Not only competitors can rejoice in Huawei’s exit

Thanks to its successful in-house chips, the Chinese manufacturer has been on the podium among TSMC’s buying partners for years, but orders have plummeted to near zero in the last few quarters. The reasons have already been articulated several times by HWSW, including various restrictive measures that have hit a Chinese company in the first place. Just a few weeks ago, Huawei’s top management talked about its sanctions putting the company in such a difficult position that it is now forced to fight for survival.

We start the autumn with AWS and microservice meetups!

After the summer shutdown, HWSW free! meetup series.

We start the autumn with AWS and microservice meetups!
After the summer shutdown, HWSW free! meetup series.

The company’s direct competitors will certainly not shed tears behind the statements that suggest despair. Among the competitors is also Xiaomi, also from China, who led the global mobile market for the first time since its existence in June. However, in addition to competitors, Huawei’s departure has also benefited other companies, including AMD, MediaTek and Qualcomm. Known for its x86 processors, AMD has swept away much of the freed-up manufacturing capacity that has risen sharply over the past few quarters. Thanks to this, the chip designer is already the second largest customer of TSMC, accounting for almost 10 percent of the contractor’s turnover.

MediaTek, a Taiwanese company that primarily designs smartphone application processors, came in third, thanks to which it significantly increased its market share, largely to the detriment of Qualcomm. The latter company also reacted with some delay to the situation, increasing its order for 7 and 6 nanometer waffles. Qualcomm is also planning chips for TSMC’s more advanced 5 and 4-nanometer bandwidth, which will put the U.S. company ahead of MediaTek on the contract manufacturer’s priority list again.

However, Apple’s first place is unlikely to be threatened by anyone for a long time to come. The Cupertino company accounts for about 20 percent of TSMC’s total turnover. The ratio has grown further over the past year thanks to the processor designed for Macs, which is expected to be further augmented by the various chips designed for Apple Car, which the company will of course also manufacture with TSMC.

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