Foreign media exposed signs that Qualcomm began to withdraw
Qualcomm is a leading technology company in the United States, Qualcomm's Snapdragon series chips are also known as one of the best mobile phone SoC chips in the world, compared with Apple's A series chips and Huawei's Kirin chips, the Snapdragon series SoC chips are used in high-end mobile phones. Although Qualcomm's mobile phone SoC chip market share is not the highest in the world, it still has a strong dominance in the high-end SoC chip market for smartphones.
In addition to its strong position in the field of mobile phone SOC chips, Qualcomm is also very strong in the field of communication technology, it has been a world leader in the field of communication, has mastered a large number of core patented technologies, and its name also comes from high-quality communication.
There is no doubt that Qualcomm is a very leading technology company, and it also has a large share of the Chinese market, such as Qualcomm with 671% of the revenue comes from the Chinese market, and before the construction of China Mobile's 5G network, Qualcomm's 5G chip orders also accounted for about 50% of the bidding share.
From these data, it is not difficult to see that Qualcomm's dependence on the Chinese market is very high, and it can even be said that without the support of the Chinese market, it is difficult for Qualcomm to develop and grow to the point where it was some time ago. But what people didn't expect was that some time ago it was reported that Qualcomm began to withdraw from the Chinese market, and Qualcomm Shanghai R&D Center only left the personnel department and related personnel, and the rest were to be abolished.
Qualcomm has initiated global layoffs.
According to reports, Qualcomm's layoffs in the Chinese market are not limited to the Shanghai R&D center, and some other places in Chinese mainland are also among the layoffs. One of the important reasons why Qualcomm began to lay off employees in the Chinese mainland market is Qualcomm's recent embarrassing situation.
In fact, Qualcomm is not currently carrying out large-scale layoffs in the Chinese mainland market, but it has carried out large-scale layoffs around the world, even Qualcomm's US headquarters is no exception. The main reason for this situation is that Qualcomm has not had a good time in recent years.
Affected by changes in the global economic environment, many people's willingness to buy consumer electronics such as mobile phones and computers has gradually decreased, which has also led to a gradual decrease in the demand for the chip market. With the large-scale shortage of chips in the world, major manufacturers have expanded the scale of chip production, resulting in many chip manufacturers beginning to reduce the scale of chip production after accumulating a considerable number of chip sales.
Qualcomm is certainly no exception. Although there is the support of the Chinese market and the U.S. market, Qualcomm still has a large backlog of chip production, coupled with the U.S. chip ban restricts Qualcomm from high-end SoC chips to many Chinese manufacturers, and players such as Huawei are on the list, which leads to Qualcomm chips becoming more and more unpopular in the Chinese market.
As Intel's CEO said, the U.S. nuclear ban has cost many Americans their high-paying careers. This is clearly evidenced by Qualcomm's layoffs around the world some time ago. According to reports, Qualcomm has carried out a large-scale layoff last year, and now plans to cut 25% of its workforce globally.
Huawei made a strong comeback, and Qualcomm began to run into difficulties.
It can be said that Qualcomm is the most dependent on the Chinese market among the American chip giants, with Qualcomm 671% of the revenue comes from the Chinese market, which can be seen that the Chinese market is very important to Qualcomm, and if it loses the Chinese market, Qualcomm will face very serious consequences.
Before Huawei was listed as an entity enterprise by the United States, Huawei's Kirin chips were cut off by TSMC, resulting in Huawei's Kirin chips being unable to be shipped, and Huawei must buy from Qualcomm if it wants to get chips. And Huawei was sanctioned by the United States at this time, and Qualcomm was not only"Snatch away"Huawei has hundreds of billions of dollars in patent royalties and has also obtained permission from the U.S. Department of Commerce to ship 4G chips to Huawei, losing up to $60 billion from the Chinese market in three years.
Qualcomm was sanctioned because Huawei's life was indeed better, but now that Huawei has returned strongly, Qualcomm's good days have obviously come to an end, which not only means that it will lose Huawei's chip orders, but also that Qualcomm will lose a certain market share in the Chinese market. In Qualcomm's second-quarter financial report, Qualcomm executives said that it is possible to completely lose Huawei's orders, and from September to December this year, it is very likely that Huawei's orders will not be obtained.
Judging from the current situation, things are actually developing in the direction of Qualcomm CEO, even more serious than Qualcomm ordinary people think, because Qualcomm may not be able to get Huawei's orders from September to December, but it is very likely that they will not be able to get Huawei's orders in the future.
Huawei's Mate60Pro some time ago showed that the Kirin 9000S chip carried by Mate60Pro is a domestic high-end chip independently developed by Huawei HiSilicon and independently produced by Chinese chip foundries. In the past, Huawei HiSilicon showed strong chip independent research and development capabilities, which made Qualcomm lose a considerable part of its market share in China, and now Huawei is looking for a more stable domestic chip foundry, and the impact on Qualcomm is obviously more serious.
Needless to say, Qualcomm began to lay off employees in China, the main reason is that Qualcomm believes that the loss of the Chinese market is difficult to recover, so Qualcomm has also decided to reduce costs and withdraw from the Chinese market.