Huawei asked Samsung Electronics and SK Hynix to maintain a stable supply of memory chips

According to the Korea Economic Daily, Huawei asked Samsung Electronics and SK Hynix to maintain a stable supply of memory chips.

According to the news, recently, Huawei has summoned senior executives of Samsung and SK Hynix, two South Korean chipmakers’ subsidiaries in China, to demand a stable supply of memory chips.

It is reported that Huawei is one of the five largest customers of Samsung and SK Hynix. It spends about 10 trillion won (equivalent to 57.4 billion yuan) to buy DRAM and NAND flash memory chips from Korean companies every year.

After the United States revised the direct product rules, global suppliers are increasingly under pressure to supply Huawei.

The report said that although memory chip manufacturers are not currently restricted by the US government, Huawei is concerned that the Trump administration may expand its restrictions later.

Since the two South Korean companies provide more than 70% of DRAM memory chips worldwide, any action in the United States will threaten the survival of Huawei. The report quoted an industry official who asked not to be named as saying that Huawei is quickly building its memory chip inventory in case of unexpected needs.

Earlier, according to report, Huawei placed an order with TSMC of up to 700 million US dollars last week, mainly using 5nm and 7nm processes. The chip delivery was completed before September 14 and then used to maintain one-quarter of product sales.

Related: Huawei shipped 1.5 million tablets in China in Q1 2020

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