Can’t escape the ban? MediaTek is persuaded to reduce supplying Huawei

As you know, due to US sanctions, TSMC will soon be unable to cooperate with Huawei and produce Kirin SoC for it. And this means that the Chinese giant urgently needs to find a replacement for them.

And, apparently, MediaTek will become the replacement. Huawei is already actively using the chips of this company, and in the near future, it may even become its largest customer.

Huawei Brazil 5G

However, difficulties may arise. The source said that the US authorities asked the Ministry of Economy of Taiwan to convince MediaTek to reduce the supply of its products for Huawei. How much exactly to reduce is not reported, but the source says just that, and not a complete ban.

The Ministry of Economics of Taiwan itself stated that it had not received any requests from the United States, and MediaTek itself called such rumors baseless. However, given the level of US pressure on Huawei, it cannot be ruled out that the States will try to somehow influence MediaTek.

MediaTek will become Huawei’s largest processor supplier

When it comes to chip development for smartphones, we know that there are very few players in the market. We have the likes of MediaTek, Qualcomm, Huawei, and Samsung monopolizing the market. The flagship models of mobile phone manufacturers generally use Qualcomm processors. Although MediaTek was not satisfied with its low-end advantages and released high-end chips to challenge Qualcomm, it ended in failure.

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MediaTek Dimensity 1000 for 5G smartphones

With the advent of the 5G era, mobile phone hardware is ushering in a round of major reshuffle. MediaTek, which has long been irresistible, finally ushered in its own turnaround. Huawei, Xiaomi, Vivo, and other major mobile phone brands have launched 5G mobile phone products using MediaTek’s Dimensity series.

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According to media reports, thanks to the surge in demand MediaTek’s 5G chip sales, it has added orders to TSMC. The report claims that MediaTek’s Dimensity series chip sale is soaring and the company is increasing its order with TSMC. The increment in orders comes in three waves. It comes with an additional investment of more than 20,000 wafers per month. Furthermore, it covers TSMC’s 7nm and 12nm processes. There is also news that it is preparing for TSMC’s 5nm process production line.

However, a bulk of these orders may be for the 7nm process. This is because the booming TSMC Dimensity series basically use the 7nm process. The layout of 5nm will be the first opportunity for MediaTek to seize the high-end market.

Already, Huawei’s order with TSMC is hitting the roof. Some months ago, there were reports that Huawei purchases with MediaTek have risen by 300%. To this end, MediaTek may become the largest chip supplier for Huawei mobile phones in the second half of the year. In addition, MediaTek’s 5G SoC shipments are expected to increase to 42 million units throughout the year.

Source/VIA :
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  1. Marek eMKejx
    July 13, 2020

    USA will pay to Taiwan goverment and they pay to MediaTek for each cpu?! Wow, USA pay to Brasil goverment to stop hew Brasil primeval forest!

  2. Cyril Dieudonne
    July 13, 2020

    exactly. I hate Huawei for their lame behavior, the bloody source of their components and the way it cooperate lamely with the central governement to rat out people who dare hold up to their opinions. BUT, I also believe the war led by the US against huawei is ridiculous. They should spend more energy to feed their own people, reduce their military footprint and preserve more the environment… rather than invade other countries and force their views anywhere they go. I still wish huawei will disappear. But only in a fair context, not this kind of stupid game.