Huawei will stop purchasing Qualcomm chips: new models will fully adopt its own developed Kirin processor

Tech 2023-10-06 13:24:40 Source: Network

Huawei to Stop Purchasing Qualcomm Chips: New Models Fully Adopts Its Own Developed New Kirin Processor.mp34:52From Xiaomei to See the WorldChallenges and Changes: Huawei's Qilin 9000S and Qualcomm Chip OrdersOn October 4th, with the release of Huawei's latest Kirin 9000S chip, the global technology community once again turned its attention to this Chinese giant

Huawei to Stop Purchasing Qualcomm Chips: New Models Fully Adopts Its Own Developed New Kirin Processor.mp34:52

From Xiaomei to See the World

Challenges and Changes: Huawei's Qilin 9000S and Qualcomm Chip Orders

On October 4th, with the release of Huawei's latest Kirin 9000S chip, the global technology community once again turned its attention to this Chinese giant. Huawei announced that starting from 2024, it will stop purchasing Qualcomm chips, and the new models will fully adopt its own designed new Kirin processors. This decision will have a profound impact on Qualcomm and trigger a rethink of the global chip market landscape.

The Logic behind Huawei's Qualcomm Orders and Autonomous Chips

Recently, according to the latest survey report by Guo Mingyi, an analyst at Tianfeng International Securities, Huawei Group purchased over 250 million mobile SoC chips from chip giant Qualcomm in 2022 and 2023, becoming one of Qualcomm's important partners. This collaboration provides Huawei with key chip support to maintain competitiveness in the global smartphone market.

However, it is noteworthy that starting from 2024, Huawei will completely switch to its own designed Kirin processor, which means Qualcomm will lose this huge order from Huawei. According to analysis, Qualcomm expects to reduce its SoC shipments to Chinese mobile phone brands by at least 50-60 million units in 2024, which will not only have a significant impact on Qualcomm's performance but also bring more competitive opportunities to local Chinese brands.

The challenges faced by Qualcomm cannot be underestimated. After losing this huge order from Huawei, Qualcomm will have to actively seek new market opportunities, especially in the context of fierce competition in the global smartphone market. Analysts pointed out that Qualcomm may increase investment in other areas, such as 5G base stations, the Internet of Things, and automobiles, to reduce its dependence on the mobile SoC market.

Dual challenges faced by Qualcomm

Qualcomm, as one of the world's leading chip manufacturers, is facing a series of serious challenges that threaten its position in the Chinese market. Firstly, Huawei's order loss is a huge impact on Qualcomm. Huawei has always been one of Qualcomm's important partners, but according to the latest report, Huawei will completely switch to its self-designed Kirin chips starting from 2024, which means Qualcomm will lose a huge order and cause significant losses to its revenue. The Chinese market is crucial for Qualcomm, with over 60% of its revenue coming from it. Therefore, Huawei's order loss will have a profound impact on Qualcomm's performance.

Secondly, Qualcomm's position in the global mobile system single-chip market has also been challenged by Taiwan MediaTek. According to market share data, MediaTek has consistently surpassed Qualcomm as the new leader in the global mobile chip market. Especially in the low-end and mid-range markets, MediaTek's chip performance and price advantages are significant, which has gradually increased its market share globally. In addition, Qualcomm's Snapdragon processors have also faced challenges from competitors such as Apple and Huawei in the high-end market. Recently, Huawei's Mate60 series phones equipped with 5G Kirin chips have further weakened Qualcomm's competitiveness in the Chinese market.

Policy, cooperation, and independent innovation

Recently, Qualcomm's layoff measures in China have attracted widespread attention, and the main reason can be traced back to the US government's sanctions against Chinese telecommunications giant Huawei. As an important chip supplier to Huawei, Qualcomm had to stop supplying critical chips to Huawei, resulting in the loss of Huawei orders. This decision is a huge blow for Qualcomm, as Huawei has always been one of the leading companies in the Chinese market, and Qualcomm relies on the Chinese market to support its global revenue and profits.

The scale and scope of Qualcomm's layoffs in China have not been fully determined, but reports suggest that the layoffs will mainly affect the wireless business R&D department located in Shanghai and may also affect employees throughout the entire China region. According to a Qualcomm employee, this layoff plan is part of Qualcomm's global efforts and is expected to result in 25% layoffs throughout the year. Qualcomm has a total of approximately 5000 employees in China, which means thousands of employees may be affected.

Global Perspective: Qualcomm, Huawei, and the Global Technology Landscape

The business challenges faced by Qualcomm are attracting widespread attention worldwide and also triggering profound reflection on the global technology landscape. Huawei's decision to stop purchasing Qualcomm's chips from 2024 not only resulted in Qualcomm losing a huge order, but also posed competitive uncertainty from local Chinese brands. This change may have a negative impact on Qualcomm's 3nm chip demand in 2024, and may also have an impact on the shipment volume of lithography machines by Dutch lithography giant Asme.

According to market data, Qualcomm's 3nm chips have a wide range of applications in the global market, especially in the fields of smartphones and communication. Huawei's decision may lead to a decrease in demand for Qualcomm chips, which will have a negative impact on Qualcomm's performance and also affect semiconductor equipment manufacturers. This situation reminds the global technology industry, especially enterprises in the semiconductor field, that the market environment is constantly changing and needs to adjust their strategies in a timely manner to adapt to new challenges.

Qualcomm and Huawei in the New Landscape

After this major strategic adjustment between Qualcomm and Huawei, the global technology landscape will face new challenges and opportunities. Qualcomm needs to respond to market pressure, strengthen innovation, and find new paths for its sustainable development. At the same time, China's independent chip industry is also expected to usher in more opportunities and promote the process of global technological competition and innovation.

The decisions behind this change cover multiple levels of business, technology, and policy, and have a profound impact on the global technology industry. How to address this challenge and find new cooperation opportunities will be a key task for Qualcomm and Huawei in the future. This story continues, and we will continue to monitor and report on its development.

Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])

Mobile advertising space rental

Tag: will Huawei stop purchasing Qualcomm chips new models fully