Huawei invests more in its subsidiary to meet 5G phones and AI chips demand: Report

News regarding Huawei says that the company invests more capital into its subsidiaries to meet the growing demands of AI chips and 5G phones in the market. The Chinese tech giant has recently added capital to one of its firms in Shenzhen.

According to the details, Huawei invests fresh capital into the Shenzhen Habo Technology Partners subsidiary in favor of growing demand for 5G phones and AI chips. Last Thursday, the company injected around 7.98 billion yuan ($1.1 billion).

Huawei seems making efforts to proceed with its growth in the right direction. Established in 2021, the Shenzhen Habo Investment firm already gained 7 billion yuan capital. However, the tech giant is now adding some more amount to it.

On the other hand, estimations say that Huawei gained 9% sales revenue YoY to 700 billion yuan in 2023 due to its 5G handsets’ boosting demand among consumers. As of now, the company foresees a new scope through this investment.

The Shenzhen subsidiary is a joint venture developed by Huawei and Habo. The latter focuses on chipsets, enterprise services, and materials for various products. It has investors like Peifengtunan (automation software provider) and Open Valley (promoter of enterprise adoption of HarmonyOS).

Earlier, Habo used to help Huawei reform its chip supply chain when it was put behind sanction bars and restricted to trade in new and advanced technologies.

By the end of 2023, Habo made 97 investments, the majority covering start-ups in the semiconductor industry. This has further helped Huawei to widen its enterprise services and other technical fields in the native region.

Past achievements:

Huawei Mate 60 Pro with the Kirin 5G chipset has been written in the history of the company’s success. Besides, the Ascend 910B AI chip with high-end capabilities is also giving a tough spot to the Nvidia A100 GPU processor in China.

Perhaps, a new investment in the Shenzhen-based subsidiary will open new ways for Huawei’s growth as well as development in its home ground in the time ahead.

(Source)