Samsung Display gains US license to sell OLED to Huawei

Samsung Display gains US license to sell OLED to Huawei

The grant was made after Samsung secured the nod from the US Department of Commerce. The South Korean tech giant’s application has been pending for months after U.S.-China trade issues.

Huawei is poised to continue its purchase of the OLED screen display from Samsung after the U.S. gave the green light to the said deal. The South Korean tech giant is one of the first companies to secure licenses from the US government.

According to ZDnet, supplying the OLED screen panel to the Chinese tech company was halted last month. The said sanctions are part of enlarging the coverage of restrictions in which Huawei was affected, securing the right to purchase chips produced by international manufacturers that use US technologies.

In return, Samsung is one of them, restricted to selling parts of technology to Huawei. Though Samsung had already applied for the license before the restrictions took effect last month, the deal was halted by U.S. sanctions.

Other tech companies are waiting in line for licenses

Samsung Display gains US license to sell OLED to Huawei

SK Hynix, LG Display, and Samsung Electronics are among other display panel makers that are waiting to secure licenses from the US Government. The company was supplying memory semiconductors to Huawei and was also affected by the sanctions.

The decision was made by the US in order to prevent Huawei from acquiring memory semiconductors. Aside from US-made technology, the company may also look outside the country as many panel display makers are around the globe, according to a person familiar with the sanctions.

A sign of hostility

Huawei said the sanctions being made by the US were hostile, and they labeled it a non-stop aggression against the Chinese company. However, the company assures that this will not stop them from investing in technology.

Intel, meanwhile, was able to secure a license from the US Government last month. They will be able to resume supplying Intel products to Huawei.

Sanctions are all about security threat

Though the sanctions seem only aimed at Chinese tech companies, the US Government’s sanctions also aim to ban other foreign-made technology due to espionage fears. That includes purchasing, installing, and use of offshore made telecommunications.

Though no names were mentioned, the sanctions are heavily targeting Huawei as the company is restricted from purchasing any tech products that use US technology. In his keynote speech during the Connect 2020, Huawei’s Chairman Ping said that this is a non-stop aggression that puts them under pressure.

Ping, however, assured them that they would assess the impact of the sanctions on their business. He also assures that they have sufficient stocks to continue running their business.

Images used courtesy of SamsungChile/YouTube Screenshot.

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