OmniVision announced it has terminated its Equipment Procurement Agreement with XinTec, Inc.
Read carefully! What don't you understand?
"As a result of the acquisition by TSMC of a controlling interest in XinTec, the Company believes that future expansion of capacity at XinTec to meet the Company's increasing requirement for CSP services will no longer require it to make direct investments in capital equipment."
"XinTec has played a key role in the development of OmniVision's products with chip-scale-packaging," said Shaw Hong, OmniVision's president and chief executive officer. "TSMC's increased involvement with XinTec should further strengthen this important partnership."
OVTI will still receive the CSP services without the capital expenditure! It is a win/win situation!!!