(TOMORROW!) Be the first with a 200MP camera! Visit Samsung to reserve and gain $100 in Samsung credit!

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 announces Q4 2022 earnings, profit hits eight-year low

Earlier this month, Samsung published its earnings guidance for Q4 2022. In line with those numbers, the company has published its final Q4 2022 and FY 2022 results. The company’s profit has been the lowest in eight years, and that is due to the continued global economic downturn, rising costs, and lower demand for smartphones […]

  • By Asif Iqbal Shaik
  • 16 hours ago

Samsung, Intel, Ericsson, and IBM are co-developing next-gen chips

Samsung, Ericsson, IBM, and Intel are teaming up to research and develop next-generation chips. The US National Science Foundation (NSF) is funding this partnership and has awarded the tech giants $50 million for the project as part of its “Future of Semiconductors” initiative. The NSF and the four tech giants will work on a “co-design” […]

  • By Mihai Matei
  • 1 day ago

Samsung may face issues getting EUV semiconductor equipment to China

Japan and the Netherlands have joined the United States in banning semiconductor equipment exports to China. This move may put a damper on Samsung Electronics’ semiconductor manufacturing capacity in China, where the company is manufacturing DRAM and NAND flash chips. The three countries held negotiations for several days under the National Security Advisor of the […]

  • By Mihai Matei
  • 1 day ago

Samsung completes Life Cycle Assessment (LCA) on product carbon footprint for semiconductors

The world leader in semiconductor technology, Samsung Electronics, has recently announced the completion of the Life Cycle Assessment (LCA) on the product carbon footprint for its semiconductors. It has also received certification from DNV, which is one of the world’s leading independent certification bodies. LCA measures the environmental impacts of commercial products, processes, or services […]

  • By Sagar Naresh
  • 2 days ago

When will Chinese Android manufacturers get it that specs don’t matter all that much?

It’s no secret that it’s not just Apple that Samsung has to compete against in the smartphone market. Samsung also has to go up against pretty much every Chinese manufacturer, especially in markets like India where Chinese manufacturers have taken a foothold thanks to how aggressively they price their phones while dangling dazzling impressive spec […]

  • By Danny Dorresteijn
  • 3 weeks ago

Samsung fails to secure advanced chip manufacturing orders from AMD

According to a new report from DigiTimes, Samsung Foundry was able to secure orders from AMD to manufacture only those APUs and GPUs based on the 14nm fabrication process. The South Korean conglomerate failed to grab orders from AMD to manufacture the company’s more advanced chips based on 5nm, 6nm, and 7nm fabrication processes, such […]

  • By Asif Iqbal Shaik
  • 3 weeks ago