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Huawei does not build its own chip factory

Facing many difficulties after being banned by the US in the semiconductor field, Huawei said it would not build its own chip factory.

“We won’t build our own chip factories because of our belief in the division of labor along the value chain,” said Ken Hu, Huawei’s Rotating Chairman, at the Summit of Huawei Technologies. global analysis HAS 2022. The company believes that all participants in the value chain need to make efforts to solve the problems of chip supply, avoiding affecting product stability and cost.

According to the head of Huawei, the scarcity of chips also brings some positive effects. Many countries and regions around the world, including China, have increased investment in fields related to semiconductor production. This helps diversify the supply, creating competition in the industry that is considered the most important today.

Earlier this year, market research firm PitchBook said its Hubble technology investment fund Huawei already support 56 semiconductor companies in China since its 2019 launch. Nearly half of it was made within the last six months of 2021. Due to the embargo, Huawei cannot access current top chip products. Currently in the smartphone field, as well as being limited in the telecommunications segment 5G. HiSilicon – Huawei’s chip design subsidiary – is also almost paralyzed. The airline acknowledged that restrictions from the US caused 2021 revenue to drop by nearly a third compared to 2020.





Mr. Ken Hu, Huawei Rotating Chairman at HAS 2022.

Mr. Ken Hu, Huawei Rotating Chairman at HAS 2022.

Despite many difficulties and challenges with the mobile phone business, Mr. Ken Hu is still optimistic that this is the driving force for the company to make big strategic changes. “Consumers today are mostly not looking for more devices but a smarter experience,” he said, noting that seamless AI life will be the focus of the company’s product and service development. .

Previously, Huawei launched the “1 + 8 + N” hardware and software ecosystem strategy with the perception that the consumer device business is not just smartphones. In which, “1” according to the company’s explanation is a smartphone, the control center of the ecosystem, 8 are peripheral devices such as headphones, watches, computers, tablets, smart homes and “N” are devices. third-party devices are compatible with its ecosystem and are connected using Huawei HiLink and Huawei Share.

In 2021, the company initially recorded success when there was growth in revenue in segments such as wearables, bands, smart speakers, smart displays, and tablets. In addition, many services that come with hardware such as analytics, health data processing, medical linkage and healthcare are also well developed. Currently, HarmonyOS is also running on 220 million devices, and HarmonyOS Connect has 1,900 ecosystem partners and is installed on more than 100 million devices shipped in 2021.

Hoai Anh

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