The deadline of 15th September is bringing a lot of bad news for Huawei as their display supply line would shrink and will be cut off from TSMC’s chip foundries. Reuters has stated that LG Display and Samsung Display would stop shipments to Huawei because of strict trade restrictions from US. The chips driving the displays have been affected by US sanctions as a result of which, shipments have been stopped.
Chosun Biz has said that according to industry sources, Huawei does not own a large proportion of shipments from display manufacturers. On the other hand, LG and Samsung are the main suppliers for Huawei’s flagship lineup. The company has managed to diversify and source the Huawei Mate 40 displays from BOE and the Mate 40 Pro will use a mixture of LG, Samsung and BOE displays.
Since the fabs in China cannot manufacture 7nm and 5nm chips for future flagships, a steady supply of displays would be easier for securing locally and BOE can speed up their production and if their is any issue on their side, CSOT and Visionox are working on on-cell OLED displays. LG has stated that this will have a very less impact on their sales and they will diversify the clients who are moving forward. Samsung has however not said anything on this regard.