Does Phone Spare Part Supplier Haisi Face the US Challenge ?

The low-profile Huawei second-level department "Haisi" suddenly caught fire. The company, which has been in existence for more than 20 years and has more than 7,000 employees and more than 8,000 patents, went to the front of the stage after Huawei was subject to US restrictions. What kind of company is Haisi in the end, and how is its technology, can it be "hard" with the United States? What else does Hisilicon do in addition to mobile phone chips?

"Spare tires" became hot search almost sold in 2000

On May 16, the US Department of Commerce listed Huawei as a “list of entities” and imposed export controls on Huawei. In the early morning of the 17th, He Tingbo, the president of Hisilicon, which is responsible for Huawei's chip research and development, sent an email to all Haisi people. It is mentioned that the chip that Hais once built has ensured the strategic security and continuous supply of most of the company's products, and it is necessary to realize "technology self-reliance" in the future. He Tingbo announced that Huawei will use the alternative program, which is less affected by the list of “entities”.

This letter allowed Hess and He Tingbo to stand directly under the spotlight of public opinion. He Tingbo said in the letter: Today is the choice of history. All the spare tires we have built have turned "positive" overnight! Years of hard work, fulfilled the company's commitment to continuous customer service overnight. Yes, these efforts have been continually connected, and the madness is overwhelming, ensuring the strategic safety of most of the company's products, and the continuous supply of most products! Today, this dark day is the day when every ordinary child of Hess became the hero of the age!

After the "internal letter" was sent, almost all the media were reprinted, and Heis once boarded the "hot search."

Hisilicon Semiconductor Co., Ltd. was founded in 2004, its predecessor was the Huawei IC Design Center, which was founded in 1991. At present, Headquarters is headquartered in Shenzhen, with offices and R&D centers in Beijing, Shanghai, Chengdu, Wuhan, Nanjing, Dongguan, Singapore, Korea, Japan, Europe, etc., with more than 7,000 employees.

According to the company's data, Haisi, as mobile phone spare part supplier, is wholly-owned by Huawei Technologies Co., Ltd., and its ultimate controlling shareholder is the trade union and Ren Zhengfei representing Huawei's shareholding employees. The registered capital of Haisi Company is 600 million yuan. The business scope includes: electronic products and Semiconductor design, development, sales and after-sales service of communication information products; agency of related semiconductor products; import and export business of electronic products and communication information products and components.

Interestingly, Ren Zhengfei once said, "We were very hesitant around 2000. We used to prepare 10 billion US dollars and sold our sales to a US company. All the contracts were signed. All the formalities were completed, just wait. The board of directors approved it. We all wore flower clothes, running on the beach, playing and waiting for approval. At this time, the US board of directors changed and rejected the acquisition."

He said that later we asked the company to say that it still sells and sells, and the younger generations say that they don’t sell. Then I said that we are ready to fight with the United States. We must do all the preparations and prepare from that time.

Only responsible for design and no production. Haisi chip and Huawei mobile phone grow together

According to industry insiders, the main capabilities of HiSilicon are chip development and design, and no manufacturing business. At present, the crystal elements designed by HiSilicon are mainly produced by partners such as TSMC. In the industry, Intel and other manufacturers have both design capabilities and manufacturing capabilities, so the strength is even stronger.

According to reports, Haisi designed products covering wireless networks, fixed networks, digital media and other fields of chips and solutions, successfully applied in more than 100 countries and regions around the world; in the digital media field, has launched SoC network monitoring chips and solutions , videophone chips and solutions, DVB chips and solutions and IPTV chips and solutions.

