Huawei overtakes Qualcomm as top semiconductor in China for the first time

Huawei’s success comes in the same quarter when the coronavirus pandemic and the lockdown implementation by several countries including China impacted industries the most.

The company’s HiSilicon division shipped 22.21 million processors for smartphones in Q1 2020, which is said to be almost the same as what it shipped in Q1 2019
The company’s HiSilicon division shipped 22.21 million processors for smartphones in Q1 2020, which is said to be almost the same as what it shipped in Q1 2019 (REUTERS)

While the first quarter of 2020 has not been good to several tech firms, Huawei however has reportedly shined in the semiconductor business in its home country China. Citing data released by CINNO Research, a report by CNBC states that the tech giant surpassed Qualcomm in the smartphone semiconductor industry in the particular quarter for the first time ever. Huawei's success comes in the same quarter when the coronavirus pandemic and the lockdown implementation by several countries including China impacted industries the most. Huawei is banned to do business with US firms.

As per the report, the company's HiSilicon division shipped 22.21 million processors for smartphones in Q1 2020, which is said to be almost the same as what it shipped in Q1 2019. This led to the company increase its market share from 24.3% in Q1 2019 to 43.9% in Q1 2020. Although the report failed to reveal Qualcomm's processor shipment numbers, it did confirm a fall in market share from 48.1% to 32.8% in the same period.

Also read: Huawei's growth evaporates after Covid-19 compounds US woes

For those unaware, Huawei's HiSilicon is only present in Huawei smartphones and is manufactured by TSMC (Taiwan Semiconductor Manufacturing Company).

On a related note, Huawei reported just 1.4% gain in revenue in Q1 2020, down from 19% througout 2019, according to Bloomberg. The company's net profit margin came down to 7.3% from 8% a year earlier. With the US ban, Huawei has become more dependent on its home country than ever for its business. It has been launching new smartphones nonetheless.

But with things getting back to normal in China, Huawei is expected to see some success in the second half of the year.