Qualcomm reportedly begins efforts to sell smartphone chips to Huawei

 

The inevitable has finally happened. Huawei has said that in current circumstances its subsidiary HiSilicon cannot make chips any more . That's why the upcoming Mate 40 are going to be the last phone to be powered by a Kirin SoC. needless to say , Qualcomm is now trying to influence the United States government to let it sell chipsets to the Chinese company, consistent with The Wall Street Journal.

Per a replacement rule, foreign manufacturers that use US-origin technology to form chips got to obtain a license before selling them to Huawei. In short, HiSilicon has been left for dead. Taiwan Semiconductor Manufacturing Company (TSMC) has already ended its relationship with the corporate .

Export ban will affect Qualcomm quite Huawei, argues the chipmaker

Huawei has no choice but to shop for chips from other vendors and Qualcomm wants to step in before the other company does. The chipmaker argues that the export ban wouldn't stop the Chinese company from obtaining the specified components from non-US companies and therefore the cost would be billions of dollars.

China's Semiconductor Manufacturing International Corp (SMIC) has already made the Kirin 710A for Huawei. it's also said to be in talks with Taiwan's MediaTek for over 120 million chips. Samsung is another foreign competitor that would supply processors to Huawei.

Qualcomm warns that this is able to give the 5G chipset market share to its rivals in China and other countries. Earlier this year, HiSilicon overtook Qualcomm because the favorite chip supplier in China. Since being placed on the entity list by the US, Huawei has increased its specialise in its home country. And if it'll not make its own chips, that market share would attend Qualcomm's rivals. 

Huawei's increasing market share in China also will impact domestic companies like Xiaomi and OPPO which get their chips for Qualcomm. 

That's why, Qualcomm is keen to sell its 5G-enabled SoCs to Huawei. the corporate says the market is worth the maximum amount as $8 billion annually.

President Donald Trump's administration wants to spice up America's technological competitiveness and this might add Qualcomm's favor. If it gets the license, it'll be ready to generate billions of dollars in revenue and invest more within the development of latest technologies. It also insists that if the license is denied, Huawei wouldn't be affected because it could get its components from elsewhere . 

Qualcomm also recently settled a patent dispute with Huawei under which the Chinese company has agreed to pay $1.8 billion. it had been a big customer for the chip company until last year before it had been blacklisted and now the business is negligible. 

Some firms including Intel, Micron Technology, and Xilinx have already received licenses to conduct business with Huawei.