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South Korean memory chipmakers are expected to feel the pinch of additional US sanctions that ban the supply of semiconductors made with US equipment, software, and design to Huawei Technologies Co without prior US approval.
US technologies are utilized in almost all aspects of chip production.
The ban, which takes effect Tuesday next week, prompts Samsung Electronics and SK hynix Inc. to stop shipments to the Chinese company.
Samsung counts Huawei as among its top five customers, while SK hynix depends on the Chinese firm for around 10 percent of its sales.
The sanctions are expected to negatively impact Samsung Electronics, SK hynix, and other industry players over the short term, but experts believe it would unlikely to have a big long-term impact.
An industry observer said there's still a chance for Korean firms to sell such products by winning US approval.
Samsung Electronics could also benefit from the US sanction, as it may widen its gap with Huawei in the smartphone market and be able to catch up in the 5G sector.
The US cited national security concerns for the sanctions.
