Huawei will lose chips from Samsung and SK Hynix to the US veto.

Huawei Chips SoC RAM Samsung

At the beginning of this week we learned for the first time of the intentions of Richard Yu, Huawei’s CEO, to create a first version of its HarmonyOS operating system for mobile phones. However, as we already noted, Google’s software vetoes were not the only problems that the Trump administration was subjecting the company to. During this past May, the US Department of Commerce stated that it will be illegal for semiconductor manufacturers using US technologies or products sell their products to Huawei or its affiliates, such as HiSilicon, without a license.

A ban that Richard Yu himself highlighted stating that the Huawei Mate 40 could be the last models to include one of his high-end Kirin processor, thus predicting the impossibility of continuing to create its own chips. However, while this new regulation appeared to be primarily intended to curb Huawei’s ability to manufacture its own processors, it now appears that could apply to any type of semiconductor.

Or so at least they seem to have interpreted it from Samsung and SK Hynix, two of the main responsible for supplying Huawei with essential components of its smartphones such as DRAM and memory chips that they claim from a South Korean newspaper, they would be considering an imminent commercial stoppage with the Chinese company for next September 15, the date of entry into force of this new rule.

However, it is clear that this is not only a precautionary measure, since this ban will also deal a severe blow to Samsung and SK Hynix themselves, with the latter’s exports to China representing 40% of its general income during the first half of this year. That said, we can’t help but think that Samsung will also benefit from the situationas the world’s second-largest phone maker is in danger of being pushed out of the market.

For its part, Huawei continues to try to reduce its dependence on foreign chip suppliers acquiring SMIC components, the leading chip foundry in China, although the trade war still underway suggests that the Trump administration is already looking to add this company to the list of entities in the country, thus preventing it from having access to technologies, products and software from the USA

Thus, the tug of war between the two world powers does not seem to be close to its end, something that we cannot seem to assure for Huawei itself, which is undoubtedly facing its days of greatest uncertainty.




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