OLED Display Panels Are Not a Sensitive Item
Samsung Display has recently obtained approval from the United States to supply OLED display panels for smartphones to Huawei. This is the first time a Korean company has received U.S. approval for exports to Huawei after the U.S. government imposed tough sanctions on the Chinese tech giant in September.
Industry insiders believe that Washington has given permission to Samsung Display since OLED display panels can be procured from Chinese companies such as BOE.
Intel and AMD also announced earlier that they had received permission to supply CPUs for PCs and servers to Huawei. TSMC, a Taiwanese foundry company that has been producing chips designed by Huawei, has reportedly resumed supply of some products to Huawei.
An industry analyst said that despite the sanctions, Washington seemed to approve exports of non-core items to Huawei. Samsung Electronics and SK hynix which had supplied semiconductors to Huawei have yet to receive approval.
Therefore, some analysts say that the export approval system itself is ineffective. This is because it is difficult for Huawei to increase orders for display panels when it is still having difficulty in securing the supply of semiconductors for smartphones. Sales to Huawei accounted for about 8 percent and 1 percent of total sales of Samsung Display and LG Display, respectively, in 2019.