[Asia Economy Reporter Changhwan Lee] Following the US sanctions on Huawei, Samsung Electronics and SK Hynix are reportedly set to soon halt semiconductor supplies to Huawei.
According to industry sources on the 8th, starting from the 15th, all semiconductor companies worldwide must obtain prior approval from the US government to supply products to Huawei due to the US sanctions. Given the US's determination to enforce these sanctions, the industry views semiconductor sales to Huawei as virtually impossible.
On the 17th of last month, the US Department of Commerce announced enhanced sanctions that prohibit supplying semiconductors produced using US technology to Huawei without US approval, effective from the 15th of this month.
Following this announcement, it has become difficult for all semiconductor companies worldwide, including Samsung Electronics and SK Hynix, to supply semiconductors made using US technology and software to Huawei.
As a result, domestic companies such as Samsung Electronics and SK Hynix are inevitably facing damage. Huawei accounts for an estimated 3.2% of Samsung Electronics' total sales and 11.4% for SK Hynix. However, from a long-term perspective, some opinions suggest that the impact will be minimal as other companies will take over Huawei's volume.
An industry insider stated, "This was a scheduled step since the US announced the enhanced sanctions last month," adding, "I understand that companies are working hard to prevent damage by seeking alternative trading partners."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
