Huawei transfers orders to MediaTek, industry insiders say: MediaTek has little chance and dare not accept it

The Economic Daily reported that there are sources pointing out that in view of the impact of the US ban and the related human resources investment, MediaTek dare not accept Huawei's transferred orders.

People in the semiconductor industry said that before the United States upgraded its export controls, Huawei had already purchased a large number of chips related to 5G base stations and mobile phone development, including additional orders for 5nm chips cast at TSMC. Combined with previous stockings, this should be enough to support Huawei's development needs for up to two years. In the short term, there should be little opportunity for mobile phone-related chip manufacturers such as MediaTek to transfer orders.

Earlier, it was reported that Huawei is seeking help from mobile chip competitors to resist the increasingly stringent sanctions imposed by the United States. Huawei is negotiating with MediaTek, the world's second largest mobile chip developer after Qualcomm, and Unisoc, China's second largest mobile chip manufacturer after Huawei HiSilicon, to purchase more chips as an alternative to ensure the continued operation of its consumer electronics business.

In response, MediaTek said that the company has a good and long-term cooperative relationship with many domestic mobile phone manufacturers. According to people familiar with the matter, Huawei now also hopes to reach a purchase agreement with MediaTek for mid-to-high-end 5G mobile chips, while Huawei's high-end smartphone models previously used HiSilicon chips.