Huawei met with local IT companies and appealed for "unfair U.S. sanctions."
Huawei met with local IT companies and appealed for "unfair U.S. sanctions."
  • Jung Se-jin
  • 승인 2019.05.30 12:19
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Huawei reportedly met with major South Korean companies such as Samsung Electronics, Samsung Display, LG Display and SK hynix claiming the unfairness of the U.S. sanctions.

According to an industry on May 27, executives of Huawei's mobile business division met with officials from major conglomerates such as Samsung Electronics, Samsung Display, SK hynix Inc and LG Display on May 23-24 and asked them to supply the parts without any disruptions.

Huawei's move is interpreted as a move to prevent the boycott of global IT dinosaurs such as Google and Microsoft from spreading to Korean companies in advance.

"Huawei has increased its share of China's domestic market by 50% and has completed its own preparation for ARM's discontinuation of supply of technologies." said a representative for an electronics industry who participated in this meeting with Huawei.

The official said that the company has asked for a new supply of goods, including semiconductors and displays, to ensure that there will be no disruption in the supply. Huawei also emphasized that it will continue to provide operating system updates for phones released by Google.

A Huawei official explained that while the U.S. sanctions may have some impact on the new product, they will not hinder its growth in the new products.

Actually amount of parts that Huawei buys from South Korean businesses is reaching $10.65 billion per year. Major South Korean parts supplied to Huawei include semiconductors, displays and camera modules. Of the total, SK hynix supplies semiconductors, Samsung Display supplies displays, and LG Innotek mainly supplies camera modules.  

However, companies such as Samsung, SK hynix and LG are said to be concerned about disadvantages in their absence from the U.S.-led anti-Huawei federation.

The Huawei issue is an issue that is difficult for not only the government but also private companies to make a hasty decision because it is a matter of various international situations such as THAAD, the new Cold War of the G2 and customs disputes," said a high-ranking industry official.

Meanwhile, industry sources say the Donald Trump administration has recently made an unofficial request to the South Korean government not to introduce Chinese Huawei products. 

Microsoft has also deleted Huawei's products from its list of Cloud Server products. Some market research institutes predict Huawei's smartphone sales will drop up to 24 percent this year.

The used price of Huawei's latest smartphone "P30 Pro" hit £100 on May 26, falling to one-ninth of the new product's price just a month after its launch, according to the British used phone trading website Music Mecphy.

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