Insiders disclose related information to Tencent Technology that, the chip manufacturer MTK suspends the cooperation with Xiaomi mobile and the chip support.
An MTK official responds, “MTK has good cooperation interaction relationship with mobile manufacturers in mainland China. It is inconvenient for us to give comments on single client.”But an MTK insider confirms that the cooperation has “suspended” and “cooperation case with Xiaomi has terminated and there would be no new cooperation program with Xiaomi.”
Analysts point out that once Xiaomi mobile loses support from MTK, it will face up with the biggest support chain crisis ever, and before that, Qualcomm has lowered the cooperation priority with Xiaomi. Though Xiaomi has established Pinecore Technology with Leadcore Technology, Xiaomi’s huge need on low-end chip still cannot be satisfied.
At the moment, it is still unknown how long will the suspension between MTK and Xiaomi lasts; the MTK insider mentioned above estimates it will be one quarter at least, which will affect the supply of Redmi Note and the following versions, thus the total shipment of Xiaomi in future will be affected.
Xiaomi holds 51% shares of Pinecore Technology, but staff of Pinecore are streaming from Leadcore. Packaging test, wafer fabrication of the new company are entrusted to Datang Leadcore Technology. It is said that this company are manufacturing the next 4G smartphone for Xiaomi which can evoke the super cheap trend—this may show Xiaomi’s great attention on it.
Other news say that Xiaomi mobile also refuses cooperation with other mobile chip manufacturers besides MTK, to ensure the primary cooperation with Leadcore Technology.
In the beginning of November of this year, Leadcore Technology from Datang Telecom signed 10.3 billion mobile chips patent authorization contract with Beijing Pinecore Technology, which seems like a normal patent licensing, but actually, it is an important layout on mobile chip by Xiaomi, who fears itself to be besieged by patents.
Xiaomi may be willing to reach two targets: firstly, to make patent defence for the products to extend overseas market; secondly, to research and develop its independent chip aided by Leadcore Technology, which can be observed from Lei Jun’s unwilling to be under the control of Qualcomm and MTK.
But this measure definitely will affect cooperation between Xiaomi and Qualcomm and MTK, especially will embarrass MTK, which has the same lower-end position with Leadcore Technology.
As MTK insiders reveal that, MTK decides to give up cooperation with Xiaomi after knowing that Xiaomi establishes joint venture company with Leadcore Technology. The insiders say that, “Chip company does not wish to breed an opponent mobile brand; the cooperation must suspend though Redmi sells well.”
However,Xiaomi denied the news on the weibo yesterday and stated that they are contacting MTK for clarifying the fact.Then an official from MTK also said that the news is not true and their cooperation with Xiaomi are still normal.