25 May 2024
What would Huawei do if there were no more chips? 3

What would Huawei do if there were no more chips? 3

Huawei's number one position in smartphones is likely to soon be regained by Samsung, as they cannot ship phones with integrated Kirin chips.

Richard Yu, CEO of Huawei’s consumer electronics segment, admitted that from next month, they will not be able to produce their Kirin chip line due to the US ban.

`Unfortunately, with the second round of US sanctions, our chip manufacturing partners only accept orders until May 15 and the production process of these orders will end on September 15,` he said.

The high-end Huawei Mate 40 phone model, expected to launch in September, may be the last smartphone to integrate the Kirin chip.

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Two years ago, Mr. Yu announced: `In 2019, we will get close to the top position. At least a year later, in 2020, we have a chance to reach number one.`

However, analysts believe that this position will soon collapse because 70% of the company’s sales in the last quarter were sold in China, while the international market decreased by 27% over the same period last year.

More seriously, after last year’s ban, in mid-May, Huawei continued to suffer further pain from Washington.

Huawei founded HiSilicon 16 years ago with the goal of researching and developing smart processors, including the Kirin line for high-end smartphones.

`We are in a difficult situation. Huawei has spent more than 10 years developing chips. This is a big loss for us,` Mr. Yu added.

`Huawei’s smartphone sales may decline sharply in the near future without the Kirin chip,` said Greg Austin, an expert at Singapore’s International Institute for Strategic Studies.

`The majority of Huawei’s smartphones sold in China are high-end models. The shortage of Kirin, the integrated chip line on high-end versions, will seriously affect the company’s revenue and profits,` Jusy Hong,

Huawei is still using MediaTek chips for mid-range and low-cost phone models.

Besides, self-developing chips is Huawei’s top strategy to help them stand firm in the smartphone and other hardware device market.

Chau An (according to SCMP)

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