After being cut-off by TSMC in supplying chips to Huawei, the Chinese tech giant now finds itself in an even more difficult position as Samsung Display and LG Display are also expected to stop supplying components to Huawei, dealing another blow to the company’s global smartphone business.
Huawei is increasingly being backed to a corner due to the trade restrictions tightening from the US. The US government has ordered, companies relying on US technology to manufacture components will need a license to do business with Huawei, setting the deadline to September 15 for companies to adhere.
The reason for Samsung Display and LG Display to back out seems to be because the chips used to power the display are impacted by the sanctions. However, the report also states the supply don’t make up for the bulk of Huawei’s sourcing from these manufacturers.
Displays from Samsung and LG are primarily found in Huawei’s flagship smartphones. Huawei made the switch to BOE for displays used on the Mate 40 series, but the Mate 40 Pro is expected to rely on displays from all three manufacturers.
The US sanctions are increasingly making it difficult for Huawei to make smartphones for the global market. Huawei was TSMC’s biggest customer with a 23% share in revenue in 2019. Huawei reportedly has pre-empted the sanctions, and has worked to set up 5nm and 7nm manufacturing plants for SoCs in China itself, working with Shanghai-based SMIC foundries.