Samsung Electronics’ (005930.KS) display unit and LG Display Co Ltd (034220.KS) are expected to stop supplying panels for premium smartphones to Huawei Technologies [HWT.UL] due to U.S. restrictions, South Korean online media Chosun Biz reported on Wednesday.
Samsung Display, which counts Samsung Electronics and Apple (AAPL.O) as major customers for OLED display screens, declined comment.
LG Display said in a statement the U.S. move will have a minimal impact on the company given its limited panel shipments to Huawei, adding it will continue to diversify its customer base.
The U.S. further tightened restrictions on Huawei in August, banning suppliers from selling chips made using U.S. technology to the Chinese telecom giant without a special license.
Samsung Display and LG Display decided to stop the supply to Huawei from when the restrictions take effect on Sept. 15, as the ban includes chips needed to operate displays, and orders from Huawei do not take up a large portion of their business compared to customers like Apple, Chosun Biz reported, citing industry sources.