Since September of last year, Huawei has lost access to the TSMC pipeline, which has seriously affected HiSilicon’s business of developing its own processors. At the same time, Huawei’s senior vice president says the company is not going to cut down on development staff, intending to use it as a metaphorical “Noah’s ark”, helping get through tough times.
Nikkei Asian Review refers to comments made recently by Huawei director Chen Catherine. The Chinese giant will continue to develop semiconductor components in-house, she said, and the HiSilicon division will not experience any restructuring or downsizing. In 2020, the number of HiSilicon employees exceeded 7,000 people, therefore, maintaining this structural unit will be a serious financial problem for Huawei.
According to Omdia, in the first quarter of this year, HiSilicon generated just $ 385 million; that is 87% less than in the second quarter of the previous year; when the company’s turnover hit an all-time high. In May 2020, additional sanctions were imposed on Huawei, and the parent company rushed to source components developed by HiSilicon. Huawei management expects the sanctions in their current form to last another two to three years; but for now, HiSilicon will survive both by developing new types of products; for example, chips for televisions that support 8K resolution; and looking for technology partners in other countries. … The main task in the latter case is to avoid the use of technologies of American origin; which are subject to sanctions.
Sanctions against Huawei seriously undermine Sony’s semiconductor business
For Sony, the image sensor business remains one of the main sources of profit in the semiconductor components industry, and the US sanctions against Huawei have seriously undermined core revenues. Their recovery will take almost another year, despite the activity of Huawei’s Chinese competitors.
When Huawei Technologies was deprived of the possibility of receiving components manufactured at TSMC’s facilities; since mid-September last; its smartphone business began to quickly lose its old records. The main contenders for Huawei’s position in the market were Chinese smartphone makers; but they did not fully compensate for Sony’s losses in the segment of image sensors for cameras for smartphones.
In any case, as the Nikkei Asian Review explains, citing statements made by Sony representatives last week; the Japanese company will not be able to recover the lost income; due to US sanctions against Huawei by March of next year. For the second year in a row, operating profit of Sony’s main business unit declined.