High-priced brand’P’,’Mate’ series
Sale consultation with Shanghai government consortium
Difficulties in procuring key semiconductors to US sanction
Company denies “continue to manufacture high-end smartphones”
Photo = REUTERS
Reuters reported on the 25th (local time) that Chinese semiconductors, which are suffering from difficulties in procuring core semiconductors due to US sanctions, are also pursuing a plan to sell their premium smartphone business. Huawei immediately denied that it had “no plans to sell.”
According to multiple sources, Huawei is in discussions to transfer the high-priced brands’P’ series and’Mate’ series to a consortium led by an investment company of the Shanghai provincial government. In September of last year, internally reviewing the sale plan began, and discussions between the two sides have been going on for several months.
However, the sale price is not yet known, and the negotiation itself may break down, the source said. This is because Huawei is still looking for ways to manufacture and sell high-end smartphones using Kirin chips designed by Huawei.
Huawei is currently under sanctions for its flagship business, communication equipment and smartphones, from being able to purchase semiconductors using US equipment or technology without US permission. Huawei’s premium smartphone contains Kirin chips designed by its subsidiary Hi-Silicon and commissioned to Taiwan’s TSMC. Hi-Silicon uses semiconductor design software from Cadence and Synapsys, an American software developer, and TSMC also uses many US-made equipment.
Huawei, whose core chip procurement route was blocked, made every effort to secure major components until September 15, last year, when US sanctions took effect. As inventory runs out, Huawei’s high-end smartphone sales have declined significantly this year, market analysts diagnosed.
In November of last year, Huawei sold the mid-to-low-end smartphone brand Honor (Longyao) to a consortium formed by the Shenzhen municipal government and local smartphone distributors. Analysis of this move is the choice to focus on high-end smartphones in the market.
Regarding Huawei’s promotion of the sale of premium brands, Reuters interpreted that it shows that Huawei believes that the new administration of Biden in the United States will also continue sanctions against the company.
Huawei denied that “I know rumors are circulating about the sale of premium brands, but there is no such plan.” It also stressed that it will continue to manufacture high-end smartphones. In response, the US specialty media GSM pointed out that “Huawei has also denied reports of the sale of the Honor brand. It is worth watching” As Huawei is an unlisted company, it is not subject to any disclosure obligations or sanctions for violation of obligations.
Beijing = correspondent Kang Hyun-woo [email protected]
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