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Qualcomm’s new CEO believes sanctions against Huawei will help overcome chip shortages
Qualcomm, a major American developer of telecommunications technologies and mobile processors, should change this year. The future CEO Cristiano Amon has already said that the sanctions against Huawei open up new opportunities for other market players, and even help alleviate the shortage of chips.
Image source: Penn Today
The logic of the newly appointed CEO of Qualcomm, as explained by Bloomberg, is quite simple. Having lost orders from Huawei Technologies, TSMC can allocate the vacated capacity for the needs of other customers. This migration will take some time, but eventually someone will be able to increase the volume of their own products. For Qualcomm itself, sanctions against Huawei, on the one hand, led to the loss of orders from this Chinese giant, on the other, Huawei’s competitors began to buy more Qualcomm mobile processors. That is, in general, the effect is rather positive than negative.
The rise in demand for semiconductor components, as the future head of Qualcomm expects, will slow down in the second half of the year, but only in some market segments. If the new US President suddenly decides to achieve normalization of relations with China, then the semiconductor segment will feel the last results, since the solution of the accumulated problems will take a long time.
Qualcomm’s US semiconductor industry initiative is also welcomed. TSMC and Samsung Electronics to build new 5nm and 3nm factories in the US. Given such an opportunity, Qualcomm would not even mind placing orders for the release of its products at Intel’s American facilities.