“Due to U.S. sanctions, Huawei Kirin high-end chips can not be manufactured after September 15, equipped with the Kirin 9000 chip on the Mate40, will become out of print” a few days ago, Huawei consumer business CEO Yu Chengdong’s public statement, so that Huawei once again become the focus of public opinion. Huawei’s Hess Semiconductor sits in the Fabless (no factory) model, which designs chips only, and chip manufacturing needs to be transferred to wafer foundry. “Unfortunately, in semiconductor manufacturing, Huawei has just done the chip design, not the chip manufacturing, ” Mr Yu said. “
At present, the global ability to mass production of Kirin 9000 such 5nm chips is only TSMC one. TSMC, subject to a U.S. ban, has been unable to continue to work for Huawei.
Other foundry, either the product is not takeaway or the technology is not qualified.
As if all the roads were blocked, one can’t help but ask, what’s next for Huawei?
After screening, the alliance mediadevelopment is a better choice. Perhaps little is known that Cai Mingjie, the 70-year-old chairman of MediaTek, is Ren Zhengfei’s “little brother”.
Ren Zhengfei founded Huawei in 1987 and Cai Mingjie founded MediaTek ten years later. As a latecomer, Cai Mingjie appreciated Ren Zhengfei’s works such as “Huawei’s Winter” and “Spring in the North”, and he came out from time to time to read, remind himself that he was in a critical condition.
According to Tsai, Huawei’s commonality with MediaTek is that it is a fast-growing company with a “wolf nature” that has the characteristics of hyenas, perseverance and group struggle, and has formed incredible forces in the competition.
Cai Mingjie very much appreciate sanzheng fei’s two articles, not only to see their own, but also recommend employees to see. He also learned that he often sends out e-mails reminding employees that no matter how the industry changes, there must be a sense of crisis at all times.
In Huawei’s crisis, the two companies have become closer.
All roads were blocked, only MediaTek.
On May 15th the U.S. government issued a new ban on any company supplying semiconductor products containing U.S. technology to Huawei must first obtain an export license from the U.S. government. The ban has a 120-day buffer period, which will take effect on September 15.
Fortunately, before TSMC officially announced the cut-off, Huawei urgently added 8 million 5nm process Kirin chip orders, and TSMC responded quickly, handling it in an urgent manner, in an effort to ship Huawei before the ban came into effect. However, analysts say the situation is still grim, with the 8m chips only going to last until early next year.
And china’s SMIC, the most advanced chip process only 14nm, and is still in the climbing stage, its foundry Kirin 710A processor only equipped with the Glory Play4T, Glory tablet 6 and other low-end products. SMIC has also previously stated that “it may not be able to manufacture and manufacture products for a number of users until an administrative license is granted to the U.S. Department of Commerce.” “
Since the research and engineering this road can not go, Huawei only to take third-party chips.
Although Huawei recently reached a patent settlement with Qualcomm for $1.8 billion, it hopes to improve the situation. However, Qualcomm made it clear at the earnings meeting that the two companies do not currently have any substantive business dealings and that Qualcomm’s earnings forecasts do not include Huawei.
Qualcomm is lobbying the Trump administration to relax its ban on the sale of Huawei’s 5G chips, the Wall Street Journal reported, mainly on the idea that Huawei could still get the chips it needs from competitors other than the U.S., and that the U.S. ban would cost Qualcomm $8 billion in lost business opportunities.
And who will the $8 billion “gift package” hit?
In addition to Qualcomm, Huawei has only UNISOC, MediaTek and Samsung to choose. Samsung’s Exynos processors are low in production and are influenced by the international situation, and its own flagship processors have few takeaway precedents. UNISOC’s home-made 5G chips are currently the least commercial, and the attempt means taking some risks.
MediaTek is currently the only independent chip design company that can compete with Qualcomm, already has a perfect 5G mobile phone chip product line such as Dimensity 1000, Tianyi 800, Tianyi 600 and Tianyi 400, and can compete with Qualcomm from the low end of high school.
Its home-owned Huadan Dimensity 1000Plus chip is also similar to Huawei’s Kirin 990 5G chip, which is roughly equivalent in running performance. At the same time, Huawei Hashis has also introduced a large number of MediaTek talent, compared to Qualcomm and other more able to grasp the right to speak.
Heis Kirin has long been regarded by consumers as one of the most important labels of Huawei’s mobile phones, the combination of chips and algorithms is its biggest advantage, although the switch to a third-party chip, will affect the competitiveness of the whole machine, but at least to ensure that the mobile phone business will not stop.
