SMIC is blacklisted by the US and three other Chinese companies


china vs us

Rumors that the Trump administration will blacklist China‘s largest chip maker Semiconductor Manufacturing International Corporation (SMIC) and China’s third-largest oil and gas company, China National Offshore Oil Corporation (CNOOC), have been fully confirmed.

These companies are accused of being linked to the Chinese military, and the new sanctions apply to:

  • Semiconductor Manufacturing International Corporation (SMIC)
  • China National Offshore Oil Corp. (CNOOC)
  • China Construction Technology Co. (CCTC)
  • China International Engineering Consulting Corp. (CIECC)

The Pentagon stands ready to counter China’s civil-military sector strategy to support China’s People’s Liberation Army modernization goals by providing access to advanced technology.

As in the case of Huawei, blacklisting these companies means that they are prohibited from using American components and technologies.

us vs china

Huawei and Honor will occupy 4% and 2% of the smartphone market next year

A new forecast by research firm TrendForce says that independent company Honor, which no longer has anything to do with Huawei, will only be able to occupy 2% of the global smartphone market next year.

Of course, the sale of Honor will hit Huawei very hard, which is barely afloat under the pressure of US sanctions and their aftermath. If this year analysts give the company only 14% of the global smartphone market, then next year, according to the forecast, the company’s share will drop to 4%. With such results, the company will have to fight for a place in the top ten leaders, since they will definitely not be able to get into the top five.

US sanctions imposed on Huawei are limiting the company’s ability to procure required components; affecting Huawei’s ability to manufacture and market new smartphones. The sanctions were the main reason behind Huawei’s decision to sell its Honor brand.

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Another Chinese company Xiaomi, according to the forecast, will significantly strengthen its position next year. TrendForce analysts make a modest forecast for Xiaomi’s share to increase from 12% to 14%. However, Xiaomi itself is much more optimistic and intends to sell from 240 to 300 million smartphones. Also, the company wants to get ahead of Apple and possibly compete for the top spot with Samsung.

Huawei sells Honor

Samsung, Huawei and Xiaomi topped the smartphone market in Q3 2020

Analytical agency Gartner has published another report on the smartphone market. So, in the third quarter of this year, 366 million smartphones were sold worldwide; which is 5.7% less than in the same period last year. And although the drop is noticeable, it is less than 20%, which the market fell by in the first half of the year.

Samsung is still the leader with 80.82 million units sold and 22% of the market. In general, of the Top 5 manufacturers, only Samsung and Xiaomi were able to increase sales – by 2.2% and 34.9%, respectively. Huawei is in second place with 51.83 million smartphones sold – its market share is 14.4%. Xiaomi sold 44.41 million smartphones – equivalent to a market share of 12.1%.

Apple is in fourth place. Between July and September, the company sells 40.6 million smartphones – its market share was 11.1%. Interestingly, Oppo is not far from Apple. In the third quarter, it sold 29.89 million smartphones (the market share of this company is 8.2%).

smartphone market 2020

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2 Comments

  1. 𝕸๏𝖋ɨ
    December 4, 2020

    So the US is trying to erase one Chinese OEM and multiple others are trying to achieve the same goal of beating Apple and Samy to the no.1 spot on the chart…

  2. cuesta virge
    December 11, 2020

    its just the matter of time before China will be USA main enemy. so its best to cut all ties and DECOUPLE from your enemy before the major war.