Taiwan-based IC design houses are expected to enjoy a ramp-up in orders placed by Huawei, which intends to reduce its reliance on Qualcomm and other US chip giants, starting the second half of 2019, according to industry sources.

Huawei has stepped up purchases of chip components from Taiwan-based companies, in the face of a ban on its purchases of US-made parts, said the sources. An estimated 20-50% increase will boost the related Taiwan-based suppliers' revenues in the second half of 2019 and 2020, the sources indicated.

In addition to MediaTek, analog IC suppliers On-Bright Electronics, Richtek Technology and Silergy, MEMS microphone specialist ZillTek Technology, networking IC company Realtek Semiconductor, power amplifier suppliers Airoha Technology and Richwave Technology, and server management SoC provider Aspeed Technology reportedly will benefit from Huawei's diversification efforts, the sources noted.

Silicon IP providers Andes Technology, eMemory Technology and M31 Technology are also pinpointed as among the beneficiaries.

Huawei's revenues will likely take a US$30 billion hit over the next two years from the US ban, said Ren Zhengfei, founder and CEO for the China-based telecom equipment and mobile device vendor, at a recent event in Bejing. Earlier in 2019, Ren expressed confidence the ban on sales to his company would have little impact.

By: DocMemory
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