Samsung Will Stop Supplying Huawei With Phone Chips Due to US Sanctions

Huawei is about to have even more problem sourcing components for its phones.

According to South Korean newspaper Chosun llbo (via UPI), Samsung and memory manufacturer SK Hynix plan to suspend selling parts to the Chinese company on September 15th.

Huawei

That’s the day new restrictions the US Commerce Department announced partway through August go into effect.

Those restrictions prohibit non-American companies from selling components to Huawei that they developed using equipment or software made in the US.

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The ban has already affected Huawei’s business. The company’s Richard Yu recently said the Mate 40 would feature Huawei’s final high-end Kirin processor due to the trade sanctions.

Korea’s SK Hynix also plans to stop selling parts to the company

The ban is likely to hurt Samsung and SK Hynix as much as it does Huawei. In SK Hynix’s case, 40 percent of its $13.3 billion revenue in the first half of 2020 came from exports to China.

Huawei has tried to reduce its reliance on foreign chip suppliers by sourcing components from SMIC, China’s leading chip foundry.

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However, the Trump Administration’s ongoing trade war with China may not make that a viable option for much longer.

At the start of September, the Defence Department confirmed it might add the chipmaker to the same Commerce Department entity list that prevents US companies from dealing with Huawei.

If the Trump administration goes through with the move, it will stop SMIC from getting the equipment it needs to manufacture chips for Huawei.

Even if SMIC avoids a potential ban, it’s two process node generations behind Huawei’s former chip supplier, Taiwan’s TSMC. It will take a while before the company can make processors for Huawei’s flagship phones.

A best-case scenario for Huawei is that it can start purchasing parts from Samsung and other component manufacturers at some point in the future.

Nairablinkhttps://nairablink.com
This is to welcome all our readers and fans to Nairablink's Blog where we shall be providing you with the latest online business and entertainment gist/news updates. The CEO of Nairablink is a graduate of Economics at Ekiti State University, a comedian, blogger and entrepreneur. Our aim is to provide you with a paying site review and. mind you, I am not in anyway related to the owners of the earning sites you see on this page. So, Do Not Invest What You Can Not Afford To Lose. After reading the review its your choice to decide either to invest or not. But be wise, online business is 50/50. Thanks for reading... I am Adebajo Williams For Sponsors and Adverts Contact: Tel: +2347037477278 Address: 57, Ijebu-Ode Road, Poka Epe, Lagos Nigeria. Email: [email protected]
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