<Anchor> With the
US-China conflict intensifying, additional sanctions announced by the US against Huawei, a Chinese IT company, will begin next week.
Korean companies that have exported semiconductors to Huawei are inevitably affected.
The labor regulations are strict.
<Reporter>
Additional sanctions announced by the US last month prevented products with US semiconductor technology from being sold to Huawei in any form without US approval.
[Wilbur Ross / United States Secretary of Commerce (Fox Business): (add 17 August sanctions, Huawei) will fill a very indirect and loopholes May sanctions demanding approach could approach the US technology maliciously]
Huawei Samsung Electronics and SK Hynix, which have supplied memory semiconductors for smartphones, will also stop trading on the 15th.
Huawei's share of Samsung Electronics and SK Hynix sales is about 3% and 11%, respectively, even though the sanctions are announced, sales of close to 10 trillion won are inevitable.
Both companies, in a hurry, asked the US government to approve the Huawei deal, but it is unclear whether it will be accepted.
Display companies such as Samsung and LG, which have supplied smartphone panels with semiconductor technology to Huawei, will also stop exporting.
[Kim Yang-Peng/Professional Fellow, Industrial Research Institute: At first, semiconductors were developed in the United States, and there is no such thing as a semiconductor that does not include US technology or equipment.]
There is a prospect that there will be no significant impact in the long term.
If Huawei faces difficulties in producing smartphones and 5G equipment due to US sanctions, we may also expect a return on profit.
However, in the case of smartphones, there are more expectations that Chinese low-cost brands such as Opona Vivo will replace Huawei's vacancy.
(Video editing: Jeon Min-gyu)