In all its circumstances, Huawei’s use of MediaTek chips is the only possibility.
As early as May, it was reported that the number of chips ordered by Huawei to MediaTek had soared by 300%, and it had become the highest-shipping volume of 5G chips in the MediaTek 800 series.
In addition to previous years, Huawei has released a series of mid- and low-end phones based on the chip this year, including the Z, Enjoy 20Pro, Glorious Play4, Glory 30 Youth Edition, Glory X10 Max and other models.
This can also be found in the financial report. MediaTek’s second-quarter results showed that revenue exceeded expectations of T$67.6 billion, up 11.1% quarter-on-quarter and 9.8% year-on-year. Revenue in June was T$25,279 million, the highest in four years.
In the second quarter of the Chinese market, MediaTek’s chip shipments accounted for 38.3 percent, surpassing Qualcomm’s 37.8 percent, according to Digitimes.
In the latest news, Huawei has signed a letter of intent to cooperate with MediaTek, setting a large order for the purchase of more than 120 million chips, if calculated according to Huawei’s estimate of about 180 million mobile phone shipments per year, MediaTek’s share of the market share will be more than 60%, far better than Qualcomm.
MediaTek has entered the high end and has been fighting Huawei Hyse for many years.
Although Huawei’s Kirin chips are only for their own use and have not competed positively with MediaTek in the market, the success of the high-end transformation of Kirin chips is still worth comparing with MediaTek’s years of turning around in low- and middle-end locations.
In 2009, Huawei’s HiSilicon launched the first water test of the K3 processor. At this time, known as the “father of the shanzhai machine” Cai Mingjie with his “turnkey solution” has been calling the mobile phone market, Huawei in the competition’s first defeat.
Once the fire across the north and south of the river shanzhai machine picture source: fruit powder home.
Mobile phones into the intelligent machine era, MediaTek to “multi-core” concept, the introduction of the “true octa-core” processor MT6592. Huawei’s K3V2 was the world’s smallest quad-core A9 architecture processor at the time, but it still outperformed MediaTek in terms of performance, power consumption and compatibility.
Entering the 4G era is a turning point for Huawei’s move to the top, with MediaTek losing back-to-back losses. Due to the overheated “turnover” problem of Qualcomm SnapDragon 810, Kirin 920 with stable performance and good performance, relying on the Mate7 sales, Huawei got the high-end market tickets, gradually established a foothold in the high-end market with Apple, Samsung.
In contrast, MediaTek, in an attempt to reproduce the “true octa-core” with “ten cores”, launched a high-end product Helio X series. But unexpectedly appeared “one nuclear difficult, multi-core onlookers” situation, for a while to become the industry’s group of taunts, technically can not be based on the high-end market.
Helio X10 chip, which MediaTek has high hopes for, pictured: Wood-cutting.com.
At the same time, Qualcomm, after a brief defeat, not only regained the high-end market, but also continued to exert its power in the middle and low end markets. This put MediaTek hit a caught off guard, into a very embarrassing situation, not only into the high-end not, but even the low-end market has not been preserved, after that can be described as a slump.
Until recently, MediaTek again hit the high-end market of the Launch of the Tianyu series of 5G chips, it has put it back into view, but the current model is still low-end models.
People familiar with Huawei Heath and MediaTek must know that they are highly similar in business. In addition to mobile phone chips, in the TELEVISION chip, Internet of Things chip, security IPC (network camera) chip and other tracks are facing PK.
Huawei’s 2019 revenue reached $12 billion, ranking third in the global chip design company’s revenue rankings, ranked third in the world, and is even more close lying on the mainland, while MediaTek’s revenue is only two-thirds of That of Huawei Hys.
Photo Source: Big Data.
Huawei’s chief strategy officer for consumer business, Yan Yang, has revealed that Huawei has the concept of Haisi and Xiaohaisi, which is made by the chip for huawei, such as the Kirin chip; And Little HiSilicon is MediaTek’s biggest rival.
In 2012, MediaTek acquired Morningstar, and in 2015 the two combined accounted for 75% of the Chinese mainland TV chip market. Since then, Huawei Hassine has grown rapidly with more competitive TV chips and lower prices, with more than 50 percent of the market in 2018, while MediaTek and Morningstar’s share has been squeezed to about 20 percent.
