Samsung to stop supplying smartphone chipsets to Huawei due to US sanctions

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Huawei’s smartphone business is about to get another blow after September 15, as its main chipset suppliers – Samsung and SK Hynix, will no longer do business with the Chinese handset maker. Last month, the US government issued new sanctions for Huawei that would prevent non-US companies from selling chipsets that include US technology to the Chinese company.Samsung and SK Hynix are among the most important chipset suppliers for Huawei, but that will stop come September 15. South Korean outlet Chosun Ilbo reports that Samsung and SK Hynix will no longer be able to sell their smartphone chipset to Huawei unless they receive special approval from the US government.Meanwhile, Huawei bought huge amounts of smartphone chipsets and memory throughout the year and is now reportedly sitting on stocks that should last it for about two years. Huawei is one of the most important customers for Samsung and SK Hynix, but the losses will certainly not compare with Huawei’s.

The Chinese company has been cornered and is now about to lose the last remaining companies that were allowed to sell to Huawei smartphone chipsets and memories. Although the Chinese government has tried to limit the damage by funding a domestic semiconductor company to supply Huawei with the necessary chipsets, the Trump administration promised to issue new sanctions that will include the new company called SMIC.

On the other hand, Qualcomm has been lobbying the Trump administration to lift restrictions imposed on Huawei so it could supply the Chinese company with the necessary smartphone chipsets, but to no success yet.

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