CMOS image sensor (CIS) suppliers are shifting their marketing strategies to focus more on automotive and surveillance applications seeking to ramp up profitability, according to industry sources.

The supply of CIS chips for automotive and surveillance applications has been tight recently due to capacity constraints at wafer foundry houses, allowing relevant suppliers to command higher prices for their products, said the sources.

Taiwan-based CIS chip suppliers, including PixArt Imaging and Silicon Optronics, reportedly have experienced a short supply of related chips, indicated the sources.

Many IC backend service providers, including Sunnic, Tong Hsing Electric Industries and Xintec, all see automotive applications as a new "blue ocean" market for CIS products.

Sunnic has seen the revenue ratio of handset CIS products reduced to 40% of its total sales recently, down from the previous 80%, in the wake of the US trade sanctions against Huawei and increasing orders for notebook, security control and automotive applications, said the sources.

Meanwhile, Tong Hsing has entered Tesla's supply chain through its clients in the US, and some IC distributors have also cut into the supply chains of China-based Great Wall Motor and Changan Auto via their trading partners, the sources said.

PixArt, Silicon Optronics, and other relevant suppliers declined to comment on specific products and clients.