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US-China tech war: how this local chip firm has taken off in China as Huawei still reels under US sanctions

  • Sales have also been helped after Honor, the budget brand spin-off from Huawei, decided to use Unisoc chips for its latest phone model
  • Unisoc, a subsidiary of Chinese state-backed semiconductor conglomerate Unigroup, climbed into the top five with total shipments of 800,000 units in May

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Unisoc emerged in May as the fifth-largest smartphone chip provider in China from nearly ground zero a month earlier. Photo: Reuters

A chip company affiliated with Tsinghua Unigroup emerged in May as the fifth-largest smartphone chip provider in China from nearly ground zero a month earlier, making it an up-and-coming player in the market as Huawei Technologies Co’s chip unit continues to struggle under US sanctions.

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Unisoc, a subsidiary of Chinese state-backed semiconductor conglomerate Unigroup, climbed into the top five with total shipments of 800,000 units, according to a report released on Thursday by CINNO Research, an agency that tracks the market.

Unisoc remains a small player compared to Taiwanese fabless chip designer MediaTek, the No. 1 supplier with 8.7 million units shipments in May, but growth has surged due to a lower comparison base, with shipments by Unisoc jumping 36 times from April and 63 times from May last year.

Sales have also been helped after Honor, the budget brand spin-off from Huawei, decided to use Unisoc chips for its latest phone model.

“Unisoc has become the biggest dark horse in the market,” Shanghai-based CINNO said in a note. Following Honor’s decision, more Chinese local mobile phone brands are expected to use Unisoc chips, it added.

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