Huawei started reducing its reliance on U.S. suppliers to keep moving forward: Report
The U.S. ‘Entity-List’ has included Huawei to ban its business U.S. firms but the Chinese tech giant has started to find its way out the situation and reducing dependence on US technology by moving to alternative suppliers.
Huawei is ready to beat Apple, Samsung, and Qualcomm with its best-ever chips
As a result of its greater self-reliance, Huawei’s longer-term supply chain will be permanently altered, sources familiar with the company’s strategy said. The moves will have consequences for many of the biggest names in the U.S. semiconductor industry, including Micron Technology, Qualcomm, Broadcom and Texas Instruments, which count the Chinese company as a major customer, reported NikkeiAsia.
“You will still see a lot of U.S. components in its new products in the second half of this year,” one of the sources said. “But in the next one to three years, Huawei’s priority will be to figure out detailed backup plans and imagine a world without American suppliers.”
In Mid-May, the US Commerce Department added Huawei into the blacklist and barred the company from buying US technologies, used to produce its products specifically smartphones.
Because of this decision not only Huawei lost some of its business but U.S. firms also got a setback in their share markets.
Therefore several tech giants in the US have shown their concerns to President Donald Trump, who promised to soften restriction on Huawei as a negotiation to resolve trade issues with China.
On July 21, CEO of Intel, Qualcomm, Broadcomm, and Google met Trump on the issue of trade licensing for Huawei. As he agreed on their request for a timely license application to supply the Chinese telecom giant.
“Even so, Huawei will not stop its efforts to reduce dependence on American suppliers” told source.
In an interview with Huawei Finance, Huawei founder and CEO Ren Zhengfei told the company plans to ship 270 million smartphones this year to grow 30% sales and higher than any of its previous sales goal. While the founder previously said that US trade ban will hurt the company’s smartphone sales in overseas markets.
But Huawei appears to be making progress on replacing U.S.-based suppliers with Asian alternatives. It has already shifted orders of cellular power amplifiers and Wi-Fi chips once bought from Skyworks, Qorvo and Broadcom to Japan’s Murata Manufacturing and Taiwan’s RichWave, one of the sources said.
Huawei is also using its own design of power amplifier and radio frequency components into production this year with Taiwan’s WIN Semiconductors, said three sources.
Remus Hsu, a tech analyst at Taipei-based Market Intelligence & Consulting Institute, said Huawei’s goal to ship 270 million handsets this year was optimistic, even as the company’s shift toward self-made components and non-U. S. suppliers start to bear fruit.
“Huawei is making a lot of effort to reduce its reliance on the American suppliers,” said Hsu, who has watched the company for a long time. “But the sales performance of its smartphones in the second half of this year will depend on if it can get support from worldwide telecom operators.”
The main issue with its smartphone goal to attain this sales mark is depends on whether Huawei will have access to Google’s Android operating system and whether apps run smoothly, the analyst said.
As it seems like Huawei will stick with Android and will get a resumption of Android services in time because the company has claimed that it has not built any operating system alternative for Android.
Following the arrest of Chief Financial Officer Meng Wanzhou, Huawei has aggressively stockpiled components and certified alternative non-U. S. suppliers, which has helped it to stick to its launch schedules.
By judging the current situation, we can say that Huawei is capable of retaining its 2nd smartphone vendor rank in the global market this year and recent figures of the smartphone shipment sales show that Huawei has already started its sales recovery program globally.
Huawei achieves chip manufacturing, start with 14nm chipset
Huawei leader Xu Zhijun brought us the good news that his company has achieved a breakthrough in chipset manufacturing and the company will kick off this journey with a 14nm chip node and above.
According to the information, the hardware development tool development team and the supported domestic partner made it possible to achieve a breakthrough at the root of the technology.
The team has introduced new architecture, released a cloud-native schematic diagram tool, created a high-speed and high-sensitive PCB layout too, and improved the 2D/3D CAD tool for structural design.
Huawei has developed a chip design EDA tool team alongside Chinese EDA companies to jointly create EDA tools required to process 14nanometer and above semiconductors.
