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At the first International Optical Lens and Camera Module Exhibition held in Shanghai in November, a reporter from Mobile Phone Newspaper interviewed Lai Zhirong, the general manager of Jijia Technology Co., LTD. (hereinafter referred to as Jijia Technology), a VCM manufacturer from Taiwan. Optical image stabilization (referred to as optical image stabilization in the Chinese mainland and abbreviated as OIS in English) has not yet reached the stage of large-scale application. While various camera manufacturers on the Chinese mainland are threatening to launch OIS cameras one after another, Lai Zhirong's remarks carry a somewhat cautioning meaning.
Explorers are indeed respectable, but the words of observers should also be listened to carefully. Although Jijia Technology is a relatively new VCM manufacturer entering the mainland market, according to Lai Zhirong, Jijia Technology is a veteran in the VCM industry. Since its establishment in 2004, it has been specializing in the research and development of autofocus VCM at the very beginning of the development of mobile phone cameras. In addition, Jijia Technology has its own unique features. From the very beginning, it has targeted closed-loop VCM and independently developed touch ics, which give it advantages in both technology and cost.
The industry generally adopts a ball bearing design, while Jijia's design is a guide rod type. The guide rod type has a simple structure and thus can be highly automated. When talking about the product's advantages and features, Lai Zhirong said.
In terms of production capacity, Jijia Technology is expected to reach a monthly production capacity of 500K by February next year and 1K by the third quarter of next year. In addition, Jijia is ready for the production and mass production of closed-loop VCM. Moreover, when its own production capacity is sufficient, it can also authorize other manufacturers to produce it. Even in appropriate circumstances, the entire production line can be transferred to partners.
When it comes to licensing cooperation, Lai Zhirong believes that enterprises must attach great importance to patent issues in their current development. He said that the rise of the VCM industry in the Chinese mainland was due to taking advantage of the patent issue at that time. For instance, the patent for shrapflake VCM was not properly protected, which led to widespread plagiarism within the industry. However, as industry norms become increasingly complete, the subsequent development of closed-loop VCM and OIS all involve technical patents. If they still ignore patent issues as before, then when mobile phone manufacturers go global, they will encounter patent issues. Many enterprises such as Xiaomi and Huawei may suffer a lot when entering the European and American markets. In this regard, Jijia has a significant advantage because it has developed its own technology and holds a complete set of patents.
Nowadays, OIS is a hot topic in the camera industry. Some people believe that OIS is bound to become a standard feature of mid-to-high-end mobile phones. But Lai Zhirong believes that in 2015, OIS may not have a major explosion as described by the industry, because the explosion is related to whether the product can be mass-produced and issues such as the supply chain.
According to him, Jijia started developing OIS as early as five or six years ago and also applied for some patents. During the production and research and development process, Lai Zhirong's team found that the production of anti-shake VCM was difficult and not easy to mass-produce. Many factories from Japan, South Korea and Taiwan all want to do it, but they all encounter bottlenecks such as high costs and difficulties in mass production. Issues like cost-effectiveness and yield still need to be addressed. Lai Zhirong commented in this way.
Apart from cost-effectiveness and product quality, the actual performance of OIS is also worth considering. SONY did not develop OIS. They have their own developed imaging ics, and the overall effect is quite good. In terms of cost and applicability, I think that method of SONY is a good one. In addition, the combination of OIS of memory alloy SMA and VCMAF is also a promising solution. Lai Zhirong believes that the processing of precision instruments is a very complex process. Besides, OIS has not been discussed in the past two years. Seven or eight years ago, companies like Japan's Shoko and South Korea's Hysonic ventured into this field, but many manufacturers failed. Therefore, he views this issue with a more pragmatic perspective. He believes that compared with the precision mechanical and electronic industry, the electronics industry is more feasible in concentrating efforts to break through technical bottlenecks and then mass-produce on a large scale. However, the precision mechanical and electronic industry is more difficult because after mass production at the million-level, there are likely to be significant production errors.
In addition, there is the issue of cost between the product and the benefit. Consumers want to obtain a high experience effect at a low price. Low and good are the basic cost issues. Lai Zhirong gave an example that HTC introduced OIS in its products two years ago, but now HTC seems not to talk about it anymore. I think it depends on how the big companies in Japan and South Korea play, because they have the resources. It is more anticipated that a large group like Samsung will give the order to develop OIS. And those engaged in cameras all like to talk about this very much, because R&D personnel all like challenging things.
When asked about his views on the current mainland mobile phone industry, Lai Zhirong commented that the competition in this industry will be very fierce and intense, with many forces getting involved. Moreover, many manufacturers are making high-specification and low-priced products. Therefore, he believes that the competition in this industry is not just about camera modules, but also about each mobile phone manufacturer controlling the supply chain. One key aspect of high-specification and low-price in the supply chain is to master the supply of closed-loop VCM. O-film's acquisition of MEMS is also based on this consideration. He believes that mainland camera manufacturers can launch high-specification and low-price products, which is an advantage of mainland manufacturers. However, under the high-specification and low-price competitive situation, whether the closed-loop VCM supply chain can be sustained and controlled in the long term will also be a question. If everyone only focuses on developing OIS for the sake of competing on face and slogans, I think this is rather unrealistic and less conducive to winning and long-term development.