SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung to cease supplying Huawei with chips beginning next week

General
By 

Last updated: September 8th, 2020 at 20:20 UTC+02:00

Samsung’s decision to cease supplying Huawei with semiconductor solutions has been set in stone, revealed the Korean media today. Samsung as well as HK Hynix will reportedly stop trading semiconductors with Huawei beginning next Tuesday, September 15, leaving Huawei with little-to-no options for securing DRAM and NAND flash chips.

The reason behind Samsung’s apparent decision to cease trading with Huawei lies with additional sanctions imposed by the US Department of Commerce last month. Although the original sanctions didn’t apply to memory chip manufacturers, the new rules imposed by the US government state that any semiconductor company that uses hardware or software technologies from the United States has to obtain approval from Washington before trading with Huawei.

A win-lose situation for Samsung

Huawei was fearful this would eventually happen, reason why the tech giant decided to stock up on memory chips earlier this year and was looking at Samsung as its potential lifeline for a steady supply. But much to our expectations, Samsung is indeed willing to drop Huawei as a client should the US government extend its sanctions to cover memory chips.

This is a considerable loss for Samsung’s semiconductor arm as Huawei was one of its biggest memory chip clients. However, the South Korean tech giant also lost one of its biggest rivals in the mobile industry, so it is sort of a win-lose situation. In any case, it will be interesting to see how Huawei will try to adjust moving forward given that there’s virtually no semiconductor company in the world that doesn’t use any software or equipment obtained from the United States.

Via BusinessGeneral DRAMHuaweiNANDSamsung Semiconductor
Load 5 comments

You might also like

Samsung to push 3nm chipsets into mass-production next week

Samsung is reportedly days away from announcing that it is ready to mass-manufacture 3nm semiconductors. In tu …

  • By Mihai Matei
  • 1 day ago

Samsung to relocate 300 workers from closed TV LCD division to chip un …

According to insider sources, Samsung is planning to move around 300 workers from its now-closed TV LCD panel …

  • By Sagar Naresh
  • 1 week ago

Samsung’s Lee discusses chip cooperation with Dutch PM Rutte

On his business trip to Europe, Samsung Electronics Vice Chairman, Lee Jae-Yong, met with the Dutch PM Mark R …

  • By Sagar Naresh
  • 1 week ago

Samsung stood fourth in the smartphone chip market in Q1 2022

Once seen as a fierce competitor to Qualcomm, Samsung has fallen much behind in the smartphone chipset race. I …

  • By Asif Iqbal Shaik
  • 2 weeks ago

Galaxy Z Flip 3 to rule the market until Galaxy Z Fold 4 lowers prices

Foldable smartphone shipments were up in Q1 2022, and Samsung led the charge with the Galaxy Z Flip 3 and the …

  • By Mihai Matei
  • 3 weeks ago

Samsung has a $355 billion investment plan for chip supremacy, other e …

Samsung has announced that it will spend around KRW 450 trillion (around $355 billion) on semiconductor and bi …

  • By Asif Iqbal Shaik
  • 1 month ago