The U.S. ban on Huawei for shipment of chips made using U.S. technology from other suppliers is going to lead Samsung Display and LG Display to stop supplying display panels to the Chinese smartphone maker. Initially, the ban was only expected to affect how Huawei sources its chips from TSMC. However, it seems to have far wider consequences and will lead Samsung Display and LG Display to stop supplying display panels to it as well.
LG Display said in a statement that the move is going to have minimal impact on its business as it only supplied a limited number of display panels to Huawei. Samsung Display is one of the major display suppliers for Huawei, and it is also the leader in OLED panel technology. Both LG Display and Samsung Display will stop supplying Huawei with LCD panels from September 15, the day on which the ban from the U.S. government comes into effect.
Apart from Samsung Display and LG Display, Huawei also sources display panels for its smartphones from Chinese display maker BOE Display which has not yet announced if it will continue to supply display panels to it or not.
Huawei is expected to launch its flagship Mate 40 series later this year but it is unclear how the company expects to survive in the smartphone business without access to key suppliers and components.
Source: Reuters
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