Huawei’s future is not looking too bright as a manufacturer because of the difficulties it is constantly facing.
A new report by Chosun Biz, a South Korean daily, states that the two companies who majorly supplied the display component to Huawei, which are Samsung and LG, will stop the supply of displays starting 15th of September, because of the US sanctions which restrict any business transactions with Huawei because of the roots of the company being in China.
Huawei has been using Samsung-made displays since quite a while, a recent example being its P40 Pro where the device was equipped with a Samsung-made OLED panel.
These 2 companies were the major suppliers of displays not only for Huawei but for a lot of other OEMs. The China-based OEM now has local options like BOE, CSOT, Visionox, etc which are also in the business of making OLED display panels.
The main problem which arises now is if these local companies will be able to cope up with Huawei’s needs because Samsung and LG were able to satisfy the big needs for the company in the display department.
A few days back, it was also reported that SMIC, a chipmaker that uses American equipment to manufacture chipsets and is currently manufacturing HiSilicon Budget Kirin Chips for Huawei, could also get banned which will raise another wall of difficulty in front of Huawei.
After all the bans, Huawei has no option left but to source these components locally which can be a bit hard for the company as it is one of the largest smartphone manufacturers in the world and its supply needs are much bigger, which the local companies might not be able to satisfy.