Huawei has been cut off from its own processors. The company manufactures its chips in TSMC factories, with which it can no longer do business due to the US decision.
To remedy this, the Chinese telecommunications giant is already in talks with many processor suppliers such as MediaTek. It turned out that the strategy of becoming independent by designing your own systems simply failed. The giant should now focus on competitors’ processors.
It is worth adding that the giant has already been cut off from Snapdragon by banning trade with American companies. So MediaTek has become an obvious choice, although the manufacturer can still establish cooperation with Samsung and UNISOC. It is worth emphasizing, however, that the giant has been using MediaTek chips in its smartphones for years. Therefore, it is not surprising that it was the first choice.
According to the latest reports, Huawei’s orders for MediaTek chips have been increased by 300% this year. The Chinese smartphone manufacturer should to use the 5G chipsets of the Taiwanese giant in both mid and high-end smartphones. For comparison, it previously used MediaTek 4G processors only in the segment of cheap or budget devices. The report also adds that MediaTek assesses whether it has sufficient resources to meet Huawei’s requirements. It is worth adding here that Huawei has just yesterday launched the Huawei Enjoy Z 5G. This is the first smartphone that fits into the brand’s new strategy.
MediaTek does not guarantee a permanent supply of chips to Huawei
However, some market sources commented that MediaTek did not guarantee the supply of chips to the Chinese giant. This is because the company would need to make a high investment in machinery and personnel to expand its production capacity.
However, as Huawei is targeted by the U.S. government, MediaTek may end up suffering sanctions or even seeing its investment go down if the Trump administration decides to expand the sanctions.
Huawei is one of the three largest smartphone manufacturers in the world, along with Samsung and Apple. It is capable of independently developing their own mobile processors. But it will take a long time and great effort, and the company will lose its market share in favor of competitors, headed by the Korean company Samsung. In any case, we will see the company’s behavior in the coming weeks.