Just a week after officially enforcing a punishment that does not allow Huawei to buy chip products using technology from the US, the Trump administration has given the Chinese brand not only 1 but 2 life-savers. : AMD and Intel. Another statement said Qualcomm, the giant dominating the mobile chip market, is also applying for a license to sell chips to Huawei.
From the lack of chips to the point of having to stock up on products that have not been tested for quality, Huawei can be considered officially dead. Can the Chinese giant dream of returning to the top of the world – a position achieved after beating Samsung in the first quarter?
AMD has never made chips for smartphones, and Intel has abandoned the market for almost half a decade.
Right now, that is an extremely difficult, if not impossible, goal. As of mid-October, Qualcomm has yet to obtain a license to sell to Huawei. Without a handshake with Qualcomm or any other mobile chip company, Huawei will have to depend on AMD and Intel chips to rebuild its position in the smartphone market.
Neither of them are good options. Mentioning AMD and Intel is still the first mention of the x86 chip for the PC. In the past, AMD has been making chips using ARM architecture (the most common architecture on mobile devices) but for servers, and even this line of chips died nearly four years ago. Intel also shook hands with Google for more than a year to bring x86 to Android (through many phone models of Lenovo, ASUS …) but it was not successful. In April 2016, efforts to develop Atom chips for smartphones and tablets were officially canceled.
Right now, both AMD and Intel will take a long time to develop chips for smartphones. Assuming this process lasts 1 year, Huawei will have to survive in the mobile market with “rushed” chips from TSMC before officially being banned, including chips that have not been tested for quality. . Huawei was also unable to launch chip-related technologies (for example, AI) within a year. In other words, within a year, Huawei’s market share will be a good prey for competitors such as Samsung, Xiaomi, OPPO … to devour.
The inevitable fact is that Huawei will increasingly lag behind its competitors.
What happened next was equally worrying. According to the latest rumor, the Trump administration will allow Huawei to return to cooperate with chipmaker TSMC but only license the 28nm cycle. This chip manufacturing cycle has been in commercial production since… 2011. The last chips using 28nm released 4 or 5 years ago are mid-range / low-cost chips (Exynos 7580, Helio P10M…) has poor performance.
It should be noted that this information has not been officially announced. Still, the US tying Huawei to old technologies probably won’t come as a surprise to anyone. On the one hand, the US still wants to (partially) open the doors for Huawei to buy and make a profit for American companies. On the other hand, once attributed Huawei to having close ties to the Chinese government, the US government would not want to provide top-notch technologies to help Huawei return to dominating market share.
Almost certainly, the AMD and Intel chip models sold to Huawei will be subject to a lot of limitations and will be severely behind the ARM chips used on iPhones, Galaxy or Mi. The competitiveness of the giant once ranked number one in the world will decline more and more seriously.
In the past, cutting-edge technology was not the key to Huawei taking the No. 1 spot at home.
However, not all doors have closed for Huawei. Since being banned from cooperating with Google (and losing the right to use Android with Google Play), Huawei has turned China’s “home country” into the biggest competitive advantage by competing with Apple, Samsung and the co-brands. incense “like Xiaomi or OPPO. In the second quarter, 70% of Huawei’s sales came from China, the remaining 30% came from Eastern European countries. China’s strong rebound this quarter, as well as outbreaks in Western markets are considered the biggest cause of Huawei taking the throne from Samsung.
Huawei’s strategy to take up 40% of the market share in China does not depend too much on technology. According to Nikkei, Huawei stores are willing to buy any other brand to lower prices for new Huawei phones. Gifts included with high-end Huawei smartphones can be worth hundreds of dollars.
All of these heavy-handed promotions could help Huawei maintain some of its market share in the coming months. However, the undeniable truth is that everything has become a lot more difficult for the No. 1 smartphone maker in China. Next December, Qualcomm will unveil the Snapdragon 875, manufactured on Samsung’s advanced 5nm process. The technology gap between smartphones Samsung, OPPO, Xiaomi … using Qualcomm chips and Huawei ones using AMD and Intel chips will be huge. With the Chinese giant, the task of regaining the world’s No. 1 position will also be increasingly difficult.