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Huawei Industry Chain Person: Inventory Reserve is at least enough to cushion for one year

via:CnBeta     time:2019/5/17 15:54:19     readed:416



He Tingbo said that Haisi will start the "spare tire" plan to fulfill the company's commitment to continuous service to customers to ensure the strategic safety of most products and the continuous supply of most products, "This is a historical choice, all the spare tires we have built, overnight all'correct'!"

In a statement to First Finance and Economics, Huawei officials said it opposed the U.S. Department of Commerce's Industrial and Security (BIS) decision. This is not in the interests of any party, and will cause huge economic losses to the American companies cooperating with Huawei, affect tens of thousands of jobs in the United States, and undermine cooperation and mutual trust in the global supply chain.

"The counterattack has begun, and the alternatives are ready." An internal Huawei employee told reporters.

US "Blockade"

"Thank you for your concern." On the morning of May 17, an employee of Huawei Haisi told reporters.

Although expected, for Huawei, this is the first time that the whole staff has entered a high level of "war readiness". A day ago, the U.S. Department of Commerce's Industry and Security Service (BIS) formally listed Huawei and its 70 affiliates on the "entity list" of controls. The order will take effect on Friday. This means that American companies cannot supply Huawei without the permission of the U.S. government.

Similar to the ZTE "embargo" incident at the end of last year, Huawei has an additional barrier with American companies. According to the First Financial Journalist's understanding, many American companies have received the "prohibition of supply" internal notice, and apply to the government for approval, get more negative answers.

Most of the top companies are chip companies. Of Huawei's $70 billion purchases in 2018, about $11 billion came from American companies such as Qualcomm, Intel and Meguiar Technologies. At present, Chip companies such as Qualcomm have not responded to Huawei's questions.

However, we can see that among the core suppliers of Huawei, the United States has the largest number of suppliers, accounting for 33, accounting for about 36%. Huawei relies heavily on manufacturers of integrated circuits, software and optical communications in the United States.

"Huawei will seek relief and solutions as soon as possible and take active measures to reduce the impact of the incident." A spokesman for Huawei told reporters.

Huawei said that Huawei is an unparalleled leader in 5G telecommunications equipment, and we are willing to communicate with the U.S. government measures to ensure product safety. If the United States restricts Huawei, it will not make the United States safer or stronger. It will only force the United States to use inferior and expensive alternative equipment, lag behind other countries in the construction of 5G network, and ultimately harm the interests of American enterprises and consumers.

In May 16th, foreign ministry spokesman Lu Kang said that for the Chinese side, the Chinese side has always asked our own enterprises to strictly implement the relevant laws and regulations of the State export control law and fulfill the international obligations related to China's export control. In the process of overseas operation, we have also been asking Chinese enterprises to strictly abide by the laws and regulations of the host country and operate legally and in compliance with the regulations.

"However, China firmly opposes the so-called unilateral sanctions imposed by any country on Chinese entities in accordance with its domestic laws. We also oppose the Pan-state concept and abuse of export control measures. We urge the US side to stop such wrong practices, create conditions for normal trade and cooperation between enterprises of the two countries, and avoid further impact on Sino-US economic and trade relations.

Start the "spare tire" program

"There may be a frying pan outside, but we need confidence inside." An employee of Huawei Haisi told reporters.

Huawei also said in a letter to employees yesterday that the so-called "entity list" decision in the United States is the latest step for the U.S. government to continue to suppress Huawei for political purposes. In this regard, the company has been expected many years ago, and has made a lot of investment and adequate preparation in R&D, business continuity and other aspects, to ensure that in extreme circumstances, the company's operation is not greatly affected.

A person in charge of Huawei operator BG told reporters, "More than a decade ago, IBM put forward business continuity management in Huawei, in order to prevent today's situation, there are some internal alternative plans, although the performance may not be comparable to the original plan in the short term, but there is no problem in maintaining business continuity."

At the 2018 Huawei Financial Communications Conference, Guo Ping, Huawei's rotating chairman, talked about the pressure exerted by the US government on Huawei. "Thanks to God's help, Huawei has become sluggish internally, because external pressure has made Huawei more united and stronger." At the same time, if Huawei had a previous "ZTE incident", Guo Ping also said that Huawei was confident to meet customer needs, because Huawei had a spare tire plan.

Guo Ping said that ICT industry is a global cooperative industry, you have me and you have me. But at the same time, he also gave an example: "When driving, I always have a spare tire. If the tire blows out, I can change another one." In addition, Ren also mentioned that Huawei has its own spare tire plan.

Therefore, Guo Ping emphasized two points: first, Huawei expects to cooperate with global partners to help everyone grow up; second, if a rupture occurs, there will be spare tires. Therefore, if an extreme event like ZTE occurs, Huawei is confident that it can meet the needs of its customers.

