Affected by the US's further escalation of sanctions on Huawei in May last year, since September 15 last year, Huawei HiSilicon’s self-developed chips could no longer be manufactured, which also brought great difficulties to HiSilicon. Statistics show that in the first quarter of this year, HiSilicon’s revenue was only US$385 million, a decrease of 87% from the same period last year. However, Huawei has not given up on self-developed chips, and continues to invest in research and development.
According to the Nikkei Asian Review, Huawei’s director Chen Lifang said recently that Huawei is still developing world-leading semiconductor components, and the HiSilicon department will not make any reorganization or layoff decisions.
It is worth mentioning that in April this year, at Huawei’s 18th Global Analyst Conference, Huawei’s Vice Chairman and Rotating Chairman Xu Zhijun said, “There is no place to produce any of HiSilicon’s chips and there is currently no profit. Huawei has no appeal for profit, but will always support the development of this team. This team can continue to do research, continue to develop, continue to accumulate, and make some preparations for the future."
Indeed, for a chip design company with more than 7,000 people, if the designed chips cannot be manufactured, it means that it will be difficult to obtain revenue from selling chips. At the same time, to raise a R&D team of more than 7,000 people requires a huge investment. funds. This also means that if the US ban cannot be lifted, and the domestic advanced process "de-beautification" semiconductor production line cannot be established as soon as possible, then HiSilicon will face huge losses every year.
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