While the two long-time rivals have shown recent signs of cooperation, including a joint appearance by CEOs Pat Gelsinger and Lisa Su at Lenovo Tech World 2024, market analysts express significant concerns about the viability of such a merger.
The native OS, featuring AI integration, enhanced security, and improved connectivity, has already captured 17% of China's market share, surpassing iOS domestically, while holding 4% globally.
However, industry experts note that success will hinge on Huawei's ability to attract global partners and develop the extensive app ecosystem needed to compete with Android's 77% and iOS's 19% global market share.
The move amid the ongoing Huawei chip controversy has sent ripples through the global semiconductor industry, forcing Chinese firms to seek alternatives primarily through SMIC and Samsung.
The situation is further complicated by new US restrictions on AI investments in China, creating a dual challenge for Chinese AI chip firms facing funding constraints and limited production options.

Weekly news roundup: Intel-AMD merger plan faces market doubts, antitrust scrutiny