Huawei Yu Chengdong: Qilin 1000 is the last high-end chip, and it’s a pity that it didn’t make chips

“Huawei has been developing for more than ten years. It has been a difficult process from seriously lagging behind to a little behind and then catching up with and leading.”. Yu Chengdong, CEO of Huawei’s consumer business, delivered a speech at the 100 people’s Conference on China’s informatization held on August 7. He talked about Huawei’s achievements in the standard ecology of operating system, chip, database, cloud service and IOT. < / P > < p > under the second round of U.S. chip sanctions, Huawei Hisilicon chips can no longer be contracted by TSMC, nor can it purchase high-end chips from American companies like Qualcomm Broadcom. However, there is still a long way to go for SMIC international chip manufacturing technology in mainland China. It was also reported that Huawei has placed an order of 120 million chips to MediaTek, or it will be carried on P50 mobile phones. < p > < p > “it’s a pity that in semiconductor manufacturing,” it’s just chip design, not chip manufacturing, “he said. Huawei will launch mate40 with Kirin 1000 chip this fall.” this year may be the last generation of Huawei Qilin high-end chip. ” He called on the semiconductor industry to develop in an all-round way, including EDA design, materials, production and manufacturing, process, design capacity, manufacturing, packaging and testing, etc. “There is nothing that can’t be done in the world, only not enough determination and not enough investment. “< / P > < p > Yu Chengdong said that after the United States sanctions last year, Huawei delivered 60 million fewer smartphones. However, in the first half of this year, Huawei’s consumer business smartphone market share in the second quarter was the largest in the world. Under the new round of sanctions, Huawei’s chips have been in short supply. He predicted that this year’s shipment data will be less than 240 million. Thank you. Today, I’m very happy to share with you our thoughts on this industry. I’m in charge of the consumer business in Huawei, so I’d like to first report on the development of Huawei’s consumer business in recent years. I was in charge of the consumer business part-time at the end of 2010, and was fully responsible for Huawei’s consumer business in 2011. < / P > < p > in the past few years, thanks to the strong support of global consumers, we have achieved rapid development and achieved hundreds of times of growth. Today, I saw many people using Huawei’s mobile phones. Of course, there are a few iPhones. You can experience our 5g mobile phones. Thank you. < p > < p > in the first half of this year, Huawei’s market share of smart phones in consumer business ranked first in the world in the second quarter, which was actually due to the impact of the epidemic. If it wasn’t for the US sanctions, Huawei would have been far ahead in terms of market share last year. However, after last year’s sanctions, Huawei delivered 60 million fewer smartphones. This year’s quantity is likely to be less than that, because this is the second round of sanctions against chips, which cannot be produced. So it’s very difficult. We are all out of stock recently. There is no chip supply for Huawei’s mobile phones. As a result, we may ship less than 240 million units this year. < / P > < p > we still achieved revenue growth in the first half of this year because our high-end products sold well and accounted for an increasing proportion. There is also an important reason for the rapid growth of our non mobile products. Our PCs, wearers, watches, bracelets, headphones and tablets have all achieved rapid growth. We are the largest watch factory in China and the largest wearable terminal manufacturer in China. As of Q2 2020, our tablet market share is the second in China and the third in the world. The market share of notebook computers is the second in China. As of Q1 2020, in the global share, our smart watch is the second and apple is the first. < p > < p > Huawei’s consumer business has put forward a long-term strategy for the next 5-10 years, which is a full scene Smart Life strategy. In the era of 5g, AI and full scene intelligence, we provide almost seamless smart life experience around the whole scene of consumers, including family scene, office scene, travel scene, sports health, etc. We put forward the concept of 1 + 8 + N, 1 refers to smart phones, 8 refers to smart screen, speaker, glasses, watch, headset, car, tablet, PC, including five scenes, n is a wide range of ecology, including the ecology of smart home, sports health and other fields. < / P > < p > today we are in the era of mobile Internet. In this era, China’s Internet development speed is very fast, and the number of Internet users in the world ranks first in the world because of our large population, especially the widespread popularity of smart phones. The development speed of small programs in China has been catching up with that of APP in the past three years. China’s e-payment also ranks first in the world. < / P > < p > we see good things, but we also see our shortcomings. China ranks first in global smartphone shipment, accounting for 57%. The PC produced in China, including China and Taiwan, accounts for about half of the world’s PC output. China’s TV accounts for about one-third, second only to South Korea’s Samsung and LG, but far more than Japanese manufacturers. In terms of delivery volume, the share of Chinese terminals is OK. However, we have seen some problems. In the depth of China’s industrial chain, in the era of Internet and mobile Internet social network, there is still a gap between China’s core technology and the control ability of core ecology with those of the United States and other countries. In particular, there is still a gap between the bottom materials and the manufacturing equipment of the United States, Japan and Europe. < / P > < p > in terms of chips and core devices, progress has been very