Apple to switch to Korean camera components instead of Chinese ones

Apple has decided to expand its cooperation with South Korean manufacturers that produce components for smartphones cameras. The reorganization of the supply chain was a forced measure due to the trade war between the United States and China.

etnews.com

According to the Korea IT News portal, Apple has to switch to cooperation with Korean manufacturers after breaking off relations with the Chinese company Ofilm, which produces camera components. Last year, the US Department of Commerce put the manufacturer on a blacklist, after which Apple was forced to seek new partners.

In a statement on March 16, OFilm said a “designated foreign company” has decided to end its partnership with the Chinese manufacturer and its subsidiaries. Although Apple was not named directly, it is known that OFilm received a significant share of its income from the joint venture and after the end of the interaction was forced to sell the production of cameras to the Chinese Wingtech.

Before the sanctions, Apple received camera components from OFilm, Sharp and LG Innotek, and now it has to look for new partners in South Korea. In addition to the largest counterparty in the optical components market – LG Innotek, Apple is rumored to be in talks with some smaller manufacturers that produce ToF sensors, as well as drives for focusing optics and other modules.

Usually the company is very careful in the selection of new partners. It usually takes up to two years to contact a contractor, get prototypes, assess their quality, inspect production and analyze the financial situation of a potential partner, as well as his plans for capacity development.

It is expected that Korean manufacturers, which Apple began to consider working with since last year, may soon get a chance for development. According to a South Korean industry source, following LG’s decision to stop manufacturing smartphones, many local companies have found themselves in a quandary and the Korean industry is counting on Apple as a new source of investment.

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