Huawei to sell in-house 4G chip on open market to tap growing internet-of-things demand
- The chip has seen shipments of 100 million units for use in Huawei and related products since it was launched in 2014
HiSilicon, the in-house semiconductor and IC design company operated by Huawei Technologies, said it has begun selling its 4G chip, the Balong 711, on the open market as demand for internet-backed solutions continues to surge.
The chip, which has seen shipments of 100 million units for Huawei products and its clients since it was launched in 2014, provides high-speed, reliable network connectivity for internet of things (IoT) applications, according to a statement posted on Huawei’s official WeChat account.
The Balong 711 could be used for IoT products like surveillance cameras, vending machines and smart lockers that require stable internet connections to function.
Huawei said it has no additional comment on the move.
Huawei’s chip could face fierce competition in the market because rival chip makers such as US-based Qualcomm and Taiwan’s MediaTek have similar offerings and the market for IoT chips is already mature, said Fang Jing, a Shanghai-based analyst with China Merchants Securities.
As a so-called fabless chip company, HiSilicon, along with rivals Qualcomm and MediaTek, rely on independent wafer foundries like Taiwan Semiconductor Manufacturing Co (TSMC) to fabricate their designs onto silicon.