Top IT companies in the U.S. are joining Google in cutting ties with Huawei amid the Trump administration's crackdown on Chinese tech companies.
Bloomberg reported on Sunday that major semiconductor firms such as Intel and Qualcomm have told their employees that they will not supply Huawei 'til further notice.
Analysts predict that this will hurt Huawei, the world's number 2 smartphone vendor, because it is heavily dependent on U.S. chips.
And Reuters reported earlier the same day that Google has suspended all business with Huawei that requires the transfer of hardware and software products except those covered by open source licenses.
This is a fresh blow to the Chinese company, because it relies on Google for many services, including the Android operating system, the Google Play app store and popular applications like YouTube.
This all comes after the Trump administration added Huawei and its affiliates to a trade blacklist last week, enacting restrictions that will make it difficult for the Chinese company to buy parts and components from U.S. firms.
So how will this affect companies here in Korea?
On the semiconductor front, some say it might have a positive effect for small and mid-sized chipmakers since they'll have a chance to reach out to China.
Experts in the field explained that there will be effects both good and bad.
"For smartphones, it might actually be good news. Because Huawei will be limited in using U.S. technology, this means that there is going to be a lot of technology that Huawei cannot use that Samsung or LG can use. There were some worries that Huawei may overtake Samsung but it looks like Samsung may keep its position."
"Many 'finished products,' such as smartphones and electronics, are exported to the U.S. from China. If Korean companies provide the parts that go inside them, their exports will be negatively affected."
Asked what local companies can do amid the escalating tensions, experts recommend that firms reach out to new export destinations other than the U.S. and China.
Ko Roon-hee, Arirang News.