In May 2019, the United States imposed sanctions on Huawei. It has been more than a year now, and this topic is no longer new. But recently, the United States is preparing to increase its efforts to cut off Huawei's wafer foundry source, which is TSMC. Coupled with the news that TSMC will build a factory in the United States, it makes Huawei's progress even more difficult.
1. Huawei only uses Corning glass for parts made in the United States.
It is understood that the proportion of domestic accessories for Huawei’s 5G mobile phones has increased from 25 to 42, while the reliance on American accessories has dropped from 11 to 1.5, leaving only the glass casing (Corning glass). This is Huawei's achievement this year. It can still develop well without the United States.
2. Is localization really here?
Take Huawei Mate 30 as an example. Although the only accessories imported from the United States are Corning glass, there are also many accessories imported from overseas. The camera uses accessories from Japan's Sony Corporation, the RF front-end module uses accessories from Japan's Murata Manufacturing Co., Ltd., the NAND flash memory uses accessories from Japan's KIOXIA, and the duplexer uses accessories from Japan's TDK and Taiyo Yuden. , the organic EL display uses accessories from South Korea’s Samsung, the DRAM uses accessories from South Korea’s SK Hynix, and the touch screen is also imported from South Korea. Overall, we still rely on imported products for a lot of them. Is it because we can’t make them? I don't think so, it's just that the gap is too big.
3. What core technologies does Huawei have?
Huawei’s three core technologies are self-developed chips, self-developed basebands, and self-developed communications. In terms of mobile phone hardware, there are five major modules: computing, communication, storage, screen, and battery. Huawei currently only masters computing and communications. Of course, it is too difficult for a company to master the entire mobile phone production chain, but in terms of screens, my country's BOE can also do it.
4. What are the shortcomings of localization?
Corning Gorilla Glass monopolizes the global high-end mobile phone market, but there is news that Huawei is independently developing a product called "Air Glass" and has obtained relevant patents. It seems that it is determined to completely get rid of American accessories. of. In addition, photolithography machine technology determines the production of chips. SMIC will not be able to mass-produce 7nm chips until the end of the year. Huawei plans to launch mobile phones with 5nm chips and has already placed a large number of orders with TSMC. The gap in lithography machine technology is currently the largest and "most deadly".
Summary at the end of the article: The road to localization must be taken, otherwise we will always be firmly suppressed by others. We cannot put all the pressure on Huawei. Huawei is just a direct "victim". Localization requires the joint efforts of many domestic companies to create a truly meaningful mobile phone ecological chain.
When it comes to processors, Qualcomm naturally comes to mind. Every year when Qualcomm releases a new processor, domestic mobile phone manufacturers compete to say that they will be the first to launch it. And we also know that the processor is the core part of the mobile phone. Once the supply is cut off, how much loss will there be?
Among domestic mobile phone manufacturers, only Huawei insists on using its own self-developed chips. What makes us even more excited is that this road has not been in vain, and we have seen the dawn of hope. Many users think that Huawei is tied up with some sentiments. Here I want to say, once Qualcomm cuts off supply, what will you do?
In addition, in the past two years, the US sanctions on Huawei have become increasingly strict. On the one hand, it allows us to see Huawei's advanced strategy, the so-called backup plan. On the other hand, it has kicked off the de-Americanization of parts and components. According to dismantling calculations by Japanese media and professional organizations, the proportion of domestic accessories for Huawei 5G mobile phones has increased from 25% to 42%.
The reliance on American accessories has dropped from 11 to 1.5, with only glass casings remaining. Many people are happy to see this 1.5, but they don't know that the glass casing is still a hurdle that cannot be bypassed.
In fact, this is no secret in the industry. Glass products come from Corning Gorilla in the United States.
It almost monopolizes the global market for high-end smartphones and computer screens, but glass casings are extremely critical to the smartphone experience and are extremely expensive. In this regard, there is currently no domestic company that has surpassed it. In addition to glass, there are still gaps in areas such as photolithography machines and chip design software.
So how far are we from being purely domestic? First of all, this problem should be unsolvable, because it is impossible to do everything by yourself, which is already breaking the connection of trade. The only thing is that there are substitutes that can be produced by oneself when needed and are not controlled by others.
Secondly, do we really need purely domestic products? Now the world is cooperative, and the integrated utilization of resources is very clear. I remember an incident where some netizens said that ballpoint pen refills could not be manufactured in China. It feels very ridiculous when I think about it.
