Samsung to Acquire a License to Continue Business With Huawei

Samsung will soon be forced to stop supplying chips and display panels to Huawei due to new restrictions from the US that prohibit non-American companies from doing business with the Chinese company using technology originating from the US.

This is why Samsung, similar to numerous other companies,  is now looking to acquire an export license to continue supplying Huawei.

This is because losing a significant customer like Huawei will hurt Samsung’s business significantly as a large portion of its revenue comes from China. However, Samsung Display’s rival LG Display has said that the new restrictions will not affect Samsung as much due to its limited number of shipments to Huawei. Samsung has declined to comment on the matter at the moment.

President Donald Trump’s administration has recently tightened its restrictions against Huawei. These restrictions prohibit all companies from supplying products and services to Huawei if they are based on American technologies. This has made it significantly harder for Huawei to acquire smartphone components such as chips and displays.

It has already lost its support for Google Mobile Services in its Smartphones and might soon lose its hardware supply as TSMC and Samsung have both been forced to halt transactions with the Chinese phone maker.