This is the area that will help Huawei ‘survive and grow’ amid US sanctions

In an interview with Nikkei, Mr. Sun acknowledged that the US sanctions were a big challenge for Huawei and that the company was still in “survival mode”. He added that the growth of the digital energy division will make an important contribution to Huawei’s survival and growth. This is the division that supplies equipment such as AI energy efficiency systems and inverters to facilities such as solar farms and data centers.

He assessed that Asia – Pacific is the market with the greatest potential for this division. “All countries in the region are actively participating in green energy and carbon neutrality,” he said. “Huawei is welcomed in many countries.”

This is the segment that will help Huawei survive and grow amid US sanctions - Photo 1.

Mr. Boham Sun, President of Huawei Digital Power Asia – Pacific. (Photo: Nikkei)

Famous for its smartphones and telecommunications equipment, Huawei is also a big player in the inverter market – vital equipment in solar farms and data centers. According to Mr. Sun, Huawei ranks first in China and globally in inverters. Due to the US ban, Huawei has limited access to US-origin technology, greatly affecting the smartphone division. The US and Western countries also ban the use of Huawei 5G equipment in telecommunications infrastructure. In March, Huawei reported 2021 revenue of 636.8 billion yuan ($99.9 billion), down 28.5% from 2020. However, net profit increased by more than 75% thanks to steady growth. and remove some parts.

Initially, Huawei developed digital energy technology for internal use. Based on these technologies, the company then opens up a wide range of products for industries. In June 2021, the company established a digital energy division. The division’s revenue grew more than 30% last year and continues its strong momentum this year.

Huawei’s digital energy division employs about 6,000 people with 12 R&D centers in China, Europe and Asia. The company is promoting this segment in Asia-Pacific. In Singapore, for example, clean energy supplier Sunseap uses Huawei equipment and technology for its floating solar farm. Huawei also supplies solar technology to schools and hospitals in Indonesia and Cambodia.

Mr. Sun said there is “huge demand” for digital energy in regions such as Japan, Korea, Indonesia, Thailand and Vietnam.

When asked if the sanctions would affect Huawei’s digital energy supply chain, Mr. Sun replied: “Huawei is in the process of diversifying the supply chain, so we are not dependent on it. a single country or company”. However, he shared that Huawei is not at the stage where it may not be affected by the embargo.

Huawei’s inverters are manufactured in China through the global supply chain, but the company is considering manufacturing in other countries if necessary. Currently, when China is under lockdown because of Covid-19, Mr. Sun said Huawei has diversified its suppliers to maintain business and meet customer needs.

Regarding plans to expand the division in the future, Mr. Sun expressed “very optimistic about the future of the (electric vehicle) charging network”.

According to Nikkei

According to Du Lam

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