In May this year, the US Department of Commerce announced that it was expanding its sanctions against Huawei in an attempt to cut off its ties with global chip vendors.

On the 16th of the same month, Huawei China published a picture on its official social account-it was an Il-2 aircraft covered in bullet holes in World War II ——Even so, still insist on flying, and finally return safely.

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&34 ;There are no scars, but the skin is rough and fleshy. Heroes have been suffering since ancient times.&34;

This is not the first time Huawei has encountered this situation.

As early as May 16, 2019, the United States included Huawei in the list of entities. Since then, American companies will not be able to supply products to Huawei without the permission of the US Department of Commerce. From then on, Huawei began to take out its own”spare tire” to respond to the challenges of the United States on its own. On May 17th of the same year, He Tingbo, President of Hisilicon issued an open letter:”Spare tires” built for the survival of Huawei-Hai Think chips, all turned positive. This means that even if Huawei cannot obtain Qualcomm chips in the future, it can still guarantee the continuous supply of most products. The same spare tire, but also a new operating system released in August of the same year-Hongmeng OS. The HiSilicon chip and Hongmeng system have built up Huawei’s counterattack together.

Even so, Huawei still has great difficulties in the matter of survival.

Huawei’s chip development difficulties

As early as 2004, HiSilicon was formally established, but unlike the current high-end processing chips for mobile phones, HiSilicon was mainly designed to design router chips and network equipment modems. It was this experience that gave HiSilicon the basis for designing mobile phone processing chips.

2011 is a very important year for HiSilicon. This year, Yu Chengdong became the person in charge of Huawei’s terminal. Since then, HiSilicon has embarked on the road of mobile phone chip design. Just two years after Yu Chengdong joined Huawei Terminal, in 2012, Huawei launched its HiSilicon quad-core processor chip and Balong chip. This is a chip independently developed by Huawei, code-named K3V2.

However, this mobile phone chip did not satisfy consumers. It was originally a chip mounted on its own flagship phone, but the mobile phone was very hot and slow to load, resulting in a very poor user experience. There is also a little gossip in this. It is said that at that time, Ren Zhengfei was using the mobile phone equipped with this chip to crash frequently, so that he finally fell the mobile phone to Yu Chengdong’s face. However, the more frightening thing is that this”faulty” chip is still mounted on a variety of new mobile phones released in the next two years. It was not until the beginning of 2014 that the Kirin processor was officially launched, and this chip officially withdrew from the stage.

Kirin’s rapid development path

At the beginning of 2014, the Kirin chip was released. As a result, HiSilicon’s chip began to turn over.

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The parent company Huawei gives an annual R&D expense of 400 million US dollars Against the background of 20,000 engineers, a great wall of chips was built. Iterate from Kirin 910, Kirin 920, Kirin 925, Kirin 928, Kirin 930, Kirin 935, Kirin 950, Kirin 955, Kirin 960. From the Kirin 910 interview in 2014 to the Kirin 955 in 2016, the shipment of HiSilicon Kirin chips exceeded 100 million, and the shipment has exceeded 100 million in less than three years.

The success of Kirin chips also stems from Ren Zhengfei’s insistence on independent research and development of chips. According to a media interview with He Tingbo, President of HiSilicon Semiconductor, Ren Zhengfei once said to He Tingbo:”I will give you 400 million US dollars in research and development expenses per year, and I will give you 20,000 people. We must stand up and appropriately reduce our dependence on the United States. . The &34;&34; chip is temporarily useless, we still have to continue to do it. This is the company’s strategic banner and cannot be moved. &34;

At that time, Huawei was just getting better, and the company’s main business was not mobile phones, making such a decision was very rare and valuable. of.

&34;We have no way to go except victory&34;

On August 7 this year, Yu Chengdong delivered a keynote speech titled”Solid, Win the Next Era” at the 2020 Summit of the China Information Technology Association of 100. In the speech, Yu Chengdong could not hide his excitement about the development of HiSilicon Kirin in recent years.

But despite the excitement, Yu Chengdong returned to reality.”Due to the second round of sanctions not long ago, our chips will cease production on September 16 this year, so this year may be the last generation of Huawei’s Kirin high-end chips. &34; Yu Chengdong said.”Huawei’s exploration in chips has gone from being seriously behind for more than ten years, to being relatively backward, to being a little behind, to finally catching up, to leading, and now being blocked. In this process, we have invested huge research and development funds and have gone through a difficult process. Unfortunately, in terms of semiconductor manufacturing, Huawei has not participated in asset-intensive fields and capital-intensive industries. We just do The design of the chip is not involved in the manufacture of the chip. Therefore, innovation and breakthroughs in basic technological capabilities are the key to solving this problem. &34;

The time for the ban has come, and the price of Huawei’s mobile phones &34;Skyrocket&34;

September 14, this is the day when TSMC officially stopped manufacturing Kirin chips. From then on, Huawei may face a difficult period without high-end chips for a long time. In the face of this scenario, Huawei has already begun to build a supply chain system that can”de-Americanize”.

