The Chinese company Huawei Technologies is ending the year under the yoke of US sanctions with a noticeable decrease in revenue. As noted acting chairman Guo Ping (Guo Ping) in his New Year address, revenue decreased by almost 29% to $ 99.43 billion. For the first time, the company is completing a year with a decline in revenue compared to the previous reporting period.
Huawei’s revenue collapsed by 28.8% at the end of 2021
Last year, Huawei managed to increase revenue by 3.8% and for some time retained the status of the second-largest smartphone manufacturer, but in the past year its share in this market dropped to 4%, and the brand was forced to gain independence in order to save itself. Guo Ping warned his subordinates that they would have a “long and difficult journey.” You will have to make every effort to achieve the goals, but they will be worth it, according to the leadership of the Chinese giant.
In the coming 2022, Huawei will focus on infrastructure for data exchange in information systems and smart devices. The latter will develop in the ecosystem of the HarmonyOS operating platform; and the Chinese giant offers the EulerOS operating system for the digital infrastructure. Huawei will seek and attract valuable talent at specialized events, through competitive selection around the world.
The management of Huawei Technologies notes that the demand for equipment for communication networks in the past year was stable; and in the corporate segment the company even recorded an increase in revenue. The electronics business, which previously relied primarily on smartphones, has expanded into other segments. In his address to his subordinates, Guo Ping thanked them for their dedicated work; the ability to work in difficult conditions and a responsible attitude to their duties.
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Huawei plans to build its own chip factory and help it SMIC
According to online sources, China’s Huawei may acquire its own chip manufacturing plant for the foreseeable future; to reduce dependence on third-party companies and bypass sanctions that have deprived it of access to major manufacturers. SMIC will helo the telecommunications giant, it’s the largest Chinese contract manufacturer of microcircuits.
Huawei currently does not have its own semiconductor factories, which is the only obstacle to making its own chips. A subsidiary of HiSilicon is developing chips for the Chinese company; but their production has invariably been outsourced to Taiwan’s TSMC, which is the market leader. Also, the sanctions of the American government led to the fact that now TSMC can produce processors for Huawei only according to outdated standards. This problem can get a solution by creating its own microcircuit factory in partnership with SMIC; which has been on the US sanctions list since December last year, just like Huawei.
At this stage, there is no exact data as to when and where exactly the Huawei semiconductor factory may appear. So, according to preliminary data, we may see the plant in Shenzhen; and the volume of investments in this project will amount to tens of billions of dollars.