The chip cant be sold to Huawei

category:Finance
 The chip cant be sold to Huawei


The company told U.S. policy makers that their export ban would not prevent Huawei from acquiring the necessary components, but would cede its $8 billion a year market to its overseas competitors, the report quoted a Qualcomm briefing as saying.

Such a warning is not groundless. According to the U.S. governments ban, Huawei will not be able to obtain high-precision chip OEM products provided by TSMC and Samsung Electronics after September 15. This means that Huawei will be stagnant in acquiring chips below 28nm, and Huawei needs to maintain the operation of its mobile phone product line by increasing external chip procurement.

Qualcomm said the restriction inadvertently creates huge money making opportunities for its two overseas competitors.

The two competitors referred to by Qualcomm are MediaTek and Samsung Electronics. As far as the high status of the US government is concerned, it will be unacceptable for the US government to take such measures.

According to the report, Qualcomm believes that the license to deal with Huawei will bring billions of dollars in revenue and help fund the development of new technologies. On the contrary, it not only makes its overseas competitors cheaper, but also has little impact on Huawei, which can purchase from other places.

Picture / visual China

Jiang junmu said that according to the current technological capabilities of Chinas chip manufacturing enterprises, the most advanced foundry can produce 14 nanometer chips, but this is still at least two generations behind the international top level. Yu Chengdong also admitted in his speech on the 7th that Chinas core technology and core ecological control capability, especially the lowest level materials and manufacturing equipment, are still lagging behind those of the United States, Japan and Europe. Chinas chips and core devices have made rapid progress, but there are still some gaps compared with the United States and South Korea. Yu Chengdong also mentioned Huaweis path to solve the problem: Huawei wants to make breakthroughs in EDA design and technology, materials, manufacturing, process, design capability, packaging and testing, etc. we need to build the core competence of the industry, and we should go down to the root and make breakthroughs upward.

In the face of huge market vacancy, Qualcomm is not indifferent. In the early morning 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 of this year, which means that the two former rivals have reached a settlement in the field of patent licensing. According to media analysis, the settlement not only solves the patent licensing problem between Huawei and Qualcomm, but also means that Qualcomm allows Huawei to adopt its own technologies and chips.

While Chinese enterprises are determined to build a more complete semiconductor industry chain, American semiconductor enterprises are also striving for as many trade opportunities as possible with China. According to the global times and the Wall Street Journal, in addition to Qualcomm, other US chip manufacturers and designers are also actively applying for permission to cooperate with China, including Intel, the largest chip company in the United States, micron technology, a semiconductor memory product manufacturer, and Xilinx, a programmable chip supplier. The report said that some enterprises have obtained a certain degree of permission from the White House.

Jiang junmu said that in the semiconductor industry, China had the idea of making is better than buying. If only from the perspective of global division of labor and cooperation, if we want to integrate into the global system, there must be trade-offs. This idea is also understandable. However, in the case of the United States anti globalization and breaking the global division of labor, other countries will certainly endanger themselves and try their best to divide some labor In order to reduce the risk of being sanctioned, the trump administration is killing itself.

Photo / Xinhua News Agency

Qualcomm worries about MediaTek as a winner

According to the market data recently released by International Data Corporation (IDC), Huawei Hisilicon still occupies more than half of the market share in Chinas 5g mobile phone market in the second quarter of 2020, followed by MediaTek and Samsung.

It has been reported that Huawei has recently ordered 120 million chips from MediaTek, which accounts for two-thirds of Huaweis annual demand for mobile phone chips. Among the mobile phones released this year, six of them have used MediaTek chips. If we take Huaweis forecast of 180 million mobile phone shipments in a single year in recent years, the market share of MediaTek will exceed two-thirds, far better than that of Qualcomm. However, neither MediaTek nor Huawei gave a response to the news.

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.

Previously, MediaTek mainly supplied medium and low-end products in Huaweis supply chain. As early as January, mediate 5gsoc Tianji 800 chip launched by MediaTek won a large number of orders from Huawei. Since the second quarter of 2020, Huawei has increased the purchase of 5gsoc Tianji 800 chips to produce its Changxiang and glory series of mobile phones, according to DIGITIMES research. Up to now, Huawei has become the mobile phone manufacturer with the highest volume of 5g chips of MediaTek Tianji 800 series.

Mate40 or out of print with high-end Kirin chip

On August 7, Yu Chengdong, CEO of Huaweis consumer business, said at the 2020 summit of Chinas 100 peoples Conference on information technology, a new generation of flagship aircraft, mate 40, will be launched this autumn, which will carry Huaweis own Kirin chip.

Its a pity that [the Kirin chip on mate 40] may be the last generation of Huaweis own production, he added. 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 did not participate. After September 15, the flagship chip could not be produced. This is a very big loss for us. At the same time, Huawei is making efforts in many fields of the industrial chain to break through. For example, Huawei has also increased investment in terminal devices. Yu Chengdong said, now we are entering the third generation semiconductor era from the second generation semiconductor, and hope to achieve the leading position in a new era. Huawei is investing in multiple devices of the terminal. Huawei has also driven the growth of a number of Chinese enterprises and companies, including radio frequency and so on, to the high-end manufacturing industry. Source: Yang Bin, editor in charge of economic report in the 21st century_ NF4368

Its a pity that [the Kirin chip on mate 40] may be the last generation of Huaweis own production, he added. 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 did not participate. After September 15, the flagship chip could not be produced. This is a very big loss for us.

At the same time, Huawei is making efforts in many fields of the industrial chain to break through.

For example, Huawei has also increased investment in terminal devices. Yu Chengdong said, now we are entering the third generation semiconductor era from the second generation semiconductor, and hope to achieve the leading position in a new era. Huawei is investing in multiple devices of the terminal. Huawei has also driven the growth of a number of Chinese enterprises and companies, including radio frequency and so on, to the high-end manufacturing industry.