July 13, 2023
Huawei Technologies is planning to return to the 5G smartphone market by the end of this year. The company has been working on its own semiconductor design tools and has partnered with Semiconductor Manufacturing International Co (SMIC) to produce 5G chips domestically.
Huawei’s return to the 5G market would be a major comeback for the company, which was once the world’s leading smartphone maker. However, the US ban on equipment sales decimated its consumer electronics business.
Insights from three reputable technology research firms, specializing in China’s smartphone sector, suggest that Huawei is leveraging its advancements in semiconductor design tools to domestically procure 5G chips. Additionally, the company is expected to collaborate with Semiconductor Manufacturing International Co (SMIC) for chip manufacturing.
While the firms rely on confidential sources and suppliers close to Huawei, the Chinese tech giant itself has refrained from commenting on the matter. SMIC, too, has not provided any official statement. If successful, this resurgence would mark a significant victory for Huawei, which has battled through a protracted “survival” mode for the past three years.
The research firms that spoke to Reuters said that Huawei’s 5G shipments would be limited to around 2 million to 4 million units in 2023, due to the low yield rate of SMIC’s N+1 manufacturing process. However, they said that Huawei could produce 5G versions of flagship models like the iPhone rival P60 this year, with new launches likely in early 2024.
The sources for this piece include an article in Reuters.
