South Korean brands Samsung Display and LG Display Co Ltd will stop the supply of displays to Huawei’s upcoming premium lineup of smartphones.
According to the report from Reuters, the decision of both companies are due to the expanded trade restrictions implemented by the United States that require third-country suppliers to use US technologies to cease trade with Huawei. This includes manufacturers of chipsets and other mobile components. It will start on September 15, 2020.
Should the suppliers want to continue their partnership with the company, they are required to apply for approval under the updated policy just like what MediaTek did.
When asked about the issue, Samsung Display declined to give a statement. LG Display, on the other hand, shares that the US move will have minimal impact on the company since it has limited panel shipments to Huawei. The company also shared that it will continue to expand its customer base.
Apart from the ban, some reports also noted that both South Korean-based companies see that losing Huawei won’t largely affect their business since the Chinese smartphone brand does not take a large portion of their sales.
Previously, Huawei also lost Samsung and SK Hynix as its mobile component suppliers.