HiSilicon is the only major supplier of smartphone processors with declining shipments. Smartphone processor shipments fell 88% in the first quarter of this year.
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Qualcomm and MediaTek took advantage of HiSilicon’s challenges to gain market share in the smartphone processor market as shipments from Huawei’s semiconductor sector plummeted.
According to research firm Strategy Analytics, Qualcomm led the smartphone processor market with a 40% revenue share in the first quarter of this year, followed by MediaTek at 26% and Apple at 20%.
Research companies have previously said that HiSilicon could lose key customers such as Honor to Qualcomm and MediaTek in the future.
Qualcomm and Mediatek also have a strong presence in Xiaomi, Oppo and Vivo. For strong 5G demand and a recovery in the smartphone market.
Regarding China’s retaliatory potential against US sanctions, research companies say Qualcomm’s key role in 5G rollout in China makes China unlikely to retaliate against Qualcomm and other chipmakers Americans. .. This further strengthens the position of the major chipmakers in the smartphone processor market.
HiSilicon is the only major supplier of smartphone processors with declining shipments. Smartphone processor shipments fell 88% in the first quarter of this year after experiencing remarkable growth between 2012 and 2020.
Sravan Kundojjala, Associate Director of Strategic Analysis, said:
The company faces trade restrictions on its business, major customer Huawei, and manufacturing partners.
HiSilicon’s supply chain partner TSMC has stopped manufacturing chips for HiSilicon following US sanctions against the world’s largest contract chip maker. In anticipation of this, HiSilicon has stockpiled.
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The lack of continued support means the company will soon run out of inventory, Sravan said.