Premier deal focuses eyes on Hon Hai

In the long term, Hon Hai would be a threat to handset camera lens makers, including top player Largan, when Premier improves yield and boosts production volume, Chen said.

Lite-On Technology Corp (光寶科技), which also makes camera lends used in phones, would also feel the pinch from the Hon Hai-Premier deal, he said.

Chen lowered his earnings forecast for Lite-On by 11 percent for this year and 13 percent for next year because of the possible impact from Hon Hai's takeover of Premier, along with other factors.