MediaTek does not guarantee Huawei’s supply of chips

Tram Ho

To remedy this, the Chinese telecommunications giant has been negotiating with many processor vendors, including MediaTek. Until now, Huawei’s strategy of developing its own processing platforms has not been successful. According to experts, they should focus on the processors of competitors.

Because Huawei is banned from doing business with U.S. companies, Huawei cannot buy Qualcomm’s Snapdragon chips. Therefore, MediaTek has become a viable option (although in theory Huawei can also cooperate with Samsung and UNISOC). Not surprisingly, Huawei used the MediaTek chip in its smartphones years ago.

MediaTek không đảm bảo được nguồn cung chip cho Huawei - Ảnh 1.

Huawei is looking for opportunities to buy more processors from MediaTek

According to the latest information, Huawei’s MediaTek chip orders have increased by 300% this year. The Chinese smartphone manufacturer is expected to use the Taiwanese giant’s 5G chipset in both medium and high-end smartphones. In the past, Huawei only used MediaTek 4G processors in the mid-range or low-cost segment.

The source also said MediaTek is reassessing its ability to meet Huawei’s chip needs.

However, some leaked information shows that MediaTek cannot guarantee Huawei’s ability to supply chips. The reason is that the company has to invest heavily in machinery and personnel to expand production capacity.

Because Huawei is being targeted by the US government, MediaTek may be subject to sanctions by the Trump administration.

Huawei is one of the world’s three largest smartphone manufacturers alongside Samsung and Apple. The company has the ability to develop its own mobile processor. However, this requires a long time and then their market share is likely to be invaded by rivals like Samsung.

Reference: Gizchina

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Source : Genk