According to research firms, China’s Huawei Technologies is planning to enter the 5G smartphone market by the end of this year, marking a comeback after a US ban on equipment sales destroyed its consumer electronics sector.
According to three independent technological research organizations covering China’s smartphone market, Huawei should be able to obtain 5G chips domestically utilizing its own advancements in semiconductor design tools and chip production from Semiconductor Manufacturing International Co (SMIC).
Huawei Set To Defy US Ban With 5G Phone Comeback
Due to confidentiality agreements with clients, the firms spoke on the condition of anonymity and cited sources in the sector, including Huawei suppliers.
An entry back into the 5G phone market would be a triumph for the business, which for almost three years said it was only operating in survival mode.
Revenue from Huawei’s consumer division reached a peak of 483 billion yuan ($67 billion) in 2020 before falling by over 50% the following year.
Prior to rounds of US restrictions starting in 2019, the Shenzhen-based tech giant competed with Apple and Samsung to be the largest handset manufacturer in the world.
These restrictions restricted its access to chipmaking technologies necessary for developing its most cutting-edge models.
The governments of the US and Europe have classified Huawei as a security concern, which the company disputes.
Since then, Huawei has only sold a small number of 5G devices utilizing processors that were already on hand.
When sales hit a low point last year, Huawei dropped from most global rankings since it was stuck selling outdated 4G smartphones.
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Capturing 10% Market Share In China
However, the company rose to a 10% market share in China in the first quarter, according to consultancy Canalys.
One of the research companies predicted that Huawei would adopt SMIC‘s N+1 manufacturing method, but that 5G shipments would be restricted to between 2 million and 4 million units due to a predicted yield rate of usable chips below 50%.
Without offering any additional information, a second company predicted that shipments may total 10 million units.
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