Samsung, SK Hynix to suspend trade with Huawei

Samsung and SK Hynix will stop supplying mobile components with Huawei.

As reported by South Korean media outlet Chosun Ilbo, the move of the South Korean hardware manufacturers are in compliance with the expanded US trade policy on Huawei. With the new ruling mandated by the US government under Trump’s administration, third-party suppliers that integrate US technologies are required to apply for permission to ship components to Huawei after the 120-day grace period which will start after September 15, 2020.

About 6% and 15% of the sales of Samsung Electronics and SK Hynix for mobile components come from Huawei.

Previously, Taiwanese chip supplier TSMC shared it has stopped receiving orders from Huawei since May 2020.

Earlier in August, Huawei CEO Richard Yu revealed that the Mate 40 series could be the last smartphone to carry Kirin flagship chipsets.

MediaTek, on the other hand, has recently applied to continue its business with Huawei.

The South Korean firms are already preparing for the effect of this move as they forecast a significant drop in sales. Alongside this, prices of memory chips are expected to trend downwards after September 15.

Source: Chosun Ilbo, UPI, via The Verge