Kirin’s out-of-print gives birth to Plan B Huawei’s advance into “South Mud Bay”

Huawei faces a more serious situation in the face of the US lock “core”. “Last year’s U.S. sanctions amounted to tying our hands up, and this year’s restrictions are equivalent to tying our legs.” Yu Chengdong, CEO of Huawei’s consumer business, described the current predicament at the 2020 China Information 100 Summit on August 7.

According to Yu Chengdong, Huawei will launch the Mate40 this fall with a Kirin 9000 chip, which could also be a “out-of-print” version of Huawei’s Kirin’s high-end chips.

Under the second round of U.S. chip sanctions, Huawei’s Kirin chips in HiSilicon can no longer be handed over to TSMC contractworkers, and it is difficult to buy high-end chips from U.S. companies such as Qualcomm.

On August 10, Qualcomm did not respond directly to Time Weekly about issues such as Huawei’s order, and according to Qualcomm’s third-quarter conference call, CEO Steven M. Mollenkopf said Qualcomm was working on how to sell products to every OEM, including Huawei, but there was no reporting.

Recently, it was reported that, in response to the U.S. crackdown, Huawei launched the “South Mud Bay” project to circumvent the application of U.S. technology to manufacture end-products, laptops (hereinafter referred to as “pen power”), smart screen and IoT home smart products, such as products that are not affected by the United States, will be included in the “South Mud Bay” project.

On August 7, Time Weekly reporter on the “South Mud Bay” project and other related issues to write to Huawei, the relevant person in charge replied that the company is still in a special period, not easy to accept the interview.

On the same day, Chinese Academy of Engineering academician, fiber optic transmission network and broadband information network expert Yu Hexuan in China’s information 100 people’s meeting proposed that China’s chip is subject to human, which is the entire industrial base, including precision manufacturing, fine chemicals, precision materials backward.

It is difficult for a company to fully meet the complete needs of industry customers, Yu Chengdong also called on the industrial chain to work together in semiconductor manufacturing, breaking through EDA design, materials, manufacturing, process, design capabilities, manufacturing, packaging sealing and other capabilities, in the era of intelligent semiconductors from the second generation of semiconductors to the third generation of semiconductors to achieve overtaking.

Chip off supply crisis.

“What do we do if all the employees of the company think that one day the company’s sales will fall, its profits will fall or go bankrupt?” As early as March 2001, Ren Zhengfei buried the sense of distress in the publication of “Huawei’s Winter” in his internal magazine.

In the second quarter of 2020, Huawei overtook Samsung as the world’s largest smartphone maker. Mr. Yu said Huawei would have been ahead of Samsung in 2019 if it had not been sanctioned by the United States.

For the whole of 2019, Huawei shipped 240 million mobile phones, and huawei’s chips have been out of stock this year under a new round of sanctions, with Yu Chengdong predicting that shipments will be less than 240 million this year.

“In the exploration of the chip, huawei in the past ten years from serious backwardness, to relatively backward, to a bit backward, to catch up, to the lead, and now to be blocked, we have invested a great deal of research and development, but also experienced a difficult process, but in semiconductor manufacturing, Huawei did not participate.” Yu Chengdong admitted.

Under the second round of U.S. sanctions, TSMC will no longer accept orders from Huawei from May 15 and will stop supplying Huawei after September 14.

This means that Huawei’s Kirin chips will not be available to TSMC, and the Kirin 9000 chip, made using a 5nm process, will be a no-brainer before it is on the market. At the same time, almost all of Huawei’s self-research Kirin chips on sale are facing a supply-cutting crisis.

The contract work is out of reach, and Huawei will have to collect blood through external extraction.

August 10, the first mobile phone industry research institute president Sun Yanxuan to the Times weekly reporter analysis, said that the most optimistic situation is the use of Qualcomm or MediaTek chip, the flagship machine can also come out, not optimistic words, the flagship machine may be difficult to produce.

The two chipmakers are seen as the best to take orders for Huawei’s handsets.

Recently, a chip industry source told the Times that Huawei is likely to start using two processor solutions from Mate 40, of which the Mate 40’s high-end series will use the Kirin 9000 chip, and the standard version is likely to purchase an external chip solution.

