Bracing for fresh US trade bans, Huawei is making contingency plans, increasing purchases of third-party mobile application processors for its 5G smartphones, according to Digitimes Research, as it looks to maintain its product competitiveness, stable supply and profitability. Apple, one of Huawei's major rivals in the smartphone space, is set to launch its 5G iPhones later than usual. PCB suppliers expect to see their shipments peak for the new iPhones in fourth quarter 2020. TSMC, a major foundry service supplier for Apple and many other device vendors, has offered a rosy outlook for its business in second-half 2020. TSMC's materials and equipment suppliers are set to see strong results as well.
Huawei diversifying purchases of 5G APs: Huawei is increasing the proportion of mobile application processors (APs) from third-party suppliers for its smartphones, reducing use of Kirin chips from its subsidiary HiSilicon Technologies, as a contigency against the US trade ban, according to Digitimes Research.
PCB shipments for new iPhones to peak in 4Q20, say sources: Taiwan's PCB makers in the supply chain for Apple devices will see their shipments for new iPhones not peak until the fourth quarter this year as Apple has confirmed its iPhone 12 lineup will debut later than normally scheduled in September, according to industry sources.
Silicon wafer materials and equipment suppliers see orders pull in from TSMC: With TSMC scaling up its 7nm and 5nm chip output, related silicon wafer materials and equipment suppliers have seen significant orders from the pure-play foundry and are ramping up their shipments to fulfill the new orders.