Huawei in talks with Samsung and SK Hynix for Smartphone Chip supplies
Huawei Technologies is currently in talks with Samsung and SK Hynix for stable chip supplies. This is due to rising pressure from the US barring chip makers from conducting business with the Shenzhen based Company.
Previously, Huawei was ordering chips from various makers such as TMSC in the United States. But with an extension of the company’s existence on the US entity list, Chip providers have revoked their partnerships with Huawei in compliance with ever-rising rules.
According to Korea Economic Daily, Huawei is now in talks with Samsung and SK Hynix for the supply of chips in case sanctions continue North. Annually, Huawei is an active client to the South Korean Duo purchasing over $8.1 Million worth NAND and DRAM flash memory chips.
With Samsung and SK Hynix taking a bullish share of 70% for DRAM memory chips globally, Huawei’s choice to strike a partnership with the Companies will make it self reliant from any US coalitions.
Likely, Huawei has also started purchasing chips from fellow Chinese maker, MediaTek, and further sourcing for more makers that are not under any US influence barring them from conducting business with Huawei.
If successful with bridging partnerships to the South Korean based brands, Huawei may fully on custom solutions to still serve its customers amidst a current ban from the US ecosystem.