Huawei's HiSilicon doubles revenue, market share at 12%

HiSilicon, Huawei’s chip design unit, saw a 100% revenue increase in 2024, driven by the success of Huawei’s Pura 70 and Mate 70 smartphones, according to Counterpoint Research.

This growth boosted HiSilicon’s share of the global premium Android smartphone system-on-a-chip market to 12%, up from 8% in 2023.

Qualcomm remains the market leader with a 59% share, followed by Samsung Electronics at 13%.

HiSilicon’s rise is backed by its Kirin processors, used in high-end models like the Mate 60, Pura 70, and Mate 70.

However, US trade restrictions continue to challenge Huawei’s long-term growth.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ U.S. sanctions spurred domestic semiconductor self-reliance in China

Huawei’s remarkable chip unit growth exemplifies China’s accelerated push for technological independence following years of U.S. restrictions.

When first hit with U.S. sanctions in 2019, Huawei’s founder acknowledged that nearly half of its chips came from American suppliers, highlighting its significant dependency on foreign technology1.

The restrictions that cut off Huawei from U.S. technology triggered an intensified national focus on domestic semiconductor capability, with Chinese firms investing heavily in developing alternatives to U.S. components2.

This strategic pivot is evident in Huawei’s ability to produce the Kirin 9000s processors domestically with SMIC as the manufacturer, despite being unable to access advanced foreign chipmaking equipment.

The successful development of these chips, which power Huawei’s comeback smartphones, demonstrates how external pressure has accelerated China’s technological self-sufficiency efforts, even if challenges remain in reaching cutting-edge capabilities3.

2️⃣ Chinese smartphone market shifts create new competitive dynamics

Huawei’s resurgence in China is reshaping the competitive landscape not just for device makers but for chipset manufacturers globally.

HiSilicon’s ability to double its revenue in 2024 stems largely from Huawei’s “strong and loyal customer base in China” that has enthusiastically embraced its domestically-produced smartphones4.