On the terminal side, Yu Chengdong, the head of Huawei's consumer BG, also revealed in March that Huawei has developed its own operating system and can cover intelligence.Mobile phoneAnd PC. "Huawei does have a self-developed operating system, but this system is Plan B to prevent Huawei from using Android or Android in the future.WindowsAnd done. Of course, Huawei prefers to work with Google and Google.MicrosoftEcosystem cooperation." Yu Chengdong disclosed in an interview with the media.

In an internal letter, He Tingbo, president of Huawei's chip company Hess Semiconductor, wrote that Hess will launch the "spare tire" program to fulfill the company's commitment to continuous customer service to ensure the strategic safety of most of its products and the continuous supply of most of its products. It is reported that the full name of Haisi Semiconductor Co., Ltd. was established in October 2004, mainly responsible for Huawei's chip design.

Hess Opens the Secret Cabinet

In the telecommunications industry, Huawei has grown into a "giant" enterprise. According to the 2008 financial report issued by Huawei, its revenue in that year was 72.12 billion yuan, an increase of 19.5% over the previous year. Net profit was 59.3 billion yuan, an increase of 25.1% over the same period last year.

Huawei has disclosed that there were 92 core suppliers last year, with 33 U.S. suppliers accounting for about 36%. Secondly, there are 24 in China, accounting for 27%. According to product categories, Huawei relies heavily on manufacturers of integrated circuits, software and optical communications in the United States.

If Huawei loses its U.S. component supply, there will be a shortage of substitutes for base station core chips and high-end optical products, such as FPGA chips, radio frequency chips and signal processing chips, according to a report by Furui. Software, especially EDA tools for smartphones and telecommunications equipment, IC and PCB technologies, are dominated by American companies, and there are no alternative suppliers in China or elsewhere.

"But judging from Huawei's layout last year, we have anticipated the relevant situation and made a lot of inventory preparation in some key chip areas." A person in the industry chain told reporters that in the next year, Huawei has left a buffer period for itself.

Unlike ZTE, Huawei's Haisi Department has high internal expectations. In an internal letter, He Tingbo, who is in charge of Huawei's chip business, said, "Huawei's spare tires have all been corrected overnight. After years of hard work, they have fulfilled the company's commitment to continuous customer service overnight. Yes, these efforts have been linked together to pull back the storm and ensure the strategic safety of most of the company's products and the continuous supply of most products.

According to the reporter's understanding, Haisi Semiconductor Co., Ltd. was formally established in October 2004, responsible for Huawei's chip design. Among them, the well-known Huawei Kirin series of mobile phone chips comes from Haisi, besides mobile phone chips, Haisi's products also have.The serverChips (Kuipeng series), base station chips, baseband chips, AI chips and so on. Headquartered in Shenzhen, Haise has design divisions in Beijing, Shanghai, Silicon Valley and Sweden.

According to Fabless, the world's top 10 wafer-free IC design companies in 2018, released by DIGITIMES Research, Haith ranked fifth with $7.5 billion in revenue.

Regarding why to do Hess, Ren Zhengfei, the founder of Huawei, said in 2012, "Huawei needs to do mobile operating system and chip, mainly for strategic considerations. If these monopolists no longer cooperate with other countries, Huawei's operating system can stand up to it. Huawei's chips are backed up mainly when others are out of grain.

According to Huawei, the matching of Haisi chip to Huawei's internal products can not only help Huawei bring price competitiveness, but also help to improve the time of its products to market and seize market opportunities. For example,China MobileThe new requirement of 5-mode for 4-G customization machine is put forward. At present, only Qualcomm and Hess can produce 5-mode chips. This means that Huawei can quickly launch 4-mode mobile phones that meet the market requirements with the help of Hess chips, while other manufacturers have to adopt more expensive high-pass chips.

As early as 1991, Huawei established the ASIC design center, which can be regarded as the predecessor of Huawei chips, mainly for Huawei communications equipment.

With Europe gradually entering the era of 3G, Huawei formally established Heise Semiconductor, ready to start with 3G chips, and products have entered Vodafone, Deutsche Telecom, France Telecom, NTT DoCoMo and other top global operators, sales of nearly 100 million pieces, with the then 3G chip champion Qualcomm occupying roughly half of the market share. In 2009, K3v1 was released, which is the first smartphone chip released by Hess since its establishment. Although this chip did not eventually go to market due to its immaturity in technology, it contributed significantly to the iteration of technology.

Haitong believes that in the future, the only way to break the current impasse is to create a global supply chain that can still be controlled out of the United States. In the short term, it is expected that the construction of 4G and 5G will continue to advance normally. In the medium term, if the fixed-point export strike of the United States rises to the total export restriction of chips, China and the United States will lose both. The future fixed-point attack risk of Huawei may interfere with the global 5G medium-term process, but there is still some time to talk about it or solve it through the decommissioning of the supply chain.

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