Samsung Electronics Co Ltd’s display unit has applied for an export licence to continue supplying Huawei Technologies Co Ltd ahead of U.S. export restrictions taking effect next week, an industry source said on Thursday.

Samsung Display, which counts Samsung Electronics and Apple Inc as major customers for organic light emitting diode (OLED) display screens, declined to comment.

 LG Display Co Ltd, a cross-town rival of Samsung Display said in a statement on Wednesday that the U.S. sanctions on Huawei would have little effect on the company given its limited panel shipments to the Chinese telecom equipment maker.

The United States further tightened restrictions on Huawei in August, banning suppliers from selling it chips made using U.S. technology without a special licence.

According to industry sources on Wednesday, Memory chipmakers, including Samsung Electronics, will feel the pinch of additional US sanctions on Chinese telecom giant Huawei Technologies that take effect next week.

The new sanctions of the U.S. Commerce Department’s actions expand restrictions announced in May aimed at preventing Huawei from obtaining semiconductors made with US equipment, software and design without prior approval from Washington, are set to become effective from next Tuesday, Yonhap news agency reported.

This ban will hit the shipments of Samsung Electronics, the world’s top memory chip maker, SK hynix Inc. because Huawei is known as one of Samsung’s top five customers, SK hynix reportedly depends on Huawei for some 10 per cent of its sales.

Source also confirmed that most other global players will virtually stop shipments to the Chinese company next week. The analyst also said Samsung Electronics could benefit from the US move, as it may come as an opportunity to widen its gap with Huawei in the smartphone market and play catch-up with the Chinese firm in the 5G sector.

However, It seems the Samsung Electronics Co Ltd’s display unit have other thoughts has it applied for an export licence to continue supplying Huawei Technologies Co Ltd ahead of U.S. export restrictions.

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