Huawei will expand the proportion of outsourcing chips, and the 5g chips of Qualcomm will be introduced as soon as next year

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 Huawei will expand the proportion of outsourcing chips, and the 5g chips of Qualcomm will be introduced as soon as next year


Huaweis stop on the high-end chip track of 5g mobile phones will undoubtedly expand the market opportunities of other chip companies. MediaTek and Samsung are regarded as the chip companies most likely to accept the new orders of Huawei mobile phones.

On the evening of August 7, the side of MediaTek told the first finance and economics reporter that there would be more high-end chips to be launched by the end of the year and next year, but it was not convenient to comment on the relevant information of a single customer. At present, MediaTek can take orders from Huawei.

Prior to this, Samsung insiders also told reporters that the market changes caused by Huawei had become one of the important topics in the internal meeting of Samsung Electronics. On how to expand the customer base, improve the technical competitiveness and so on. The person said.

The positive attitude of its competitors has made the worlds largest U.S. chip manufacturer into a passive position. Although it has previously reached a patent license with Huawei, it is still unable to undertake Huaweis 5g mobile phone orders. It is reported that Qualcomm is actively lobbying the U.S. government to lift the restrictions on the sale of parts to China, otherwise it will bring market orders of up to $8 billion for other competitors.

The company did not directly respond to the news, but in a previous earnings call, CEO Steve molenkopf said that the company was working hard to find out how to sell products to every OEM, including Huawei.

Huawei will expand the proportion of purchased chips

Due to the sanctions of the United States, Huaweis Kirin series chips, which lead the world in the world, cant be manufactured after September 15, which will become a masterpiece. This is really a great loss. Its a pity! Yu Chengdong, CEO of Huaweis consumer business, said at the 100 peoples meeting of Chinas informatization, that the Kirin 9000 chip used by mate 40 is likely to become the last generation of Kirin high-end chips.

(Kirin chip on mate40) may be the last generation of Huaweis own production, which is a pity. Huawei has been developing in the field of chip for more than ten years. From serious backwardness to a little behind, to catching up with and then to leading, with this huge R & D investment, the process is very difficult. However, in the field of heavy assets such as chip manufacturing, Huawei has not participated in the production of flagship chips, which is a great loss to us. Yu Chengdong stressed to the first financial reporter that Kirins high-end chips have become out of print and cannot be produced in the future.

Yu Chengdong said that after the U.S. sanctions last year, Huawei delivered less than 60 million smartphones, but in the first half of this year, Huaweis consumer business smartphone market share in the second quarter ranked first in the world. Under the new round of sanctions, Huaweis chips have been out of stock. He predicted that this years shipment data will be less than 240 million.

Affected by the U.S. governments ban on Huawei, TSMC has not accepted any orders from Huawei since May 15, and will stop supplying Huawei after September 14. This means that Huawei needs to maintain the operation of its mobile phone product line by increasing external chip procurement.

Chinas mobile phone chairman Xu Zhijun, who is chairman of HUAWEIs rotating board, told reporters this year that even if he was banned from the upstream chip, HUAWEI could also produce chips from Samsung, Taiwan, China and Chinas chip sales. Even if HUAWEI had made a sacrifice because it could not produce chips for a long time, it believed that there would be many chip enterprises in Chinese mainland. Get up. Huawei can also develop and produce chips from chip manufacturers in South Korea, Japan, Europe and Taiwan.

The first finance reporter confirmed from several internal sales personnel of Qualcomm and MediaTek that Huawei will start using two sets of processor solutions from mate 40 as soon as possible, among which MediaTek and Samsung may be the alternative.

Huaweis stock of 5g chip Kirin 9000 can support the high configuration version of mate40, but Huaweis shipping volume of flagship series is usually more than 10 million, and the stock volume of Kirin high-level series is between 8 million and 9 million. In the Standard Version, Huawei is likely to adopt the outsourcing scheme. An insider of a chip manufacturer told reporters that Huawei has stepped up its procurement of Lianfa chips in the market since May, even hoarding at a price of $10 per chip.

Three weeks ago, Huawei updated the latest flagship mobile phone chip roadmap for Chinese customers, and many specifications were led by MediaTek. The insider told reporters.

The internal staff of undad said that they could not disclose any details to reporters on the basis of signing a confidentiality agreement. However, it has been reported that Huawei recently ordered 120 million chips from MediaTek, and six of the mobile phones released this year all use the chips.

Qualcomm 5g chip will enter Huawei as soon as next year

At present, the main competitors of 5g chip platform are Hisilicon, Qualcomm, MediaTek of Huawei and SamSung of South Korea.

