New Delhi:- Chinese firm Huawei plans to return to the 5G smartphone industry by the end of this year, according to a research firm, after a U.S. ban on handset sales has devastated its home appliance business. It is a sign of the revival of all.

Huawei will use its own advances in semiconductor design tools and chip manufacturing from Semiconductor Manufacturing International Corporation (SMIC) to source 5G chips domestically, three external technology research firms covering China's smartphone sector told Reuters. Said it should be possible.

Citing industry sources, including Huawei suppliers, the companies spoke on condition of anonymity due to confidentiality agreements with customers. Huawei declined to comment. SMIC did not respond to a request for comment.

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A return to the 5G mobile phone market would be a win for the company, which has claimed to be in "survival mode" for nearly three years. Huawei's consumer business revenue peaked at 483 billion yuan ($55 billion) in 2020 but plunged nearly 50% a year later.

The Shenzhen-based tech giant once competed with Apple and Samsung to be the world's largest phone maker, but as of 2019, a series of U.S. regulations meant it could no longer make the chips essential to making cutting-edge models. Limited access to manufacturing tools. 

U.S. and European governments have classified Huawei as a security risk, a claim the company denies. Since then, Huawei has sold only limited lots of its 5G models with stock chips.

Huawei has stalled in sales of its last-generation 4G phones and dropped out of most rankings around the world last year as sales bottomed out. But the company rose to 10% market share in China in the first quarter, according to consulting firm Canalys.

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One research firm expects Huawei to use SMIC's N+1 manufacturing process but with the projected yield of usable chips below 50%, 5G shipments are expected to be around 2 million to 2 million. He said it would be limited to 4 million. The second company did not give details, but he estimated deliveries at 10 million units.  According to Canalys, Huawei shipped 240.6 million smartphones worldwide in 2019, the peak year before it launched Honor devices, accounting for nearly one-fifth of the year's shipments.

The state-run China Securities Journal reported earlier this month that Huawei had increased its 2023 mobile shipment target to 40 million units from 30 million at the beginning of the year, but did not mention a return to 5G handsets.

Huawei could produce 5G versions of flagship models like the iPhone competitor P60 this year, with new product launches expected in early 2024, three research firms said. The chain received the company's latest announcement, adding that such forecasts are based on information obtained through confirmations with officials from Huawei suppliers in the United States. 

However, U.S. regulations have made Huawei unavailable to Google's Android operating system and a suite of developer services on which most Android apps are based, limiting the appeal of Huawei phones outside of China. there is

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Huawei announced in March that it had made breakthroughs in electronic design automation (EDA) tools for chips manufactured using 14-nanometer (nm) technology and beyond, research firms said. bottom. A chip design company uses EDA software to create blueprints for chips before they are mass-produced in factories.

Huawei's EDA software can be used in SMIC's N+1 manufacturing process to produce 7nm-equivalent chips, the high-performance semiconductors typically used in 5G mobile phones, the research firm said, citing its own industry sources.

Washington has banned SMIC from acquiring an advanced chip-making tool called the EUV machine, which is essential for making 7nm chips, from Dutch company ASML. However, some analysts have found signs that SMIC is still successfully producing 7nm chips by optimizing simpler DUV machines that can be purchased for free from ASML.

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A second investigative firm said it found that Huawei had asked SMIC to produce sub-14nm chip components for its 5G products earlier this year. Doug Fuller, a chip researcher at the Copenhagen Business School, said an expected yield of less than 50% means 5G chips will be "expensive."

"If Huawei wants to eat away at the cost, I think they can, but I don't think a chip like this is price competitive," Fuller said. 

The Chinese Tech Giant Huawei is now coming back to its 5G manufacturing side and it is a very big change and the most profitable way for the company.