Qualcomm is looking for U.S. government permission to sell mobile processors to Huawei
U.S. chipmaker, Qualcomm is looking for U.S. government’s permission to sell processors for Huawei smartphones. Qualcomm said it could be a big loss if Huawei chooses other chipmakers.
According to a report from WSJ, Qualcomm lobbying the U.S. government to lift restrictions on the chipmaker and permit it to sell chips to Huawei.
Qualcomm worries that the ban won’t prevent Huawei from obtaining necessary parts and could just drive “billions of dollars” of US sales to foreign chip makers including South Korea’s Samsung and Taiwan’s MediaTek.
The chipmaker also says that due to the restrictions, its foreign competitors now have access to a market worth as much as $8 billion per year.
Huawei is under the U.S Entity-list since last year, which prohibits the Chinese tech giant from doing business with U.S. companies. Moreover, the U.S. government restrained TSMC, the world’s biggest chipmaker from manufacturing Huawei’s chip designs.
Huawei consumer BG head, Richard Yu has recently confirmed that HiSilicon, Huawei’s chip-making division will stop printing new high-end chipset after September 15, 2020, due to the U.S. sanctions.
Therefore, the company will have to source its chipsets from third-party chip makers. Under the current situation, Huawei may visit MediaTek, which already started selling mid-range 5G chipset for Huawei phones or Qualcomm, which has to clear the U.S. license hurdle to ship its chipset.
Samsung is also in the list of potential chip suppliers and Huawei already purchases display panels and memory components from the South Korean company. So, it won’t be a big hassle for Huawei to negotiate with Samsung if required.
Awaits US license to launch 5G phones: Huawei
Why Huawei is not launching 5G phones? The Huawei chief answered questions on this matter, saying that the company awaits a U.S. supply license to bring 5G phones.
Xu Zhijun said that Huawei is waiting for the U.S. department of commerce’s license to get 5G technologies for new phones and launch them among consumers.
Back in 2019, Huawei was enlisted in the U.S. commerce department blacklist. Since then, the company cannot buy new technologies for its smartphones such as chips and Google services. Huawei also lost access to its own Kirin chipsets, as the TSMC also denied printing new ones.
That’s why, the lack of 5G RF and chip components barred the company from producing 5G phones. This forced Huawei to build only 4G devices. Its recent flagships including P60 and Mate X3 also come with only 4G access.
Xu Zhijun says that the smartphone business is mostly affected by the U.S. sanctions and it caused a massive drop in Huawei’s smartphone market share. With current access to 4G chips, Huuawei can only make 4G smartphones, he mentioned.
Despite these questions, Xu confidently said that there are people who are willing to still buy a 4G phone. As Huawei has greatly improved its camera, foldable screen, and other parts of its devices.
To cover up, Huawei’s latest flaghip is opened with big demand in China, and Huawei pre-selling a good amount of units ahead of an official sale. Without 5G, Huawei phones are focusing on other aspects of user experience such as build quality and better software features.
Last year, Xu Zhijun stressed that 5G is a big issue for Huawei devices but the company will not give up on its mobile business. At that time, Mr. Xu also expected a recovery from this loss may take several years.
In future, users won’t buy phones without 6G: Huawei
Huawei is currently working on the next generation of mobile network technology called 5.5G. However, the Chinese tech maker said that future smartphone consumers won’t buy new phones without 6G technology.
The latest statement made by Huawei’s Rotating chairman comes after the 2022 annual business report. He said that Huawei will deploy 5.5G around the world somewhere in 2025.
This next-gen network technology will improve the user experience from various perspectives. Also, it will revolutionize the digitalization of all businesses.
However, the Huawei chief also talked about 6G. Xu explained that no one knows about 6G and currently, it’s just a concept.
Meanwhile, it’s a goal for the industry and Huawei is working with industry partners to define 6G along with its research and development.
The Huawei chief then turned his view on the future of 6G. He told that 6G will be unnecessary in the face of low innovation and then, maybe we can live with 5.5G technology for a long time.
The Huawei chief elaborates that the company still hopes that the future network will arrive otherwise, there will be no growth in the mobile network and as a result, users will not buy new phones without 6G.
He also pointed out the current decline in the smartphone market and that there’s a large space left to be filled with innovation.
“Everyone still hopes that 6G will come, but whether it will come and when it will come, we still have to wait for the answer,” said Xu Zhijun.
For an expected timeline, Mr. Zhijun said that people waiting for 6G will have to wait, as it should come up by 2030. There’s a lot more to know about this new mobile network, as there are many countries that are still struggling with 5G installation.
Huawei will never give up: Meng Wanzhou
During the 2022 Annual Business Report, Huawei CFO and Next Rotating Chairwoman, Meng Wanzhou said that Huawei will continue to operate in the hardest difficulties and the company will never give up.
Mrs. Meng will take over Huawei as the rotating chairwoman on April 1st, as it will be her first tenure as Huawei’s top leader. Meng Wanzhou said as long as Huawei continues to struggle, every minute of our time and every effort will not be wasted, we will never give up.
“We may not be able to succeed but we live to death, how can we not be benevolent?” she added.
These are pretty strong words from the Huawei leader as she remains optimistic for a bright future.
Huawei says its operation is now stable and the company has achieved global sales revenue of 642.3 billion yuan, while a net profit of 35.6 billion yuan. From this Huawei’s carrier business, enterprise business, and device business gained sales revenue of 284 billion yuan, 133.2 billion yuan, and 214.5 billion yuan respectively.
In 2022, R&D invested 161.5 billion yuan, accounting for 25.1% of the company’s entire 2022 revenue. On the flip side, the cumulative R&D expenses invested in ten years will exceed 977.3 billion yuan.
During the press note, Xu Zhijun, Huawei’s current rotating chairman, said that 2023 is a critical year for Huawei’s survival and development.
Xu Zhijun said that the upcoming year and the following are critical for Huawei. The key direction of Huawei’s strategy is to create growth opportunities, enhance development resilience, build differentiated advantages, win by quality, and ensure high-quality business continuity and product competitiveness.
He also mentioned that Huawei should seize the opportunities of digitalization in all walks of life to achieve effective growth. Huawei will also get advantages of its industrial portfolio and strong resilience, and strive to build a foundation for the digital economy and promote green and sustainable development.
In the face of challenges, Huawei is working with its partner to overcome difficulties.