Samsung has requested permission from the United States to supply chips for Huawei

The modern world is quite peculiar. This also applies to business. I'm not even talking about the fact that new promotion tools are now coming to the fore, including electronic platforms. I mean some global changes. For example, the same story that led to problems for Huawei. The United States first banned the company from using the services of its main partner – Google – and now it was excommunicated from the second main partner. The forced break Huawei with TSMC will not allow the company to quietly engage in smartphones without having a production base for its Kirins. Since September 14, production has completely stopped, but benefactors have already been found. As a result, Samsung asks the US if it can sell chips Huawei. This is how modern business is.

red Huawei

Huawei will not be easy.

Position Huawei

Huawei is a company with wise leadership at the helm. It can make decisions that ultimately enable the company to grow. That is why they were able to think about ordering as many chips as possible from TSMC in order to ensure their existence until they can find a spare version.

As a result, TSMC worked overtime, but provided a stock of chips in warehouses Huawei. According to rumors, their number has reached 15 million pieces. This is very small considering that the company sold over 200 million smartphones in a year. And in the first three months of sales Huawei, the Mate 30 sold more processors than there are currently in stock.

Samsung and HK Hynix are now reported to have requested permission from the US to continue supplying semiconductor chips Huawei. Two South Korean chipmakers, along with MediaTek and Qualcomm, are handling such requests, Korean ET News reported.

Who suffered from sanctions Huawei

All of these chipmakers have been hit by the US government's tightening trade restrictions on Huawei. In its latest report, the US Department of Commerce last month announced a new package of sanctions that could be imposed on the Chinese company to further harm its business.

Samsung and Huawei

Samsung is friends with everyone.

The new rules prohibit Huawei access to any American technology, product or component. The company cannot even obtain components from a non-US firm using US-based software or technology. Given how widespread American technology is, and there is hardly a large company in the world that doesn't use it, the chances are slim. I'm talking about the chances of eventually finding a supplier who can get around the ban.

Chip makers can still apply for a special license that will allow them to continue trading from Huawei for a limited time. However, it is unlikely that the requests will be approved.

Who Huawei will buy processors from

The new rules take effect on September 15th. That's when Samsung, HK Hynix and others will have to stop working from Huawei if their requests are not approved. Both companies have already confirmed that they will adhere to the rules, and if permission is not received, work with Huawei will be terminated.

Many multinational semiconductor manufacturers, including Samsung Electronics and SK Hynix, have applied for approval to the US Department of Commerce, a senior government official said. – Regardless of whether these requests are approved or not, they took the necessary measures before the US government imposed sanctions on September 15.

Starting next week, Samsung's display divisions and LG will also stop selling OLED panels from the Chinese company. Huawei mainly purchases displays from Chinese suppliers BOE and CSOT, so these measures will not have much impact on the company. However, since it cannot obtain DRAM chips and NAND flash chips from Samsung and HK Hynix, its smartphone business is facing a life-threatening situation.

Huawei sanctions

The lock has already closed.

If there is a company that could benefit from the current situation where Samsung is unable to supply semiconductor chips and display panels Huawei, then it's Samsung itself. Both companies compete directly in several industries, including smartphones and telecommunications.

Samsung's network business is already booming due to US sanctions against Huawei. The company recently awarded Verizon a $ 6.6 billion hardware contract. At the same time, other countries continue to close their markets for Huawei, however, some with certain reservations. Even in the US, there is little room for Huawei to work.

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Now, the Chinese company's smartphone business troubles are also a hidden boon for Samsung. The company will remain in the black either way. It's just that the size of this plus may be slightly different. Of course, it's easier to work with a trusted partner, which is why Samsung applied. On the other hand, if the fish breaks loose, the vacated production capacity can start working on Apple, OPPO and Vivo. They can also make good money, and Samsung factories, most likely, will not stand idle. However, this situation is indicative in terms of how much money is spinning in this business, and how many people want to bite off a piece of this pie. In this case, preferably fatter.

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