According to sources close to Reuters, Huawei Technologies is paving the way for a return to the 5G phone industry. The Chinese giant would return to the market at the end of 2023 with its own 5G chips, which it developed in China together with Semiconductor Manufacturing International Co (SMIC). A complete abandonment of American technology will give Huawei wings when it comes to marketing 5G products, but the associated limitations in the operating system will still exist.

a great alliance. According to sources close to the company consulted by Reuters, Huawei wants to obtain 5G chips using both its own technologies and the SMIC framework, one of the most important figures in semiconductor manufacturing in China. This would open the doors for the Chinese giant to return 5G products to the market.

What about the US veto? In 2020, the extensions ended and Huawei’s veto by the US took effect under the authority of Donald Trump. The Ministry of Commerce discussed an important ban: No American company can enter into commercial agreements with Huawei. Likewise, the possibility of Huawei using any component that has licensed US technology is also closed.

The veto led to the immediate termination of cooperation with Google, preventing Huawei phones from having the service framework. It also blocked collaboration with giants like Qualcomm, production of Kirin processors, and deals with giants like MediaTek.

Yes with SMIC, no with MediaTek. As a Chinese company, why is MediaTek open to producing 5G chips with SMIC only? Although Huawei produces its own Kirins and MediaTek is a national company, TSMC was involved in both production processes. Chinese processors with American technology were a combination that the US administration did not allow.

The alliance with Semiconductor Manufacturing International Co aims to use Chinese technologies, something that will make it difficult for Huawei to compete head-to-head with its main competitors.

5G yes, but a fair thing on the SoC. Both Qualcomm and MediaTek are already in the 4 nanometer race. Reuters sources suggest that at best, the manufacturing process for Huawei’s new chips will feature a 7-nanometer lithography. While Huawei is willing to bear the cost of returning to 5G, they won’t be particularly cheap chips either.

the veto will continue. While Huawei can sell phones with 5G, which will help increase sales significantly in countries like China, prospects are not good outside of its homeland. According to the Financial Times, the European Union itself is considering vetoing 5G infrastructure. Brussels wants to include the Chinese giant in its list of “high-risk suppliers” in order to replace the current recommendation not to use Huawei equipment for an explicit ban.

Huawei bled to death in Spain. Speaking of national territory, Huawei has already shown a 75% drop in revenue after closing its income statements in 2021. The company continues to make money thanks to billing for service benefits, including its Information and Communications Technology (ICT) division, which bills 1,019 million euros in Spain.

Despite this, the manufacturer has disappeared in the mobile region, and despite App Gallery’s urging, it will be nearly impossible to reclaim former market positions without Google services.

We’ve contacted Huawei from Xataka to find out its official location and will update it once we get a response.

Image | xataka

on Xataka | Huawei still believes it can make a comeback in the smartphone market. This is his European vision