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Huawei At Risk After Samsung Cease Chip Supply

Huawei’s phone business has hit another roadblock, following reports Samsung will cease selling semiconductor chips to the Chinese maker once tighter US sanctions come into effect next week.

According to Korean news outlet Chosun IIbo, both Samsung and SK Hynix will cease supplying select phone components (e.g. 5G parts) from September 15 to Huawei, with regulations preventing the sale of parts using US technology to the Chinese corporation.

It comes after the Department of Commerce barred the sale of parts using American technology to 30 Huawei affiliates in 21 countries over national security concerns and links to the Chinese government.

Companies can still do some business with Huawei following new rules, provided special approval granted from the US Department of Commerce.

As previously reported, American chipmaker Qualcomm has sought to lobby the Trump government for the ability to sell to Huawei.

The new rules are also dubbed to hamper Huawei’s ability to manufacture its home-brand Kirin chipsets.

Huawei is said to be the world’s third largest buyer of semiconductors (after Apple and Samsung), with commentators concerned about the future of its phone business after it runs out of inventory – exacerbated by the loss of its Android license.

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