Sanctions-hit Huawei ramps up investment in Chinese tech sector

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Huawei Technologies has built up stakes in Chinese semiconductor companies and other tech businesses as the world's largest telecoms equipment maker bolsters its supply chain in the face of pressure from the United States.

SHANGHAI - Huawei Technologies has built up stakes in Chinese semiconductor companies and other tech businesses as the world’s largest telecoms equipment maker bolsters its supply chain in the face of pressure from the United States.

The investment arm was established in response to what Huawei’s rotating chairman, Guo Ping, last week described as “suppression” by the United States after escalating restrictions that have cut off Huawei’s supplies of many overseas chips and effectively barred it from building its own. Huawei’s investment push also coincides with ramped-up government efforts to boost China’s semiconductor sector, which still lags behind leading chip producers including the United States, South Korea and Taiwan.While the investments might help Huawei in the future, analysts say they have done little so far to address the supply chain gaps that are undermining its once-booming smartphone business and could eventually threaten its core network equipment operations.

The company did not respond immediately to a request for comment, but one Vertilite investor said its sensors are used in a number of Huawei handsets.“Most of these companies are small, niche players who are good at what they do, but they are not necessarily globally competitive,” said Ivan Platonov, who tracks China’s chip sector at research company EqualOcean.

3Peak, which also received investment from Habo this year, makes analogue-to-digital converters used in wireless network base stations.

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It seems smarter to invest in Chinese tech than American tech if you're in China. The valuations are much more reasonable.

because gov't is pumping massive money into tech sector especially in chips. thousands of companies already setup and line up to get these free money.

Optimised with my optical cable with the latest technology, Huawei remains the best network all around the world & provide great edge in military technology over all other networks&a minimum 9 second advantage over other networks in short distance only in cable+huawei advantage.

Slow Joe is sad.

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The US stepped up its tech war against China, placing sanctions on its biggest chipmaker - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Long overdue and more sanction is in order. The way China stole our technology and copied our products, sanctions alone do not really address the problems. Fake news.
Source: BusinessInsider - 🏆 729. / 51 Read more »