Qualcomm, a leading American semiconductor company, has recently confirmed that Huawei, a Chinese telecommunications giant, no longer requires its processors. This announcement comes amidst ongoing tensions between the United States and China over trade and technology restrictions. The confirmation by Qualcomm’s CFO that Huawei will not be purchasing 4G chips from the company in the future underscores the significant shift in the global technology landscape.
History of Huawei – Qualcomm business
The relationship between Huawei and Qualcomm has been marked by both collaboration and competition over the years. Huawei, founded in 1987 by Ren Zhengfei, initially focused on manufacturing telecom equipment and gradually expanded its operations globally. The company’s rise to prominence was supported by the Chinese government through loans and policies favouring domestic companies, enabling Huawei to compete effectively in the telecom equipment market. On the other hand, Qualcomm, established in 1985, has been a key player in the wireless communication and semiconductor industries. The company’s innovations, such as the development of CDMA technology in 1989 and the introduction of the Snapdragon processor in 2007, have significantly shaped the mobile technology landscape.
The relationship between Huawei and Qualcomm took a competitive turn as Huawei started producing its own processors and modems, directly competing with Qualcomm’s products. This competition intensified as Huawei invested heavily in 5G communication technologies, becoming one of Qualcomm’s main competitors in this space. However, after the ban on Huawei by the U.S., the Chinese brand no longer had access to key technologies that it needed to produce its chips. For this reason, it had to rely on Qualcomm chips for a few years. However, it had access to only Qualcomm’s 4G chips.
Huawei’s Shift to Independence
Huawei’s decision to move away from Qualcomm’s processors is a strategic move towards independence. The company has been actively working on developing its own chipsets, particularly the Kirin series, which has been used in its smartphones. This shift is seen as a response to the ongoing trade tensions and restrictions imposed by the United States on Huawei’s access to advanced technology and components.
Huawei’s shift to independence can be seen in its latest flagship phones, the Huawei Pura 70 series. According to reports, this series uses more Chinese-made components than parts from the rest of the world combined. This move aligns with Huawei’s strategy to reduce its reliance on foreign suppliers and enhance its self-sufficiency in the wake of US sanctions and trade restrictions. The Pura 70 Ultra and Pura 70 Pro models from the series come with a range of components from China. This includes memory chips and the advanced Kirin 9010 processor.