Huawei, a prominent Chinese technology corporation, is experiencing a surprising resurgence. The company, despite being under U.S. sanctions, launched a new premium smartphone in August 2023 and has subsequently unveiled additional phones, laptops, AI chips, and electric vehicles (EVs). These developments have positioned Huawei at the forefront of China’s push for technological self-reliance. In 2023, Huawei achieved nearly $100 billion in sales.
Despite these successes, Ren Zhengfei, the founder of Huawei, expressed uncertainty about the company’s long-term stability. On October 14, Ren spoke to winners of the International Collegiate Programming Contest (ICPC), a global competition established in 1970. During his address, which the ICPC shared through a transcript, he remarked, “Even now, we can’t say we’ve secured survival.”
Ren highlighted that while Huawei faces significant challenges, 99% of Chinese companies can freely collaborate with the U.S., granting them access to superior computing power and technology. He stated, “Don’t look at us today and think we have great dreams. No, we are still struggling.”
Ren also commended the U.S. for its scientific and technological prowess, attributing it to an open culture that attracts talents worldwide. He cautioned that countries might lag behind if they become insular.
In 2019, the Trump administration placed Huawei on a U.S. trade blacklist, which prohibited the company from obtaining semiconductors made using U.S. technology or software. These sanctions hampered Huawei’s telecommunications and consumer electronics sectors, prompting it to suspend certain products and spin off various company segments to endure.
Years later, Huawei has re-entered the consumer electronics arena with new, high-end smartphones and laptops. The company is also advancing its development of AI chips and components for electric vehicles, which are key sectors for China’s strategic growth.
Having been cut off from apps available on Apple and Google’s platforms, Huawei has been developing its own software. The company introduced HarmonyOS, a mobile operating system, and recently launched HarmonyOS NEXT, signifying its departure from the Android system.
There remains some ambiguity regarding how Huawei sources advanced tools and processors for its premium products. Analysts have speculated that Huawei and its partners might be utilizing older hardware to manufacture more powerful chips, though such methods may not yield the same efficiency as those employed elsewhere.
A report from TechInsights suggested that Huawei’s AI chip utilized a processor manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), which halted shipments to Huawei in 2020. Recently, TSMC announced it had ceased business with clients allegedly channeling chips to Huawei secretly.
In his October remarks, Ren acknowledged the high quality of U.S. technologies and tools and noted that many of Huawei’s unsanctioned competitors still have access to them. He admitted that the sanctions forced Huawei to innovate its own tools, which has been beneficial so far.
Huawei appears on track for another significant year in sales, having generated $82.2 billion in revenue during the first nine months of the current year. However, the company’s profits during the same period have declined by about 14%, totaling $8.8 billion, as reported in a filing with the Shanghai Clearing House.
