Digi Times — Pure-play foundry Taiwan Semiconductor Manufacturing Company (TSMC) is expected to see 50% of its 2016 revenues generated from orders placed by its fabless customers based in China and Taiwan, according to industry sources. TSMC used to have more than 80% of its total revenues generated from orders placed by its non-Greater China customers, but the proportion has declined in recent years, said the sources.
Android Headlines — November started with Huawei inviting us, along with a few other publications, across the world to China. Where we would spend some time in both Shenzhen (where their headquarters are located) as well as in Beijing. The main purpose of this trip was to give the media more of an inside look at the company, who is now the largest smartphone manufacturer in China, having recently taken that crown back from the start-up Xiaomi.
Digi Times — The ratio Kirin-series application processors, developed by HiSilicon Technologies, used in Huawei’s mid-range and high-end smartphones has continued to increase, which is unfavorable to MediaTek, according to industry sources. Although Huawei’s current purchases of smartphone-use APs from MediaTek are still larger than those from HiSilicon, most MediaTek APs have been used in Huawei’s entry-level to mid-range models.
Digi Times — Samsung Electronics is offering HiSilicon Technologies lower prices for its 14nm FinFET production in a bid to vie for mobile chip orders from the China-based fabless vendor, according to industry sources. HiSilicon is already among TSMC’s major clients, having placed 16nm chip orders at the Taiwan-based foundry, said the sources.
Digi Times — China-based HiSilicon Technologies and Spreadtrum Communications have been aggressively hiring engineering talent at their local offices in Taiwan, according to industry sources. Both HiSilicon and Spreadtrum already have R&D teams in Taiwan, said the sources. Located in Hsinchu, HiSilicon’s Taiwan office has a team of almost 500 R&D engineers engaged in the development of handset chip solutions, the sources indicated.
Digi Times — Huawei Technologies and Xiaomi Technology are expected to increase adoption of in-house-developed ARM-architecture application processors (APs) in their own-brand smartphones. Huawei’s subsidiary IC designer HiSilicon Technologies has improved its technological capability and Xiaomi has obtained licenses from China-based Leadcore Technology to develop own-use APs, according to Taiwan-based IC design houses.
Leading mobile phone chip suppliers have seen the impact of a price war that has led to consolidation in the sector, according to Shanghai’s China Business News. Taiwan-based chip designer MediaTek recorded a 13% year-on-year sales decline and a 49.2% drop in net profits when reporting its second-quarter results, while US-based Qualcomm saw sales and net profit drop 14% and 47%, respectively, during its fiscal third quarter, the paper said.
Digi Times — Shipments of smartphone application processors in the China market are expected to grow 9.7% and 16% on quarter, respectively, in the third and fourth quarters of 2015, according to Digitimes Research. Overall, China’s smartphone-use AP shipments will increase 23.5% on year to 300 million units in the second half of 2015, Digitimes Research estimated.