Sunday, July 26, 2020

US Blacklists O-Film

Nikkei, Reuters: Camera module maker O-Film is one of 11 Chinese companies added to the U.S. Commerce Department's Entity List over alleged human rights abuses involving China's Uighur Muslim minority. The Shenzhen-listed O-Film supplies its camera module to many companies, including Apple, Microsoft, HP, Dell, General Motors, Amazon, Samsung, Huawei, Oppo, ZTE, and Sony.

"Since the establishment of its business entity of CCM business unit in 2012, OFILM has been focusing on the development and manufacturing of image modules. In just four years, it has become the largest manufacturer of image modules in the world, and the gap with other module manufacturers has expanded year by year. According to the market research firm TSR, the market share of OFILM’s CCM shipments exceed 20% in 2018, ranking first of the industry."

O-Film publishes an official statement on the blacklisting:

"As a global leader in technological innovation and advanced high-technology manufacturing, OFILM has always abided by the laws and regulations of the nations where we operate. We treat our employees equally and protect their rights and interests. Every year, multiple times, including in 2020, OFILM has passed independent third-party Corporate Social Responsibility workplace audits organized by our customers, including surprise inspections. We have received the RBA certification of the Responsible Business Alliance.

Ofilm employees are never coerced to work for us.

With great respect, we call on the United States to re-examine its recent decision. We look forward to communicating fully with the relevant US government departments. We also look forward to a full airing of the facts and to a just outcome.
"


7 comments:

  1. Then what is their opinion on human rights for people in Syria, Afghanistan, and Irad......? Do they even know that China bring more than 500K people out of poverty in XinJiang? Do they know that there are terrorist in XinJiang that are supported by some you-know-who countries?

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  2. What is the reason that US government puts this consummer electronics company on their blacklist? This is quite surprising...

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    1. They don't care! Are you a Chinese company? A:Yes. Do you dominate the market? A:Yes. Does US have shares of your company? A:No. --> Sorry, You are already or will be on the blacklist.

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  3. The comments are taking political direction. All further political comments will be blocked.

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  4. What does this status mean for companies that incorporate O-Film products? Apple, Lenovo, Microsoft, etc. Since O-Film is an integrator, are they really buying products from the US companies. Also it sounds like O-Film cannot directly export to US, but what if US companies integrate O-Film products into larger devices in China, and then that whole product is exported to the US, is the product under the ban too?

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  5. "The step [...] leaves the firm unable to buy components from U.S. companies without U.S. government approval"?
    I do not see any critical technology coming from the US at least for the camera module business - the question can remain for the future, it is possible that significant new tech is being developped by US firms and then would be blocked. I believe something new is coming for the camera module industry otherwise this move from the US DoC would be useless.

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