Major smartphone chipmaker says new Huawei OS could impact its sales short term

Major smartphone chipmaker says new Huawei OS could impact its sales short term
The company that manufacturers many of the chips used in smartphones, Taiwan Semiconductor Manufacturing Company (TSMC) is going to be impacted in the short term by the ban that prevents Huawei from sourcing parts and software in the U.S. The company previously had stated that Huawei's placement on the Commerce Department's Entity List would not affect it; the company has already announced that it would continue to manufacture chips for Huawei and its HiSilicon unit.

According to Reuters, it appears that TSMC has reevaluated the situation. TSMC Chairman Mark Liu, speaking to reporters today, said that sales of Huawei phones will slow down as consumers decide whether they can live with the phone manufacturer's Android replacement. As a result, Huawei might need fewer chips to be assembled, which would affect TSMC's revenue in the short term.


Liu did add that demand for both 5G smartphones and newer handsets coming to market in the second half of this year will help TSMC stay on track for 2019. The executive says that his company's outlook remains unchanged for the calendar year. Back in January, Liu said that TSMC's 2019 revenue would grow 1% to 3% over last year's figure of $1.03 trillion NT ($32.8 billion USD). Last year, the firm earned net profits of $351.13 billion NT ($11.4 billion USD).

While Huawei's in-house HiSilicon unit designs the chips used in Huawei's high-end phones, the company has lost the support of U.K. chip designer ARM Holdings. This is a big blow to the company as it will need to search for an alternative architecture for its SoCs. Meanwhile, Huawei says that it has stockpiled a year's worth of chip parts and components.

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8 Comments

1. surethom

Posts: 1689; Member since: Mar 04, 2009

No Android no thanks it would be like Samsung releasing the Galaxy S11 with Tizen. It would never sell as much as with Android. Not ever 20% as much.

5. Papa_Ji

Posts: 848; Member since: Jun 27, 2016

Huawei OS phone.... Day 1 buy. It will be the least spying device. I never use any of google app (disable all of them from day one....these all are just bloatware). Search and maps = browser (UC Browser and samsung Internet) YouTube = browser/vanced Youtube And if someone need then there is no difference in downloading them from ApkPure/ApkMirror or play store.

2. mrochester

Posts: 996; Member since: Aug 17, 2014

It really highlights the unhealthy stranglehold that google has on the smartphone market when people talk about no android no sale.

3. oldskool50

Posts: 1519; Member since: Mar 29, 2019

That is false. The impact would be no different if the US block other countries from getting IOS or Windows. If every phone manufacturer or every computer manufacturer made their own OS, they would all be at the mercy of how many would actually support their platform. It is very costly for a dev to support several platforms. The fact is, having 1 or 2 platforms to support is more cost effective. If you don't understand that, than you lack any common sense. Android helped in the fact, 100's of OEM's wanted to make hardware, but even the biggest names in software development would never support 100 different platforms. They never had too and they never would. If any country banned iOS it would not just hurt Apple. It would also hurt the same companies. TSMC who is the largest maker of chips for Apple would lose money, so would all the companies who make other parts for apple, like Samsung for displays and internal storage and more. The fact that you only pointed out Google, just shows your inherit hate of Android/Google, for the exact same thing that would happen if Apple was blocked. If Samsung was banned, most of there stuff is made internally, as they don't source very many things from 3rd parties. But 3rd parties like Sony where Samsung buys cameras, would have an effect. Less of an effect is not equal to no effect. Google does not have a stranglehold. Google made a platform. All devs and OEM's were open to it's usage. The time and cost for every OEM to make a platform, when one already existed was simply a better option. What you claim is total BS and you know it. The same effect would happen to any of these companies because they all source tech from very specific options. If Qualcomm was banned, it would effect every OEM on the planet because Qualcomm makes lots of components, not just SoC's. They make modems, FPS, and more. What you think would happen right now if China decides to ban Apple? TSMC would be in the same situation. the only difference is, Apple would only lose China. But if China blocked all exports, of parts made for the iPhone alone, so that they could not be exported to any company or country, Apple would simply not be able to build a phone period, which means any OEM that makes parts for Apple, would lose lots of money. You are foolish to just attack Google with something that would effect them all in the same circumstances.

4. kiko007

Posts: 7493; Member since: Feb 17, 2016

Jesus Christ man, learn to summarize already!

6. Papa_Ji

Posts: 848; Member since: Jun 27, 2016

You are real FOOL... Some of most popular apps and services are Google owned...(youtube, gmail,maps, chrome, google search app). And they never support any of other platform...it was the main reason why windows phone, tizen and many other OS failed.Google even force phone OEM (even dev.) not to use (support) other mobile OS. (They even slow down YouTube on Microsoft Edge.) And j**k like you are calling google a fair competitor. Google really has unhealthy stranglehold on smartphone market.

7. Papa_Ji

Posts: 848; Member since: Jun 27, 2016

*/ They even slow down YouTube on Microsoft Edge and Firefox... Just to kill all other browsing platforms./

8. vickygamit

Posts: 52; Member since: Aug 16, 2012

Again still waiting for proof against Huawei!

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