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Nikkei: Honor's dependence on US suppliers has deepened rapidly, accounting for nearly 40% of materials

According to Nikkei Asia reported on April 25, Nikkei dismantled the Honor X30 with the help of Fomalhaut Techno Solutions and estimated the material price of the internal components.

Nikkei: Honor's dependence on US suppliers has deepened rapidly, accounting for nearly 40% of materials

Source: Nikkei

Most of the X30's core components, including processors and 5G chipsets, are supplied by U.S. manufacturers such as Qualcomm, rather than by suppliers Chinese mainland like HiSilicon, Huawei's chip development arm.

Honor spun off from Huawei in November 2020 to circumvent sanctions from the U.S. Department of Commerce.

The X30 has an estimated production cost of $217. U.S. modules account for the largest share of costs, accounting for 39% of total costs. That's a 29 percentage point strong increase from Huawei's 30S launch under the Honor brand in the spring of 2020. In most core areas, including main processors and 5G chipsets, U.S. components have replaced Chinese components.

Nikkei: Honor's dependence on US suppliers has deepened rapidly, accounting for nearly 40% of materials

Changes in the origin of materials and parts before and after the split of Honor from Huawei (@Nikkei)

At the same time, the share of Chinese parts fell by 27 percentage points to about 10%. HiSilicon offers a system-on-chip (SoC), 5G chipset, and power management chip for the 2020 model. Other non-Chinese manufacturers, including Murata Manufacturing, Sun Power and TDK, and Japanese suppliers, are also involved in the 2020 model 30S's communications chips.

Nikkei: Honor's dependence on US suppliers has deepened rapidly, accounting for nearly 40% of materials

Changes in Key Parts Suppliers for Honor 2020 and 2021 Models (@Nikkei)

But HiSilicon is no longer one of the suppliers of these components of the X30. With the exception of The Japanese parts, all communications chips for the latest models are supplied by Qualcomm and Qorvo, another major component manufacturer in the United States. The only Chinese communication chip component used is a communication signal amplifier based on mature technology. (Proofreading/LL)

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