Reports have it that Samsung and SK Hynix will stop selling components to Huawei. This is a consequence of the Trump administration’s sanctions on the Chinese phone maker.
Chosun Ilbo and other Korean news outlets report that the companies will suspend sales on 15th September 2020. The date is also when the sanctions prohibiting the sale of technology to Huawei kicks in.
The sanctions prohibit non-American companies from selling components that were developed with US technology except they obtain special approval from the government. These sanctions were introduced in August 2020 after a host of other sanctions in 2019, threatening to hurt Huawei’s operations.
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The company is already feeling the pinch and has announced that it may no longer be able to make its Kirin chipsets. Taiwanese chipmaker TSMC also reportedly suspended sales to Huawei in May 2020 following some other sanctions. Huawei has called the sanctions “arbitrary and pernicious.”
Chinese semiconductor company called SMIC, which could also sell to Huawei has been slapped with sanctions by the Trump administration. The sanctions have led the Chinese Foreign Ministry to accuse the US of ‘blatant hegemony.’
The US alleges that Huawei infrastructure poses a national security risk. It also accuses Huawei of engaging in trade secret theft and violating sanctions against Iran.
On the other hand, the company seems to be a victim of the US-China trade war. This war has also affected Chinese social media companies like TikTok and WeChat. Still, Huawei is beating expectations, as it sold more smartphones than any other manufacturer.
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