Notebook players are expected to fully adopt high definition (HD) quality webcams into their notebook models in the second half of 2012 as Microsoft launches its Windows 8 and should start a new wave of competition among upstream optical camera module players, according to sources from camera module players.

Due to Microsoft's plans to have Windows 8 mainly support HD quality images, if the plan does not change, the sources expect many of the notebook brand vendors will start launching notebook models that adopt HD quality webcams in the second and third quarter of 2012.

As the standard specification of rear-side cameras in smartphones and tablet PCs is quickly rising from 5-megapixel to 8-megapixel, demand for front-side cameras to also have high quality has also risen.

Upstream players including Largan Precision, Newmax and Ability Opto-Electronics Technology are all aggressively trying to upgrade their VGA quality lenses to HD quality through their existing 2P process, while transitioning from 2P to 3P or 4P as well as making even smaller products are all posing difficult challenges for upstream players.

Although Microsoft has not yet fully released its plans for image formats in Windows 8, the company's recent acquisition of Skype is expected to become an important part of the new ecosystem as the company might expand the connection from smartphone to living room televisions through the new operating system, the sources noted.