Why does Qualcomm sell chips to Huawei？ This is the truth!
As a chip giant, Qualcomm can be said to have unlimited scenery in the 3/4G era. Almost all smart phones can't avoid Qualcomm patents, but also use Qualcomm chips, especially high-end flagship models.
The data shows that Qualcomm has been the world's largest mobile chip manufacturer for many years, firmly standing in the high-end market, and its domestic market share once exceeded 70%. Manufacturers including Huawei have to use Qualcomm chips.
After entering the 5G era, Huawei took the lead in 5G technology. Kirin 990 and Kirin 9000 became the most advanced 5G Soc at that time. In addition, the United States restricted the shipment of chip companies such as Qualcomm, which led to a rapid decline in Qualcomm's market share.
Qualcomm said that restricting shipments would cause Qualcomm to lose more than $7 billion in the market, and hoped that China manufacturers would continue to cooperate. The data shows that after the United States restricted shipments, Qualcomm's market share declined all the way, and MediaTek surpassed Qualcomm for several consecutive quarters and became the world's largest mobile phone manufacturer.
In addition, domestic manufacturers accelerated their own research and production of chips, resulting in a continuous decrease in the number of imported chips, which exceeded 97 billion in 2022 and 51.6 billion in the first half of 2023, which directly led to serious losses of the US chip giant.
Qualcomm's net profit continued to decline, with a year-on-year decline of 42% in the second quarter of this year, a year-on-year decline of over 50% in the third quarter, and a net profit of $1.8 billion, which will continue to decline in the future. Due to the decline in Qualcomm's profits and the decrease in chip shipments, it not only delayed the mass production time of 3nm chips.
After the United States further restricted Qualcomm from shipping chips, the president of Qualcomm made it clear that this license will continue to ship chips and other products to Huawei for several years. There is even news that Qualcomm will ship 5G chips to Huawei, but Yu Chengdong called it false news, but neither Qualcomm nor Huawei responded.
Of course, American giants such as Qualcomm are willing to continue to ship to domestic manufacturers such as Huawei.
On the one hand, China is the largest chip consumption market, and new energy vehicles have become the future trend, which brings more chip opportunities than smart phones, while China is the largest producer and exporter of new energy vehicles. This means that the demand for chips in the domestic market will be greater than before.
In addition, China manufacturers are accelerating globalization, winning numerous markets in Indian and other Southeast Asian countries, and further expanding the demand for chips. In addition, the sales of Huawei's mobile phones and other equipment have begun to pick up, exceeding 30 million units in 2022, and high-end models such as Huawei Mate50 have become dominant.
Huawei also raised its mobile phone shipments in 2023, directly increasing from 30 million units to 40 million units, and the sales of high-end models with more than 600 US dollars increased by 70%.
On the other hand, domestic manufacturers continue to make breakthroughs in chips, and the strength of chip research and development is getting stronger and stronger, and the comprehensive computing power of chips has exceeded expectations. TSMC has said that it is no longer possible to evaluate the comprehensive computing power of several Chinese enterprises in detail; Bill Gates said that restricting shipments could not prevent China manufacturers from obtaining high-performance chips.
Even Zhang Zhongmou suddenly changed its face. It was said that domestic manufacturers such as SMIC had a gap with TSMC for more than five years, but now it supports the United States to launch chip stations in China, which undoubtedly recognizes that domestic chip technology is getting better and better in disguise. The key point is that domestic manufacturers continue to reduce the number of imported chips and realize more chips to be manufactured in China, which will further reduce the number of imported chips.
To put it simply, if the core companies such as Qualcomm don't want to keep shipping, their domestic market share will continue to decline in the future. Nvidia's revenue from China has decreased by over 10 billion US dollars. Huang Renxun has publicly stated that restricting shipment is like our hands are tied and we can't ship more products. Therefore, Qualcomm said that it will continue to ship chips and other products to Huawei.
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