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This paper presents a 64×64 CMOS image sensor with on-chip moving object detection and localization capability. Pixel-level storage elements (capacitors) enable the sensor to simultaneously output two consecutive frames, with temporal differences digitalized into binary events by a global differentiator. An on-chip, hardware-implemented, clustering-based algorithm processes events on the fly and localizes up to three moving objects in the scene. The sensor can automatically switch to region of interest mode and capture a picture of the object. The proposed image sensor was implemented using UMC 0.18 μm CMOS technology with a die area of 1.5 mm × 1.5 mm, and power consumption was only 0.4 mW at 100 FPS.