Qualcomm is one of the most famous companies which deals in chipset in the market. There are various companies in the market that generally prefer to have Qualcomm Snapdragon processors on their devices. Even Qualcomm is the most trusted brand which has such an amazing chipset processor. According to sources it has been found that Qualcomm has a shortage of chip shortage. With this problem, the CEO of Qualcomm Cristiano Amon said that the U.S. sanction against Huawei will help Qualcomm to meet this problem. They could not be able to alleviate the problem of global chip shortage.
U.S. Sanction Rule
U.S. export has been changed. Due to which Huawei in-house chip design unit HiSilicon is not able to get its design manufactured by foundries. This was impacted in the mid of final September. In this rule foundries that used U.S. tech to fabricate Processors now cannot ship them to Huawei. They need consent from the U.S. commerce department to do so. This is the overview of the new rule.
Opportunity to other producers
Due to this new rule in the U.S. will eventually turn Huawei to purchase or order more chips from some other producers. This will be a great opportunity for the other semiconductor companies in the market. This will also lead to free up capacity at TSMC. There are various other companies which have been complaining about the output is being hampered by shortages of some key components. Qualcomm being the topmost chipset in the market is the first and foremost attraction of the companies for their devices. Due to which the company is now facing a high demand for the Chipset. And now with the new devices have resulted in the tightness of supply. Even CEO added that this will takes time to transfer chip designs being made elsewhere. But the trade war between U.S. and China will take some time.
Qualcomm working with Honor
The CEO of Qualcomm has informed that currently company is not allowed to supply Huawei but they can supply Honor. It is also providing chips to Huawei rivals in China. But the new plants by TSMC and Samsung Electronics Co. will surely help Qualcomm.