In a dramatic turn of events, Chinese smartphone camera manufacturer Ofilm, once blacklisted by the US Department of Commerce in 2020, has managed to rise by securing a major contract with Huawei Technologies. The blacklisting led to Ofilm’s removal from Apple’s supplier list in 2021, causing a significant blow to its financial stability.
Despite the setbacks, Ofilm has found a lifeline in Huawei, becoming a pivotal contractor for the tech giant’s latest Mate 60 smartphone series. Huawei, grappling with US trade sanctions, has relied on Ofilm for camera modules for its flagship Mate 60 series. The soaring demand for the Mate 60 Pro 5G handset prompted Huawei to increase its smartphone shipment target for the second half of the year by 20 percent, thereby benefiting suppliers like Ofilm.
The financial impact on Ofilm had been severe, with the company’s market value plummeting by over two-thirds after losing Apple as its primary client. Reporting a widened loss of $708 million in the previous year, Ofilm faced a challenging financial landscape.
Ofilm’s story underscores the profound impact of geopolitical tensions between the US and China on businesses. Accusations of using forced Uygur Muslim labor at its factory led to Ofilm’s blacklisting and subsequent loss of major contracts, illustrating the intersection of human rights concerns and international business dynamics.
Despite these challenges, reports of Ofilm’s contract with Huawei triggered a remarkable resurgence. Within two weeks of the announcement, Ofilm’s Shenzhen-listed shares surged by nearly 70 percent, signaling renewed investor confidence and faith in the company’s prospects.
Ofilm’s journey also sheds light on its previous association with tech giant Apple. The company had been named an Apple supplier in 2017, experiencing rapid growth in China’s stock market. Apple CEO Tim Cook visited Ofilm’s factory in 2017, praising the company for its innovations. However, following the US government’s blacklisting in 2020, Apple removed Ofilm from its suppliers’ list in 2021, severing ties with the once-promising Chinese camera maker.
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