Huawei’s US ban was prolonged for an additional yr final month. Moreover, TSMC was cut-off to fabricate chips for the Chinese language tech large. Therefore, the corporate has been on the lookout for prospects to maintain its enterprise up and operating. Now, a brand new report suggests Samsung may assist Huawei in making its 5G base station chipsets.
Huawei is a telecommunication firm first and a smartphone maker subsequent. Nonetheless, it’s the second-largest smartphone firm in the world. It was even speculated to surpass Samsung by the top of this yr however the US ban has shattered the chance.
That stated, it’s fantastic for the corporate to lose in the cell phone section however the identical can’t be stated for its telecom enterprise. It has contracts to ship 600,000 5G base stations, that are powered by its in-house HiSilicon Kirin chipsets manufactured by TSMC.
Therefore, Samsung is reported to be in talks with Huawei to fabricate chips for the latter’s 5G base stations. The South Korean tech large is among the largest chipmakers in the world.
Samsung makes use of Excessive Extremely-Violet (EUV) lithography machines made by Dutch firm ASL to fabricate 7nm chipsets. Whereas, for testing, it makes use of machines from Japan. Since there’s no involvement of US-based tech, it could provide chips to Huawei.
In return, Huawei should surrender its smartphone share to Samsung because the electronics division is the lifeline of the South Korean tech large.
That is the most effective probability for Huawei to save lots of its telecom enterprise by sacrificing smartphone division. As of now, it’s not certain whether or not the Chinese language firm will settle for this provide however the chance is extra because the homegrown SMIC is caught at 14nm.
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