Most Chinese apps and manufacturers suffer from the havoc caused by the political issues going on in China, which challenges their overseas partners. One of the manufacturers that have been widely affected is the Chinese smartphone giant. Huawei has lost its partner for making its smartphone chips.
Huawei has been making its own SoCs for its smartphones in partnership with Taiwan Semiconductor Manufacturing Co., which manufactured most of their chipsets. However, the major international smartphone maker was forced to stop its trading with TSMC. It was due to the trade ban issued by the United States.
Huawei was left with no choice but to look for an alternative solution that could suffice its needed chipsets for its smartphone units. The company is eyeing for third-party manufacturers such as Qualcomm Inc. and MediaTek Inc. to be its supplier.
The significant change from its major partner has made a big impact on the overall production of Huawei’s smartphones. Since the smartphone giant is used to creating its own chips and having the ability to optimize it, relying on third-parties would be a challenge.
Richard Yu, its Consumer Business Unit Division CEO, confirmed in his statement that the company could no longer manufacture AI chips for its smartphones.
He said that “from Sept. 15 onwards, our flagship Kirin processors cannot be produced. Our AI-powered chips also cannot be processed. This is a huge loss for us. Huawei began exploring the chip sector over ten years ago, starting from hugely lagging behind, to slightly lagging behind, to catching up, and then to a leader. We invested massive resources for R&D, and went through a difficult process.”
Huawei’s Kirin 1020 will be the last shared project of TSMC and the smart giant, as its production will be stopped from September 15. However, the remaining TSMC based chipsets could still make it on the Huawei Mate 40 series that is to be announced in 2020 Q4 in October.
Huawei is not only the affected Chinese owned company due to the controversial allegations. Companies from China were allegedly taking part in the propaganda movement of the Chinese government.
Other countries were suspecting apps and gadgets manufactured from China to be spying and gathering data from other countries. Huawei and other companies ensured that they are not part of any propaganda movement. However, it still resulted in banning and blocking services and apps from Chinese companies.