South Korea based Samsung Display has reportedly sought a license from the US government to supply smartphone displays to the troubled Chinese company Huawei. This move has come in just days before the US exports restrictions imposed on Huawei start taking effect.
According to US regulations, any company that is using American technologies needs to get a separate license. This ruling was introduced to further clamp down supplies to Huawei.
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Samsung Huawei chips
Samsung Display did not comment on this development, though its rival LG Display feels that since its supplies to the Chinese company is limited it is not bothered about the US trade restrictions.
According to a statement given to Reuters, LG says that it will have a “minimal impact on the company given its limited panel shipments to Huawei, adding it will continue to diversify its customer base.”
Earlier, it was reported that chipmakers like MediaTek and Qualcomm were also looking to get necessary approvals from the Trump administration to supply chipsets to Huawei. Qualcomm was reportedly lobbying the US government for the license stating it may miss out on billions in revenue if it is not able to supply components to Huawei.
MediaTek, on the other hand, had officially confirmed that it had reached out to the administrators in the US for a formal go ahead and said that it has “already applied for permission with the U.S. side in accordance with the rules”.
After the September 15 deadline, Huawei will not be able to get supplies from any company without the mandatory approval from the US Government. Thus, it bought chipsets from TSMC, its biggest chipset supplier, in advance. However, since the supplies will eventually dry up and looking at Hauwei’s massive market share back home in China, suppliers like MediaTek, Qualcomm and Samsung Display are eager to partner with the Chinese conglomerate.
Via: Reuters