In 2018, Haisi has launched a series of chips such as Kirin, Baron, Kunpeng and Shengteng. Especially the Barong 5000, this multimode 5G chip is seen as a killer that can compete with Qualcomm and Intel. The Huawei Baron 5000 adopts a 7nm process technology, which is smaller in size and higher in integration. It can realize 2G, 3G, 4G and 5G network standards in a single chip, effectively reducing the delay caused by data exchange between multiple modes. Power consumption significantly improves the user experience of the early 5G commercial. In terms of download speed, the Huawei Baron 5000 achieves a 4.6Gbps download rate/2.5Gbps upload rate in the Sub-6GHz band. Since then, there have been rumors that Apple wants to buy the Huawei Baron 5000 chip, but neither side has admitted.

In fact, Huawei started the development of smart phone chips in 2006. The mobile phone series of the first Haisi self-developed chip K3V1: Huawei P2, Huawei Mate1 and Huawei P6 are not successful. This is because the chip's process is relatively backward and the compatibility with the GPU is also very poor. Therefore, these Huawei phones are not successful.

Launched in 2012, the HiSilicon K3V2 chip is the first real-world demonstration and the smallest quad-core processor, becoming the first domestic high-end smartphone chip with a scale of tens of millions. The Huawei chip is truly known as the Huawei D1. It is equipped with the HiSilicon K3V2 chip, which is comparable in performance to the mainstream processors such as the Samsung Orion Exynos 4412.

However, the code name "Kirin" really appeared in the 4G era. In 2014, Huawei released the smartphone chip Kirin 920. The chip uses the industry-leading 8-core big. LITTLE architecture supports TD LTE/LTE FDD/TD SCDMA/WCDMA/GSM in five modes. It is the first in the world to implement LTE Cat6 mobile phone commercials. It supports peak 300M speed downloading, and its performance, process, power consumption and communication capabilities have all reached the industry. Leading level. It can be seen that Hisilicon's chips and Huawei mobile phones are mutually successful, which also laid the technical barriers for Huawei's mobile phones.

Since then, almost every flagship mobile phone of Huawei has its own "Kirin" chip, such as the latest Huawei P30 mobile phone, equipped with the HiSilior Kirin Kirin 980 processor. It is this processor that gives Huawei mobile phones a smooth running and powerful performance. The list shows that the Huawei P30 Pro ranks first in DxOMark's "the latter camera" list, ranking first.

How does Haisi Products

Most of the TV brands use the Hisilicon chip. The global semiconductor industry is not ranked high but the growth rate is fast.

On the other hand, in terms of smart phone chips, HiSilicon is only “inside”, but in terms of smart TV and video security, Huawei has already achieved external sales.

In terms of smart TV, HiSilicon provides chips to a number of brands including Sharp, Hisense and Konka. For example, data from the end of 2018 shows that of Sharp's latest 21 TVs, 15 use Huawei Hisilicon chips, and the other six are Taiwan Morningstar chips.

Since 2017, Huawei has become a leader in the field of video chips. Huawei Haisi has occupied more than half of the domestic market. Its independent ultra-high-definition smart TV core chip has nearly 10 million shipments in 2016, and has entered the supply chain of six major color TV manufacturers in China.

In addition to television, more than half of the global video security chips come from Huawei HiSilicon. In 2017, HiSilicon's chip shipments in the security sector reached 500 million. According to industry insiders, technically, the HiSilicon chip uses a special design architecture with better image quality, lower noise and smaller data generation.

Although Haisi and other traditional semiconductor manufacturers still have a certain gap from the global rankings, Haisi's growth rate is very fast.

On May 17, the data of IC Insights, a research and research organization, showed that in the first quarter of 2019, Intel surpassed Samsung and re-emerged as the largest semiconductor manufacturer. Huawei's Hess had the fastest growth with revenue of 1.755 billion US dollars. With a growth of 41% and a global ranking of 11th, it became the first company in the mainland to enter the top 15 global semiconductor companies.

Another survey agency Gartner's data on global semiconductor manufacturers' revenue in 2018 shows that Samsung Electronics, Intel, SK Hynix and other ten companies are among the top three global manufacturers, followed by Qualcomm, etc., and Hess is in the "other" category.

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