Huawei’s HiSilicon overtakes US’ Qualcomm in overall chip set shipment

By
Steven Hung
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Huawei's HiSilicon overtakes US' Qualcomm in overall shipment in Q1 of 2020

Huawei’s HiSilicon company has seen a stellar rise in their microchip processor shipments in the first three months of the 2020.

The company has overtaken Qualcomm in total number of units shipped during the same period. The geopolitical problem between China and the U.S. continues to heat up even during the Coronavirus pandemic.

The effects of the standoff boil all the way down to how consumer purchasing. An example this huge effect is in smartphone purchasing. Ever since the U.S. imposed the blacklisting of Chinese companies, China has found its gem in their local market.

Huawei experienced a drastic drop in their global smartphone sales, but experienced a huge leap in local sales. The jump in the sales is also reflected in the company’s semiconductor business.

Qualcomm slides to the second spot in total units shipped

For the first time, Huawei’s HiSilicon business arm overtook Qualcomm’s dominance in microchip manufacturing. During the first quarter of 2020, the company shipped a total of 22.21 million units, which accounts for 43.9% of the market share. The company’s performance from the previous year’s similar period was a measly 24.3%.

Qualcomm on the other hand only took 32.8% of the market, which is a huge slide from 43.9% from the previous year. Qualcomm is the main supplier of chip sets for Huawei’s competitors in the Chinese market.

The U.S. based company provides chip sets for all ranges of Xiaomi, Oppo, Vivo, and other locally made smartphones. All of these companies experienced a painful decline in sales due to the Coronavirus pandemic and is reflected in the total number of chip sets shipped.

Huawei remains strong in the Chinese market despite foreign pressure

Other companies are struggling to make ends meet through sales. Meanwhile, Huawei maintains its dominance in the Chinese market. In fact, they even saw a six percent increase in total smartphone units shipped during the first quarter of 2020.

The growth may be attributed to the fact that Chinese users do not really need Google’s services within the country. In fact, all of Google’s services are banned within China. Therefore, the negative effect of the Google pull-out locally isn’t as big as its effect in the Western market.

Huawei is committed to maintaining its strong presence within the country. It is also moving majority of its businesses within the confines of the Chinese territory. The company will decrease its reliance on Taiwan Semiconductor Manufacturing Company (TSMC) in favor of Semiconductor Manufacturing International Corporation (SMIC).

Nevertheless, Huawei’s CEO has maintained that essentials ties with the U.S. will not be cut. He adds that the U.S. is a great partner of China, and the company intends to keep that relationship.

Image courtesy of Jens Johnsson/ Unsplash

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