fast, but there is still a gap compared with the United States and South Korea. In terms of terminals, we have advantages in terms of output, but we still have a gap in terms of operating system and ecological platform. Of course, from the perspective of operating system, we can see the operating system and the ecological platform above the operating system. American companies still dominate the world. We should build up our ecology, our operating system, our ecological services, our chips, our equipment and equipment, and our entire basic system capability. For us, sanctions are painful, but at the same time, they are a major opportunity to force us to upgrade the real estate industry as soon as possible. From the perspective of industrial ecology, apple is a terminal manufacturer in the app ecosystem. However, Apple’s Internet services and annual revenue of more than 48 billion US dollars are very important sources of Apple’s profits, because the net profit margin of this area exceeds 60%, reaching 70% – 80%. Huawei’s revenue in this area is about $5 billion this year, which seems not small. However, the revenue of Huawei’s consumer business may be less than $70 billion this year. Even though it may lose tens of billions of dollars a year through sanctions, we still have nearly $70 billion in revenue. But our Internet service is around $5 billion. But Apple has 48 billion, and it’s growing fast. Google’s Internet service revenue is more than 140 billion US dollars, so this space is very large, the profit margin of Internet service is very high, and it is a global business. We can see that Internet companies can make billions of yuan at a time by selling equipment and skin in Tencent’s games. < p > < p > the only one with the largest number of downloads last year was tiktok, and Tencent’s game ranked ninth, which was acquired overseas. Tiktok is China’s rare Internet Co with the global determination. China has 1 billion 400 million people, but the world has 7 billion people. We haven’t made the money of billions of people outside the 1 billion 400 million population and provided them with services. So our gap is still very large. < p > < p > by contrast, the United States has the highest proportion in the world. They are not only large in number, but not in the same order of magnitude in terms of income. We only have tiktok and a little profit, while others have little income. As we all know, the profit margin of the Internet is very high. Tencent’s net profit margin is up to 30%. In our high-tech industries and heavy investment, the profit can’t be compared with them. Therefore, we work very hard, invest heavily in R & D technology, and our cost investment is also large, but our profit margin is very low. We should encourage more Chinese Internet companies to go global and do global business. < / P > < p > to make global money, we need a platform. Huawei also wants to build this platform. Another aspect is IOT, such as smart home. For example, several companies in the United States have established a chip alliance, including Amazon, apple, Google and many other companies to participate in the standardization. There are various standards in China, and ecological fragmentation limits the scale of the industry. Of course, the biggest one is Huawei’s hilink. We also plan to open the smart home standards to be Chinese standards and global standards. In the field of AI, we all know that China is not lagging behind in this field because it is just emerging. In some fields, Huawei is building platforms, and several major companies in the United States are also building their platforms. We are still in a leading position in many aspects of our AI theory, AI algorithm and AI chip. So this is a very good opportunity for us to catch up. < p > < p > Huawei has also done some practice in this field. From Kirin 970 chip, the world’s first built-in AI processor in a smartphone chip, to the recent Kirin 990, it also has a new generation of AI processing capacity, which is several times of the industry’s chip processing capacity. Our performance, computing power and ability are very strong, so we are the leader in this field This is new technology. < / P > < p > on the network side, our shengteng 310 and shengteng 910 are in the leading position in the industry for AI processing systems of edge computing and cloud computing. We will launch mate40 this fall, carrying Kirin 1000 chip, and will use more powerful 5g capacity, AI processing capacity, and stronger NPU and GPU. Unfortunately, the second round of sanctions only accepted orders before September 15, so this year may be the last generation of Huawei Kirin high-end chips. < p > < p > in the past decade or so, Huawei has lagged behind seriously, lagged behind a bit, and finally caught up with and took the lead. We have invested a lot in R & D and experienced a difficult process. However, in semiconductor manufacturing, Huawei has not participated in Huawei’s asset investment oriented and capital intensive industries I just did the chip design, not the chip manufacturing. < / P > < p > to solve these problems, we should realize the innovation and breakthrough of basic technical ability, and win the next era. In the era of intelligent full scene, we need to build our ability in terms of operating system, chip, database, cloud service and IOT standard ecology, so as to make our ecological development. < / P > < p > in semiconductor manufacturing, we need to make breakthroughs, including EDA design, materials, production and manufacturing, process, design capability, manufacturing, packaging and testing, etc. At the same time, in the era of intelligent semiconductors from the second generation to the third generation, I heard Academician Wang mention their pursuit of third-generation semiconductors in materials, which is very good. We also hope that whether overtaking on the curve or overtaking on the half way, we hope to take the lead in a new era. The world didn’t do it