It is known news for many that the United States has imposed a ban on Huawei from outsourcing any products or technologies that have been developed using American technology.
On September 15, the US government imposed a ban stating companies are not permitted to supply anything to Huawei on the grounds of national security. The ban states that no company is allowed to provide Huawei with any goods or products that have been made using US equipment. To do so, the concerned companies need to obtain approval from Washington.
However, it looks like things are slowly turning around for the Chinese smartphone maker. Slowly, companies are procuring licenses to continue doing trade-offs with Huawei. Recently, AMD and Intel procured licenses to continue selling their chips to Huawei. The latest organization to join these two in continuing its business with Huawei is none other than Samsung.
According to Reuters, Samsung Display, a part of the South Korean tech organization Samsung, can now start providing Huawei Technologies with products sporting its display panels, thanks to the license that it got from the US Government for the same.
However, so far, there is no information about whether Samsung Display is allowed to directly send its OLED display panels to Huawei as there are many other firms that would be involved in this supply chain, as their components would be necessary to manufacture OLED panels. Undoubtedly, even these firms would have to procure a US license, which is not the case so far.
Not too long ago, LG Display, a competitor of Samsung Display, had expressed a desire to receive a US Government license to continue doing its business with Huawei Technologies. Along with it, it also wished licenses for all other companies within the supply chain that are involved in the making of display panels.
The US government has received requests from all major companies to grant them licenses so that they can continue their business with the Chinese giant. Many major organizations were involved in various technologies with Huawei Technologies before the US government imposed stringent restrictions. Major biggies like Qualcomm, Media Tek, Sony, Samsung Electronics, SK Hynix, and Kioxia are some of the firms that have raised a request to the United States to provide them the license.
After Intel and AMD were granted licenses to supply memory chips to Huawei, the latter can now use them within their computers and laptops. It is also possible that Samsung Display received this license from the US government as display panels are not too sensitive. Reportedly, BOE Technology Group is also supplying these panels to Huawei.
Despite Intel and AMD receiving permissions to provide Huawei with processors, there are reports that the Chinese firm is falling short of chips by a huge number. Therefore, it may not require too many display panels from Samsung.
Samsung’s chip and display production units have been hit badly after restrictions on Huawei came into existence. However, the company has made huge profits as far as its smartphones are considered. Samsung has been flourishing in its smartphone business as these are in demand, especially in countries like Europe and India.