Huawei’s Strategic Shift: Stockpiling 45 Million Kirin 9000S Chips for Market Demand

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Huawei, the Chinese tech giant, has recently made significant strides in its smartphone business with the launch of the Hisilicon Kirin 9000S chip in the Mate 60 Pro. This move is seen as a pivotal step for the company, especially in light of the US sanctions.

Key Highlights:

  • Huawei’s Kirin 9000S chip is 5G-enabled and offers satellite calling capability.
  • The company has stockpiled around 40-45 million units of the Kirin 9000S chips.
  • These chips will primarily be used in the Mate60 series and potentially in the Nova 12 series.
  • Huawei’s shift towards using its in-house Kirin processors is expected to start in 2024.
  • This strategic change could lead to a significant drop in Qualcomm SoC shipments to Chinese smartphone brands.

Huawei’s Revival Amidst US Sanctions:

Despite facing challenges due to US sanctions, Huawei’s recent launch of the Hisilicon Kirin 9000S chip in the Mate 60 Pro has breathed new life into its smartphone business. This 5G-enabled chip eliminates the company’s dependence on foreign entities like Qualcomm. Notably, the Kirin 9000S supports 5G and is the world’s first commercial smartphone chip to offer satellite calling capabilities.

Stockpiling for the Future:

According to a Weibo tipster named Fixed Focus, Huawei has amassed a significant number of Kirin 9000S chips, estimated to be around 40-45 million units, to cater to market demand. These chips are expected to be integrated into the Mate60 series for several months. There’s also speculation that they might find their way into some models of the Nova 12 series, albeit with potential specification changes. Furthermore, the Kirin 9000S will play a crucial role in Huawei’s upcoming P70 series.

Cutting Ties with Qualcomm:

Huawei’s strategic direction seems clear – to reduce its reliance on external chip manufacturers. The company plans to sever its ties with Qualcomm and exclusively use its in-house Kirin processors for new models starting in 2024. Analyst Guo Mingcheng predicts that this shift could result in a substantial drop of 50 to 60 million units in Qualcomm SoC shipments to Chinese smartphone brands in 2024, compared to the previous year.

Boosting Its Market Position:

Huawei’s decision to rely on its chip technology is anticipated to strengthen its position in the global smartphone market. With the Mate60 series alone, the company aims to achieve global sales of 50 million units. However, it’s worth noting that Huawei is primarily targeting domestic consumers and does not have immediate plans to venture into overseas markets.

Summary:

Huawei’s move to stockpile around 45 million Kirin 9000S chips underscores its ambition to be self-reliant and reduce dependencies on external chip manufacturers like Qualcomm. This strategic shift, initiated amidst the backdrop of US sanctions, is expected to reshape the dynamics of the smartphone market in the coming years. With its eyes set on dominating the domestic market, Huawei is gearing up to meet the demands of its consumers with its in-house technology.

About the author

Mary Woods

Mary nurses a deep passion for any kind of technical or technological happenings all around the globe. She is currently putting up in Miami. Internet is her forte and writing articles on the net for modern day technological wonders are her only hobby. You can find her at mary@pc-tablet.com.