Samsung and SK Hynix to halt memory supply to Huawei

CyberPanther

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The Chinese tech giant will no longer be able to procure memory chips from its main South Korean suppliers.

Samsung Electronics and SK Hynix will halt their memory supply to Huawei from September 15, as US sanctions that were announced in May against the Chinese tech giant are set to come into effect.

The May sanctions ban Huawei from being able to access core components, such as memory, that are designed and produced with US technologies.

After announcing these sanctions, the US in August enforced further restrictions and added 38 Huawei affiliates to its Entity List of companies that are considered as risks to national security or foreign policy interests. Huawei itself, along with hundreds of its affiliates, were added to the list last year.

The August announcement expanded restrictions on Huawei to not allow the Chinese tech giant to obtain foreign-made chips produced from US software and technology.

There was initially some confusion from Samsung and SK Hynix on whether the May sanctions affected their ability to supply memory to Huawei, two people familiar with the matter said. The August announcement, however, made it clear that Samsung and SK Hynix's memory supply would be banned as part of the sanctions.