It is definitely possible to make it, but in terms of craftsmanship and technology, it cannot compare with other countries. In a world where there is no market, there is no buying, to whom are things sold? Third, what inspires us to innovate, and why there is innovation, are all figured out when we are desperate.
If you don’t innovate, you can only wait for death. I hope that more domestic companies will be like Huawei, be prepared for danger in times of peace, and master their own core technology.
Since the U.S. Department of Commerce placed Huawei on the "Entity List" in May 2019, Huawei has tried its best to reduce its reliance on American spare parts as much as possible!
However, what is the reality?
Ren Zhengfei said in the interview that Huawei purchased US$18.7 billion in spare parts from the United States in 2019, which was higher than US$11 billion in 2018!
In 2019, Huawei’s revenue was 858.8 billion yuan, and the procurement proportion of spare parts of 18.7 billion US dollars is not low!
Ren Zhengfei also said that Huawei will not replace spare parts from the United States in mobile phones!
Therefore, we can only say that Huawei has gradually developed the ability to manufacture mobile phones without American spare parts; but in fact, it still uses a large number of American spare parts!
……
Not long ago, some media reported that the proportion of spare parts in certain models of Huawei mobile phones is only about 1.5, which is not completely true!
Although the U.S. Department of Commerce has been suppressing Huawei, Huawei can still purchase spare parts from U.S. suppliers (the U.S. Department of Commerce has once again extended Huawei's "Entity List" for the sixth time. to August 13), not to the point of completely breaking up!
U.S. suppliers are also trying their best to supply Huawei. If Huawei significantly cuts off spare parts from U.S. suppliers, the quality of Huawei's products will also be reduced. Huawei has used it for twenty or thirty years. The global spare parts supply chain established over time will also suffer heavy losses!
…
In recent years, Huawei has been strengthening its cooperative relationships with domestic supply chain partners, purchasing BOE screens, and entrusting SMIC to manufacture chips…
Only our domestic supply chain companies are not easily influenced by the US Department of Commerce!
If Huawei wants to go further and more steadily on its internationalization journey, in addition to embracing global suppliers, it must also focus on developing its domestic supplier network!
……
The above is only Brother Haozi’s personal opinion. Criticisms and corrections are welcome;
Recently, Huawei has become a hot search news on major platforms. Due to the The suppression by the United States is very likely to lead to the complete loss of the opportunity to purchase products from American partners. At the same time, Huawei's HiSilicon chips may also be suspended due to foundry reasons. Therefore, Huawei's suppression by the United States has indeed affected its influence in recent times. The hearts of many netizens.
Some netizens are worried that with the escalation of US sanctions, Huawei's mobile phones will not be able to be used in the future. There is actually no need to worry about this problem. Even if HiSilicon chips can no longer be produced, Huawei can choose The compromise plan is to purchase MediaTek chips, so survival is completely fine.
Nikkei Chinese website mentioned specific data that the number of domestically produced parts for 4G mobile phones on the market before the US sanctions was about 25%, while after the sanctions, the number of Mate 30 5G reached 41.8%. In addition, the number of US parts for 4G mobile phones accounted for 41.8%. The ratio reached 11.2%, but now only a few parts of 5G mobile phones such as the lower glass shell are left, accounting for 1.5% of the total, almost disappearing.
At the same time, the article also mentioned that Huawei has promoted the research and development of parts and components in the past year and already has internal procurement capabilities. However, I have some questions about this report, because at the Huawei Analyst Conference on May 18, officials stated that Huawei still purchased US$18.7 billion in products from the United States last year.
What is the concept of 18.7 billion US dollars? It is equivalent to more than 130 billion yuan. Huawei's total revenue in 2019 was 850 billion yuan. Purchasing expenses in the United States cost more than 15% of the total revenue, and The proportion of American parts in Huawei mobile phones has dropped to 1.5. It is indeed a bit puzzling. Where are the hundreds of billions of procurement costs spent?
In fact, as ordinary consumers, Huawei officials and many media may disclose many data very differently, and as ordinary consumers, we cannot find the most accurate data, because Huawei is not a listed company. Although the relevant financial reports are calculated according to IBM, they are still not as strict as listed companies.
