Las restrictions imposed by the United States to the Chinese semiconductor sector that significantly boosted its development.
Huawei is developing in leaps and bounds
Huawei announced the launch of the first processor made in China, with lithography of approximately 7 nanometers, known as Kirin 9000S which will be included in the Mate 60 Pro. These developments have created a tremendous impact on the technology industry.
One of the actors most affected by this situation it will be Qualcomm since, according to the analysis of the expert Ming-Chi Kuo, it may lose a large part of 42 million chips which Huawei plans to acquire in the course of 2023.
This represents a significant increase compared to the 25 million units it acquired last year.
SMIC, key partner
It should be Huawei partnered with SMIC for the production of the Kirin 9000S and has plans to increase processor production using this foundry, as well as others in which it has invested in the past three years.
This is part of their strategy to build a network of autonomous chip production and protect themselves from sanctions imposed by the United States.
In the case of SMIC, although it has a limited number of lithographic scanners For the production of 7 nanometer chips, it is estimated that it will produce approximately fifteen million processors per year.
Qualcomm will be affected
In addition, the company has the ability to use relatively old machinery to make chips for devices. medium or low range mobiles where cutting-edge lithography is not required to the same extent.
However, the new production line of Kirin processors by its subsidiary HiSilicon This will make Huawei shift its chips again to Chinese companies, which prefer them to Qualcomm.
It is expected that Qualcomm may stop supplying between 50 and 60 million processors to Chinese mobile phone manufacturers. This, according to the observation of Ming-Chi Kuo, can cause a reduced prices which has an impact on Qualcomm’s revenue and earnings.
In addition, two other factors are noted to influence its income: the introduction of Exynos 2400 by Samsung and Apple’s decision to make its own. 5G modem chips instead of buying them from Qualcomm.