The rotating chairman confirmed that the basic requirement of localizing these development EDA tools for 14nm and above will complete its comprehensive verification in 2023. In the past three years, Huawei has focused on three R&D production lines hardware development, software development, and chip development.
The Chinese tech maker has worked hard to build our tools and completed the replacement of 78 software/hardware development tools, ensuring the continuity of R&D operations.
Huawei said its software development tool is planning the entire operations since 2018. It moved to create a complete software toolchain from coding, compilation, testing, security, construction, and release to deployment and achieve the strategy of self-development.
Also to deliver joint research and development with partners to solve the tool continuity question. Huawei also has the strong support of over 100000 software engineers to provide external services based on Huawei Cloud to achieve internal and external consistency.
As of today, Huawei and its partners have released 11 product development tools and all of the partners are equally eligible to use the production line.
Currently, over 200,000 software developers and 197,000 hardware developers are using the tools developed by us or jointly developed with our partners every month. At the same time, 203 companies are willing to pay to use our software tools.
Xu Zhijun said that Have has made a lot of breakthroughs in product development tools over the years. However, the company still facing many challenges, and there are many product development tools that are yet to make breakthroughs.
This is amazing information coming from the company. Aside from mid-range and budget devices, Huawei can utilize the 14nm chip in network equipment and other products with low processing nodes.
Still, we have to wait for more inputs on this matter and the company’s plans for future manufacturing of the chipset.
Huawei will continue to sell smartphones in global markets
Global consumers are excited about the next Huawei smartphones and the company said it will continue to operate in the global market with smartphones and other new products.
Huawei Consumer Business Group COO, He Gang said that Huawei will keep releasing new smartphones, smartwatches, PCs, audio, and other smart products for global consumers.
The latest comment from the COO came during a media interview after the launch of the Huawei P60 series smartphones. He Gang also said that Huawei launched the latest flagship in Spring, which means its products are returning to normal and it’s good news for everyone.
Delayed in the past:
After the U.S. sanctions, Huawei was restricted from purchasing the required hardware technologies to build new smartphones and other devices. The low yield leads to the market share drop.
That’s why Huawei only launched one flagship, P50 Pro in 2021. The phone made it to the global market 6 months after in the first quarter of 2022. On the other hand, the last year’s Huawei Mate 50 Pro made its way to global consumers within 2 months.
These phones were launched without Google Mobile Services (GMS) and Play Store. Therefore, the sales volume in the overseas market remained invisible due to the GMS requirements. Another factor that hit Huawei phones is 5G connectivity. Still, Huawei managed to fill these downsides with new features and powerful camera technologies.
Aside from smartphones, Hauwei is continuously launching new smartwatches and earbuds devices for global customers and it has only increased.
According to the information, Huawei already announced Huawei P60 series will launch on May 9th in Munich and will be accompanied by Huawei Mate X3 and other products.
Huawei Mate 50 series may not upgrade to second-gen satellite communication
Huawei first launched satellite communication technology with the Huawei Mate 50 series and the company may not upgrade this phone to second-gen satellite features.
Huawei CBG COO, He Gang gave us the answer that the eligibility to upgrade over second generation satellite is related to the phone’s performance. He may be talking about the hardware as the new devices equip better antennas.
He further added that the company has no current plans to upgrade Huawei Mate 50 and Mate Xs 2 to second-gen satellite communication. However, there is more reason that he mentioned in this matter.
Now the Beidou satellite communication is in the public testing stage, about 30 free sending and receiving are provided every month, and many friends are wondering how long this policy will last. If commercial, what is the approximate price?
He gange said that Huawei is not an operator and cannot operate this satellite communication business. The current state of technology is in the stage of crowd-testing.
This includes testing with multiple organizations and providing such a free service to everyone in the way of crowd testing.
As for the commercial price, how to operate in the future will still be only decided by the operators and not by Huawei. The Huawei COO emphasized that Huawei is actively participating to cultivate a better tech industry and crowd-testing technologies. This will lead to the better of future organizations and achieve technological breakthroughs.
Huawei P60 series, Mate X3, and Watch Ultimate are equipped with second-generation satellite communication. This allows the users to send and receive an emergency SMS via satellite without a mobile network. However, the first-gen tech only allows one-way SMS.