While Yu Chengdong announced the US’s chip ban on Huawei, a large area of ​​”Kirin Song” appeared on the market, and”34; Will fall, order as soon as possible&34;. And other promotional slogans. Although the prices in Huawei’s official mall, online channels, and authorized stores were still stable on the day the ban took effect, many channel vendors had already begun to”raise prices”.

According to Henan Business Daily. On September 4, I visited 2 local Huawei mobile phone stores in Henan and learned that the retail price of Huawei mobile phones has not changed, but the purchase price has risen and the supply is tight. The person in charge of one of the stores said:The color system of the Huawei NOVA7 series is incomplete. Need to wait for the transfer to get it. In addition, during a visit to Xintiandi, a merchant said:In Xintiandi, the supply of Huawei mobile phones is insufficient, and merchants are ready to start selling at a higher price. In terms of price, for example, the price of a mobile phone recently released by Huawei is 500 yuan higher than that of a month ago.

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business Hoarding a large number of out-of-print machines, another wealth password after masks?

As a famous electronic market in China. Shenzhen Huaqiangbei first found a new business opportunity in”Kirin Song”.

&34; In the morning it is a price, in the afternoon it is a price&34; a mobile phone wholesaler from Huaqiangbei said. &34; Due to market conditions, mobile phone inquiries are only valid within 10 minutes. &34;

Backpacker Li Ming is also one of the many people who want to achieve”big wealth” from it. &34;A customer wants to entrust me to buy 20 items (20 mobile phones). &34;This is an unusually large order recently.

He is one of many &34;adversaries. &34;Customers must have seen the recent momentum of the overnight increase in the purchase price of mobile phones, and plan to stock up and wait until the price is higher before selling. &34;

&34;Another order has been cancelled! &34; Li Ming cursed in his mouth, and angrily he posted a screenshot of the chat record of the refund to his circle of friends. &34; Prices increase every day.”He complained, but he couldn’t help it. &34; Just like the previous period when the epidemic was severe, many businesses wanted to stock up masks. Merchants put a lot of goods in their hands and then slowly sell them. This way, as time goes by, the price gets higher and higher. Li Ming shook his head helplessly. &34;Mobile phones are different from masks. Masks are a necessity. The price of masks will inevitably be regulated when they go up, and the final price will be relatively stable. The mobile phone is different, no matter how high the price is, someone will buy it. But the premise is that the goods are in stock. Goods are the kingly way. Now the Kirin chip is out of print. The latest mobile phones are equivalent to”34;”, and now businesses are trying to stock up on out-of-print Huawei mobile phones. The one with more goods wins. &34; After finishing speaking, Li Ming continued to carry his backpack and entered the busy Huaqiang North Middle School without looking back.

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soft Hard combination, Huawei’s mobile phone business has a long way to go.

On September 10, Wang Chenglu, President of Huawei’s Consumer Business Software Department, responded at the Developer Conference, &34;The technology involved in the chip issue is very complex. There must be difficulties in this area, without a doubt&34;. &34; The chip issue has given companies reflection, and no choice is the best choice. &34;It is understood that Huawei may cooperate with European companies to complete the &34;de-beautification&34; industrial chain, and it is expected that the construction can be completed within one to two years under the optimistic situation, breaking through the barriers.

Compared with chips, at the software level, Huawei’s road seems to be smoother.

A few days ago, Yu Chengdong stated in media reports:&34; Hongmeng system has reached the level of 70%to 80%of Android system. &34; And Yang Haisong, vice president of Huawei’s Consumer Business Software Department, also revealed that&34; the internal goal of the Hongmeng team is to make the installed capacity of Huawei’s own equipment equipped with the Hongmeng system exceed 100 million units within a year, and it is equipped with Hongmeng’s No. The installed capacity of tripartite equipment has exceeded 100 million units. &34;

Huawei Consumer Business CEO Yu Chengdong announced at the Huawei Developer Conference 2020 on the afternoon of September 10 that the HarmonyOS 2.0 system was officially released. Yu Chengdong said that next year Huawei mobile phones will fully support the Hongmeng system.

On the road of combining software and hardware, Huawei is taking further and further steps.

&34;No one can extinguish the stars in the sky. Every developer is a spark that Huawei wants to gather, and a spark can start a prairie fire. &34; Yu Chengdong said.