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Report: Now Samsung and LG are halting display supply to HUAWEI (Update)

Update: HUAWEI's memory supply could be handed a lifeline by two Korean chip giants.

Published onSeptember 10, 2020

HUAWEI logo P40 Pro
  • Samsung and LG are reportedly suspending the supply of displays to HUAWEI.
  • It’s also believed that the firm’s memory supply is under threat.
  • Memory suppliers Samsung and SK Hynix have now applied to continue trading with HUAWEI.

Update: September 10, 2020 (4:40 AM ET): Semiconductor giants Samsung Electronics and SK Hynix have reportedly filed a request of approval to the US Department of Commerce to continue trading with HUAWEI.

According to the report in Korea’s ETNews, the firms – which supply HUAWEI with RAM, flash storage, and other chips – would be negatively impacted by the loss of HUAWEI’s business.

Original article: September 8, 2020 (5 AM ET): HUAWEI has endured a torrid 18 months, as the US ban means it’s lost Google Mobile Services, chipset supplies from various third parties, and the services of chipmaker TSMC. If it looks like things couldn’t get any worse for the company, well, they can.

South Korean news outlet Chosun Biz reports that LG and Samsung have decided to suspend the supply of “premium” smartphone displays to HUAWEI. The suspension is said to go into effect from September 15.

HUAWEI has generally turned to LG and Samsung, along with China’s own BOE for its display needs. So removing LG and Samsung from the equation means that BOE will likely need to pick up the slack. However, Chosun Biz also adds that HUAWEI is testing displays from local companies like Visionox, Tianma, and CSOT.

Read: HUAWEI Mate 40 Pro — Everything we know so far and what we want to see

An industry official told the publication that HUAWEI might also experience difficulty in obtaining crucial components such as display and touch controller chips.

It looks like displays and related chips aren’t the only components under threat for HUAWEI, as Samsung Electronics and SK Hynix have reportedly moved to suspend dealing with the firm too. This could potentially be just as big of a threat to HUAWEI, as the brands have long been a big supplier of RAM and flash storage to smartphone manufacturers.

All of this paints a picture of an incredibly massive challenge for the firm, as it’ll need to rely on domestic partners or its own homegrown tech to fill the gaps left by US firms (or firms using US-derived technology).

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