The days are getting darker and darker for Huawei, which sees its partners drop it. With the introduction of the Trump administration's new restrictions, the Chinese manufacturer is losing its suppliers of tiles and chips.
Everything may become more complicated for Huawei from September 15. Samsung as well as LG will no longer supply components to the Chinese company due to new restrictions from the US government. Yet another blow for the manufacturer, which has already had to end its partnership with the founder TSMC and which has been forced to reduce orders for its parts for its next upcoming flagship.
No more tiles or chips
Two of the biggest suppliers are announcing that from next Tuesday they will no longer supply screens or chips for Huawei's mobiles. LG and Samsung therefore comply with the restrictions that will come into force. The abandonment of LG is not the most significant since, by its own admission, the brand was not the biggest supplier of panels to Huawei. This role fell to Samsung, which manufactures and supplies most of the Oled screens to the market.
A double whammy since earlier today we learned that Samsung was also stopping to supply Huawei with semiconductors. A necessary element in the design of chips to bring smartphones to life – especially those having a role for memory.
This week may be crucial for Huawei, there are indeed less than 6 days before the implementation of the American restrictions. Some time ago, the Shenzhen company announced that its Mate 40 would be the last of its smartphones to carry a Kirin processor. Huawei is forced to abandon the production of its own processors, no longer being able to count on its various suppliers.
Setbacks that do not help Huawei's business, which could see its production divided by four in 2021. This would be equivalent to 50 million smartphones produced, while the firm is approaching 200 million for the year 2020.