Huawei seems concerned over its SoCs production as its own HiSilicon subsidiary cannot print new chipset. This is due to the U.S. ban and if not, then the lack of foundry that could produce new chip design.
It was reported that Huawei already has established its first wafer factory in Wuhan and begin production in 2022. Also, the company plans to manufacture the optical communication chip and module initially to achieve self-sufficiency.
Why Huawei needs its own chip foundry
According to the info, the former Minister of Industry and Information Technology, Li Yizhong has asked the industry to understand the need and support Huawei’s self-developed chip production line.
He has also stated that the supply chain blockade is not a temporary problem and it will require a long time to get fixed. Meanwhile, China should take its own precautions to overcome the situation, which will become a big problem in the future.
The U.S. sanctions prohibit Taiwan Semiconductor Manufacturing Company (TSMC) from printing new Kirin chipsets. The lack of required chispet leads Huawei to use chipsets from another chipmaker including Qualcomm without 5G.
These are the reasons why Huawei is interested in building its own chip manufacturing line. However, the entire chip production procedure can not complete without the support of the supply chain industry.
Huawei is building its own semiconductor ecosystem: Report
Digitimes reports, Huawei is making a low-key entry into multiple semiconductor segments to build its own semiconductor ecosystem. In order to do so, Huawei is now making long-term agreements with equipment and materials suppliers from Taiwan. This is quite interesting development but there are no specific details revealed about the suppliers.
Ban and Progress:
In 2019, Huawei was added to U.S. Entity List, a program to ban the company. This restricts Huawei from accessing core U.S.-made technologies. The ban severely affected various businesses including telecom and smartphones.
That’s not it, US regime also tightened curbs on the Chinese semiconductor industry. In October this year, major Chinese companies were banned by the Biden administration citing national security risks.
Huawei is Preparing:
Despite being attacked, Huawei is continuously ramping up research and development on various technologies. Huawei increased R&D spending to 142.7 billion yuan ($20.65 billion) last year, which is equal to 22.4% of its total revenue.
The Chinese tech maker is expanding partnerships with other home ground semiconductor players and building producing facilities in various areas including – Qingdao, Beijing, and Wuhan.
It is a key base for developing silicon carbide chips, a type of power semiconductor that future cars will need in massive quantities.
On the flip side, Huawei is recruiting new global talent specialized in developing power semiconductors, in which, German chipmaker Infineon Technologies is the top player. Adding to this, Huawei is also looking for experts in central processing unit architecture.
Coming to China, Huawei is hiring processor chips, radio frequency components, and analog chips, as well as chip-packaging design and testing experts in Xi’an, Chengdu, Nanjing, Shanghai, Wuhan, Hangzhou, and Shenzhen.
A report from NikkeiAsia reveals that Huawei is focusing on breakthroughs and not the cost of the breakthrough itself.
Currently, the aim is to progress in the production of core chips for telecom base stations, surveillance cameras, automotive applications, and smartphones as soon as possible. Huawei is also pursuing rebuilding its whole supply chain. This includes manufacturing, packaging, and stacking, as well as chipmaking materials and equipment.
However, Industry analysts have their own opinion on this matter.
“It’s almost impossible that a complete semiconductor supply chain could be built all by one country without foreign help. It may need some political negotiations after all,” said Bernstein Research’s Li.
The question is when Huawei will complete its own chipset ecosystem. The answer to that question depends on time because it’s a crucial element in the research and development of any technology. As for now, none of this information has been confirmed by Huawei via official channels.
Huawei Winter 2022 launch to reschedule on December 9
Huawei could reschedule Winter 2022 Launch Event on December 9. It was postponed due to the passing away of a former Chinese leader. Initially, Huawei planned to hold this event on December 2. Yet, Huawei along with other Chinese firms chose to delay their programs.
