The United States has been imposing restrictions on Chinese companies, escalating the US-China trade war. Huawei, the world’s leading telecom equipment maker, has already been banned in the US and several other countries after pressure from the United States.
With Huawei facing issues, it’s South Korean giant Samsung which stands to benefit the most. Verizon, the largest network carrier in the US recently signed a $6.65 billion deal with Samsung Network for the supply of radio equipment and services.
EDITOR’S PICK: China to reportedly take action against Swedish companies if Huawei 5G ban isn’t reversed
Now, as per the latest report coming from South Korea, citing people aware of the development, network carrier Verizon has request Samsung not to use Chinese components for the equipment.
Samsung has been PCB manufactured by Chinese companies SCC and Wus for its network kits, along with South Korean supplier Daeduck Electronics. One of the major reasons for using Chinese vendors is the cost factor.
However, Isu Petasys, a PCB maker in South Korea, is expected to replace Chinese suppliers for Samsung. The company is already a supplier for US-based companies Cisco and Juniper Networks.
As per the report, the South Korean vendors were not keen on becoming a supplier for Samsung given that as the volume of orders tends to be relatively low and the Samsung anyway preferred Chinese firms because of cheaper pricing.
World news – CA – Verizon reportedly asks Samsung not to use Chinese components in its network kits – Gizmochina