Huawei commits Kunpeng to home base

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. 

We didn’t have to wait long to hear Huawei reaffirm its commitment to its home town. A story appeared two days ago in Shenzhen Daily, announcing that the “Shenzhen People’s Government and Huawei Technologies Co., Ltd. will further collaborate in various fields.” (Our translation). 

These fields include the establishment of: 1) A Shenzhen-based industrial innovation center; 2) A Kunpeng open laboratory; 3) An industrial innovation and manufacturing center.  

The agreement was titled, “National Kunpeng Industry Demonstration Zone Strategic Cooperation”. 

Not just anyone turned up for the signing ceremony. Although Huawei’s founder, Ren Zhengfei, was busy elsewhere that day, his most senior lieutenant, Jianjun Zhou, signed the agreement with Lixin Wang, Deputy Mayor of Shenzhen. Looking on were Rugui Chen, Mayor of Shenzhen, and Ping Guo, rotating chairman of Huawei, among other dignitaries. 

The Strategic Cooperation Agreement, according to local media, aims to enhance “reciprocal relations to reach a win-win situation”. Shenzhen will contribute its “location, policies and resources” to the best it can, providing “a continuous source” for Huawei in terms of technology, environment and innovation. Both sides will “endeavor to modify the macro industrial climate of Shenzhen with advanced core technology, through “various practical trials as a competitive Demonstration Zone”.  

The article finished off by noting that: “It is believed that one day Shenzhen will be the leading headquarters for the Kunpeng system.” 

In other words: Not so fast, Shanghai. 

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