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Huawei Haisi is expected to surpass MediaTek this year to become Asia's largest chip design company

China's telecom equipment and smartphone maker Huawei is continuing to invest in the semiconductor market, and its subsidiary, which is responsible for the chip design business, has also achieved high growth. 

According to recent reports from Taiwanese media, this year, Huawei HiSilicon is expected to surpass MediaTek to become the largest semiconductor design company in the Asian market. According to Taiwan’s technology media, this year, HiSilicon, a mainland-based company, will launch a variety of new chipset solutions to support Huawei’s active deployment in 5G, artificial intelligence and IoT applications, even Explore the global market needs of these chips. According to sources, Huawei is actively expanding its ecosystem's competitiveness and economies of scale, using internally developed chip solutions for its next-generation servers and new artificial intelligence and IoT devices to complement China's efforts to promote semiconductor self-sufficiency.

Driven by Huawei's radical initiatives, HiSilicon, a Huawei subsidiary, is likely to replace MediaTek in 2019, making it the highest-paying IC design company in Asia. In 2018, the company's revenue was close to 7.6 billion US dollars, slightly lower than MediaTek's 7.8 billion US dollars in revenue. According to sources, Hess will also take advantage of the huge global demand for server chips, 5G-related chips and artificial intelligence chips. HiSilicon is currently actively developing new chip platforms for smart home, IoT, artificial intelligence and enterprise service applications. It should be pointed out that Huawei's main business in the past was smartphones, telecommunications equipment, and network equipment, but Huawei is preparing to open up new areas beyond traditional businesses. According to sources, after the release of the world's first 7nm mobile artificial intelligence chipset Kirin 980 and Barong 5G01 modem chip, HiSilicon will launch more advanced artificial intelligence accelerator chip, server core processor and multimedia chip solution in 2019. . According to sources, it is expected that Huawei HiSilicon will issue more OEM orders to TSMC in the second half of 2019 to manufacture various new chipsets on the 7-nanometer process. It should be pointed out that semiconductors have a mature division of labor system, including HiSilicon and MediaTek, and there are a large number of chip design companies without semiconductor manufacturing plants in the world, while TSMC, SMIC, Samsung Electronics and other companies provide semiconductor foundry. Manufacturing services, receiving replacement work costs. Samsung Electronics, Intel and other companies also design and sell chips, and also provide OEM services. MediaTek is a veteran smartphone chip manufacturer that designs and sells application processors and baseband processors. However, in the global mobile phone chip market, MediaTek is facing a double attack. After concentrating on the high-end chip market, Qualcomm began to work in the low-end and mid-end areas, eroding the traditional share of MediaTek. In addition, Spreadtrum, the company from mainland China, also dominated. The low-end mobile phone chip market is not a small pressure on MediaTek. After the murder of Qualcomm, the entire baseband processor of Apple's mobile phone came from Intel Corporation. It is reported that Apple is preparing to train MediaTek as another supplier of baseband processor.

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