US sanctions on Huawei to hit Samsung, different chipmakers

Seoul, September 9

Memory chipmakers, together with Samsung Electronics, will really feel the pinch of further US sanctions on Chinese telecom big Huawei Technologies that take impact subsequent week, trade sources mentioned on Wednesday.

The new sanctions, which ban the provision of semiconductors made with US gear, software program and design to Huawei with out prior approval from Washington, are set to grow to be efficient from subsequent Tuesday, Yonhap information company reported.

It will hit the shipments of Samsung Electronics, the world’s high reminiscence chip maker, SK hynix Inc. and most different international gamers will nearly cease shipments to the Chinese firm subsequent week, they mentioned.

“I understand that Samsung Electronics will stop shipping chips to Huawei from next Tuesday, though there is a possibility of selling products after winning US approval,” an trade observer mentioned.

That is as a result of US applied sciences are utilized in nearly all sectors of chip manufacturing from design software program to manufacturing gear, based on the sources.

Huawei is called considered one of Samsung’s high 5 clients. SK hynix reportedly is dependent upon Huawei for some 10 per cent of its gross sales.

The envisioned American sanctions are extensively anticipated to have a damaging affect on Samsung Electronics and different trade gamers over the brief time period, however they might unlikely have an excellent affect within the lengthy haul, trade watchers mentioned.

They additional mentioned Samsung Electronics may gain advantage from the US transfer, as it could come as a possibility to widen its hole with Huawei within the smartphone market and play catch-up with the Chinese agency within the 5G sector.

The US sanctions come as Washington has more and more sought to ban the usage of Chinese expertise, citing nationwide safety considerations. — IANS

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