South Korean semiconductor manufacturer SK Hynix is currently probing the presence of its chips in Huawei Technologies newest phone, the Mate 60 Pro, following a teardown that unveiled the company’s memory and flash storage integrated into the device. This revelation was reported by TechInsights, a trusted source in the tech industry.
The Mate 60 Pro, developed by Shenzhen-based Huawei, boasts LPDDR5 and NAND flash memory by SK Hynix, marking an unusual instance where materials from outside China were incorporated. Almost all other components within the phone are sourced domestically.
In an official statement provided to Bloomberg News on Thursday, SK Hynix clarified that they have ceased business operations with Huawei Technologies in the wake of US restrictions imposed on the company. Addressing the matter at hand, the statement read, “[we have] initiated an investigation to ascertain further details.” Furthermore, the company emphasized their strict adherence to the export restrictions mandated by the US government.
The circumstances surrounding how Huawei obtained these memory chips for its phone from SK Hynix remain undisclosed. Reports indicate that the Chinese branch of SK Hynix produces between one-third to half of its Dynamic Random Access Memory (DRAM) for the global market.
There is speculation that Huawei may have accumulated these components as early as 2020, prior to the complete implementation of the US trade restrictions. It is worth noting that international suppliers of advanced technology have been under a ban from selling to Huawei since the introduction of the trade curbs, fueled by concerns over potential military applications of the equipment.
As of now, Huawei has not responded to requests for comment regarding the matter. Following SK Hynix’s statement, shares of the company in Seoul initially experienced gains but ultimately closed largely unchanged.
This incident adds to the ongoing scrutiny and complexity surrounding the international trade landscape, as companies navigate intricate regulations and restrictions in a dynamic global market. SK Hynix’s investigation is expected to provide further insight into the intricacies of this situation and how it may impact future trade relations within the technology sector.
Source: Bloomberg