Qualcomm is allegedly aiming to sell its Snapdragon processors to Huawei, in order to replace Kirin chips. Huawei has announced that it will halt the production of Kirin chips starting on September 15.
The company was hit hard by the US ban in this regard as well. The US basically prevented Huawei from manufacturing its Kirin processors as part of a deal with TSMC. Therefore, Huawei has to halt production, at least for the time being.
SMIC was supposed to take care of the production, but analysts were doubtful that will happen. SMIC allegedly does not have the expertise to do that, nor does it have the ability to meet demand.
Qualcomm wants to sell its Snapdragon processors to Huawei, to replace Kirin SoCs
Qualcomm apparently sees its chance here, as it will allegedly try to sell Snapdragon chips to Huawei, in order to replace Kirin ones. The company will try to persuade the US government to let it sell its chips to Huawei.
Qualcomm will need a license from the US government in order to do so, based on the new rule. If it gets that permission, Huawei will have a solution for its current issues.
This is definitely not good for market competition, though. HiSilicon, the manufacturer of Kirin chips, was one of the biggest players in the industry. That is Huawei’s sub-brand, by the way.
This way, Qualcomm is by far the main player, and its competitor has been removed from the map. Samsung’s Exynos chips are also in the game, as are Apple’s, but… that’s not enough.
Qualcomm is the company that sells its chips to everyone, pretty much. Apple’s chips are made for its device exclusively, while Samsung uses its Exynos processors almost exclusively. It did sell some of them a couple of times, but that’s pretty much it.
It is worth noting that HiSlicion overtook Qualcomm as the number one chip supplier in China, earlier this year. This happened after the initial US ban.
That’s a huge market for Qualcomm to claim
Qualcomm is eager to sell its 5G-enabled SoCs to Huawei, it seems. The company claims that the market is worth as much as $8 billion annually. We presume that Qualcomm was talking about China.
Considering that the Trump administration wants to improve America’s technological competitiveness, Qualcomm may yet get this permission. The question is, will Huawei want to do business with Qualcomm.
Well, Huawei may not have other options, to be quite honest. The company has been put in a very tight spot, and it needs to find a solution for its huge chip problem.