The latest input comes from a well-known Weibo tipster, saying that Huawei has rescheduled the Winter 2022 launch event to December 9. At the event, Huawei will unveil a bunch of products including the Huawei Watch Buds, Nova 10 SE, Enjoy 50z, and Children’s Watch 5X.
Huawei Watch Buds:
It’s one of the most anticipated smartwatches on the planet as it continues to rumble on the internet as a viral gadget over the past week. Why? Because of the 2-in-1 mechanism of Huawei Watch Buds smartwatch.
The smartwatch has a regular smartwatch design but it also brings you a pair of wireless earphones inside. To unveil the earbuds, you need to open the display from the bottom side. This is quite an interesting design and we’re excited to see that on the launch stage.
Huawei Nova 10 SE:
This phone is already out in the global market but it is now ready to make an appearance among Chinese consumers. What’s interesting about this phone? Well, it offers a Nova 10 like design and a 108-megapixel main camera that could take powerful pictures in all types of environments.
The design of this phone is also polished and gives a new look entirely based on its premium aesthetics.
Huawei Enjoy 50Z:
The Enjoy 50Z is also a device that you may not want to miss. The phone brings a 50MP triple camera system including a 2MP macro lens and a 2MP depth of field sensor. Aside from the camera section, the 5000mAh battery of this phone is ready to bring a powerful backup.
Huawei Children Watch 5X:
Here’s another anticipated product that will excite young Huawei consumers because Huawei Children’s Watch 5X is about children. However, this time, Huawei is ready to launch the Children’s Watch with a double experience.
Huawei is really giving up on Europe?
Huawei is quitting Europe?
No, Huawei is not giving up on Europe.
Huawei is about to relocate its workforce and business operations from different European headquarters to a single, effective and better place.
Following the U.S. sanctions, Huawei saw reduced consumer business globally. However, the report also mentions network business, which has also reduced since then.
Reducing the workforce and relocating to an active and more responsive office would help the Chinese company to save money and time. Also, it’ll help Huawei to focus on markets with active demand instead of the ones where its shares have declined severely.
These were the key points of the story and now, let’s dive into the report.
A giant report composed by Politico featuring various Huawei internal officers and executives on how the company is reducing its activity across Europe.
There’s an explanation of how CFO Meng Wanzhou’s case, the current Russia-Ukraine war, and the recession causing mayhem for the Chinese tech maker.
According to the information, Huawei currently divides Europe into two markets: Western Europe, run from Düsseldorf; and Eastern Europe and the Nordics, with a top executive based in Warsaw.
Interestingly, it indicates that Huawei is planning to move all of its operations and headquarters to Dusseldorf.
A Huawei Europe spokesperson said that this restricting will help to bring more synergies within the whole European business operation. It will also bring more value directly to Huawei’s customers in Europe.
As for now, Huawei has around 12000 employees and the spokesperson confirmed that these people will work efficiently and stable for the company.
Instead of Europe, Huawei will give up on the market part of the Five Eye. It’s a security group consisting of the U.S., UK, Canada, Australia, and New Zealand. These countries either banned Huawei or restricted the firm from participating in government or private network contracts.
Still, Huawei is selling consumer products such as smartphones, smartwatches, tablets, and other devices.
To clarify Huawei owns various businesses including consumer and corporate. Hence, Huawei runs these two different businesses in different markets based on its dominance in that area.
The report mostly targets Huawei’s corporate business and its reduction after the U.S. ban. However, it doesn’t spotlight the consumer business that much.
Yes, Huawei is focusing more on its home ground because of Huawei’s popularity in the market. Therefore, leaving the rebound movement won’t make sense.
Huawei’s Future in Europe:
The report contains a lot to read, if you are interested then we encourage you to do so. Similar to the above, we think that the restructuring of the office and workforce will allow Huawei to work efficiently and effectively with less spending.
So, Huawei will continue to operate in Europe and bring on consumer devices such as tablets, smartwatches, earphones, and computer devices to global consumers.