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Huawei faces a big problem. On May 15 , the U.S. Department of Commerce announced a change in an export regulation that would allow it to block chips from being shipped to Huawei.
All manufacturers who manufacture their processors with US-based devices now require a license from the United States to supply these components to the Chinese manufacturer. Processors made from wafers that were in production at the time of the announcement can continue to be delivered to the company provided they are delivered within 120 days .
While the grace period could allow Huawei to purchase enough 5MN HiSilicon Kirin 1020 SoC from TSMC for the Mate 40 series, which is expected this fall, Huawei is trying to figure out what to do next year and beyond.
The company has its HiSilicon subsidiary's advanced chipsets produced by TSMC, the world's largest processor manufacturer. Huawei is the second largest customer of TSMC after Apple.
One thing we learned about Huawei is that the company is resilient. It even increased its deliveries by 17 percent last year, even after it was banned from its U.S. supply chain.
The 240 million smartphones it shipped last year were 35 million more than in 2018. But if Huawei is no longer able to access TSMC production, where can it go?
As it turns out, Huawei redirected some of its chip orders to SMIC prior to the May 15 announcement. However, China's largest processor manufacturer can currently only produce 14 nm chips.
But the 14nm process node won't help Huawei produce the kind of flagship phones that allow it to compete with the cellphones made by Samsung and Apple.
However, Huawei has options. First, SMIC has been working on research and development that would enable it to build processors using the 7nm and 8nm processes. Huawei might be able to make ends meet with 7nm SoC. The HiSilicon Kirin 990, which drives the Huawei Mate 30 and P40 series, is manufactured in the 7 nm process.
However, as GizChina reports, SMIC is making very slow progress as it is unable to procure state-of-the-art lithography equipment. This equipment labels wafers with the patterns used to place transistors on a chip.
The manufacturer recently imported such a machine from the Netherlands, but it is not the most advanced EUV technology. The latter uses ultraviolet rays to etch thinner lines on the wafers so that more transistors can be packaged in one chip.
A SMIC employee said: "In conclusion, we may need three or four steps. The lack of high-end lithography machines is the most critical problem. Apart from the lithography machines, our current equipment can solve the other problems. "
Another option for Huawei is to use MediaTek chipsets. MediaTek also has its chips made by TSMC, but there is currently nothing to prevent MediaTek from delivering its own processors to Huawei, even if they are made by TSMC. And since MediaTek's SoC is already driving some of Huawei's mid-range devices, both companies are familiar with each other.
So MediaTek could possibly drive Huawei's high-end smartphones next year. Because with the Dimensity 1000+ you made it clear that you want to be able to play at the top.
Another manufacturer could be Samsung, which could supply Huawei. Here, too, Huawei is said to be in talks . Exciting thing, a Huawei with an Exynos SoC?
The contribution Huawei: Are you planning to install MediaTek high-end 5G processors? first appeared on Xiaomist .
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