Huawei: South Korea China jumps, SoC stocks are running out

The bans that the US government is imposing on Huawei not only cause the Chinese company to be unable to do business with semiconductor manufacturers but, consequently, also generate other consequences. One of these is related to the export of components that from the homeland of Samsung (South Korea) have had difficulties in arriving in China for weeks.

With the latest provisions contained within the documents that prohibit Huawei from procurement of SoCs, what has to do with US patents and technology makes the supply of components indirectly proportional. At the moment, in fact, the quantities are far less than powering the millions of smartphones that the Chinese company will have to sell in the coming months.

What does South Korea and Samsung have to do with Huawei? Simple, a smartphone is not formed by only SoCs and the Chinese company supplies from Samsung regarding the memories, being at the moment one of the top five customers of Samsung. SK Hynix also supplies Huawei in the same way but with a lower percentage of orders.

Clearly both economies will lose, with a blow also for Samsung which has so far earned 41% of exports of its Chips in China.

All these problems are increasingly going to undermine the economy of the Chinese giant and now the first concrete signs are coming. In Chinese stores, stocks are running out and even, in certain electronics chains, customers report that Huawei products need to be pre-ordered. There are no or limited stocks of the best-selling models. And again, the orders are delivered but after days.