With the arrival of the September 14 deadline, Huawei is accelerating the procurement of components from overseas, hoarding components to tide over the difficulties, and overseas industrial chains are also actively supporting Huawei, rushing to supply components to it before the deadline.
Huawei is the world's largest communications equipment company and the second-largest mobile phone company. It has a huge demand for components. In order to meet Huawei's needs, industry chain companies are making every effort to produce corresponding components.
It is said that TSMC, MediaTek, Samsung and other companies have completed Huawei's orders and started to deliver. In order to promptly ship these components back to China, Huawei even packaged cargo planes to return related chips to Taiwan.
The fact that overseas industry chain companies attach so much importance to Huawei's orders is that Huawei has contributed huge amounts of revenue to them. Huawei is TSMC’s second largest customer and contributes US$5 billion in revenue to the latter each year; Huawei also purchases huge amounts of components from companies such as Japan and South Korea. It is said that Huawei’s purchases from these two countries in 2019 amounted to US$26.4 billion. .
In the current emergency situation, Huawei is increasing purchase prices, allowing these overseas industry chain companies to obtain huge profits from it. So it is no wonder that these companies have worked so hard to cooperate with Huawei. After all, this can bring much higher than usual. profit.
The industry expects that Huawei's existing component inventory should be able to support Huawei's operation for a year. After the component inventory is exhausted, if the US policy is still not relaxed, then Huawei will need to rely on the development of the domestic industrial chain.
Huawei began to support the development of the domestic industry chain several years ago. Among them, it supports BOE, the largest domestic panel company. In 2017, BOE’s OLED panel production line was put into production. In 2018, Huawei began to use BOE’s OLED panels. Later, it cooperated with BOE to develop folding OLED panels. With the strong support of Huawei, BOE has become the world's second largest small and medium-sized OLED panel company, second only to South Korea's Samsung. .
Since last year, Huawei has further increased its support for the domestic industrial chain. Its Hubble Investment has continued to invest in domestic industrial chain companies. Among them, it has invested the most in chip companies. So far, it has continuously invested in 13 chip companies. The investment of domestic chip companies has accelerated their technological development.
After the two domestic memory chip companies Yangtze Memory and Hefei Changxin put into production of memory chips, Huawei also quickly reached cooperation with them to promote them to accelerate the pace of capacity expansion. Through this cooperation with the domestic industrial chain, Huawei hopes to replace foreign components at an early date.
In fact, after more than a year of hard work, Huawei has realized the domestic substitution of some components. The P40 mobile phone independent chips launched this year accounted for more than 50%, and the chips from the United States have dropped significantly. Maybe in the next year, Huawei and With the joint efforts of the domestic industry chain, Huawei will be able to completely replace domestic chips. By that time, even if the US restrictions are not relaxed, Huawei can basically solve the problem.
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BM Tech BMtech007