This market research report was originally published at the Yole Group’s website. It is reprinted here with the permission of the Yole Group.
Onsemi, a leading CMOS image sensor supplier, has acquired SWIR Vision Systems, a pioneer in quantum-dots-based short-wave infrared (SWIR) imaging technology. Yole Group tracks and reports on these technologies through reports like Status of the CMOS Image Sensor 2024 and SWIR Imaging 2023. Yole Group’s Imaging Team discusses how this acquisition mirrors current industry trends.
SWIR Vision Systems pioneered the quantum dots platform
SWIR imaging modality has long been used in defense and industrial applications, generating $97 million in revenue for SWIR imager suppliers in 2022. However, its adoption has been limited by the high cost of InGaAs technology, the historical platform necessary to capture these wavelengths, compared to standard CMOS technology. In recent years, SWIR has attracted interest with the emergence of lower-cost technologies like quantum dots and germanium-on-silicon, both compatible with CMOS fabs and anticipated to serve the mass markets in the long term.
SWIR Vision Systems, a U.S.-based start-up, pioneered the quantum dots platform, introducing the first-ever commercial product in 2018. This company is fully vertically integrated, making its own image sensors for integration into its own cameras.
“The company initially focused on the industrial segment and has made significant efforts over the past years to improve its technology’s performance and educate the market about the SWIR modality.”
Axel Clouet, Ph.D.
Technology and Market Analyst for Imaging, Yole Group
An acquisition aligned with Onsemi’s positioning
The CMOS image sensor industry was worth $21.8 billion in 2023 and is expected to reach $28.6 billion by 2029. With a market share of 6%, onsemi is the fourth largest CMOS image sensor supplier globally. The company is the leader in the fast-growing $2.3 billion automotive segment and has a significant presence in the industrial, defense and aerospace, and medical segments.
In the short term, SWIR products will help onsemi catch up with Sony’s InGaAs products in the industrial segment by leveraging the cost advantage of quantum dots. Its existing sales channels will facilitate the adoption of quantum dots technology by camera manufacturers.
“In the long term, once quantum dots are mature, onsemi can leverage its large production capacity to ramp up production for the automotive segment. SWIR technology will enhance visibility in low-light and adverse weather conditions, a necessary camera feature driven by regulations. SWIR may help onsemi stand out from competitors like Omnivision, Sony, and Samsung, who are becoming more aggressive but are focusing on the CMOS platform.”
Axel Clouet, Ph.D.
Technology and Market Analyst for Imaging, Yole Group
Additionally, onsemi is set to establish long-term relationships with defense customers, a segment poised for growth due to global geopolitical instability. By acquiring SWIR Vision Systems and the East Fishkill CMOS fab completed in 2022, onsemi secured its supply chain, owns the SWIR strategic technology, and has a large-volume U.S.-based factory. It is, therefore, aligned with the dual-use approach promoted by the U.S. government for its local industry.
This acquisition will contribute to faster development and adoption of the quantum dots platform without disrupting the SWIR landscape. For onsemi, it is an attractive feature to quickly attract new customers in the industrial and defense sectors and a differentiating technology for the automotive segment in the long term.
Stay tuned!
