In accordance with Canalys, IDC, and Counterpoint, Chinese language producer, Huawei, is presently 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 cannot proceed for now. The reason being apparent, as a result of U.S. ban.
So the very first thing dealing with Huawei just isn’t competitors, however survival. What are Huawei’s choices?
To maintain its cellular phone enterprise working usually, Huawei should buy third-party chips. Nonetheless, the corporate doesn’t have many decisions
Possibility 1. Samsung
This feature just isn’t really an possibility as a result of Samsung is totally dominated out. For starters, there shall 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 as a substitute, however Qualcomm’s precedence shouldn’t be too excessive. After Huawei paid $1.8 billion in “patent charges” to Qualcomm, there are experiences that the 2 are able to do enterprise. Nonetheless, Qualcomm is American and it wants a license from the American authorities. We cannot be too positive that Qualcomm will get the license.
Possibility 3. Ziguang Zhanrui
Little recognized Ziguang Zhanrui is definitely a viable possibility for Huawei however solely as a help to its principal provider. The event of this firm over time has been speedy. In the beginning of this yr, it launched the Tiger Ben T7520 based mostly on the 6nm EUV course of. Subsequently, Ziguang Zhanrui may also grow to be a great selection for Huawei. Nonetheless, the 6nm EUV means 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 (almost definitely)
MediaTek appears to be your best option for Huawei presently. Firstly, the corporate has a protracted and good relationship with phone 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 almost definitely select MediaTek. This yr, MediaTek has received a lot of orders from the Chinese language producer. Presently, its Dimensity 800 sequence SoC is on quite a lot of Huawei and Honor cellphones.
Evidently the cooperation between Huawei and MediaTek is shifting in the direction of a win-win scenario. MediaTek can assist remedy Huawei’s downside of chip provide; Huawei can assist MediaTek improve its market share. Nonetheless, is MediaTek actually dependable for the Chinese language manufacturing big? Listed below are some down factors of utilizing MediaTek
MediaTek’s “down factors”
- MediaTek’s largest downside is that it has by no means been in a position to 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 satisfy Huawei’s wants.
- MediaTek’s Dimensity sequence is sweet however it’s not “king” of flagships. At greatest, it’s nonetheless “king” of the mid-range section.
- MediaTek has not but totally confirmed its reliability
Regardless of these cons, MediaTek appears to be the perfect guess for Huawei presently. Irrespective of which third-party provider Huawei chooses as a substitute, it’s not sufficient to compete in any respect ranges. China badly must develop its chip manufacturing business.