When things go badly, new human qualities emerge. On the one hand, there are those who give up and just go with the flow, and there are those who begin to actively resist the situation and try to change something. This applies not only to people, but also to companies. After all, they also have people in their leadership and make decisions that should help their company become a better company. In a crisis and ongoing sanctions pressure Huawei finds strength, reserves and ingenuity to adjust and make his future brighter. So it happened this time, when the manufacturer was deprived of its processors, but left a small loophole and it was it that the telecommunications giant took advantage of.
Huawei can still surprise us. She has chances.
Sanctions against Huawei
The United States recently once again tightened sanctions against Huawei and its subsidiaries. In case you missed this news, this time, companies have banned the use of processors and other chips for smartphones that were made using patents owned by the United States or American companies. As a result, Huawei were effectively banned from using her Kirin processors, which were made for her by a subsidiary of HiSilicon and which were a hallmark of the company's devices. When producing their own chips, Huawei could not buy a ready-made universal solution, like others, but optimize the hardware as it is convenient for itself.
In addition to its own developments, the company cannot use many others. For example, Snapdragon is closed for it by default. Although, Qualcomm is working to start trading again from Huawei. While everything is not clear and time will tell what will happen with chips for smartphones, the company may slightly change the main focus of its business.
A new FT report claims that despite the sanctions, the Chinese giant still has access to US chipsets for the cloud business, and thus the company will now shift the focus of its activities and production in this direction.
Huawei has some other tricks up her sleeve that she can use.
Cloud technologies Huawei
In fact, few people know, but Huawei has its own business of producing cloud computing solutions. As part of this business, the company sells computing power and storage solutions to its partners. In addition, artificial intelligence technologies are used in the production of such solutions. In addition to the fact that few people know about the existence of such a unit, even fewer people know that it is growing. At the same time, growth, as noted in the FT report, is very rapid.
The cloud-related business Huawei is so big that the company even compares it to the smartphone and telecommunications equipment business. And these directions, for a minute, bring Huawei the lion's share of the proceeds. In addition, it is said that the Chinese government will increasingly support the company by giving it contracts to deploy cloud sharing systems.
Before the full ban on working Huawei with the largest chip manufacturer TSMC comes into force, it will not be long. According to the restrictions imposed by the Donald Trump administration on Huawei, the supply of chips should completely stop from September 15 this year. Before that, the company still has the opportunity to receive previously ordered chips on old terms. This will allow you to have a small margin to support activities. This will also allow the release of Huawei Mate 40, as planned, on the Kirin 1000 processor (or Kirin 1020 – the second name that appears in rumors and leaks).
It is not easy to be between two states that have started a confrontation.
Processors Huawei
As you can see, Huawei is not one of those who just take and give up. In this regard, we can conclude that rumors about their own production may not be meaningless. According to them, the company is preparing to soon announce that it will produce chips on its own without using American technologies.
If this does happen, Huawei will not only secure a future for itself, but will also revolutionize the smartphone world. It is too large for its transition to an autonomous existence not to affect all market players. Of course, the start of creating your own production costs a lot of money, but firstly, Huawei have enough of them, and secondly, when the salvation of the company is at stake, there is nothing to think about. Even if the rescue is limited to the mobile unit only, it still makes sense.
Huawei is already actively engaged in “pulling” its store application, developing its operating system, and if it also starts to produce hardware, it will be just an ideal option for her and a nightmare for others. It is too expensive for small manufacturers to make their components, so it is easier to buy them, and given the needs Huawei, production will definitely be profitable. This will lead to lower prices and possibly more stability. And also Huawei will not depend on anyone at all, and then she will simply not care about all the sanctions. Wow, what an interesting confrontation awaits us!