Some time ago, the financial fraud of the so-called "National Light" Luckin Coffee, a listed company on the US stock market, shocked the global capital market. The stock price plummeted instantly and had to be urgently suspended. Today, Luckin Coffee A delisting notice has been received, which shows that the capital market has almost zero tolerance for financial fraud by listed companies.
This statement is unscientific. I don’t know how the data of 1.5 is derived. Is it based on the number of parts or the value of the parts?
Using HiSilicon CPU as an example, how can it be considered purely domestic? The CPU is designed by itself, but it is not produced by itself. It is made by TSMC, and TSMC is controlled by the United States. Do you think this CPU is considered domestically produced? What’s the point of counting it as domestically produced? The United States can still impose sanctions. Okay, even if SMIC in Shanghai can OEM for Huawei, its photolithography machines must be imported from the Netherlands. Are the chips produced in this way considered domestically produced? People can still get stuck in their necks.
It is useless to fully realize domestic production. The key is that we must have technology that others do not have. If you can choke my neck, I will choke your neck immediately, so that the struggle will not be lost.
To be honest, purely domestic production is currently impossible. Whether it is from the perspective of software or hardware, it is impossible to achieve it in the short term. Chip manufacturing and chip design are all inseparable from American technology
Looking back in May 2019, the United States blocked Huawei.
A year later, when everything seemed to be calm, there was news that the United States had increased its export controls on Huawei and intended to cut off Huawei’s wafer foundry source.
However, according to disassembly calculations by Japanese media and professional institutions, the proportion of domestic accessories for Huawei 5G mobile phones has increased from 25 to 42, while the reliance on American accessories has dropped from 11 to 1.5, leaving only the glass casing. wait.
However, it is this 1.5 that arouses the author's curiosity. Why can the most difficult semiconductor chips escape the checks and balances of American companies, but this thin glass shell cannot? How far are we from being “purely domestic”?
Huawei’s spare tire that has become a full-time official
In fact, it is precisely because of the many injustices of the United States that it has brought unprecedented development opportunities to China’s technology industry, which has strong endogenous forces. , which verifies the truth that “trends are irreversible”.
Since the year when Huawei was blocked, China’s semiconductor industry has achieved impressive results both at the capital level and at the technology research and development level.
The Japanese professional investigation company Fomalhaut Techno Solutions’ disassembly report of the Huawei Mate 30 5G version shows that the communication module has been replaced by HiSilicon’s self-developed product from the original American Sijiaxun. Xiang will significantly reduce the cost proportion of American accessories.
In the 5G era, the research and development of communication chips is extremely difficult, and Huawei has obviously overcome the difficulties.
Huawei masters three core technologies: self-developed chips, self-developed basebands, and self-developed communications.
Perhaps it is precisely because of Huawei's growth against the trend that it has become the inducement for the United States to increase sanctions, but today's China's technology industry environment is no longer what it was before.
The rise of domestic alternatives
Some people may still be picky and say: Huawei mobile phones still contain a large number of key accessories from Japan and South Korea, and they are still controlled by others.
But in fact, Huawei’s high-end 5G mobile phones have achieved nearly half of the domestic production rate, which is already a very remarkable achievement. We cannot force one company to handle everything. This is actually an issue related to the supply chain and technology ecology. .
A mobile phone consists of five major modules: computing, communication, storage, screen, and battery.
Among them, Huawei has solved the computing and communication parts, and Chinese technology companies in other fields have also achieved impressive results this year.
For example, screens from BOE have already been used in Huawei’s most cutting-edge folding screen mobile phone Mate X series, achieving global leadership.
SMIC has completed the OEM of Huawei’s Kirin SoC processor. Kirin 710A is produced by SMIC at 14nm and is hailed by the industry as Huawei’s first purely domestic SoC.
In addition, Yangtze Memory has now fully conquered 128-layer QLC flash memory technology, which is of great significance to the development of the domestic flash memory industry.
A powerful and complete industry chain science and technology ecosystem is accelerating to take shape.
Purely domestically produced, this idea that seemed like a fantasy in the past is now becoming reality step by step, but do we really need purely domestically produced?
Glass is not the only thing that cannot be avoided
Going back to the opening question, Huawei can achieve such a high rate of domestically produced accessories, but why is the most difficult thing to replace a piece of glass?
