Huawei’s Mate 60 Series Rumored To Witness A Price Drop, But That Is Only If Kirin 9000S Production Increases

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Huawei’s Mate 60 Series Rumored To Witness A Price Drop, But That Is Only If Kirin 9000S Production Increases

The Kirin 9000S chipset was the first stepping stone that would enable Huawei to stop relying on foreign technologies, but it has been a tough road, especially with the U.S. trade sanctions breathing down on the former Chinese giant’s neck. The company is rumored to want to make its Mate 60 series more accessible to customers from a pricing perspective, and with the P70 launch in tow, that would be the ideal move to make. However, a tipster states that unless Kirin 9000S production picks up, that will not be possible.

Upping Kirin 9000S production could pose a challenge, as Huawei’s foundry partner SMIC still struggles to improve yields

Insiders closely watching Huawei’s moves have praised the latter for even mass producing the Kirin 9000S, with various reports stating that such an act should be considered a miracle thanks to all the obstacles that have stood in the company’s way. However, there is a difference between successfully launching a chipset and maintaining its production to the point that it powers millions of Mate 60 units in China. According to tipster Jinan Digital, the pricing of Huawei’s current flagship series can be reduced, assuming SoC production picks up.

Unfortunately, production can only pick up if SMIC finds a way to improve yields, which is said to be challenging with the current DUV machinery it has in its possession. At the request of the Biden administration, ASML was barred from supplying Chinese firms with advanced EUV equipment, meaning that SMIC will have to make do with its current hardware, which is easier said than done. China’s largest semiconductor manufacturer is also reportedly setting up 5nm production lines for Huawei, but these chips are said to cost up to 50 percent more than what it costs TSMC to manufacture wafers at the same lithography.

The same hurdles of price, yields, and time consumption are likely plaguing SMIC’s 7nm technology, forcing it to up-charge Huawei for the Kirin 9000S, which would result in the Mate 60 being priced in the premium bracket. An earlier report talked about U.S. government officials being confident that SMIC could not produce sufficient Kirin 9000S supply, and looking at the current situation, those claims might hold up. For Huawei, time is of the utmost importance, especially if it wants to keep its newly-formed momentum running on its home turf.

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