Supplier looks to replace declining orders from Huawei with new business from Apple
Sunny Optical is not that small store on the corner where you purchase your eyeglasses. Nor is it a company that replaces cracked windshields on cars. Sunny Optical Technology Company Limited, known as Sunny Optical, designs optical products including camera and lens modules. It also is a supplier to Chinese phone manufacturers like Huawei, Oppo and Vivo.
Digitimes reports that Sunny Opticals expects orders from Huawei to decrease sharply because of the U.S. sanctions that have affected the company. Last year, Huawei was placed on the U.S. Commerce Department's entity list which prevents it from accessing its U.S. supply chain; it also prevents the company from installing Google Mobile Services on its handsets. Even more damaging was the export rule change that the U.S. Commerce Department put into effect this year that prevents Huawei from receiving chips manufactured by foundries that use American-sourced technology.
Sunnier days ahead for wannabe iPhone supplier Sunny Opticals
This has been a big blow to the Chinese manufacturer because it has created a shortage of cutting-edge 5nm Kirin 9000 chips. Huawei not only uses them for its latest flagship Mate 40 series, it also was going to employ them on the sequel to its Mate X foldable phone. And these chips also power 5G base stations used with the outfit's 5G networking gear. Recent reports indicated that out of 15 million Kirin 9000 chipsets ordered by Huawei from TSMC, the company received only 8.8 million of them as the U.S. rule change took effect on September 15th. There is the possibility that with the Biden administration taking over the White House on January 20th, U.S. actions against Huawei might be reversed.
For now though, Sunny Opticals expects to lose plenty of business because of the U.S. sanctions against Huawei. Industry sources state that in trying to keep a "sunny" disposition, Sunny is looking to get into the running to win some business from Apple. The company hopes to supply Apple with lens modules for use with the 2021 iPhone 13 series. Digitimes says that Apple might be looking to build some cheaper handsets next year to compete with mid-range models produced bu Samsung, Xiaomi, Oppo, and Vivo. Those first two names do very well with their mid-rangers such as the Galaxy A line made by Sammy and Xiaomi's value for money game plan. Apple is expected to compete and might widen its supply chain in order to lower the cost of obtaining certain supplies. Digitimes says that it is more likely that Sunny grabs up some of Apple's iPhone business in 2022 instead of next year.
While Sunny is considered one of the top players in the optical device and lens supply chain, it is not considered to be as technologically advanced as other suppliers in the category such as Largan Precision which happens to be a member of Apple's supply chain.
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