Fujifilm began to sell its self-made CCD image sensors a few months ago, which Taiwan digital camera makers interpret as Fujifilm being open to the idea of increasing its OEM production of low-priced digital still cameras (DSCs) to better compete with Kodak.

In the US market, Fujifilm?s major competitor is Kodak, Fujifilm has been under competitive pressure since Kodak last year succeeded in expanding its US market share by lowering prices for its DSCs in the mid-range and high-end markets.

Fujifilm seldom outsourced digital camera production until it recently placed OEM orders for 1.4 million DSCs with Taiwan company Asia Optical, the Taiwan makers indicated.

In addition, Fujifilm CCD sensors are difficult to use in DSCs of other brands. By supplying CCD sensors to outside vendors, Fujifilm could be preparing to increase its OEM production and lower its overall production costs, the Taiwan DSC makers pointed out.