Foreign media: Huawei is doing well and may make a comeback in 2021

On December 28, the famous overseas communications media lightreading published an article by commentator Padraig Belton, reviewing Huawei's various situations this year and looking forward to the future. The article believes that Huawei's setbacks are temporary. The company has invested in some start-up semiconductor companies in China, and its efforts to build a chip supply chain that does not rely on the United States should not be underestimated.

The article pointed out that in June this year, Huawei became the world's largest smartphone manufacturer, with shipments reaching 55.8 million units. According to Canalys statistics, Samsung ranked second with shipments of 53.7 million units.

Soon after, the Sino-US technology war escalated, and Huawei’s “golden age” seemed to be over.

华为在今年前九个月营收为6713万人民币（约折合1006亿美元），比2019年同期增长9.9%，但2019年同期比2018年增长了24.4%，显然华为营收的增长率在显著放缓。

After June, Huawei no longer topped the global smartphone sales list, but was caught in the vortex of the high-tech "Cold War" between Washington and Beijing: in mid-May, the US Department of Commerce officially issued the "Huawei ban", stipulating that Huawei and its suppliers need to obtain supply licenses before using microchips manufactured with US equipment or software.

The article analyzes that in the face of pressure from the United States, European governments have gradually tightened Huawei's license to build their own 5G networks. Huawei faced stricter technology import restrictions in August. The US Federal Communications Commission (FCC) stipulated that by November this year, government departments need to gradually replace Huawei's communication equipment. The cost of replacement is as high as US$1.9 billion. This money will be allocated by Congress as part of the US$900 billion new coronavirus relief bill.

The article believes that Huawei has gradually changed its strategy. Instead of competing with Samsung and Apple in the smartphone field, it is better to look for other sources of chips to serve core markets such as mainland China.

In the past three months, Huawei has made a lot of moves. The investment fund Hubble Technology has acquired minority stakes in three Chinese semiconductor companies for $413 million. Some of these venture investments are very strategic, such as Huawei's acquisition of a 3.4% stake in Skyverse in October, which enables Huawei to obtain a technology route that does not rely on US licenses. At the same time, Huawei has shown more ambitions. In October, it spun off some very commercially valuable brands such as Honor Mobile, so that its business can be free from US sanctions. Huawei's new high-end smartphones such as the new P40 Pro and Folding Mate X have impressed consumers around the world.

The article points out that like any good Chinese technology company, Huawei is also happy to expand its business network extensively, cooperate with Saudi Arabia on cloud computing and AI big data, and invest in smart highways in Laos. Therefore, don’t underestimate Huawei in 2021, let alone its strategic investment in many semiconductor startups-trying to build a dedicated domestic chip supply chain.

Moreover, if the newly elected Biden administration takes a more conciliatory stance toward China’s high-tech companies, then we have even more reason to believe that Huawei will soon restore its former glory.