MediaTek Dimensity 1000 for 5G smartphones

Huawei's Order at MediaTek Increases Over 300%

Huawei is one of three major smartphone manufacturers that are able to develop their own processors. The HiSilicon SoC from Huawei makes up 70% – 80% of its smartphones. However, the situation is likely to change this year. Huawei is actively looking for Kirin's alternative. Huawei's orders to MediaTek have been reported to have increased by over 300%.

Huawei typically works with third-party cell phone chip vendors, but the purchase isn't large. The number of chips bought by Huawei this year will increase significantly, especially when ordering from MediaTek. Remember that MediaTek is second only to Qualcomm worldwide.

MediaTek assesses its capacity.

With the large orders from Huawei, MediaTek is also weighing up its capacity. The Taiwanese chip maker is currently reviewing whether it has sufficient resources to meet Huawei's requirements. MediaTek chips will not only increase with the purchase volume, but also with mid to high-end cell phones. In the past, Huawei used MediaTek chips only for low and mid-end 4G cell phones. This year a large number of 5G chips in the medium to high price range can be bought.

MediaTek has responded to rumors that Huawei has bought its 5G chips. MediaTek said that it has good long-term cooperation with many Chinese mobile phone manufacturers. Although it has not been said that Huawei has made purchases, the company is open to doing business with Huawei.

While Huawei places orders with TSMC, it also relies on SMIC to manufacture some of its low-end chips. Although there is a gap between SMIC and TSMC, the former has made significant progress in the 10 nm / 7 nm process. SMIC's N + 1 process is slightly behind TSMC's 7 nm in terms of performance sold out in the fourth quarter of 2020. Even if TSMC really cuts Huawei's supply, we believe that SMIC and possibly Foxconn can help Huawei overcome the difficulties.

In addition to TSMC, Foxconn (another Taiwanese company) is ready to take orders from Huawei. Remember that Foxconn canceled all Huawei orders after the ban last year. Foxconn founder Guo Taiming now said the company is open to working with Huawei and other Chinese companies.

Why are the US after Huawei?

It is now very obvious that the US government is trying to do this. It is difficult to cut Huawei's supply chain. However, natural minds will always ask the question: "Why are the US after Huawei?" A popular answer will be "because it is controlled by the Chinese government". Even if Huawei is owned by the Chinese government, is it a crime? Huawei was banned from participating in the US network construction. In fact, it doesn't sell its smartphones or other devices in the U.S. The question now is: "Why does Huawei urgently need to collapse?"

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