Huawei's New Mystery 7nm Chip from Chinese Fab Defies US Sanctions

Analyst - Gizmochina asserts that Qualcomm is in serious peril as a result of Huawei's new Kirin 9000s CPUs.

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Huawei's New Mystery 7nm Chip from Chinese Fab Defies US Sanctions

With its new Mate 60 line of smartphones, Huawei was able to capture the attention of the entire world. The Mate 60 and Mate 60 Pro, which were unofficially introduced, have a 5G Kirin 9000s chipset that appears to be produced by SMIC on their 7nm production node. Although this is great news for customers, rivals like Qualcomm might not be as happy. According to an analyst, Qualcomm's hegemony over the market could be seriously threatened by Huawei's new chipset.

The well-known analyst Ming-Chi Kuo, who is well-known for his predictions on Apple, stated that Qualcomm is the primary loser as a result of Huawei's adoption of the Kirin9000S and other Kirin CPUs. This is due to the fact that Qualcomm's largest customer is Huawei, and Huawei won't need to purchase chips from Qualcomm if it starts utilizing its own chips. According to Kuo, Huawei purchased 40–42 million mobile phone SoCs from the US tech titan in 2023 after purchasing 23–25 million in 2022.

Due to Huawei's rivalry, Kuo expects that Qualcomm may see a reduction in shipments to Huawei as well as a possibility of reduced shipments to Chinese clients who do not use Huawei products. Due to Huawei's adoption of the new Kirin processors, Kuo predicted that Qualcomm's SoC sales to Chinese smartphone manufacturers would be at least 50–60 million units lower in 2024 than they were in 2023. He also predicted that this reduction would continue year after year.

This might promptQualcomm would "start a price war as early as 4Q23 to maintain market share in the Chinese market, which will be detrimental to profits," said Kuo.

Kuo thinks Qualcomm may also be exposed to two more dangers. First off, the Exynos 2400's market share in Samsung smartphones may be bigger than anticipated. As a result, Qualcomm's sales to Samsung would decline. Second, it's anticipated that Apple will begin using its own modem chip around 2025. Given that Apple is a significant client, this would be a serious blow to Qualcomm.