07 December 2020
Samsung Electronics’ display unit has reportedly received a license from the US that allows it to do business with Huawei. According to Reuters, the Chinese company which is still sort of present on the entity list is allowed to take display panels for its devices from the South Korean giant. However, it is currently unclear whether Samsung Display will be able to provide its OLED panels to Huawei as other firms in the display-manufacturing supply chain process would also have to get US licenses.
Also, Financial Times reports the same and further mentions that even Sony and Omnivision are now allowed to resume their business with Huawei as it has received the necessary license for the same. So, if the report turns out to be true, Sony will supply CMOS image sensors for use in Huawei smartphone cameras.
Note that the US Commerce Department restricted US companies from exporting or selling certain products and technologies to Huawei and its subsidiaries. The company was added to the entity list and this restricted its access to items produced domestically. Later on, the United States issued sanctions that ban Huawei from procuring chips made by foreign manufacturers using US technology. This ban was expanded to block Huawei’s efforts to circumvent earlier bans.
So, the companies in the US and foreign manufacturers using US technology require special licenses from the US that could grant them to resume their services with Huawei or any company for that matter on the entity list. So, in this case, Samsung Display and Sony have now been granted the licenses so as to work with Huawei again.
In related news, Samsung Display, Sony, and Omnivision have apparently received the licenses a month after American PC maker Intel and AMD. Furthermore, the chip suppliers Qualcomm and MediaTek have applied for the licenses and are yet to receive the green signal on the same.