Huawei HiSilicon is a non-profit company and will continue to operate as a part of the team: Huawei Rotating Chairman

During the latest Huawei analyst Summit, Eric Xu, Huawei’s Rotating Chairman, announced that Huawei’s chip designing department, HiSilicon, is not a profitable company. Therefore, it has no requirement of profit.

Currently, the main aim is to research, develop and prepare for the future and raise the HiSilicon team to move forward as long as the company could afford it.

Last year, in reply to the U.S. sactions, Huawei followed a high-scale chip reserve plan, which led to a reduction in cash flow that is according to the expectation in terms of impact on the business.

Regarding the reserve capacity, Eric said that Huawei can still satisfy 2B customers, but it cannot be continued endless. Therefore, huawei will be focused and will focus on key customers to run the company longer.

Eric said that Huawei is a large scale semiconductor procurement company, and the Chinese market is a huge chip inventory on itself.

Eric further stated that the U.S. sanctions on Huawei has broken the trust of the global semiconductor supply chain and brought instability in the market with companies stockpiling the chip yield and this all leading towards low chip supplies.

(Via – ithome)