In the now hot NB-IoT market, MediaTek’s layout is very active, having launched its first NB-IoT system single chip MT2625, and to create the industry’s smallest NB-IoT universal module. Despite its outstanding performance, it lags significantly behind Huawei’s Boudica series in terms of commercial progress.
In the field of security IPC chips, Huawei Heath also with its excellent price/performance ratio, firmly occupy the first position. Data show that in 2014 alone, Huawei Hasser increased its domestic market share of IPC chips from 37.3 percent to 64 percent, pulling the former boss Texas Instruments off the mark. Now, however, they are also being chased by MediaTek’s Mstar.
It can be said that in recent years, MediaTek not only in the high-end market of mobile phone chips frequently frustrated, in other circuits have suffered a serious impact, and Huawei’s relationship can be said to be love and hate.
On Huawei, MediaTek’s high-end dream has become?
Under pressure from the U.S., Huawei remains firmly in third place in global chip purchases.
Huawei has become the world’s third-largest chip buyer after Apple and Samsung since 2018, spending more than $21 billion, according to Gartner. In 2019, it barely slowed, falling by only 1.8%.
Global Chip Purchase Rankings 2018-2019, Source: Gartner
Behind the huge demand for chip purchases is driven by strong growth in Huawei’s business.
Huawei’s first-half revenue in 2020 was Rmb454bn, up 13.1% year-on-year, with consumer revenue reaching Rmb255.8bn and revenue rising to 57% from 55% a year earlier.
Although Huawei’s mobile phones have been blocked in overseas sales, they still outnumbered rival Samsung in the world with the pull of the domestic market. According to IDC, Huawei’s share of mobile phones in the domestic market is more than 45%, a record high.
It is reported that Huawei’s growth in the second quarter mainly came from the 2000 yuan-4000 yuan price segment of the middle and high-end market, as well as more than 6000 yuan high-end flagship market.
Huawei surpassed Samsung’s share for the first time.
Especially in the high-end market position, it is MediaTek for many years dream of.
According tomedia reports, Huawei will also include MediaTek’s Tianyu 2000 processor into its supply chain for next year’s P50 series, which, if true, will be the first time MediaTek processors have entered a high-end market of more than $1,000.
However, this does not mean that MediaTek can rest easy and enjoy it.
First, it is the old problem of MediaTek’s strategy. In 2015, mediaTek launched the Helio X10 chip for the high-end market, “Good Teammate” HTC on the flagship M9 plus model equipped with the chip, and with 4999 yuan to set a new high price for the use of MediaTek chip pricing.
HTC and Xiaomi, the same helio X10 processor, pictured: engadget.
But did not think, not long after the “good teammate” was stabbed, equipped with the same chip “price butcher” red rice Note 2 out of the sky, directly priced at 799 yuan, instantly break Helio’s high-end positioning.
And this is related to Tsai’s still-adherence to the “customer pricing freedom” attitude. Whether this tragedy repeats itself can only be seen in MediaTek’s ability to control it.
Second, there is still much uncertainty about the impact of the US ban. For example, MediaTek’s chip is also licensed by TSMC, and it is unclear whether Huawei’s purchase of chips from MediaTek will be counted as a violation of the ban in the United States. It is not known whether the variables will be regenerated during the buffer period before September 14.
At the same time, Huawei has no intention of giving up self-research. Mr Yu said Huawei would take root in all aspects, breaking through the bottlenecks in basic research and precision manufacturing in physics and materials. In terms of end devices, Huawei is investing heavily in materials and core technologies to achieve new materials and processes closely linked to breakthrough innovations.
Photo Source: First Finance.
At the beginning of August, Ren Zhengfei led a three-day intensive visit to four universities in Shanghai Jiaotong University, Southeast University, Fudan University and Nanjing University, siving an important signal that Huawei is planning to tap and reserve talents in various fields in the university, trying to help the chip autonomous and artificial intelligence industry grow through the integration of production, research and development.
Running in the university’s Ren Zhengfei, picture source: Shanghai Jiaotong University official micro.
Perhaps the recent revelations of a “genius teenager” earning $2.01m a year are one of Huawei’s publicity stunts for talent.
To achieve the breakthrough of core technology, although not overnight, but once successful, for MediaTek, TSMC will be a big impact.
write at the end.
At present, for Huawei, to solve the no core available, through the crisis is the most urgent, for MediaTek, to become a large market share, to seek high-end breakthrough is the most important.
There is no permanent competitor, only eternal business interests, for Huawei and MediaTek, may be a need to take the required, achieve a win-win approach.