Huawei is increasing the share of third-party mobile application processors (APs) for its current and upcoming smartphones. Meanwhile, the company is reducing the use of in-house Kirin chipsets made by the semiconductor division, HiSilicon, reports DigiTimes.
In the face of U.S. challenges, Huawei has to source its APs from multiple chipmakers and it’s also necessary to maintain its product competitiveness, stable supply, and profitability. Therefore, the Chinese smartphone maker is likely to add 1-2 vendors to its supply chain for smartphone APs.
The Taiwan-based MediaTek has already become a 5G processor supplier for Huawei and the company may also reach Qualcomm for a potential deal of 5G chipsets if it can obtain a business license from the U.S. government.
Huawei is currently using 7nm MediaTek Dimensity 800 5G SoCs in its Enjoy and Honor smartphones and may also start purchasing high-end MediaTek 5G APs in the second half of 2020 and 2021.
Since 2019, Huawei has been using its HiSilicon Balong 5G modems alongside and embedded in the Kirin chipsets such as Kirin 990, Kirin 820, and Kirin 985.
This new move considered due to the ongoing business restrictions from the U.S. government, Huawei cannot purchase U.S. companies or manufacture chipset from TSMC.
Next year, Huawei may also switch from Kirin to a third-party processor for its flagship devices starting with Huawei P50 series but there’s not much of the information available on this matter.