1. The earthquake of security chips: the price has skyrocketed 10 times, and it has become a mask during the epidemic.
HiSilicon is divided into “Big HiSilicon” and “Little HiSilicon”.
“Daisi” develops Huawei’s own chips such as Kirin, Shengteng, Kunpeng, Balong, Lingxiao, and Taishan;
“Little HiSilicon” produces chips for external sales, including video surveillance chips and TV set-top box chips.
For video surveillance chips, Huawei occupies 60% of the domestic market and 70% of the global market. A true global king.
2016 China IPC SoC Market
Some people in the industry commented on HiSilicon chips and masks during the epidemic. But security chips are no better than high-end mobile phone chips. HiSilicon can’t do it. It can replace it by itself. It’s good to survive the out-of-stock period.
Terminal product companies will naturally switch chip suppliers, and there is no need to buy expensive goods. Traditional and non-traditional fabless companies such as Bitmain, Yuntian Lifei, Fullhan Micro, Zhongxing Micro, Zhanrui, etc. are accelerating to fill the market vacancies of HiSilicon.
Some channel dealers said that the price and supply of HiSilicon chips were relatively normal in early August, and the price began to soar in mid-August, and the panic of large-scale shortages began to spread, and many of them were suspected of roasting seeds and nuts.
At the end of August, the stock price of the benchmark Fullhan Microelectronics reached a record high, and then fell back.
In early September, the hype of security chips reached an all-time high, and it was even reported that the high-end Hi3559A of HiSilicon was sold at a 10 times higher price.
A senior person in the security industry said that some agents seized the “TSMC and SMIC cut off the supply of Huawei” to start hoarding goods, some hoarding goods to reduce risks, and some hoarding goods to speculate on concepts and prices.
At present, HiSilicon chips are out of stock due to production constraints. However, suppliers and agents hyping and hoarding goods have exacerbated the skyrocketing and plummeting prices.
However, hype for profit is a disease that needs to be cured. Whether in the stock market or in the sales segment, the sharp rise and fall are not conducive to the healthy development of the industry.
Second, Huawei, make a commitment to Qualcomm!Huawei will use all its strength to strengthen the supply chain, which is also helping Huawei itself
On September 23, Huawei held the 2020 Full Connect Conference in Shanghai.
When asked if you are considering using Qualcomm chips in flagship phones?
Guo Ping said: “Qualcomm has always been an important partner of Huawei. We have been purchasing Qualcomm’s chips for the past ten years. I also noticed that Qualcomm said that they are applying for an export license from the US government. If they apply for it, we will Happy to use Qualcomm chips to make phones.”
During the conference, Huawei’s rotating chairman Guo Ping delivered a keynote speech. He said, “The suppression of the United States has brought a lot of pressure to our operations. We are still in the evaluation process, but survival is our main line.”
In addition, Guo Ping also answered the question about Huawei’s chip inventory. He said that the last batch was put into storage on the day the ban came into effect on September 15, and the specific reserves were still in the process of statistics.
At present, the reserves of To B business chips are relatively sufficient, and mobile phone chips are still actively looking for ways.
Huawei will continue to invest in improving the capabilities of partners, building industry applications, strengthening the supply chain, and making the industry stronger and bigger.
Guo Ping said that Huawei is now encountering great difficulties, and the continuous suppression has brought great pressure to Huawei’s operations, and the specific impact is still under evaluation. For Huawei, the biggest blow to the supply chain is the damage to the supply chain, so Huawei will use all its strength to help the supply chain grow and grow. “To help the supply chain is to help Huawei itself.”
Guo Ping emphasized: “Huawei has strong chip design capabilities. We are also willing to help trusted supply chains to enhance their chip manufacturing, equipment, and materials capabilities. Helping them is also helping us.”
3. Huawei employees: HiSilicon employees have digested 40% internally! What to do on a day off.
Huawei employees said that since HiSilicon was suppressed, many people in the department have moved to other departments, but they were all internal transfers within the company, and none of them left.
Recently, according to a person who claimed to be a “former ZTE employee” on the Maimai App, a “real-name business social platform”, “oppo recently came to HiSilicon to poach people, and there is no need for an interview. It is directly multiplied by an annual package factor to join… … still opening a branch center in Xi’an, digging wildly!”.
As soon as the revelation came out, it aroused widespread concern and discussion among netizens.
In response to the content of the revelations, there are also people from OPPO who responded decisively to the “China Economic Weekly”, “No, we are not looking for Huawei, there is competition (prohibition).” This person used to work at Huawei, and the time interval between leaving Huawei and joining OPPO is more than two years.
In addition, two employees of Huawei HiSilicon Shanghai and Nanjing have never heard of this (OPPO went to HiSilicon to poach people), and no one in their department has resigned.
Huawei employees said to the public: Since HiSilicon was suppressed, many people in the department have moved to other departments, but they were all internal transfers within the company, and none of them left. “It’s just going to another department, and the rest is still there. The people who ‘internal digestion’ (transfer) account for about 40% of the department’s headcount.”
The U.S. crackdown on Huawei’s “cutting supply” has officially taken effect. Huawei engineers said that the company’s internal atmosphere is the same as usual, and they are working as usual. “There is no loss to us at present, so what should we do?”