The US has banned Huawei the production of chips, but is preparing to sell them its

Everything is too confusing in the story that unfolds between Huawei and the US government. The Chinese company just began to “gain weight” and immediately received sanctions. The question is why the sanctions were not introduced earlier. Now, when the Chinese company was banned from producing its processors, Qualcomm, which is already the world leader in the production of processors, became very active, and only Apple and the same Huawei with her Kirin chips. Fresh information regarding the company's plans only confirms the assumption that Qualcomm will benefit the most from bans on Huawei.

The US has banned Huawei the production of chips, but is preparing to sell them its

Soon everyone Huawei can start working on Qualcomm chips.

Which processors will install Huawei

The ban on the production of processors simply cannot but affect the manufacturer of high-tech equipment. And so it happened when the sanctions severely crippled relations Huawei and the largest chip manufacturing plant – TSMC. It is this company that produces chips for the largest market players. Now it cannot fulfill orders of HiSilicone (a subsidiary of Huawei) for the production of Kirin chips, which are installed in smartphones and other equipment with the inscriptions “Huawei” and “Honor ”On the body.

Some supplies still remain, but all of this is within the framework of the completion of cooperation. Huawei just gets the latest shipments from those that had time to order in advance. Naturally, she placed the order with a margin to cover her needs at least for some time in advance, while she was looking for a replacement.

The cessation of the production of chips is due to the fact that now companies that use American technologies in their production cannot work with Huawei. At the same time, the Chinese company still has the opportunity to purchase ready-made chips from third-party manufacturers.

The US has banned Huawei the production of chips, but is preparing to sell them its

Huawei will no longer be able to boast of their chips, but the outputs are increasing every day.

So far, the most likely scenario is cooperation with MediaTek, although its products cannot be called worthy of top-end devices. Some time ago there was information that the Americans were trying to “push” MediaTek to terminate cooperation with Huawei to give way to Qualcomm, but since then there has been no such news.

How Qualcomm Can Supply Chips Huawei

At the moment, we had information from representatives of the management Huawei, according to which the new Huawei Mate 40 will be the last smartphone of the company powered by the Kirin chip. This is bad, since your own developments can be very well optimized to fit your needs, but now we have a continuation of the story.

Recently it became known that Qualcomm is lobbying for its interests in the US government. The company wants to get permission to ship its processors Huawei. In this case, we are talking about any processors, including the most top-end new items with support 5G. Of course, this is not official information from the company's press service, but only data from informants of the Wall Street Journal, but there is no smoke without fire.

The US has banned Huawei the production of chips, but is preparing to sell them its

Qualcomm is also 'friendly' with 5G and can trade it.

Smartphones Huawei on Snapdragon

According to the newspaper, the company's argumentation is obscenely elegant and at the same time uncomplicated. Qualcomm allegedly says trade sanctions against Huawei will not prevent the company from obtaining the necessary parts for its phones 5G. Consequently, this would mean that the American chipmaker will lose up to $ 8 billion a year, which will instead go to its foreign competitors. It's so simple and straightforward.

If Qualcomm is subject to export licensing, but its foreign competitors are not, US government policy will lead to a rapid change in chipset market share 5G in China and beyond, the San Diego-based company said.

So who, then, are these foreign competitors? The US chipmaker says MediaTek and Samsung will be the first to benefit from the ban, according to the Wall Street Journal. Some reports explicitly state that Huawei will seriously turn towards MediaTek in 2020. It should be added that this option is indeed much more realistic than cooperation with Samsung, since the Korean company does not have much experience in shipping its chipsets to third-party manufacturers.

The US has banned Huawei the production of chips, but is preparing to sell them its

I wonder what will start if these companies work together.

Prospects for cooperation Huawei and Qualcomm

However, the successful deal between Huawei and Qualcomm will not be the first time Qualcomm has partnered with a Chinese brand. Before the US trade ban, the company Huawei used the American firm's products extensively in its budget phones. However, the successful flagship chip deal appears to be the first for the two firms. Previously, if this happened, it was only back in 2013 in the Ascend P6.

However, so far there are no guarantees of the conclusion of the deal, since the US government may not approve such cooperation. However, such an outcome would be more pleasant for Huawei, since Qualcomm chips are much better than their counterparts from MediaTek and this would be the lesser evil for the company. Let it be an act of surrender, but in big business there is no place for ideology. There is a lot of money and the fate of the company at stake.

In any case, it is clear that a US trade ban on Huawei could backfire at least one US firm. Now it remains to be seen whether the government will want to help her. One gets the feeling that such an outcome is very likely. Nothing personal just business…

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