The South Korean media Chosun Ilbo reported on the evening of September 8 that Samsung Electronics and SK Hynix will stop supplying chips to Huawei on the 15th. The "discontinued supply" also includes memory and mobile AP.

In order to comply with the US Department of Commerce’s series of sanctions against Huawei, the Chosun Ilbo believes that September 14 will be the last day for Samsung and SK Hynix to supply Huawei.

Since May last year, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce has successively issued a number of sanctions technology blockade policies against Huawei, and set September 15 as the effective date of the ban.

On August 17, the U.S. Department of Commerce further tightened restrictions on Huawei’s access to U.S. technology, and included Huawei’s 38 subsidiaries in 21 countries and regions in the “Entity List”, which is subject to all export regulations (EAR) Restricted items all specify license requirements. An official in the South Korean semiconductor industry said: “After the US Department of Commerce’s most stringent ban on Huawei was introduced, the issue of the extent to which semiconductors manufactured by US technology are used has caused considerable confusion in the Korean industry.”

Huawei is an extremely important purchaser of global semiconductors. Last year, the total purchase of semiconductor chips was US$20.8 billion, second only to Apple (US$36.1 billion) and Samsung Electronics (US$33.4 billion).

Samsung and SK Hynix have always been very active partners of Huawei. Huawei accounts for 6% and 15% of the sales of Samsung Electronics Semiconductor Division (DS) and SK Hynix respectively. Therefore, the Korean media assessed that after September 15th, the US Department of Commerce's Huawei ban will have a greater impact on SK Hynix than Samsung.

South Korea's semiconductor industry analyzed that affected by the ban, after September 15th, the global memory price will continue to decline and deteriorate. As of the end of August, the average fixed transaction price of DDR4 8 Gb DRAM, which is mainly used for PCs, was US$3.13, a decrease of 5.44% from June.