Huawei is capable of developing its own chip and semiconductor products and has always been using them for itself but in a shift of strategy, the company has now started selling its chips to other companies.
HiSilicon, Huawei’s chip, and semiconductor making subsidiary said it has begun selling its 4G chip, the Balong 711, on the open market as demand for internet-backed solutions continues to surge (reported SCMP).
The Balong 711 chip has seen shipments of 100 million units for Huawei products and its clients since it was launched in 2014, provides high-speed, reliable network connectivity for the internet of things (IoT) applications, according to a statement posted on Huawei’s official WeChat account.
This chip could be used for IoT products such as surveillance cameras, vending machines and smart lockers that require stable internet connections to function.
This new decision could become a big move for Huawei and a major threat to Qualcomm and MediaTek, major suppliers of IoT chips to Chinese smartphone makers including Oppo, Vivo, OnePlus Xiaomi and others.
Also, it’ll help the Chinese tech giant to reach out at a wider level of market and to open more channels of its growth and revenue. Moreover, it’ll be interesting to see, whether Huawei decides to sell its other chips including the latest 5G modems to other firms.