Huawei’s negotiations for selling x86 server business progressing smoothly

At the Huawei Connect 2021 event, the rotating chairman Eric Xu hints about selling its x86 server business. New reports on this matter reveal that the negotiation progress is going smoothly.

According to Bloomberg News, it’s getting more difficult for Huawei to secure its x86 server business from the giants like Intel Corp after imposing a ban by the US. Thereby, the firm hastened the selling process.

The Report:

The reports further informed that various potential buyers from the government and the private division appeared in recent months. However, the Chinese firm plans to contract a conglomerate with at least one government-backed buyer to sell its x86 server business.

Yet, there isn’t any information about the trading price for the x86 server division, but it’ll be billions for sure. Furthermore, other Chinese enterprises such as Henan Information, Huaqin Technology, and a state-owned enterprise in Zhengzhou are likely to be the next sharers.

Huawei

Still, it’s unclear whether the companies are bidding separately or as part of the same consortium. Besides, Huawei has declined to comment on this matter, but its server business is certainly facing hardship. Although it isn’t willing to give up the server market, there is no way it can produce Intel architecture-based chips.

The Matter:

Last year, the US administration blacklisted Huawei and cuts its supply chains. Afterward, it becomes difficult for US-based firms such as Intel and AMD to supply their products to Huawei. However, Huawei’s MateBook series rely on AMD and Intel chips but the server field is unknown.

Later in April 2021, this Shenzhen-based company also introduced its FusionServer Pro V6 intelligent servers working on third-generation Intel Xeon Scalable processors. Despite this action, the company presently isn’t able to bring chips like Intel to support its high-end MateBooks.

On this matter, the media also previous reports about the tenses business relations between Huawei and Intel which was later rumored to be getting better. Anyway, the fact is Huawei’s chip production business has a long way to cover.

(Via- Ithome)