Yesterday, there were reports that Samsung Display has obtained a license from the US Department of Commerce to supply OLED panels to Huawei. According to Nikkei Asia Review today, Samsung Electronics recently revealed that semiconductor chips for panel drivers have not yet been approved. At present, only the panel part is approved by the US government. This means that while it can supply the display panel, this does not include the chip.
The OLED display comes with organic light-emitting diodes. OLED panels include panel devices and “controller IC” chips. In September of this year, due to US restrictions, Samsung and LG Display stopped supplying high-end smartphone panels to Huawei Technologies Co., Ltd. This is because the ban includes the chips that are necessary to operate the display.
As of now, it is unclear whether Samsung Display can export OLED displays to Huawei. We do not know if Huawei can get the panel to work without the chip. If it is possible, other supply chain companies that provide the necessary components for OLED display production may also need to obtain a US license.
HUAWEI’S REVENUE CONTINUES TO RISE DESPITE UNCERTAINTIES
In the face of numerous bans from the United States, the fate of some of Huawei’s businesses have been hanging in the balance. However, the company remains resolute and we can see this from its technological advancement and financial results. Huawei’s revenue continues to look good despite the uncertainties surrounding its smartphone business – one of its major businesses. Recently, the Chinese manufacturer announced its financial performance for the first three quarters of 2020.
According to Huawei, during this period, its revenue hit 671.3 billion yuan (over $100 billion). This is an increase of 9.9% over the same period last year. On the profit end, the company’s net profit margin is about 8.0%. Throughout the first three quarters of 2020, Huawei’s business results basically met expectations. This is quite interesting because many analysts did not expect Huawei to meet its expectations.
Apart from the ban and pressure from the United States, the COVID-19 pandemic is also putting Huawei’s operations under intense pressure. Presently, the company’s production and operations are facing significant challenges. However, the Chinese manufacturer continues to forge ahead despite the challenges. Huawei says that it has no choice but to fulfill its obligations to customers and suppliers.