The Huawei – US situation has definitely changed the way the phone maker thinks about its future. The company does indeed have to deal with lots of limitations due to bans from the US, which means they can’t cooperate with a good number of suppliers and partners around the globe.
Huawei to Use Fewer Samsung Components Due to US Bans.
Now, while Samsung isn’t an US company, it’s quite clear that the South Korean tech giant has very close relations with the North American country. This means that the threat of a ban from the US on Samsung, could push the Asian company to stop cooperating with Huawei.
Whether it’s because of that or simply because Huawei wants to go 100% Chinese components on their devices, the latest reports from South Korean media suggests Huawei will gradually reduce its dependence on Samsung and reduce its acquisition of parts and components in the next five years or so; while supporting more domestic suppliers in China and increasing the proportion of domestic production.
According to information disclosed by Samsung, Huawei is currently Samsung’s fifth-largest customer; just after Apple, Best Buy, Deutsche Telekom, and Verizon.
Huawei mainly purchases memory and storage chips from Samsung, but China has invested heavily in the production of memory and storage in recent years. Companies like Ziguang, Yangtze River Storage, and Changxin Storage have all risen strongly and made good progress. Thus, Korean media believes that Huawei mobile phones will definitely use more domestic memory and flash storage in the future.
Additionally, Korean media suggest that Huawei is ahead of Samsung in 5G technology and price competitiveness. While also challenging Samsung’s Exynos SoC with their Kirin lineup of processors.
Finally, data shows that in the second quarter of this year, Huawei’s market share in the Asia-Pacific semiconductor market was 12.9%; which is almost as much as Samsung’s 13.1%.
So, it’d appear as Huawei is planning to go full Chinese-components in the following years. What do you guys think about the move? Let us know down below!