Unlike the operating systems that dominate the smartphone market today as a duo, the processors that ensure their performance are still slightly larger. This market is based on chips manufactured by Qualcomm, Apple, MediaTek and Huawei. In principle, there are others, but they do not have any noticeable share to be taken into account. But these four manufacturers have long divided the industry among themselves, having bitten off a significant piece of the 'pie'. The only pity is that there will be less one player in this market.
This is Yu Chengdong, Head of Consumer Sector Huawei. It was he who confessed that the company would no longer be able to release its chips.
Huawei stops production of Kirin processors, which were installed in the company's branded smartphones. Despite the fact that these chips were designed and developed by engineers Huawei, a third-party company, the Taiwanese TSMC plant, was engaged in their release due to the lack of its own capacities. By the way, it is he who produces A-series processors for iPhone, iPad, Apple TV, HomePod, etc. But if TSMC has no problems with Apple, then the plant can no longer continue to work with Huawei due to tougher US sanctions.
US sanctions against Huawei
Kirin processor production will stop on September 15
Extended sanctions will take effect on September 15, and TSMC, if it does not want to be under US sanctions, will be obliged to end all relations with Huawei. Despite this, until September 14 inclusive, the Taiwanese have every right to produce processors for smartphones Huawei and Honor, which they are now doing. Obviously, TSMC really does not want to lose such a client, and therefore the plant management is trying to get the most out of the last days of official cooperation. Therefore, it was decided to start the round-the-clock production of Kirin processors in order, firstly, to earn as much as possible, and, secondly, to supply Huawei with the maximum possible amount of components.
Now all TSMC's efforts are focused on the release of Kirin 9000 processors. This is the most powerful chip in the line Huawei, which the company plans to equip the flagship Huawei Mate 40, whose release should take place in the near future. True, it is still difficult to say how large a batch of 'stones' will be produced by TSMC, and whether these reserves will be enough for at least a year so that Huawei can equip a new smartphone with them before the next model is released. After all, the company will not be able to resume production even at the facilities MediaTek, which the United States also threatened with sanctions.
Kirin processors
Huawei Mate 40 will be the last smartphone with Kirin processor
Apparently, Huawei does not yet know how to get out of this situation. According to the head of the company's consumer sector, Yu Chengdong, the US sanctions will be a lesson for Huawei because now she will know to develop her own industry first, and not rely on tales of globalization and division of labor. It is sincerely a pity that the management Huawei was so short-sighted, but now it will know exactly what to really pay attention to, even if it seems at first glance unworthy of it, the top manager emphasized.
So what happens? It is certain that Huawei has lost the ability to manufacture their own chips and equip their smartphones with them. Is it forever? Not yet known. On the one hand, it is impossible to bypass the US sanctions, because even MediaTek, fearing the imposition of an economic blockade, refused to cooperate with Huawei. But, on the other hand, the Chinese have long been in talks with Qualcomm, which may agree to supply its processors for smartphones Huawei and Honor, having received a blessing from the US Department of Commerce. And during the respite Huawei, she herself, perhaps, will rebuild her plant, starting to produce branded 'stones' again.