I saw a news release about this chip and started another thread on it.
What I thought was particularly interesting about it, aside from its low price point and CMOS architecture, is that the manufacturer claims that it doesn't use, or need, microlenses. (They claim they have a proprietary high-fill-factor process that makes this unnecessary.)
Since Leica, and others, have said that microlens design is one of the biggest challenges in making a good digital RF camera for existing lenses, an off-the-shelf sensor that doesn't need them would presumably make more digital RFs a lot more feasible.
Cypress is the company that bought FillFactory, the Belgian company that made the 14-megapixel sensors for Kodak's 14n SLRs. I seem to recall these sensors getting pretty good reviews, although some of the rest of the camera did not.
Here is a fun tutorial page from Olympus showing how a microlens makes up for the limited sensitivity area of a conventional CCD sensor.
It requires Java; you can adjust sliders to vary the wavelength and intensity of the light in the animated model. Turn the intensity 'way down and you can see how without a microlens, most of the photons miss the sensitive area entirely, drastically reducing the sensor's performance.
A sensor with a less "shielded" sensitivity area presumably would not need microlenses and would act more like ordinary film in its response to light.