It seems that Huawei is not yet far from troubles. After the end of the agreement with Google, the company has been announcing a lot of new products on the shelves, to give users a better device with strong hardware. However, it seems that the company is going to face a lot of problems while developing its new series of smartphones. The display supply for the company will shrink in addition to being cut off from TSMC’s chip foundries.
As per the details from Reuters, Samsung and LG were providing displays to Huawei and both the companies have now decided not to do so anymore. The decision has been taken after the tightened trade restriction from the US. The chips that Huawei used to drive the displays are reportedly affected by the US sanctions. The company has diversified and will source all Huawei Mate 40 displays from BOE, but it can be a problem for other smartphone models that use the display from BOE, Samsung, and LG.
Huawei is looking to ramp up the production of displays now through BOE and COST and Visionox are also working on on-cell OLED displays. Although the company will not see a huge impact on the production line due to LG, they might see a major bump due to Samsung, as they have been a major supplier of the display to Huawei. The company is currently trying to look for new display companies and asking to increase the production from the existing ones.