Samsung Electronics and SK Hynsix will apparently stop selling chip components to Huawei as the Trump administration tightly actions on the Chinese phone maker. According to Chosun Ilbo and other Korean news outlets, on 15 September the companies will suspend trade. On that day a new set of rules limits dealing with Huawei. And Samsung reported that they will stop selling chip sales to Huawei.
United State President Donald Trump has focused more of his energy on attacking Chinese technology and companies like Huawei, Tencent, and Byte Dance, primarily through the signing of executive orders blacklisting the companies and pressuring US allies to isolate them.
Last year May 2019, Trump declared to chine’s company that Huawei was a national security threat that would assist the Chinese government in surveillance efforts and added it to the ‘Entity List’, effectively preventing United States companies from working with the Chinese company.
At present year American President Trump has tightened restrictions further against Huawei and also closing potential defects by barring chine’s Huawei from purchasing silicon and any other product made by any foreign manufacturers with US technology and adding dozens of Huawei affiliates to the Entity List.
Chine’s Company has denied all the types of the allegation which can be having put by United Government. The Chinese technology giant has tried to reduce the negative effect exerted by the U.S and turned to source components from Semiconductor Manufacturing International Corporation (SMIC), a leading Chinese semiconductor company.
However, the Trump administration also threatened to put sanctions on SMIC. The U.S. Defence Department confirmed at the beginning of September that it might add SMIC to the same Commerce Department entity list to ban U.S. companies from dealing with Huawei. If the restriction goes into effect, it will prohibit SMIC from getting components it needs to make chips for Huawei.
At present, the US government appears unlikely that the Government Administrative will grant the company licenses to supply to Huawei.
While the impact on Samsung will be minor with Huawei just one among many clients and the company now making headway into the wireless network equipment sphere, SK Hynix may be heavily affected. According to the Korean outlet JoongAng, at least 40% of their revenue for the first half of 2020 came from Chinese exports.
