Huawei has asked Samsung Electronics and SK Hynix for a long term chip supply. This is due to the recent chip restrictions applied by the U.S and to diversify the supply chain.
According to Korea Economic Daily, Huawei has approached the two South Korean chipmakers Chinese units for a stable supply of the chips. Huawei is already one of the five major clients for Samsung and SK Hynix, purchasing $8.1 billion worth of DRAM and NAND flash memory chips every year.
This news came in the midst of rising pressure from the U.S. government on global chipmakers such as TSMC, restricting supplies to Huawei. However, the memory chip makers don’t come under the current U.S. regulations but the Trump administration may also expand the regulations to this industry.
By taking a note of this situation, Huawei has already started purchasing chips from MediaTek and moving for alternatives that don’t come under the US goods ban.