According to available reports, Samsung Display is seeking permission from the US Department of Commerce to resell its OLED panels to Huawei. Similar to the semiconductor division, Samsung Display was forced to adapt to the new regulations of the United States government. According to these regulations, the company is no longer allowed to supply Huawei with components that were developed and manufactured using software and technology originating in the US.
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The problem lies in the fact that technologies from the United States have been used in the production and development of a number of components needed for the production of smartphones. Not only Samsung, but also other companies that would like to continue to supply components to Huawei even after September 15, will need an appropriate license from the US Department of Commerce. Samsung Display reportedly applied for the said license on Wednesday this week. Huawei is the third most important client of Samsung Display after Apple and Samsung, so it is understandable that maintaining business relations is mutually desirable. In the past, Samsung Display supplied Huawei with, for example, OLED panels for smartphones of the P40 product line, but it is also a supplier of large OLED panels for some TVs.
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Samsung Display's competitor, LG Display, also found itself in a similar situation. However, according to available reports, she has not yet applied for a license. LG Display's shipments are much smaller compared to Samsung Display's, and company representatives have previously said that ending business with Huawei would have minimal impact on LG Display's business.