There have been rumours that Huawei has ordered 120 million chips from MediaTek. In response, MediaTek’s Chief Financial Officer and spokesman responded to the media by saying: “Do not comment on single customer-related information.” “

Time Reporters note that the recent vivo sub-brand iQOO released a high-end MediaTek 5G SOCDimensity 1000 plus Android model iQOO Z1, the official website price from 2098 yuan.

Qualcomm is also more passive, although it has entered into a patent grant with Huawei, but can not take orders from Huawei.

On August 9th Qualcomm is actively lobbying the U.S. government to lift restrictions on parts sold to Huawei, or it will bring up to $8 billion in market orders to other rivals,media reported.

“Huawei wants to pull in more allies to ensure that its flagship, if it goes out of production, means that it can only produce mid- to low-end handsets and can no longer work with Apple or Samsung.” Mr Sun said it was not clear whether Huawei would be able to send a chip order for its flagship aircraft.

Flank breakout.

In the face of the chip “lock throat” dilemma, Huawei tried to break through from the side.

Recently, media reports said that Huawei has launched one of the hundreds of billions of new tire-preparation project”, “Supply Plan B” “South Mud Bay” project, which is intended to circumvent the application of U.S. technology to manufacture end products.

As the name suggests, the “South Mud Bay” project is about being self-sufficient, Sun said. In the spring of 1941, the 8th Route Army’s 359th Brigade was ordered to drive into Nan Mu Wan, opened up wasteland, wind meals, and began a large-scale production of the fiery South Mud Bay.

It is reported that pen, smart screen and IoT home smart products, such as completely unaffected by U.S. sanctions, will be included in the “South Mud Bay” project.

On August 10, Time Weekly reporters in Huawei’s employee forum voice community saw a “learn the spirit of Nan Muwan, hard work, self-reliance, to create ‘good Jiangnan'” post, the post was published on May 19, many employees reply to “mark.”

At the same time, the “South Mud Bay Project” “Harmony” urgent recruitment and testing personnel information is widely distributed in the Voice community.

At present, Huawei’s consumer business unit is accelerating the development of pen and smart screen products business.

On August 17th, Huawei will unveil a new pen and electricity product at its summer 2020 summer event. Sources say the new pen may be fully autonomous, without U.S. technology.

On August 9th Zhang Yi, founder and CEO of Ai Media Consulting, also told The Times that it was worth looking forward to whether the new pen and electricity would use Huawei’s own chip and its own operating system, Harmony.

“Pen and power is still the main application of the office, Huawei’s own chips and operating system, coupled with a large number of domestic applications, to solve the user’s office needs more than enough.” He said.

On August 8, Zhao Zhenying, a researcher at the National Engineering Laboratory of E-Commerce Trading Technology, told time-magazine that the launch of the “South Mud Bay” project, while changing Huawei’s revenue structure, can enhance the company’s risk-resistant capabilities, and the benefits will be reflected in Huawei’s financial results in a year or two.

In the long run, the talent pool is crucial to getting rid of U.S. sanctions.

From July 29 to 31, Ren Zhengfei, who rarely appeared in public, visited four universities in Shanghai and Nanjing, Shanghai Jiaotong University, Fudan University, Southeast University and Nanjing University.

The industry believes this is not a surprise visit.

“In a talk with Mr. Ren this morning, he repeatedly stressed that China needs to strengthen education, and he has recently gone to several universities in China.” On August 7th Li Guojie, a member of the Chinese Academy of Engineering, said that the ultimate competition between China and the United States was still to try to educate and talent.

He judgment, the United States of America’s anti-globalization trend is becoming more and more serious, the form of expression is also showing diversification: such as supply cut off, banned, blocked, closed, forced, cut off, intercept. He believes that China’s industry should do its own thing.

According to Wind, there are currently 141 Huawei concept stocks in the A-share capital market.

Recently, a number of interviewees told reporters that Huawei chip supply crisis, will prompt the entire industrial chain to increase investment, key core technology research and development is expected to make a breakthrough, good industry chain development.