According to the market data recently released by IDC, in the competition of chip platforms in 5g mobile phone market in the second quarter of 2020, Huawei Hisilicon still occupied more than half of the market share, while Qualcomm firmly occupied the second place. In the second quarter, Lianfa technology quickly obtained market share through a series of cheap 5gsoc, and Samsung also occupied a place in the domestic 5g market with its deep cooperation with vivo. In the second half of the year, with the introduction of more affordable 5g platforms, chip suppliers will become the core drivers of 5g popularization in the domestic market, and their competition is bound to be more intense.

Huaweis choice may further affect the competitive pattern of 5g chip market.

In terms of outsourcing chip solutions, the industry believes that Samsung had previously cut off supply to Huawei on the screen, making the cooperation between the two sides cautious. In addition, although it is reported that Samsung and Huawei are discussing a big deal, Samsung may be able to make advanced chips for Huaweis 5g equipment in the near future, but the process is very difficult.

Samsung insiders told reporters, at the previous internal meeting, Li zaireng, vice president of Samsung Electronics, heard an introduction to the possible favorable and adverse effects of Samsung Electronicss expansion of market share after Huaweis sanctions resulted in the loss of orders of TSMC, the number one in the wafer market, and how to expand the customer base and improve the technical competitiveness How to improve the market share of Samsung Electronics in the wafer market is discussed. However, the meeting on the same day mainly focused on listening to the situation on the front line, and Li Zairong himself did not make any statement on the spot. The insider told reporters.

The cooperation between Huawei and Qualcomm is more complicated.

Fang Jing, chief analyst of Cinda securities electronics industry, said that the revenue composition of Qualcomm includes QCT (chip business) and QTL (patent business). With its patent advantages in CDMA and other code division multiple access (CDMA) underlying protocols, the company has long collected patents from mobile phone manufacturers. In fiscal year 2019, the revenue of Qualcomms QTL business reached 4.59 billion US dollars. Huaweis patent accumulation is also rapidly following up. As a result, Huawei will no longer pay the Qualcomm patent fee since April 2017, and the two companies have been at loggerheads since then. According to the data statistics, since then, the share of Qualcomm processors in Huawei has rapidly declined from 40% to low single digits.

Due to the U.S. ban, Qualcomm cannot cooperate with Huawei on 5g chips. But in the early hours of July 30, Qualcomm announced that it had signed a long-term patent license agreement with Huawei and would receive a $1.8 billion retroactive payment in the fourth quarter. Affected by the news, Qualcomm rose more than 10% after the U.S. stock closed.

Fang Jing said that at present, Qualcomm has settled the licensing dispute with Huawei, which means that the company and Huawei have reached a settlement, and in the future, Qualcomm will have the opportunity to return to the ranks of Huaweis 5g main suppliers. In the early stage, Qualcomm has submitted a license application for Huawei to the U.S. government. At present, the company has settled with Huawei, and it is expected that the application will also pass.

An ODM manufacturer told reporters that at present, Qualcomm is actively promoting the cooperation between Huawei and the U.S. government, and has gradually established cooperation with Huawei in 4G chips, mainly undertaken by Huawei Xian Research Institute. If the lobbying is successful, the 5g chips of Qualcomm will enter Huawei as soon as six months later.

It appears that undk has been the biggest beneficiary of this round of markets. Two days after news of a new US ban on May 16, MediaTeks share price soared 12%. In the latest financial forecast, MediaTek forecasts that the third quarter revenue will increase by 30% month on month, far exceeding market expectations. However, although Huawei currently mainly selects MediaTek as the candidate of Hisilicon, there is still a gap in the speed and image processing fields of MediaTeks processors in the industry. The recently released Android model, iqooz1, which uses MediaTeks top-end 5gsoc Tianji 1000 +, is priced from 2198 yuan, which is still far from supporting Huaweis high-end flagship model. However, according to insiders of Qualcomm, the in-depth cooperation between Huawei and MediaTek will promote the companys ability in flagship chips. With the launch of medium and low-end mobile phones in the second half of the year, the share of mediate and mediate devices will further increase. For Qualcomm, this is something that we do not want to see. Source: Wang Fengzhi, editor in charge of the first finance and Economics_ NT2541

It appears that undk has been the biggest beneficiary of this round of markets. Two days after news of a new US ban on May 16, MediaTeks share price soared 12%. In the latest financial forecast, MediaTek forecasts that the third quarter revenue will increase by 30% month on month, far exceeding market expectations.

However, although Huawei currently mainly selects MediaTek as the candidate of Hisilicon, there is still a gap in the speed and image processing fields of MediaTeks processors in the industry. The recently released Android model, iqooz1, which uses MediaTeks top-end 5gsoc Tianji 1000 +, is priced from 2198 yuan, which is still far from supporting Huaweis high-end flagship model.

However, according to insiders of Qualcomm, the in-depth cooperation between Huawei and MediaTek will promote the companys ability in flagship chips. With the launch of medium and low-end mobile phones in the second half of the year, the share of mediate and mediate devices will further increase. For Qualcomm, this is something that we do not want to see.