Why new U.S. rules on selling chips to Huawei could be a ‘big blow’ for the Chinese tech giant
For its smartphones, Huawei has a series of processors under the brand name Kirin which goes into almost all of its smartphone models. The problem for Huawei is its huge reliance on TSMC with over 98% of smartphone-related chips manufactured by the Taiwanese firm, according to an estimate by Counterpoint Research.
On top of that, “TSMC is miles ahead of SMIC in terms of leading edge technology prowess, capacity and scale,” according to Neil Shah, research director at Counterpoint Research, who added the new U.S. rules could be a “big blow” for Huawei.
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Team Counterpoint
Counterpoint Research is a global industry and market research firm providing market data, intelligence, thought leadership and consulting across the technology ecosystem. We advise a diverse range of global clients spanning the supply chain – from chipmakers, component suppliers, manufacturers and software and application developers to service providers, channel players and investors. Our veteran team of analysts serve these clients through our offices located across the key innovation hubs, manufacturing clusters and commercial centers globally. Our analysts consistently engage with C-suite through to strategy, market intelligence, supply chain, R&D, product management, marketing, sales and others across the organization. Counterpoint’s key coverage areas: AI, Automotive, Cloud, Connectivity, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks & Infra, Semiconductors, Smartphones and Wearables.
