Huawei Technologies, which already has a massive R&D campus in Dongguan’s Songshan Lake district, is planning to expand its footprint in the high-tech zone and build a smart manufacturing operation.
Huawei’s application for the land conversion in the southeastern area of the zone was approved on Monday this week, according to local media. The plot covers 806 hectares and includes a parcel already earmarked by Huawei for its so-called Huawei Taiwan Park. After adjustment, the area will be integrated into a larger plot designed to build a smart manufacturing base.
The base will have a number of supporting facilities, like the rest of the Ox Horn campus, including residential, commercial, a school, and a park. It will mostly house manufacturing-related staff, and is designed for 40,300 people living and working in the area.
The city government is now working on integrating the new plot into its masterplan for traffic, as highways are being built through the district and the Intercity Railway will eventually pass through here as well.
Read more (in Chinese).
We thought there was something strange about Huawei’s recent decision to set up its major hub for Kunpeng, the new “chip ecosystem” it is developing, in Shanghai.
Why there? Huawei is a son of Shenzhen. We can understand why it would build a new campus in Dongguan’s Songshan Lake, as that is literally just up the road from its headquarters in Shenzhen’s Longgang district. But Shanghai is on the eastern seaboard, part of the Yangtze River Delta and is Shenzhen’s biggest competitor, er, comrade.
Continue reading Huawei commits Kunpeng to home base
Huawei announced that its revenue expanded by 23.2% YoY in the first half of 2019, as the company battles the effects of being added to a US trade blacklist since mid-May, reports the SCMP.
The Shenzhen company generated revenue of RMB401.3 billion in the first six months of the year, up from RMB325.7 billion during the same period in 2018, thanks to a sharp jump in smartphone shipments and robust demand for its 5G equipment.
“The difficulties Huawei is facing are still very large,” Huawei’s chairman, Liang Hua, said in Shenzhen. “These difficulties may temporarily affect the pace of our progress, but it will not change our way forward.”
Kunpeng, the new ARM-based server chips being developed by Huawei Technologies, is getting a RMB3 billion ($436 million) capital injection over the next five years. The aim is to build an entire “computing ecosystem” for the new microchips.
Xu Zhijun, Huawei’s rotating chairman, said the investment will be used to bolster the company’s IT infrastructure related to Kunpeng and encourage the development of applications based on the processors. An “online community” is being established to offer developers tools, open-source operating systems, and access to related projects.
Continue reading Huawei to invest RMB3b in new chips ‘ecosystem’
The chief executive of Huawei’s Italian unit, Thomas Miao, said at an event in Milan on Monday that Huawei would invest US$3.1 billion and add 1,000 jobs in Italy over the next three years, reports Reuters.
Miao also confirmed that the Chinese company would cut 1,000 jobs in the US. He said if the company is kept on a blacklist in August by Washington, it has “a plan B” to guarantee supplies of components.
Continue reading Huawei to put $3.1b into Italy
Pony Ma, chairman of the Shenzhen-based tech giant Tencent, made the cut to appear on international business weekly Barron’s annual list of 30 the World’s Best CEOs for the second straight year.
Ma is featured in the list’s “visionary founders” category, just as last year, together with the likes of Stephen Schwarzman, co-founder of fund management firm Blackstone Group, and Laurence Fink, founder of investment management firm BlackRock.
The methodology for making Barron’s World’s Best CEOs list, in its 15th year this year, consists of several key criteria, among them revenue, earnings growth and shareholder returns. The 30 executives are not ranked, but they are separated into three groups: visionary founders, growth leaders and change agents.
Huawei Technologies has told the U.S. carrier Verizon Communications to pay licensing fees for more than 230 of its patents and is seeking more than US$1 billion in damages, reports Reuters.
The patents in question range from core network equipment, wireline infrastructure to internet-of-things technology.
Verizon spokesman Rich Young said: “These issues are larger than just Verizon. Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and international concerns.”
SCMP has an interesting read out today – an exclusive look inside the efforts of Huawei to develop its own operating system (OS) so that it doesn’t have to depend on US technology now that Google and Microsoft have been barred from supplying it.
The new OS is supposed to be ready after the summer, but it is unclear yet whether it can meet the biggest challenge: letting apps designed for Android run on it.
Read more on SCMP.
Ecommerce giant JD.com has won a bid for a parcel of industrial land in Dongguan for RMB1.064 billion. But it won’t be putting what most investors might expect it to put there. Rather than a smart factory, JD said it will name the development JD Smart Valley, because it is where a “technological innovation center” will be built in accordance with local real-estate development policies.
This so-called “new usage of industrial land” policy requires a certain proportion of land be used for commercial as well as residential development. For the part of the land that can be sold and/or subdivided, the leasing period is 40 years; for the remainder it is 50 years. The residential portion can go for 70 years.
Read more (in Chinese).
SCMP has a fascinating profile of a top Huawei executive, one of three women in senior roles at the company. Teresa He Tingbo, president of the wholly-owned chipmaking subsidiary HiSilicon, has emerged in the spotlight after she recently described the preparations made by her team over many years to ensure Huawei’s operations would not be disrupted by a black swan event, like the one it is currently facing from the US blacklisting.
HiSilicon, which saw revenue expand an estimated 34.2 per cent last year, is expected to surpass Taiwanese fabless semiconductor firm MediaTek to become the largest chip design company in Asia.
As the article explains, He compared her team’s efforts over the years to create a “spare tyre” to being the “most tragic and heroic Long March in the history of science and technology”.
Read more on SCMP.