Huawei Hisilicon will begin to sell a large number of self-developed chips to the outside world and believes that this strategy will cause Hisense to cease to be Huawei’s exclusive chip design company.
In fact, this message contains some misunderstandings, because Hisilicon has a lot of chips already sold to the outside world, mainly non-mobile phone chips. These chips have a lower direct correlation with consumers, so they are less affected. Concerned, I mistakenly believe that all Hisilicon’s self-developed chips are exclusively for Huawei.
However, will HiSilicon “expand” the sale of self-developed chips, especially chips related to mobile phones, and more specifically, will HiSilicon’s 5G chips be sold in the future? This is indeed a matter of concern.
Concepts of “big sea thinking” and “little sea thinking”
For a long time, Huawei Hisilicon’s self-developed chip is not a completely closed ecology, and can be divided into two concepts: “Dahaisi” and “Little Haiti” . The chip of “Da Hai Si” is exclusively for Huawei’s internal use, and the chip of “Little Hai Si” has always been sold externally.
Kirin: mobile phone processor chip
Balong: Mobile phone baseband chip
Tiangang: 5G base station chip
Ascend: AI Chip
Kunpeng: server chip
Video surveillance chip IPCam
TV SoC Chip / Timing Controller (TCON)
If you want to say that in the recent Hisense’s strategy for chip export, what major changes have been made? That is to say publicly in 2019 that the 4G communication chip Balong 711 will be sold to the outside world for the first time. The target customers are mainly the Internet of Things industry, but not mobile phone customers.
Hissong’s 4G communication chip Balong 711 is one of the earliest 4G Modem chips to be developed. It was first introduced around 2014. The Balong 711 package includes baseband chips, RF chips, power management chips, etc. According to preliminary estimates, the cumulative global shipments of Balong 711 have exceeded 100 million sets, and are used in many industries, such as industrial fields, vehicle networking, retail, and the sharing economy. (Such as bike sharing).
Industry insiders analyze that because this market for IoT applications is very fragmented, Hisilicon will open Balong 711 and work with customers to fill the gaps in the market. Opening up sales is the right strategy, but this market and Phone has nothing to do.
Mobile phone chip heavy army area
In the sales strategy of mobile phone chips, Hisilicon has not indicated that it will further open sales to the outside world, and there is no strategic change, but the entire industry still pays close attention to Hisense.
Because the global political and economic situation changes too quickly, Huawei may respond with a more flexible strategy, and all of Huawei’s every action will definitely affect the entire technology industry.
Regarding whether HiSilicon will expand the sales of chips in the future, especially the core mobile phone chip product line, the following are two aspects that Qin Voice observed.
First, if HiSilicon sells mobile phone chips, what are the challenges?
Second, if HiSilicon sells mobile phone chips in the future, who will be most affected?
The mobile phone chip research and development strength accumulated by Hisilicon have long been one of the first-tier IC design companies. In recent years, it has put a lot of pressure on Qualcomm, but because Hisense’s mobile phone chips have not been sold externally, its relationship with Qualcomm is not considered a positive competition. opponent.
Moreover, Hisilicon’s chips have long assisted Huawei-branded mobile phones, and have already reached the throne of the world’s second-largest mobile phone brand factory, second only to Samsung, and also surpassed Apple’s iPhone shipments.
Conflicts and compatibility
If HiSilicon sells mobile phone chips to the outside world, the first challenge it faces is whether mobile phone customers can accept it.
Taking OPPO and Vivo as examples, once Heise’s mobile phone chip is used, Huawei becomes a supplier, but Huawei’s branded mobile phones compete with themselves in the terminal market. This relationship is both very competitive and cooperative.
In this regard, if Hisilicon is an open-end low-end 4G mobile phone chip, the contradiction will be smaller. Because the low-end chip is very price-oriented, but the price is beautiful enough, basically no one will be able to pass the money, and the product of Shanghai Si has a certain performance guarantee. Under the condition of good performance and price, mobile phone customers will not Struggle and doubt more.
For example, Huawei and Samsung’s low-end mobile phone chip solutions have also used products from Zhanrui and MediaTek. After all, the procurement departments of these mobile phone manufacturers have a certain evaluation process. As long as the price and performance are up to standard, they will be used. .
If it is a 5G chip, customers will have to consider more. After all, 5G mobile phones will be the main battlefield in the future. Everyone will measure the aspects of price, supply continuity and stability. The conflicts of interest that need to be considered will be more detailed.
In addition to the relationship with customers, if Hisense’s mobile phone chips are sold externally, they will face a second challenge.
Because Hisilicon’s mobile phone chips have been designed and optimized based on the needs of Huawei mobile phones for a long time, this is also one of the key factors for Huawei to invest a lot of resources in supporting the chip design business.
When the mobile phone chip is designed and optimized based on only one customer, it will be easier to meet the standard value pursued by adapting to mobile phones of different brands than after opening for sale. Therefore, possible compatibility issues will also need to be considered when opening up mobile phone chips for sale.
In the future, if HiSilicon sells mobile phone chips, who will be most affected? This answer is obviously MediaTek and Zhanrui, which assumes that the premise is of course that the possibility of opening low-end chips is higher than high-end chips.
Don’t think that only 5G chips are highly competitive, and competition in the low-end mobile phone chip market is also surging.
For example, in 2017, the establishment of a new mobile phone chip design company with a background of Qualcomm’s investment, Sheng Sheng, has been discussed by various circles. It has been questioned that such a joint venture will not help the domestic chip technology development. Agents in the terminal chip market form the vicious competition.
In the mobile phone chip market, the vendors from low to high end are Zhanrui, MediaTek, Qualcomm / HiSilicon. In the 5G era, everyone wants to participate in the leapfrog competition to improve their status.
Zhanrui initially missed the biggest dividend period in the 4G era, this time with high hopes for 5G; MediaTek’s 5G mobile phone chip Teana 1000 just launched has the advantages of beautiful price, integrated modem chip, TSMC’s sufficient production capacity support, etc., targeting Qualcomm’s 5G chip hits.
Earlier, Samsung was also rumored to consider selling 5G chips to Chinese mobile phone customers. Like Samsung, in the past, Samsung has used mobile phones for self-use but not for sale. Such rumors are also in response to a possible strategic change in the 5G era.
At present, HiSilicon’s chip product line strategy maintains the previous “HiSilicon” mobile phone chip self-use, and “Little HiSilicon” products for external sales have not changed in strategy.
As for the part of the mobile phone chip, everyone is really watching any possible variables. To maintain the 4G market and expand the market share of 5G, the change in the strategy of any supplier will affect the competition of competitors and mobile phone brand manufacturers. Layout, so extra care is needed.