Samsung to reportedly stop selling chips to Huawei

This move comes as further restrictions against Huawei go into effect in a few days

Samsung is reportedly going to stop selling components to Huawei as the Trump administration’s new rules will go into effect soon.

The new restrictions ban non-American companies from selling parts that were created with U.S. technology or equipment. Now several Korean publications are reporting that Samsung and SK Hynix will stop selling components to the Chinese manufacturer.

This will certainly create problems for Huawei, which has already stated that it won’t be able to make its Kirin chipsets anymore.

Huawei attempted to find an alternative supplier by working with a Chinese manufacturer called SMIC. However, the U.S. Defence Department has stated that it might add the company to the entity list that bans American companies from working with Huawei.

The move has been criticized by the Chinese Foreign Ministry, which has accused the U.S. of “blatant hegemony.” If the U.S. carries out the move, then SMIC won’t have access to the tech and supplies it needs to manufacture chips for Huawei.

Increasing restrictions against Huawei will surely continue to shape the company’s business. A recent report indicates that Huawei may reportedly only ship 50 million smartphones in 2021. This number represents a 74 percent drop from Huawei’s 2020 shipment target, which is 190 million units.

Via: The Verge