For over four years, Huawei has been grappling with the United States (US) government sanctions since the US placed the company on the entity list in May 2019. This decision effectively prohibited US companies from selling hardware and software to Huawei, thus severing the Chinese brand’s access to 5G chipsets.
This has not stopped Huawei from developing a solution to this conundrum. The company developed phone cases that can offer 5G connectivity, but they are only compatible with select Huawei phones. But the 5G phone cases might no longer be required in the future because they have found a way to include 5G in their devices.
Reuters reports that according to research firms, Huawei is planning to reenter the 5G smartphone industry by the end of this year. The company aims to acquire 5G chips domestically by leveraging its advancements in semiconductor design tools and collaborating with Semiconductor Manufacturing International Co (SMIC) for chip production.
One research firm anticipates Huawei utilizing SMIC’s N+1 manufacturing process. However, due to an estimated yield rate of usable chips below 50%, the shipments of 5G smartphones are expected to be limited to approximately two million to four million units, and it could reach 10 million units later.
In March, Huawei announced advancements in electronic design automation (EDA) tools for chips produced at and above 14 nanometers (nm) technology. EDA software is crucial for chip design companies to develop chip blueprints before mass manufacturing at fabrication plants.
Based on their industry sources, the research firms believe that Huawei’s EDA software could be combined with SMIC’s N+1 manufacturing process to create chips at an equivalent of 7 nm, which are typically used in high-performance semiconductors for 5G phones and Huawei has requested SMIC to manufacture chip components below 14 nm specifically for 5G products this year.
The research firms suggest that Huawei may introduce 5G versions of flagship models, such as the P60, this year, with additional launches likely in early 2024. These predictions are based on information gathered through checks with sources in Huawei’s supply chain and recent company announcements.
