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Qualcomm’s upcoming CEO says US sanctions on Huawei might lessen stress on Global chip shortages

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Early in January, Qualcomm had announced that Cristiano Amon would take over as the CEO of the company from June 30, 2021. Now, Amon has said that US sanctions against Huawei might help lessen the stress on semiconductor shortages.

Cristiano Amon
Cristiano Amon | Image source: Qualcomm

In a webcast with Goldman Sachs analyst Rod Hall(via Bloomberg), he said that because of the hindrance on the chip manufacturing Huawei is facing, facilities at its partner TSMC would become free now. For the unware, TSMC had to halt Huawei’s orders in 2020 because of the tightened restrictions by the US Govt.

The Chinese Giant has henceforth not been able to make more of its HiSilicon Kirin chipsets lately. Anyway, Amon says that Although the facilities would now be available for others, difficulties in transfer of tech might delay the immediate benefits out of this.

Besides, Automakers around the world are facing Semiconductor shortages

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during the US-China Trade War and clamp down on Chinese tech firms. In fact, its worse in blooming Countries like Germany which has finally sought alternatives like Taiwanese firms.

Also, the demand in chip shortages has further increased the demand on key components Smartphones, Personal Computers, Automation, Networking, etc. This demand is expected to rise prices and persist till the end of H2 2021(Second-Half).

Coming back, Aman says that Qualcomm’s demands have surged than before. In fact, the company’s revenue in Oct.-Dec. 2020(marked as Q1 2021 in Fiscal Year) grew by a whopping 62%.

Qualcomm is eyeing the semiconductor manufacturing plants of TSMC and Samsung that are being planned to set up in the USA. Although it is barred from communicating with Huawei, it is trying its best

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to get in touch with the recently spun-off brand HONOR.

Finally, Amon said that the semiconductor dispute between US-China would take a long time to settle before reaching a resolution.

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