The founder of EXCLUSIVE Huawei encourages the transition to software to counter U.S. sanctions

Ren Zhengfei, the founder of Chinese tech company Huawei Technologies (HWT.UL), told the company’s staff, who are looking to grow beyond the hardware business that was dysfunctional by US sanctions, with software. Called to “lead the world”

The internal memos Reuters saw are the clearest evidence of the company’s direction in responding to the immense pressure that sanctions put on its core business, the mobile phone business.

Ren said in a memo that the company is focusing on software, because future developments in this area are basically “out of US control and we have greater independence. You will have sex and autonomy. “

Huawei has difficulty producing advanced hardware in a short period of time, so it needs to focus on building a software ecosystem such as the HarmonyOS operating system, the cloud AI system Mindspore, and other IT products, the memo said. ..

Former U.S. President Donald Trump put Huawei on the export blacklist in 2019, banning access to key U.S. technologies, designing his own chips and hampering his ability to procure components from external vendors. ..

US President Joe Biden’s administration has shown no sign of withdrawing Mr. Trump’s sanctions.

Blacklist also banned Google (GOOGL.O) This includes providing technical support for Huawei’s new mobile phone model and access to Google Mobile Services, a bundle of developer services that underlies most Android apps.

Huawei’s 2020 annual report does not provide a breakdown of software revenues out of RMB 891.4 billion ($ 138.7 billion).

Open source approach

Huawei founder Ren Zhengfei attends a panel discussion at the headquarters in Shenzhen, Guangdong Province, China on June 17, 2019. REUTERS / Aly Song

In Ren’s note, the promotion of software depends on finding the right business model, and the company takes an open source approach and encourages staff to “absorb nutrients” through the open source community.

He said the company’s Welink business communications platform relies on traditional software licenses, which are unsuitable for cloud computing and inferior to its tech giant Alibaba’s rivals. (9988.HK)..

Given the difficulty of working in the United States, Ren’s memo said the company needed to strengthen its position in the country and build its territory with the possibility of excluding the United States.

“If the United States controls Europe, Asia-Pacific, and Africa, and if the United States standards do not match those of the United States and cannot enter the United States, the United States cannot enter the territory,” he said.

Ren’s memo confirms the direction implied in the company’s previous announcement suggesting a move away from mobile phone hardware.

In April, Revolving Chairman Eric Xu said the company would invest more than $ 1 billion in its intelligent driving business this year.

that too Expand smart car partnerships Sources told Reuters this month that they had agreed with state-owned Chongqing Changan Automobile Co., Ltd. to design and develop automotive semiconductors.

Aside from sanctions pressure, Huawei is known for its harsh working culture, and the note is that a software team hires a psychology expert and a young newcomer who may find the company mentally difficult. Encouraged to help employees

“Currently, some young people have high IQ, but they may have low EQ and are prone to illness because they are not mentally mature,” Ren said.

($ 1 = 6.4270 RMB)

Our criteria: Thomson Reuters Trust Principles.

The founder of EXCLUSIVE Huawei encourages the transition to software to counter U.S. sanctions

Source link The founder of EXCLUSIVE Huawei encourages the transition to software to counter U.S. sanctions

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