As the United States government continues to impose sanctions against Chinese companies, Apple is now looking to diversify its production and supply chain to reduce its dependence on the Chinese market.
In line with that, a new report coming from Korea claims that Samsung Electro-Mechanics has joined the list of suppliers of Apple for the camera parts. This seems like a major win for the Korean company, which counts Samsung Electronics as its core customer.
The report says that the reason behind Apple selecting Samsung Electro-Mechanics as a new camera lens supplier is to stabilize its supply chain and to reduce the cost. So far, Apple has sourced lenses from Lagan Precision and Genius Electronics.
It’s noteworthy that Samsung Electro-Mechanics has been supplying Laminated Ceramic Capacitors (MLCC) and Flexible Printed Circuit Boards (RF-PCB) to Apple, so the company isn’t totally new to Apple’s supply chain. But for the first time, it will be supplying lens to the company.
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The report further goes on to add that LG Innotek, which has been supplying camera modules to Apple, is also looking to expand its position within Apple Camera SCM as the company is looking for diversification of suppliers.
The development comes after the U.S. Department of Commerce puts sanctions on 11 Chinese companies for suppressing ethnic minorities in China, including O-Film Tech which provides iPhone camera modules. Apple is now expected to shift orders from Ofilm Tech to LG Innotek, which is making camera modules in factories in Gumi and Vietnam.
Apple has recently started producing iPhone 11 in India through Foxconn’s facility near Chennai. It is also being reported that the next-generation AirPods, as well as 2021 AirPods Pro, will be made in Vietnam. The company has already shifted the production of AirPods Pro to Vietnam.
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