Huawei reportedly overtakes Qualcomm as China’s top semiconductor player

Huawei reportedly overtakes Qualcomm as China’s top semiconductor player

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Richard Yu (Yu Chengdong), head of Huawei’s customer business, speaks during the presentation of a Kirin 990 5G chip established at the worldwide electronics and innovation fair IFA in Berlin on September 6, 2019.

Tobias Schwarz | AFP | Getty Pictures

Huawei’s semiconductor layout device overtook Qualcomm as China’s number one particular chip provider for the initial time as the coronavirus impact on the country’s smartphone sector hit the U.S. huge.

The device, regarded as HiSilicon, shipped 22.21 million smartphone processors in the 1st quarter of 2020, approximately in line with the amount transported in the exact interval past year, in accordance to a new report by China-centered CINNO Investigation. Huawei’s HiSilicon managed to raise its marketplace share to 43.9%, from 24.3% in the first quarter of 2019. 

CINNO Research, which tracks the country’s semiconductor sector, did not disclose cargo figures for Qualcomm or other distributors, but said the U.S. firm’s market share fell to 32.8% in the March quarter, from 48.1% in the similar time period final yr. 

HiSilicon models chips below the Kirin model which go into Huawei’s smartphones. The semiconductors are produced by Taiwan Semiconductor Producing Company (TSMC). 

The progress of HiSilicon in China mirrors the reality that Huawei has been ever more targeted on its domestic sector given that it was put on a U.S. blacklist final calendar year acknowledged as the Entity Record. That restricted its entry to American technological innovation which include Google’s Android working program. Though that just isn’t a major offer in China, in which Google products and services this kind of as Gmail are banned, it has had a major impression on its intercontinental shoppers who depend on making use of those people apps.  

As it started to double down on China, Huawei’s share of the smartphone market grew. In the 1st quarter of 2020, its smartphone shipments had been up 6% from last calendar year, in accordance to a report from Counterpoint Analysis released Wednesday. Huawei has also been seeking to cut down its reliance on U.S. factors with its smartphone chips a essential part of that push.

The company’s growth in China has elevated its share of the smartphone processor marketplace. But Huawei’s progress has also come at the cost of the company’s domestic rivals, which are some of Qualcomm’s essential clients. 

In August, Qualcomm CEO Steve Mollenkopf reported Huawei’s concentration on the China market was hurting the U.S. enterprise. 

“As a consequence of the export ban, Huawei shifted their emphasis to building market place share in the domestic China industry, where by we do not see the corresponding gains in products or licensing income,” he told traders on an earnings phone. 

Which is due to the fact Qualcomm sells chips to Huawei’s domestic rivals like Xiaomi and Oppo. Each all those businesses noticed their shipments decrease in 2019, in accordance to study agency Canalys. 

The general smartphone sector was weakened additional just after the coronavirus outbreak shut down of most of the country for numerous weeks in the very first quarter. In China, cellular cell phone shipments fell 23.3% in March after a 56% plunge in February, official governing administration data showed. 

In the meantime, 1st-quarter shipments of Apple iPhones possible dropped just 1% from final calendar year, Counterpoint Exploration said. 

That is in line with CINNO Research’s semiconductor report that shows Apple’s marketplace share for chips remained generally flat. Apple patterns its own chips for its smartphones. 

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