Memory, arguably the most boring (for some) part of computing is about to become a problem for Huawei.
Samsung Electronics and SK Hynix, two of the larger DRAM chip manufacturers will no longer be supplying Huawei come 15th September.
Why? Unfortunately, US sanctions.
Back in May the US Bureau of Industry and Security (BIS) restricted Huawei even further from using US technology and software to design and manufacture its tech.
In August, 38 Huawei affiliates were added to the Entity List as they “present a significant risk of acting on Huawei’s behalf contrary to the national security or foreign policy interests of the United States,” the BIS said at the time.
At the time it was unclear whether this ban was only for semiconductors in a bid to prevent Huawei from making its Kirin chips by making it harder to get the tech needed.
As it turns out, it wasn’t just for semiconductors.
This presents a problem for Huawei as Samsung and SK Hynix will no longer be able to supply the Chinese tech giant with DRAM chips as a result of the restrictions.
According to UPI this has seen Huawei hoarding DRAM chips sending the pricing of these chips into the stratosphere.
But what happens when that supply runs out?
Reports suggest that Huawei will turn to China’s biggest semiconductor foundry SMIC. But as Slash Gear points out, SMIC might find itself on the Entity List soon as well, preventing it from making use of US technology.
To put it lightly then, Huawei is up a creek without a paddle, or at the very least a stick with instead of a paddle.
Bear in mind that this is also bad news for Samsung and SK Hynix though, those firms have other business interests beyond just Huawei.
With that having been said though, the loss of Huawei as a client will certainly sting.
We now await how Huawei will adapt to this situation and that alone should prove to be interesting.
[Image – CC 0 Pixabay]