In fact, this is no secret in the industry. Glass products from Corning Gorilla in the United States have almost monopolized the global market for high-end smartphones and computer screens, and the glass casing is extremely critical to the experience of smartphones. , and extremely expensive.
The quality of the glass shell not only determines the visual effect of the whole machine, touch sensitivity, hand feel, signal stability, scratch resistance, wireless charging efficiency, and even determines the performance of the mobile phone. Pass the drop test.
For comparison, the sixth-generation Gorilla Glass can withstand an average of 15 drops from a height of 1 meter, while ordinary glass cannot withstand even one drop.
In fact, on the eve of Huawei’s release of the Mate 30 series, news has spread that Huawei is independently developing a product called “Air Glass” and has obtained relevant patents.
However, data shows that the current Mate 30 Pro still uses the sixth-generation Corning Gorilla. In fact, it is not difficult to understand. From R&D to mass production, it often requires a certain time period and industrial supporting facilities.
In fact, it is not only glass that cannot be avoided. It is well known that there are still gaps in the fields of photolithography machines and chip design software.
Acknowledging gaps and confirming progress is the only way to achieve sustainable development. How far are we from being “purely domestic”?
There may be no precise answer to this question.
But today, we can already see more hope than in the darkest moment a year ago.
Huawei’s rotating chairman Guo Ping’s latest public statement: Huawei’s business will inevitably be greatly affected, but we are confident that we can find a solution.
In fact, we saw the same thing a year ago. And this year has passed. Huawei is not only alive, but also living more excitingly.
Huawei's full-year revenue in 2019 reached 858.8 billion, achieving a year-on-year increase of 19.1% against the trend. It has also significantly increased inventory and R&D expenses to prepare for a rainy day. It is obvious that Huawei is well prepared.
As Huawei's official Weibo said: "We have no way to go except victory."
In today’s world of global economic collaboration and integration, science and technology should not differentiate across national boundaries.
The increasing number of domestic substitutes and independent controllability does not mean that our door should take the purely domestic route, but we are forced to go through this period of development pains.
In fact, what we need is not purely domestic production, but purely domestic strength. Only in this way can we get rid of being controlled by others.
"Despite the suppression, Huawei will not become closed or isolated."
"Huawei's strategy of diversification and globalization will not waver. "
Guo Ping, Huawei’s rotating chairman, said this.
It is far from pure domestic production. Even though Samsung is currently the only one in the world that can realize the research and development of all mobile phone parts, it cannot do without international cooperation. Because Samsung UI is based on Android, and we all know that the Android system is from Google in the United States. Therefore, no brand in the world can achieve complete independent research and development.
However, as one of the strongest brands in the country, Huawei currently has the strongest R&D capabilities in the country, with tens of billions or hundreds of billions invested in R&D every year. It is unmatched by other domestic brands. In recent years, Huawei mobile phones have increasingly used domestic screens. Even the two high-end series P and Mate use a lot of domestic screens, which is also conducive to the development of domestic screens. Huawei's chips are also very powerful, but they are manufactured by TSMC, not produced by Huawei itself.
So even if it is stronger than Samsung, Huawei still has a long way to go. It also needs everyone to support domestic brands more and avoid being choked by foreign countries in the future. Thank you.
I love learning and answering questions. In response to this question raised by my pen pal, I reviewed various information and discussed with classmates and friends, and came to the following conclusions, which I hope can help everyone:
It is far from being purely domestic, even if Samsung is currently It is the only company in the world that can realize the research and development of all parts of mobile phones, but it cannot do so without international cooperation. Because Samsung UI is based on Android, and we all know that the Android system is from Google in the United States. Therefore, no brand in the world can achieve complete independent research and development.
However, as one of the strongest brands in the country, Huawei currently has the strongest R&D capabilities in the country, with tens of billions or hundreds of billions invested in R&D every year. It is unmatched by other domestic brands. In recent years, Huawei mobile phones have increasingly used domestic screens. Even the two high-end series P and Mate use a lot of domestic screens, which is also conducive to the development of domestic screens. Huawei's chips are also very powerful, but they are manufactured by TSMC, not produced by Huawei itself.
So even if it is stronger than Samsung, Huawei still has a long way to go. It also needs everyone to support domestic brands more and avoid being choked by foreign countries in the future. Thank you.
Difficult, even if all domestic parts are used, it cannot be purely domestic, you still have to pay patent fees!