Samsung unlikely to offer Huawei foundry capacity

Posted on Wednesday, Jun 17 2020 @ 10:44 CEST by Thomas De Maesschalck
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Due to the trade war between China and the US, Taiwanese foundry TSMC saw itself forced to cut Huawei's HiSilicon as a client. Last year, Huawei accounted for about 8.9 percent of TSMC's revenue, making it the foundry's third largest client.

Some speculation emerged that Samsung may step in as Huawei's new foundry partner but DigiTimes writes this is unlikely to happen as the South Korean firm doesn't want to get mixed into this battle. The site writes Huawei's troubles will likely be good news for other Chinese handset makers like Oppo:
As Huawei seeks support in the face of tightening trade sanctions from the US, speculation has emerged identifying Samsung as a likely savior who could provide foundry services or directly ship its own mobile chips to the Chinese handset vendor. But Samsung would find itself mired in the US-China trade war if it lent Huawei a helping hand. But Huawei's trouble could mean good news for fellow handset vendors, such as Oppo, which reportedly plans to spend massive amounts developing its own mobile chips, in a bid to replace Huawei as the bellwether of China's handset sector.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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