News on May 14th, according to foreign media reports, Qualcomm has confirmed that Huawei no longer needs their processors.

Reports indicate that before the official revocation of export licenses, Qualcomm's CFO clearly stated that they expect the chip sales revenue from Huawei to be zero next year, as Huawei no longer needs to purchase 4G chips from Qualcomm.

The report mentioned that the United States has tightened export restrictions on Huawei, revoking the semiconductor sales licenses of Qualcomm and Intel, but the impact on Huawei in terms of mobile processors is almost negligible.

In the original text, Qualcomm stated, "On May 7, 2024, the U.S. Department of Commerce notified Qualcomm that it was revoking the company's licenses to export 4G and certain other integrated circuit products, including Wi-Fi products, to Huawei Device Co., Ltd. and its affiliates and subsidiaries, effective immediately. As we disclosed in the 10-Q form we submitted on May 1, 2024, we do not expect to receive product revenue from Huawei after the current fiscal year."

Industry analysts have said that with Huawei switching to its own processors, Qualcomm will be the biggest loser and will lose all orders from Huawei in the future. They emphasized, "Due to competition from Huawei, Qualcomm's shipments to Chinese mainland mobile phone brands in 2024 will decline by 50 to 60 million units compared to 2023." Huawei's self-developed processors are now on track and have the conditions to phase out Qualcomm; moreover, Qualcomm's 4G products are helpful to Huawei, but not significantly.

With the production capacity of its self-developed 5G chips climbing, abandoning the purchase of Qualcomm's 4G products has become a foregone conclusion, which has also been confirmed by Leslie, a former TSMC factory expert.

"Huawei has determined not to order from Qualcomm since the Kirin 9000S emerged in the second half of last year. Currently, only low-end SOC inventory is on sale. Canceling Qualcomm's license has no impact on Huawei."

In contrast, companies like Intel and AMD have a relatively greater impact on Huawei's supplies. "Currently, Huawei's PCs are still mainly based on Intel and AMD's X86 CPUs, which will inevitably be affected," but Leslie also emphasized, "Huawei is well-stocked this year, with no supply concerns, but facing an annual sales volume of nearly 10 million PCs, the existing stock cannot solve the long-term problem."