USA has banned Huawei to produce the chips, but are preparing to sell their

All too confusing in the story that unfolds between Huawei and the US government. A Chinese company just became ”gaining weight” and immediately received approval. The question is why sanctions have not been imposed previously. Now that Chinese companies were forbidden to produce their own processors, greatly intensified Qualcomm, which is world leader in production of processors and conditional competition it was only Apple and the same with her Huawei Kirin chips. Fresh information concerning the company’s plans only confirms the assumption that the prohibitions against Huawei it Qualcomm will benefit the most.

Soon all Huawei can start to work on Qualcomm chips.

The contents

What processor to install Huawei

A ban on the production of processors simply can not affect the manufacturer of high-tech equipment. And so it happened, when sanctions severely crippled the relationship Huawei and largest plant for the production of chips — TSMC. This company produces chips for major players in the market. Now she can’t fulfill orders HiSilicone (subsidiary of Huawei) for the production of Kirin chips that are installed in smartphones and other equipment with the words ”Huawei” and ”Honor” on the case.

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Any shipments remain, but all of this is within complete cooperation. Huawei just gets the last batch of those that had booked in advance. Of course, the order she placed with the stock to cover their needs at least for some time to come, is to look for a replacement.

Cessation of the production of chips due to the fact that now companies that use in their production of American technology, can’t work with Huawei. At the same time, the Chinese company remains the possibility of purchasing ready-made chips from other manufacturers.

Huawei will no longer be able to boast of their chips, but outputs with each passing day it becomes more and more.

While the most likely scenario is the cooperation with MediaTek, while its products and cannot be called worthy of the top devices. Some time ago there was informationthat the Americans were trying to ”push” MediaTek on the termination of cooperation with Huawei to give way to Qualcomm, but since then such news was no more.

Can Huawei survive if you have to abandon the Kirin

As Qualcomm can supply chips Huawei

At this point we had information from the representatives of Huawei, according to which the new Huawei Mate 40 will be the last smartphone running on the chip Kirin. This is bad, because self-development can be very well optimized for their needs, but now we have the continuation of the story.

Recently it became known that Qualcomm is lobbying its interests in the US government. The company wants to obtain permission to ship their processors Huawei. When it comes to any processor, including the top innovations that support 5G. Of course, this is not official information from the press service of the company, and only the data of informants, Wall Street Journal, but the smoke without fire does not happen.

Qualcomm is also “friendly” to the 5G they can trade.

The Huawei smartphones on Snapdragon

According to the newspaper the argument of the company obscenely graceful and at the same time uncomplicated. Qualcomm allegedly said that trade sanctions against Huawei will not prevent the company to obtain the necessary parts for their phones 5G. Therefore, it would mean that the American chipmaker will lose up to $ 8 billion a year, which instead will go to his foreign competitors. That is so simple and straightforward.

If Qualcomm are subject to export licensing, and foreign competitors are not, US government policy will lead to a rapid change in the market share of chipsets 5G in China and beyond, said the company in San Diego.

So who then are these foreign competitors? American manufacturer of chips said that MediaTek and Samsung will be the first to benefit from the ban, according to the Wall Street Journal. Some reports indicated that Huawei will seriously turn it in the direction of MediaTek in 2020. I should add that this version is indeed much more realistic than a collaboration with Samsung, as the Korean company has great experience in shipments of its chipsets to third-party manufacturers.

I wonder what would ensue if these companies would work together.

The prospects of cooperation between Huawei and Qualcomm

However, the successful deal between Huawei and Qualcomm is not the first case of Qualcomm’s cooperation with the Chinese brand. Before the ban on trade in the U.S. Huawei is widely used products of the American firms in their budget phones. However, a successful deal for the release of its flagship chips, apparently, will be the first for the two firms. Previously, such if met, it was far in 2013 in the Ascend P6.

Without us in any way. Need your opinion about the transition to Snapdragon Huawei.

However, while there is no guarantee the transaction, as the US government may not approve of such cooperation. However, such an outcome would have been more enjoyable for Huawei, as Qualcomm’s chips much better than analogues from MediaTek and it would be a lesser evil for the company. Let it also be an act of surrender, but in big business there is no place for ideology. At stake is big money and the future of the company.

In any case, it is clear that the ban on trade in the US against Huawei may backfire for at least one American firm. It now remains to understand whether they want the government to help her. One gets the feeling that such an outcome is very probable. Nothing personal, just business…

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