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Huawei may be forced to draw from the outside for the 2021 flagship chip

Huawei may be forced to work with third party OEMs of its 2021 flagship chip. It is based on a new report from the headquarters, citing industry stakeholders. The details posted on the Weibo social network in China do not specify an expected partner. Instead, it shows that Huawei’s in-house unit, HiSilicon, doesn’t work with the 5nm chipset.

The news that you can find a third-party vendor to replace your own development in 2021 should be taken with a grain of salt. But that’s not too surprising. The rest of Huawei’s 2020 flagship device ships with the chip, based on current expectations. This is because Huawei was able to order chip components using TSMC. It continues until September 15, when a US government order suspends sales.

This will leave smartphone makers with enough chips for HiSilicon to complete the next Huawei Mate 40 5nm giraffe chip. The rules in question prevent even overseas companies from supplying components to Huawei. Specifically, if they were created using US technology.

Who will leave to make the 2021 Huawei flagship chip?

The move by the US does not leave much room for Huawei. In fact, for all accounts, even companies with operations outside the United States, such as TSMC, Samsung, MediaTek, and SMIC in China, cannot offer chips. And even if you have a license, you may be allowed, but Qualcomm is a US company. Therefore, Huawei’s 2021 flagship could be completely ruled out as a way to stay competitive.

Qualcomm may continue to work to convince Huawei to use the chip on an interim basis. However, in some cases Samsung or MediaTek may be a viable option. This is based on some reports. Both companies, TSMC, are looking to set up their own production lines that include no US equipment at all. TSMC provides chips for MediaTek, Samsung manufactures its own in-house hardware.

If either company adheres to this, Huawei will have a way to avoid US sanctions.

Huawei doesn’t seem to need grace

Currently, Huawei doesn’t really need any additional assistance. At least that seems to be the case given the company’s current global position. Along with the proliferation of devices, aside the lead maintained by 5G networking technology, Huawei officially occupies its position as the world’s top smartphone maker.

Until then, we started to hire people from chip development and other departments. The ultimate goal is, obviously, to further reduce our dependence on US affiliates. Considering its position in the smartphone market as a whole, that may not be out of the question. Building such a solution requires a lot of work and investment, and Huawei is in the right place for that.

Huawei first bypassed Samsung in April, slightly below its original goal of becoming a top seller. Then, in May, he maintained his position for two months. Spending and refocusing on the tip segment may eventually remove you from the list, but it’s unlikely to stop your business.

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