Huawei's Kirin 9000S Chip Spells Trouble for Qualcomm

Huawei’s Kirin 9000S Chip Spells Trouble for Qualcomm

Qualcomm May Face a Potential Loss of Up to $10.8 Billion Due to Huawei’s Cutting-Edge Chip

Huawei has recently unveiled its latest flagship lineup, the Mate 60 series, featuring the company’s proprietary Kirin 9000S chip, marking a significant shift away from Qualcomm. This strategic move could potentially result in substantial financial repercussions for the American chip manufacturer.

The decision to revert to their in-house Kirin silicon underscores Huawei’s unwavering commitment, even in the face of the challenging US trade ban, which bars the tech giant from accessing American 5G technology. Although the Kirin 9000S may not quite match the peak performance or efficiency of the most formidable Snapdragon SoC, it could mark a crucial turning point for Huawei.

Despite the constraints of the US trade ban, Huawei remained one of Qualcomm’s most significant clients for System-on-Chips (SoCs), making this transition a severe blow for the latter. In 2022, Huawei procured approximately 25 million units from Qualcomm, and this figure surged to an impressive 40-42 million in 2023.

According to the analysis of Ming-Chi Kuo, Huawei intends to fully pivot towards Kirin SoCs in 2024, signaling that Qualcomm could lose a substantial 50 to 60 million shipments next year— an alarming figure indeed.

The forthcoming flagship chip from Qualcomm, the Snapdragon 8 Gen 3, is anticipated to command a price tag of $180 per unit. Therefore, if the company indeed loses 60 million shipments of the Snapdragon 8 Gen 3, the financial implications could be staggering, amounting to a colossal loss of $10.8 billion.

While Huawei has not disclosed any intentions of making Kirin SoCs available to other Chinese phone manufacturers, should they choose to do so, it is highly likely that they will offer a more cost-effective alternative compared to the rumored price increase of the Snapdragon 8 Gen 3.

Another contender that Qualcomm must take into account is the Exynos 2400, set to make its debut in select markets alongside the Galaxy S24 lineup.

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