It’s getting tighter for Huawei. The Chinese company has already suffered massive losses in many technological areas and even had to part with its subsidiary Honor. Now another separation is about to take place.
Huawei separates from x86 server division
Update from November 2nd, 2021: The rumors about the sale of the x86 server division seem to be confirmed, reports Bloomberg. The sale is to take place because Huawei will no longer get Intel processors due to the US ban. It is sold to a consortiumwhich, according to Golem, should also include a government buyer. As with Honor, Huawei wants to create an independent company that will no longer suffer from the sanctions. There is no information on the price. Huawei did not want to comment on what was happening.
Huawei is not only active in the area for end consumers and builds smartphones, smartwatches, tablets and so on, but also covers many areas that are not really on your screen. This also includes servers. Until recently, the Chinese company was represented in fifth place worldwide, but recently had to take a massive one Take a loss of almost 50 percent. Now a sale could be pending, confirms the rotating Huawei chairman Xu Zhijun, who is currently in office.
Accordingly, the x86 server division is currently struggling with great difficulties. According to him, the situation is not completely hopeless. They are currently trying to resolve the difficulties and are also on the Finding Investorsto get support. The sale is not yet planned, but experts suspect that in the worst case this could happen.
Huawei also wants to realign itself in this area and increasingly rely on ARM architecture. But even there, because of the US sanctions, it should not be easy to develop and manufacture chips without technologies from the USA. The company has exactly the same problem with smartphones.
The latest Huawei smartphone in Video:
Huawei has developed its own processor
In order not to become so dependent on the USA, Huawei has in the server area developed its own processor with the Kunpengwhich can really be produced in China independently of other companies from abroad. The company is currently relying a lot on this in order not to be hit so hard by external factors. It remains to be seen whether the turnaround will succeed.