Sony’s Strongest Business Faces Fresh Competition From SK Hynix

South Korean chipmaker SK Hynix (OTC: HXSCL) recently announced that it will produce more CMOS image sensors to address the growing demand from smartphone makers. The decision was surprising for two reasons: SK Hynix mainly produces memory chips, and Sony (NYSE: SNE) and Samsung (OTC: SSNLF) already dominate the CMOS image sensor market.

Sony's Exmor sensors controlled 48% of the market last year, according to Techno System Research, and its top customers include Apple (NASDAQ: AAPL) and Huawei. Samsung, which launched its own ISOCELL sensors last year, holds a 21% share.

Image source: Getty Images.

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Source Fool.com