When restrictions were initially imposed on Huawei by the US government, it basically banned US companies from doing business with Huawei. This was later expanded to include even foreign companies that used US technology in their products, which meant that even companies like TSMC (which is based in Taiwan) would have to stop supplying chipsets to Huawei.
Unfortunately for Huawei, it looks like things are about to get worse because according to a report from Korea, it seems that now Samsung and LG will have to stop supplying display panels to Huawei as well due to the restrictions imposed by the US government.
While Samsung Display has declined to comment on the reports, LG Display on the other hand notes that these restrictions will have a minimal impact on the company. This is because they do not supply that many display panels to Huawei to begin with, so any disruptions would be minor.
It is unclear how big of an impact this might have on Huawei, but given that companies such as Samsung Display are one of the biggest suppliers of OLED panels in the world, we imagine that Huawei could have a hard time trying to find alternative suppliers that could supply the volume that they need.
Analyst Ming-Chi Kuo had previously suggested that at the rate things are going, there is a chance that exiting the market could be a last resort of Huawei.
Source: Gadgets 360