The U.S. will allow Samsung to supply its panels to Huawei

US will allow Samsung to supply its panels to Huawei

The U.S. will allow Samsung to supply its panels to Huawei. With only a few days to go before the next U.S. elections, it seems that the Trump government has suddenly decided to give Huawei a little break. It has just been announced that Samsung Display has received government approval to supply its OLED panels for smartphones to the Chinese company.

Samsung thus becomes the first South Korean company to receive approval from the U.S. Department of Commerce to maintain the supply of components to Huawei.

Thus, other companies that could receive this approval soon might be LG Display, SK Hynix or Samsung Electronics itself, which also applied for this supply license in the near future. But for the time being the uncertainty continues.

However, the U.S. government may have begun to give these permits to create a false sense of freedom for Huawei, since the Chinese company operates primarily with the BOE display manufacturer, relegating display panels as relatively less sensitive products for manufacturing its high-end phones compared to semiconductors.

“With the supply of chips to Huawei basically stopped at this point, it is impossible for Huawei to manufacture new smartphones with display panels only,” said some local workers, “for Huawei to have a stable production of its products, restrictions on chip exports must be lifted.”

The U.S. will allow Samsung to supply its panels to Huawei, but for the chips the status is unclear. It’s a situation that could be close to improving with the recent approval of licenses for Intel and AMD, though for the time being Huawei is limited when it comes to the supply of components and processors for computers and servers.