In line with Canalys, IDC, and Counterpoint, Chinese language producer, Huawei, is at the moment the world’s highest smartphone model i.e. for the second quarter of 2020. That is fairly fascinating contemplating all of the hurdles that the corporate needed to scale. That is additionally the primary time that Huawei is surpassing Samsung because the world’s largest smartphone model. Nonetheless, can Huawei stay on the throne?
As a result of in depth use of American expertise and tools, after September 2020, TSMC and SMIC can not produce chips for Huawei HiSilicon. Huawei’s client enterprise CEO, Yu Chengdong, has since confirmed that Huawei’s flagship Kirin chip can’t proceed for now. The reason being apparent, because of the U.S. ban.
So the very first thing dealing with Huawei will not be competitors, however survival. What are Huawei’s choices?
To maintain its cell phone enterprise working usually, Huawei should buy third-party chips. Nonetheless, the corporate doesn’t have many decisions
Possibility 1. Samsung
This selection will not be really an possibility as a result of Samsung is totally dominated out. For starters, there can be a battle of curiosity as they’re rivals. Secondly, Samsung’s chip manufacturing adopts the IDM mannequin, and its flagship course of issues continuously happen. This has led to the switch of Qualcomm’s 5nm orders to TSMC.
Possibility 2. Qualcomm
Huawei can use Qualcomm chips instead, however Qualcomm’s precedence shouldn’t be too excessive. After Huawei paid $1.8 billion in “patent fees” to Qualcomm, there are reviews that the 2 are able to do enterprise. Nonetheless, Qualcomm is American and it wants a license from the American authorities. We can’t be too positive that Qualcomm will get the license.
Possibility 3. Ziguang Zhanrui
Little identified Ziguang Zhanrui is definitely a viable possibility for Huawei however solely as a help to its principal provider. The event of this firm through the years has been fast. At first of this yr, it launched the Tiger Ben T7520 primarily based on the 6nm EUV course of. Subsequently, Ziguang Zhanrui also can grow to be a really perfect alternative for Huawei. Nonetheless, the 6nm EUV strategy of Ziguang Zhanrui nonetheless wants TSMC foundry. The extra mature 6nm will arrive after 5nm mass manufacturing, and the uncertainty on this course of is comparatively excessive.
Possibility 4. MediaTek (more than likely)
MediaTek appears to be the only option for Huawei presently. Firstly, the corporate has an extended and good relationship with cellphone producers in mainland China. Additionally, MediaTek is a Taiwanese enterprise, so inserting orders with TSMC is not going to be too tough. Relative to Qualcomm and Ziguang Zhanrui, Huawei will more than likely select MediaTek. This yr, MediaTek has gained a lot of orders from the Chinese language producer. Presently, its Dimensity 800 sequence SoC is on quite a lot of Huawei and Honor cell phones.
It appears that evidently the cooperation between Huawei and MediaTek is shifting in the direction of a win-win scenario. MediaTek may also help resolve Huawei’s downside of chip provide; Huawei may also help MediaTek enhance its market share. Nonetheless, is MediaTek actually dependable for the Chinese language manufacturing large? Listed here are some down factors of utilizing MediaTek
MediaTek’s “down points”
- MediaTek’s largest downside is that it has by no means been capable of efficiently tear off the “low-end” label. Which means that even when Huawei chooses MediaTek, its high-end sequence will proceed to undergo.
- MediaTek will take orders from different long-standing producers. Which means that it might not have the capability to fulfill Huawei’s wants.
- MediaTek’s Dimensity sequence is sweet however it isn’t “king” of flagships. At greatest, it’s nonetheless “king” of the mid-range phase.
- MediaTek has not but absolutely confirmed its reliability
Regardless of these cons, MediaTek appears to be the most effective guess for Huawei presently. Irrespective of which third-party provider Huawei chooses instead, it isn’t sufficient to compete in any respect ranges. China badly must develop its chip manufacturing trade.