Huawei enters survival mode and responds to issues such as chip reserves and layoffs

On the morning of September 23, the 2020 Huawei Full Connect Conference was held in Shanghai, which is also one of Huawei's highest-level external events of the year. Senior executives of Huawei’s rotating chairman Guo Ping said in an interview that Huawei is now encountering great difficulties. “The suppression by the United States has put a lot of pressure on our operations. Specifically, we are still in the evaluation process, but survival is Our main line."

Guo Ping quoted Dumas to describe the state of Huawei: "All human wisdom is contained in two words: waiting and hope." He also responded to topics of concern to the industry, especially in the United States where extreme pressure was exerted. How long can Huawei’s chip reserves last? The company's manpower operation under pressure, cooperation with Qualcomm and future countermeasures.

Mobile phone chips are still trying to find a way, would like to use Qualcomm
The United States continues to increase sanctions, and the third revision of legal sanctions has indeed brought great difficulties to Huawei's production and operations. Guo Ping said that the last batch of chips from the emergency reserve was put into the warehouse on the day the ban took effect on September 15. The specific data is still in the process of statistics.
As for the "surplus grain" of the "landlord" family, Guo Ping pointed out that for the To B business including base stations, the chip inventory is still relatively sufficient. As for mobile phone chips, because Huawei consumes hundreds of millions of mobile phone chips every year, it is still actively looking for ways to reserve related mobile phones.
"We also know that American chip manufacturers are also actively applying to the US government. If the United States is willing, we will continue to purchase American products and continue to adhere to the development strategy of globalization and diversification. The ICT industry is based on mutual trust, mutual benefit, and division of labor. It is the most conducive to global industrial development.” He said, “We have also seen Qualcomm applying for a license. Qualcomm has always been an important partner of Huawei. It has been purchasing Qualcomm’s chips for the past ten years. If Qualcomm’s application is approved, Huawei is happy to use Qualcomm's mobile phone chips."
Regarding the question of whether Huawei has plans to invest in chip manufacturing, Guo Ping responded that Huawei has strong chip design capabilities, and Huawei is also willing to help credible supply chains to enhance their chip manufacturing, equipment, and material capabilities and help them It is also to help ourselves.

Chip ban does not affect HMS ecology
When referring to Huawei's response to the policy while waiting for US chip suppliers to apply for licenses, Zhang Pingan, President of Huawei's Consumer Business Cloud Services, pointed out that what Huawei has to do is how to continue to innovate in other areas under restrictions. These innovations include various smart terminal forms in the future, and how to provide many innovative services and services for 700 million users. Huawei's R&D team is still thinking about it.
When asked, "Will the chip ban affect the construction of Huawei's HMS ecosystem?" Zhang Ping An responded that this will not slow down Huawei's pace, but rather strengthen Huawei's determination to build an HMS ecosystem.
In building the HMS ecosystem, Huawei will remain open. On the one hand, it hopes to achieve different innovations through continuous research and development of the operating system (Hongmeng OS); on the other hand, it hopes to create a more benign ecological platform with its smart hardware partners. So as to provide better services for global developers and users. As for whether to cooperate with mobile phone manufacturers such as Xiaomi and OV, he said that he is still discussing.

Not a politician can define "clean 5G"
Someone asked about the impact of the “Clean 5G Plan” launched by the United States on Huawei’s global sales of 5G products.
Wang Tao, executive director of Huawei and director of the product investment review committee, believes that it depends on how to define clean 5G. In the digital age, an objective and rational rule is needed to promote the prosperity of the entire economy and enhance security, reliability, and mutual trust. As a company, Huawei hopes that governments of all countries can rely on the certainty of rules and systems to point out the direction for corporate development. "As far as 5G is concerned, how to define whether it is Clean or not? Is it safe? It requires a rational standard, not a certain government or some Politicians can define what clean 5G is."
Currently, many countries and organizations have introduced laws, regulations and initiatives related to cyberspace data protection and governance. The "German Telecommunication Law Security Catalogue", EU GDPR, GSMA, and 3GPP-led plans are the governance methods based on rational and objective formulation of transparent rules.
Wang Tao said that multiple parties jointly formulate unified network security or data protection rules to jointly solve the new challenges of the digital world facing the entire society. This is conducive to each country choosing technology suppliers under a clear legal and regulatory framework, instead of defining what “Clean 5G” is based on a specific purpose.

Responding to layoffs
A few days ago, Reuters reported that Huawei’s Australian business representative said that since Australia announced the 5G ban on Huawei in 2018, Huawei has laid off 1,000 employees in the country, and currently there are less than 200 people left, and this number will be even lower. .
At the Full Connect Conference, Wang Tao responded to this news and said that Australia is a very small market and has never been a market that Huawei has focused on.
In addition, Wang Tao pointed out that Huawei has always leaned high-quality resources to high-quality customers, and uses the company's limited resources to serve customers who need us to enable customers' success. As for a specific market, it will make appropriate adjustments according to market conditions.
In addition, regarding Huawei’s domestic layoffs, Guo Ping said that Huawei’s current human, financial and business development is basically stable, and the company’s human resources policy will be stable for some time to come, and it will continue to absorb the best talents. As for the specific individual market, it will be adjusted according to demand.