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Huawei Technologies should be able to procure 5G chips domestically using its own advances in semiconductor design tools along with chipmaking from China’s top chipmaker Semiconductor Manufacturing International Corporation (SMIC), reported Reuters, citing technology research firms.
Huawei is expected to use SMIC’s N+1 manufacturing process, though with a forecast yield rate of usable chips below 50%, 5G shipments would be limited to around 2 million to 4 million units, the report said. Huawei shipped 240.6 million smartphones worldwide in 2019, its peak year before selling its Honor unit.
Huawei has raised its 2023 mobile shipment target to 40 million units from 30 million at the start of the year, without referencing a return to 5G phones, according to state-backed media China Securities Journal earlier this month.