MediaTek denies claim that Huawei will purchase TSMC chips through it


MediaTek Helio G70

Yesterday, there was a report that claims that Huawei will purchase TSMC’s chips through MediaTek in a “roundabout manner”. However, such purchases are considered as “misleading investors” and the general public. MediaTek has responded to the report sternly refuting the claims. In fact, the company threatens to take legal action if the originator (Nikkei Asia Review) does not correct the report.

MediaTek Dimensity 1000

MediaTek emphasized that it has always followed the relevant global trade laws and regulations. According to the Taiwanese chip maker, its mobile phone products are all standard products. It also does not have a special case for specific customers.

Huawei is one of three major smartphone manufacturers which is capable of developing its own processors. Huawei’s HiSilicon SoC accounts for 70% – 80% of its smartphones. However, this year the situation will probably change. The Chinese manufacturer is actively looking for Kirin’s alternative. According to reports, the number of Huawei’s order with MediaTek has increased by over 300%.

HUAWEI IS ALSO IN TALKS WITH UNISOC

Huawei is a proactive company and reports claim that it has stocked US key chips. Huawei’s current stock of US key chips can last the company for the next two years. According to reports, Huawei is also negotiating with UNISOC, a subsidiary of Ziguang Group. It hopes to deepen cooperation in the semiconductor field, and it is possible to purchase semiconductor chips from the company.

Furthermore, Japanese companies, Sony and KIOXIA (formerly Toshiba semiconductor memory) will be affected by the new ban on Huawei. For KIOXIA, due to the reduction of the supply for Huawei smartphones, it is worried about its memory demand.

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The Chinese manufacturer has been coping with the U.S. restrictions since the beginning of last year. However, it needs to rebuild a semiconductor procurement system. If it fails to do this, its future production of smartphones and communication base stations may be affected.

For UNISOC, the Huawei situation is a “good thing”. The Chinese chipmaker has been making chips for HiSilicon, however, these are mostly entry-level chips. The company does not have the financial capacity for mid- and high-end chip production. It has also been very difficult to attract customers since only a handful of Chinese phone manufacturers make their own chips. If Huawei finally strikes a deal with UNISOC, it will probably boost the company’s capacity.

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