Global Semiconductor Research Report in 2021: Huawei Hisilicon’s revenue dropped by 81% From Gartner

The following is the Global Semiconductor Research Report in 2021: Huawei Hisilicon’s revenue dropped by 81% From Gartner recommended by recordtrend.com. And this article belongs to the classification: Gartner, Hardware equipment industry.

According to the global semiconductor research report in 2021 released by Gartner, Huawei Hisilicon has fallen out of the top 25 semiconductor suppliers in the world due to the impact of U.S. trade sanctions on China’s overall share of the global chip market. Andrew Norwood, vice president of Gartner research, said in the report:

“Hisilicon’s revenue fell 81%, from US $8.2 billion in 2020 to US $1.5 billion in 2021, with a significant decrease of US $6.7 billion. This is a direct result of US sanctions against the company and its parent company Huawei.”

According to Gartner report, the top ten in the semiconductor industry in 2021 are Samsung Electronics, Intel, SK Hynix, micron technology, Qualcomm, Broadcom, MediaTek, Texas Instruments, NVIDIA and AMD.

Samsung Electronics recaptured the top of the semiconductor supplier list from Intel for the first time since 2018. In 2021, Samsung’s chip revenue totaled US $73.2 billion, accounting for 12.3% of the global market share, while Intel announced sales of US $72.5 billion, accounting for 12.2% of the global market share.

In contrast, Samsung’s surpassing Intel this time is not large, only less than one percentage point.

The third place SK Hynix only has about half of Intel’s operating revenue and half of Intel’s market share in 2021.

In terms of growth rate, Hisilicon’s competitors Qualcomm and MediaTek have gained a sharp rise, with growth rates of 53.4% and 60.2% respectively.

However, amd has the highest growth rate, reaching 68.6%, followed by MediaTek, Qualcomm and SK Hynix.

Gartner data also shows that the total global semiconductor revenue in 2021 was $595 billion, an increase of 26.3% over 2020.

Andrew Norwood said: “at present, the shortage of chips continues to affect original equipment manufacturers (OEMs) around the world, but the large volume of 5g smartphones, strong demand and rising logistics / raw material prices have jointly promoted the increase of average selling price (ASP) of semiconductors, resulting in a significant increase in revenue in 2021”.

At the same time, South Korea’s global market share increased the most last year, as the strong growth of the memory market pushed the country’s overall share of the global semiconductor market to 19.3%.

According to Norwood, the sharp drop in Hisilicon’s share of sanctions has also had an impact on China’s global semiconductor market. China’s market share fell from 6.7% in 2020 to 6.5% last year.

Hisilicon semiconductor is responsible for the Kirin, Gigabit network, Kunpeng, Baron and shengteng chips used by Huawei, and outsourcing the production of its design to chip manufacturers such as TSMC. However, under the tightening sanctions of the United States, Hisilicon can no longer carry out business with many major chip foundries such as TSMC, because they all rely on American core technology to manufacture wafers to a certain extent.

According to foreign media reports, although Huawei has not announced any major layoffs at Hisilicon, its employees are highly sought after by other IC design companies in the mainland. According to people familiar with the matter, some employees have switched to Zeku, the chip design department of smart phone giant oppo in Shanghai.

This year, Hisilicon’s “strategic” position within Huawei was further improved.

Affected by the US sanctions, China’s chip industry has been greatly impacted. At the same time, it also forces the domestic chip supply chain to seek self-improvement.

Among them, Haisi is placed in high hopes. Judging from Huawei’s recent actions, Huawei not only did not give up Hisilicon, but also released a positive signal in the field of Huawei’s overweight chips.

On March 29, 2022, Huawei listed the latest business architecture in its annual report.

As can be seen from the figure, Hisilicon is independent from the secondary department under the 2012 laboratory and upgraded to the primary Department of Huawei, which is at the same level as Huawei cloud computing, intelligent vehicle solution Bu operator BG, enterprise BG, terminal BG, digital energy and ICT products and solutions.

In addition, in 2021, in addition to picking out Hisilicon separately, Huawei also removed the original consumer BG, which was respectively in the charge of terminal BG, Huawei cloud computing and other departments, and made a series of adjustments to the functional platform.

Public information shows that the main carrier of Huawei’s R & D system was Huawei 2012 laboratory, which has secondary departments such as Central Research Institute, central software institute, Central Hardware Institute and Hisilicon semiconductor. However, although Hisilicon is nominally a secondary department, it has a very high internal position.

Huawei insiders have revealed that Hisilicon’s status is detached. In fact, it is a first-class department and can’t manage it in 2012. He Tingbo is not only the president of Hisilicon, but also the president of 2012. At the same time, she is also a member of Huawei’s board of directors, which is higher than the leader of some first-class departments.

Previously, Xu Zhijun, the rotating chairman of Huawei, said that Hisilicon is a chip design department in Huawei, not a profitable company, and has no profit demands on it. Now is to support this team, continue to move forward, as long as we can afford it. This team can continuously research and develop to prepare for the future.

More reading from Lei Feng: IC insight: it is estimated that the total sales of chip design in 2010 will be US $41.4 billion. Strategy Analytics: in 2021, Q3 global cellular baseband market revenue reached US $8.15 billion, an increase of 23.3%. Strategy Analytics: in 2014, Q1 global cellular baseband chip market reached US $4.7 billion. Strategy Analytics: in 2021, Q3 tablet application processor shipments decreased by 14%. Gartner: in 2017, the global semiconductor market reached US $420.4 billion trend Force: revenues of NVIDIA and AMD exceeded 25 billion US dollars in 2020 etnews: ASML expanded the sales target of South Korea to 14.75 billion euros in 2025. Passmark: Intel dominated the top ten of the single thread performance list in 2022. Counterpoint: the competition intensified, and the gap between MediaTek and Qualcomm gradually narrowed. ANN rabbit: 2014 global mobile phone chip brand distribution and popular ranking iSuppli: Q3 in 2010. Intel and AMD shared the same score in the third quarter. AnandTech: Q2 in 2016 Amd accounted for 70% of the card market, down 11.9% year-on-year. Gartner: IC insights of the world’s top 25 supply chain manufacturers in 2013: Huawei Hisilicon fell out of the top 15 in the global semiconductor ranking in Q1 in 2021. Puget: from 2019 to 2021, Intel’s products were generally more reliable than amd’s

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