Korean giants Samsung are in a bit of dilemma in recent times, the company is soon going to be forced to stop supplying chipset and display panels to Huawei because of the recent restrictions from the United States of America government which have prohibited any non-American companies to deal with any Chinese company using technology which is originally being manufactured by an American company. Samsung among many other companies is now looking for an export license which will allow the South Korean giants to continue supplying their products to Huawei.
The main reason for Samsung’s latest decision is because they see the loss they would incur if they no longer have a significant customer such as Huawei. Without Huawei on board, Samsung will incur quite a significant loss as a large portion of their revenue comes from China. Conversely, Samsung Display’s rival LG Display has said that the new restrictions is not going to affect Samsung as much due to their limited number of shipments to Huawei. Samsung are yet to comment on the development of the current situation.
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The US president’s administration has in recent times tightened their stance against the Chinese company Huawei. The said restrictions will disallow all companies from supplying products and services to the Chinese company,bif they are based on American technologies. The new decision taken by the government has made the situation worse for Huawei, as the task of acquiring smartphone components such as chips and displays becomes increasingly harder than ever before.
In addition to this latest development, Huawei have already lost its support for Google Mobile Services in its smartphone devices and is soon going to lose its hardware supply if the situation remains the same. TSMC and Samsung have both been forced to halt transactions with the Chinese phone maker with many other companies soon to follow, so the task to acquire a substitute becomes harder for the Chinese giants.