This post was last updated on June 16th, 2020 at 09:41 am
One of the most puzzling questions to answer is the reason why Huawei is being hunted and Samsung isn’t. It is a known fact that the U.S. crackdown on Huawei is still very much in effect. This year, U.S. sanctions on Huawei have been continuously upgraded. Especially in the case of Huawei’s 5G chips. The United States cracked down Huawei’s chips, which led to Huawei’s independent research and development of Kirin. A one would expect, this US directly interferes with Huawei’s chip supply chain, resulting in increased power supply for Huawei’s TSMC chip production.
Recently, Huawei could not provide chip support, and ARM is currently with Huawei to stop Cooperation has led to Huawei’s ability to independently develop chips. Why is Samsung able to go smoothly, and the United States does not worry about Samsung’s strength?
USA Vs Huawei Saga: Huawei is Being Hunted and Samsung isn’t, Why is this so?
As a well-known mobile phone manufacturer, Samsung not only has its own technology but also has strong production strength. It also has independent research and development of chips and has a complete product supply chain.
Now, compared to Huawei, Samsung’s technology is also more mature, so far Samsung’s mobile phone is the best-selling mobile phone, and Samsung’s strength is comparable to Apple.
Surprisingly, the United States does not worry about Samsung’s growth, in fact, this is also related to Samsung’s strength, the United States only hunt or went after Huawei and let Samsung develop. There is surely a reason. Find out below:
1. Reason 1: Samsung and the US Consortium have a Great Relationship
First of all, Samsung and the US consortium have a great relationship, and Samsung is also a US capital holding company. Samsung’s major shareholder can be said to be an important position in the United States, and the relationship between Samsung and the United States is also relatively complicated. Don’t forget that Qualcomm also produce cheap fro many Samsung flagships especial one that is sold to the USA and China
On the contrary, as a Chinese company, Huawei does not have a US shareholding. So, Huawei’s growth will also affect American companies. At the same time, Samsung’s technology is comparatively more mature. Even if it is suppressed, there will be no shortage of chip supply.
Most importantly, the United States happens to have a good relationship with South Korea, so it is also allowed to let Samsung develop. By so doing, the United States will ultimately benefit.
2. Suspected Second Reason: The Rivalry Between Huawei and Qualcomm over 5G Chips
Secondly, when Huawei and Qualcomm are competing, it appeared Huawei has won the patent rights on 5G technology. Understandably, this might not go down well with the US considering the fact that Qualcomm is a USA company.
As of now, Huawei’s 5G technology is very strong if not the strongest. Sadly, the United States does not have mature 5G technology, and it is difficult to develop 5G technology in the meantime.
We can then infer, that the United States does not want to see Huawei’s 5G technology continue to develop, so it has to interfere with Huawei’s chip supply chain.
This is working great because Huawei’s current technology is still not mature, so the United States can only sanction Huawei during this period. However, once the technology becomes mature, tested, and trusted like that of Samsung, it might become very difficult for the United States to squeeze Huawei.
Final Thoughts on Why Huawei is Being Hunted and Samsung Isn’t
In general, Huawei and Samsung are independent chip manufacturers. But, Huawei started late, so many technical aspects still need to rely on foreign companies. Apart from this, Huawei’s current 5G technology is also targeted.
Therefore, Huawei’s current situation is more difficult, but the suppression of Huawei by the United States is maybe short-lived.