Huawei has its sights set on South Korea

Huawei has its sights set on South Korea








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On the grounds that it is under the control of the Chinese state and poses a threat to national security Huawei has been oppressed under US embargoes for years. Although the company tries to survive despite everything, current technologies allow it to a certain extent.

Huawei reached out to South Korea

It can be said that embargoes broke Huawei’s back, especially in the field of chip production. Although Chinese SMIC can produce up to the 5nm process, doing so with the older DUV process, not EUV, also affects efficiency. In this regard, Huawei cannot produce effective chips. In addition, chips from Chinese memory manufacturers also suffer from the same inefficiency problem.

Sources claim that Huawei is negotiating with South Korean manufacturers to re-establish business relations. These companies are Samsung and SK Hynix. No progress has been made yet, but Huawei wants to shape its policies according to the new era, especially with the Trump administration taking office. The sale of older production chips that will not be subject to embargo may be on the table.

Before the embargo, there was a chip trade of $10 billion between South Korea and Huawei. Embargoes have hit not only Huawei but also South Korean manufacturers. It is a matter of curiosity how South Korean manufacturers will approach these negotiations.















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