South Korean Chipmaker Investigates Inclusion of Memory Chips in Huawei Device: What Does This Mean For The Stock?

Benzinga

SK Hynix, a South Korean chipmaker, is investigating how two of its memory chips ended up in Huawei's Mate 60 Pro smartphone, causing a drop in Hynix's shares. The discovery has raised questions about potential violations of export restrictions. Hynix has stated that it no longer does business with Huawei due to US restrictions on the company. TechInsights is examining the Mate 60 Pro and has found that most of its components are from Chinese suppliers, but there may be more components subject to US trade sanctions. The situation has prompted two US congressmen to call for further technological export restrictions to Chinese companies. Huawei and SMIC have not commented on the matter.

Transcript

00:00 It's Benzinga and here's what's on the block.

00:02 SK Hynix, a South Korean chipmaker, is investigating how two of its memory chips ended up in Huawei's

00:07 Mate 60 Pro smartphone, causing a drop in Hynix's shares.

00:11 Discovery has raised questions about potential violations of export restrictions.

00:15 Hynix has stated that it no longer does business with Huawei due to US restrictions on the

00:18 company.

00:19 Tech Insights is examining the Mate 60 Pro and has found that most of its components

00:23 are from Chinese suppliers, but there may be more components subject to US trade sanctions.

00:27 The situation has prompted two US congressmen to call for further restrictions on technology

00:31 exports to Chinese companies.

00:32 For all things money, visit Benzinga.com.

00:34 [BLANK_AUDIO]

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