Huawei has been developing Application Processors (AP) for a long time to use in its different devices and it’s expected that the company will ramp up consumptions of their own APs rather than decrease shipments from third-party solutions.
The Chinese tech giant is taking these measures to grow and realign its in-house chip production and to take its supply chains away from third-party processor solutions, says research firm IHS.
According to the data compiled by IHS, Huawei’s smartphone chipset – Kirin is used in 74.6% of the smartphones shipped in the third quarter of 2019 compared to 68.7% in 2018.
“Previously, Huawei used its Kirin chips mainly in flagship devices. However, the company now is expanding the reach of its in-house solution to more price ranges, including the Nova and Y-series mid-range phones” says IHS.
In May last year, the US government placed Huawei in the Entity-List and prohibited its business with American firms including the purchase of different semiconductor products.
“As a result, Huawei is working on removing US-based components from its supply chain by finding suppliers from different regions or by providing its own solutions,” said Anna Ahrens, senior analyst of smartphone and mobile at IHS.
The data also shows Huawei has decreased its shipment from Qualcomm to 8.6% in the Q3 2019 down from 24% in the same quarter in 2018. Meanwhile, MediaTek’s presence in Huawei phones increased to 16.7% in Q3 from 7.3% a year earlier.
IHS also revealed that Qualcomm still retains the highest share in the global mobile processor market in the third quarter of 2019 with a 31% share, followed by MediaTek at 21%. Samsung’s Exynos and Huawei’s Kirin recorded 16% and 14%, respectively.