Samsung Display is reportedly seeking approval from the US Department of Commerce to continue selling OLED panels to Huawei. Much like the company's semiconductor arm, Samsung Display will be forced by new regulations set in place by the US government to cease supplying Huawei with parts that have been developed using software and technologies originating from the USA. This virtually includes any serious component needed for smartphone manufacturing. In the case of Samsung Display, its OLED display driver integrated circuits are made using US technologies.
Samsung and other companies who may want to continue doing business with Huawei after September 15 have to obtain a licence from the US Department of Commerce. Samsung Display , not unlike the company's semiconductor arm, has reportedly made such a request on Wednesday, September 9.
Samsung Display doesn't want to lose its third-biggest client
Huawei is Samsung Display's third-biggest client after Apple and Samsung's own consumer electronics arm, so there's a good reason for the company to try maintaining a business relationship with the Chinese tech giant. In the past, Samsung Display has supplied Huawei with OLED panels for flagship smartphones such as the P40 series, and the company is also supplying Huawei with large OLED panels for some of its TV models.
Samsung Display's neighboring rival, LG Display, is in a similar situation but it has yet to apply for a license, according to ZDNet citing anonymous sources. LG Display supplies Huawei with much smaller quantities of OLED panels compared to Samsung Display. The company recently stated that if it will stop supplying Huawei with its display solutions, this will have minimal impact on its business.
Of course, seeking approval and gaining approval are two different things so only time will tell if or when Samsung Display will receive green light from the US government to continue trading with Huawei. We'll keep you posted as the story develops.
