously mostly supplied for flagship Galaxy phones but began providing camera modules for Galaxy A series last year.
Sources said the tech giant is expected to procure up to 20% more camera modules for its smartphones next year.
Samsung is aiming to ship 334 million units of smartphones next year, up from up to 270 million units is expected to move in 2021.
The expanded shipment goal and wider application of camera modules is expected to boost the revenue of camera module suppliers.
However, the operating profit margins are expected to the same level next year as in 2021 due to intensifying competition between them.
Samsung is doing its own calibration work __ the assembly of camera modules __ while encouraging suppliers to compete to cut unit prices.
The top five camera module suppliers in South Korea saw their combined operating income dip 78% up to the third quarter this year compared to the same time period in 2020.
