Technology: China’s New Chips

Technology: China’s New Chips

The Chinese Government has been urging manufacturers to move up the value chain and technology like China’s new chip, the Kirin 920, is an answer to that call. But it makes US manufacturers nervous.

BEIJING, June 15 (Xinhua) — When it comes to chips for powering smartphones, it has long been a story of the world’s leading smartphone chip-maker — U.S. firm Qualcomm. This time, it is a Chinese-made chip that has caught the eye of market observers.

The octa-core Kirin 920, unveiled by Huawei-owned HiSilicon on Friday, features support for QHD displays, 4K video recording and a high-speed LTE category-6 platform, something even the global industry leaders find it difficult to offer….

Huawei is not aiming to export its chips and does not see them as a stand-alone product, the 21st Century Business Herald quoted Xu Zhijun, deputy president of Huawei, as saying.

Xu said, “The strategy we adopt is one plus one or one plus N,” which means that for every HiSilicon chip that Huawei incorporates in its products, it will integrate one chip or more from other suppliers.

The reason for this is that Huawei doesn’t want to stir concerns with Qualcomm or other industry giants, fearing such a situation might affect chip supplies, the Herald reported.

Huawei was taught a tough lesson in March 2012 when it unveiled its quad-core processor K3V2 and said it would use the new chips in its Ascend D smartphones.

The new mobile phones appeared on the market several months later than planned. A source close to Huawei told the Herald that the delay was at least partly down to the high-profile release of the chips making its screen supplier Samsung nervous and leading it to stall the supply.

“We can only lead U.S. companies in sectors the size of a needle. But it is out of the question for our lead to expand to sectors the size of a matchstick,” said Ren Zhengfei, Huawei’s founder and CEO, during a speech earlier this year when publishing the firm’s 2013 annual report. Read more.

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