Huawei's mobile phone chip factory, HiSilicon, has been actively working to increase its self-sufficiency rate in the first quarter of this year. With the parent company, Huawei, aiming to boost its chip self-sufficiency from 30% last year to 70% this year, HiSilicon is playing a key role in supporting the company's growth. This comes at a time when Apple's iPhone has seen a slowdown in momentum, allowing Huawei to take a stronger position in the global smartphone market.
HiSilicon has expanded its orders with TSMC, Yanpin, and KYEC, which has given a much-needed boost to Taiwan’s semiconductor industry during an otherwise slow season. The factory has also focused on improving its production capabilities, ensuring it can meet the rising demand for chips from Huawei. As part of its strategy, HiSilicon has been commissioning all of its rear-end packaging to third-party manufacturers, while KYEC handles the testing process.
In addition, HiSilicon has been working closely with TSMC, which recently became the first semiconductor stock to report strong performance in the first quarter. The company has also ramped up production during the Spring Festival, expecting a significant revenue boost starting in March.
Huawei has set ambitious goals for this year, aiming to sell over 130 million smartphones, with an annual growth rate of more than 20%. With a 70% self-sufficiency rate for mobile phone chips, HiSilicon must supply over 90 million wafers to meet Huawei’s needs. Although HiSilicon hasn’t officially announced its chip sales targets for the year, its recent expansion into TSMC and other suppliers shows a clear commitment to supporting Huawei’s growth.
Huawei has not only dominated the mainland market but has also made significant inroads in Europe and emerging markets like India. Last year, Huawei sold over 108 million smartphones, surpassing Lenovo and becoming the top mobile brand in China. Globally, it ranks third behind Samsung and Apple.
In India, Huawei has launched new models such as the Honor 5X and Holly 2 Plus, with the goal of tripling smartphone sales this year. The company has also set up a Netcom equipment factory in India, further strengthening its local presence. With continued investment and strategic partnerships, Huawei is well-positioned to maintain its rapid growth in the global smartphone industry.
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