Samsung will reportedly stop selling chips to Huawei

Combat-Master

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Samsung and SK Hynix are set to end sales of smartphone components to Huawei from next week, exacerbating the Chinese giant's supply problems even further.

Reports in South Korea suggest the two companies will cease shipments from September 15 – the very day that new US sanctions against Huawei come into effect.

Not only will those sanctions create further headaches for beleaguered Huawei, it will also deny the two Korean firms valuable revenue streams. As well as being one of the world’s biggest smartphone manufacturers, Samsung is a key supplier of components to the industry – especially memory chips.

Samsung Huawei chips

Huawei has been on the US ‘non-entity’ list since last year, a status that prevents US companies from doing business with it without a licence. This effective blacklisting has limited Huawei’s access to key US technologies such as the Android operating system.

That was already bad enough but earlier this year Washington closed what it believed to be a “technical loophole” that allowed chipmakers to ensure their components are not classified as ‘US-made’ despite including American technologies. Although Huawei has worked hard to reduce its dependency on the US, the ruling threatens the future of its smartphone business.

Following the original blacklisting, Huawei had turned to Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, to produce its custom processors and provide it with other components such as networking chips. However TSMC stopped taking orders from Huawei earlier this year.

The US government’s actions against Huawei are based on national security concerns. Huawei denies any allegations of wrongdoing while the Chinese government believes the sanctions to be part of a wider trade dispute that has also involved ByteDance’s TikTok and more recently Semiconductor Manufacturing International Corp (SMIC).

Samsung and SK Hynix have been approached for comment.

 

Cabatli_TR

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Huawei is under attack at all fronts. We will see How they will replace Samsung chips on their mobile phones.
 

Test7

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And Huwaii will soon announce its own production chip :) Apple and Samsung are creating a new technology giant.
 

Timur

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China should stop production of samsung parts.. lets see how they handle it.. (I am not anti samsung and not pro huawei) but this shows us all how really free the western economies are..
 

Ryder

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China should stop production of samsung parts.. lets see how they handle it.. (I am not anti samsung and not pro huawei) but this shows us all how really free the western economies are..

I think a lot of samsungs stuff are manufactured in vietnam
 

Bilal9

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TSMC in Taiwan has also stopped selling chips to Huawei last May. And yes, given Chinese govt. backing, Huawei can eventually become self-sufficient in chips, though not overnight....this effort was on for a while, encouraged by the usual party.

 

Oublious

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lesson to be learned, go make your own chip and how are we with it?
 

Bilal9

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lesson to be learned, go make your own chip and how are we with it?

Well - like China, you have to have a profitable market that can support your producing your own chips.

Chips are made at Chip foundries (FABs) and they are very, very expensive. There are only a limited number of these factories in US, China, Korea, Taiwan, Malaysia, Singapore, Japan and Germany.

Even India does not have any commercial FABs.
 

Oublious

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Well - like China, you have to have a profitable market that can support your producing your own chips.

Chips are made at Chip foundries (FABs) and they are very, very expensive. There are only a limited number of these factories in US, China, Korea, Taiwan, Malaysia, Singapore, Japan and Germany.

Even India does not have any commercial FABs.


As you can see it is a technology you must have it, if it cost you more money then iy brings you. What will happen if ther is no chip anymore for huawei?
 

Bilal9

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As you can see it is a technology you must have it, if it cost you more money then iy brings you. What will happen if ther is no chip anymore for huawei?

I doubt this will be the case. China domestic market is a larger market in many ways than that of the US even.

China is a larger car market and a larger cellphone market of course compared to the US. Where there is demand, there will be investments and products.

The Chinese have their own stealth fighters, and they are also very, very advanced in electronics products of all kinds, such as networking equipment and cellphone back-end signal processing.

Back in the day (20 years ago) Huawei used to copy CISCO networking equipment (even the manuals), but nowadays they do their own R&D. They have just as many bright researchers as Qualcomm, CISCO, Nortel did back in the day. Their patents numbered in similar quantity as well.

The Chinese will invest in making their own chip foundries.

The day when US would have bullied China into submission is over. US can slow down Chinese progress in technology, but it cannot stop it. Too late for that.

And if Trump loses the election tomorrow, then no one can stop China going up at all.
 

Zafer

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Before the Covid hit the world a program was slated to start a foundry facility in Turkey this past summer. Çakıl is the name of the chip to be made. A single core CISC chip that would initially power weapon system components and multicore versions would be used for small electronics going forward. We wouldn't know when and if it was realized or not.
 
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Bilal9

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Before the Covid hit the world a program was slated to start a foundry facility in Turkey this past summer. Çakıl is the name of the chip to be made. A single core CISC chip that would initially power weapon system components and multicore versions would be used for small electronics going forward. We wouldn't know when and if it was realized or not.

Well Congrats and Good Luck to Turkish brothers on that effort. New foundries and FABs cost well over a Billion dollars to start. And the return on that investment is iffy at best. You have to have a surefire market for your products, otherwise....

Here's an article explaining the details.

 

Zafer

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Well Congrats and Good Luck to Turkish brothers on that effort. New foundries and FABs cost well over a Billion dollars to start. And the return on that investment is iffy at best. You have to have a surefire market for your products, otherwise....

Here's an article explaining the details.

Because you are starting with weapons systems it can pay off very well as those systems are very expensive.
 

Oublious

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I doubt this will be the case. China domestic market is a larger market in many ways than that of the US even.

China is a larger car market and a larger cellphone market of course compared to the US. Where there is demand, there will be investments and products.

The Chinese have their own stealth fighters, and they are also very, very advanced in electronics products of all kinds, such as networking equipment and cellphone back-end signal processing.

Back in the day (20 years ago) Huawei used to copy CISCO networking equipment (even the manuals), but nowadays they do their own R&D. They have just as many bright researchers as Qualcomm, CISCO, Nortel did back in the day. Their patents numbered in similar quantity as well.

The Chinese will invest in making their own chip foundries.

The day when US would have bullied China into submission is over. US can slow down Chinese progress in technology, but it cannot stop it. Too late for that.

And if Trump loses the election tomorrow, then no one can stop China going up at all.


China can sell it only to Chinese people in China, with what chip am i asking you? They stop delivering chips to them, they are not capable to produce chip thats the fact. And they can make fighter os USS enterprise ships like but they are not capable to produce chips.

Making a chip is a critical technology and nobody will give it to you. China is good with copy cats and achieved to a certain level and thats it. People are making Chinae bigger then they are.

 

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