Altek, Asia Optical and Foxlink Image Technology, three Taiwan-based OEM makers of digital cameras that supply Hewlett-Packard (HP) and Eastman Kodak, are faced with uncertainty as to whether HP and Kodak will continue OEM partnerships in the second half of 2008, according to industry sources in Taiwan.

The three makers are subject to the risk of losing orders because of Kodak's transfer of its Japanese R&D research center and production base in China to EMS (electronics manufacturing service) provider Flextronics International as well HP's recent decision to stop the design, production and delivery of its own-brand digital cameras, the sources pointed out.

Since it takes from six to nine months for the design to the product certification of a digital camera, the three companies are carefully eyeing any changes in the orders from Kodak and HP for products to be delivered in the second half of 2008, the sources indicated.

To minimize risks, Altek has been courting Japanese clients and has landed orders from Pentax, while Asia Optical has successfully developed 3-megapixel CCMs (compact camera modules), the sources noted.