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Huawei and its "spare tire" Army

via:博客园     time:2020/5/30 17:51:22     readed:90

Some people say that 2019 is the worst year in the past ten years, but it is also the best year in the next ten years. In the turbulent external environment, the same applies to Huawei.

The haze of the epidemic has not dissipated, and the United States has announced it will

Was listed by the United States

Among them, the establishment of Hubble investment company seems low-key, but it has built a new defense against future risks for Huawei.

From Huawei's revenue and structure

Before analyzing the Hubble investment layout, let's look at Huawei organizational structure. At the Huawei website, there is a clear schematics:

华为和他的“备胎”大军们

Overall, in addition to functional departments ,Huawei business is mainly divided into ICT business and consumer business, among which, ICT business covers operators BG、 enterprise BG and Cloud.

华为和他的“备胎”大军们

In 2019, for example, Huawei's annual sales revenue was 858.8 billion yuan, up 19.1% year on year. In this year, the proportion of consumer business to total revenue exceeded 50% for the first time, while before 2018, the operator business was Huawei's business with the highest proportion of revenue.

However, some analysts believe that Huawei's revenue share of consumer business and operator business will return to track in 2020, mainly due to the cyclical change of the communication industry and the decline of the mobile phone industry.

On the one hand, with the acceleration of 5g deployment, Huawei's operators' business income will increase accordingly. For example, at the beginning of this year, China's three major operators launched a total bidding project of up to 70 billion yuan, of which Huawei won more than half of the bidding. In the overseas market, more and more countries have begun to lift the ban on Huawei. Huawei is reaping or will reap more 5g contracts, which will be reflected in its revenue in 2020.

On the other hand, IDC report shows that the shipment volume of smart phone industry continues to decline. Although Huawei has the trend of growth against the trend, it is impossible to achieve large-scale growth in sales volume. Therefore, Huawei's consumer business is also opening up new growth points in various categories such as notebook computers and smart screens. At present, the mobile phone business is still the basic disk of Huawei's consumer business.

It seems that at least 2020 will be the harvest season for Huawei in 5g network construction.

Why Huawei selected

And it should be noted that the current business, which accounts for nearly 90% of Huawei revenue, can not be carried out without chips, and the domestic chip industry's common Huawei has not escaped

Some people may wonder: isn't Hisilicon fully adopted in many Huawei businesses?

In fact, Huawei belongs to the fabless category in terms of chip operation mode. Such chip companies are only responsible for circuit design and sales of chips, and other production, testing, packaging and other links are outsourced.

In other words, Huawei Hisilicon is in the middle of the chip supply chain and has a large demand for upstream and downstream industries. Especially in terms of EDA software and chip manufacturing process, Huawei does not have the ability to produce and sell itself.

In the context of the current major country relationship between China and the United States, we can get Huawei's future focus and gold digging market, and then look at the investment targets of Hubble. This causal relationship is obvious.

According to the public information, Huawei's Hubble Technology Investment Co., Ltd., founded in April 2019, is 100% controlled by Huawei Investment Holding Co., Ltd., with only one business scope: venture capital business.

The establishment of the company has also attracted a lot of attention in the investment circle, and is seen as an important signal for Huawei to invest deeply and reconstruct the supply chain.

Many industry insiders said that Huawei used to be a global supply chain and did not purchase much in domestic semiconductor enterprises.

Huawei long-term strategy is to avoid the risk of a single-source supplier, to optimize supply resources for key components with multi-origin manufacturing, and to strive for backup solutions for key components that reduce the impact on product supply and delivery due to a single supplier supply disruption or product quality problems.

In this regard, we can find the answer in the prospectus for the second phase of medium term notes in 2019 issued by Huawei. According to the prospectus, Huawei's procurement amount in 2018 is 76 billion US dollars, covering more than 2300 procurement categories and 13000 suppliers, with more than 2700 procurement employees and procurement business distributed in more than 140 countries.

The data shows that the total purchase amount of the top five suppliers accounted for 24.52% in 2018. From January to June 2019, the total purchase amount of the top five suppliers accounted for a further decline, about 22.99%. The main products purchased were electronic devices, computer systems and components, multimedia equipment and accessories, etc.

Therefore, even if it is such a defense, Huawei still does not rely heavily on the United States in the supply chain.

Huawei Chairman-in-Office Guo Ping said at the 2020 meeting of analysts,

But what happened

At present, the enterprises invested by Hubble have covered the third generation semiconductor, wafer level optical chip, power management chip, clock chip, RF filter and other fields.

The following are the investment targets of Hubble's investment combed by Hu Xiang:

华为和他的“备胎”大军们

In addition, Huawei's official website has also disclosed major supply chain manufacturers in the United States.

华为和他的“备胎”大军们

By contrast, most of the enterprises invested by Hubble are domestic enterprises with chip related and unicorn potential, and many of them have direct competition with Huawei's supply chain manufacturers.

For example, Shandong Tianyue mainly uses the third generation semiconductor silicon carbide material, its core product

In 2019, Cree, its US counterpart, announced to invest US $1 billion to build a silicon carbide super manufacturing plant, which will increase the manufacturing capacity of silicon carbide wafer by 30 times to meet the expected market growth in 2024.

It is reported that the silicon carbide material technology is very difficult, and it has two kinds of processes, conductive and high-purity semi insulation. There are only four manufacturers covering 2-6 inches in size around the world, and Shandong Tianyue is one of them.

In addition, Jetwater is known in the industry as

For another example, the sound surface filter products produced by Haoda electronics are mainly used in the field of mobile phones and base stations, just involving Huawei's two main businesses.

It is reported that to achieve 5g + 4G global pass, it may need to support more than 90 frequency bands, and one frequency band usually needs two filters, which also means that a 5g mobile phone may need hundreds of filters in the future, and the current 4G mobile phone needs more than 30 filters.

It is understood that Skyworks, a rival to the electronics company, is the main provider of HUAWEI RF. Its second largest source of revenue is mainland China, accounting for 25.4% in fiscal 2018, and 22.1% in the first half of 2019.

However, the ability of Haoda electronics to replace skyworks is very limited. At present, it can only be used as a medium and low-end acoustic surface filter, and there is a big gap with skyworks in high-end products. In addition, due to the large number of models of low and medium end acoustic surface filters, the extent to which the replacement of hadron electronics can be achieved is still uncertain.

Some chip industry watchers have told tiger sniff about the significance of these companies to Huawei that, while it's impossible Huawei rely on them to make a full-scale home-grown alternative at once, their presence can at least be Huawei now

Big companies need big business

And in 2019,Huawei started working on chips

So far ,Huawei's Hayes has launched a variety of chip products, covering mobile phones SoC、 baseband chips, base station chips, AI chips, server chips, video surveillance chips, NB-IoT chips and many other product lines.

According to the data, Hisilicon not only ranks among the top ten semiconductor enterprises in the world for the first time in 2019, but also ranks first in terms of revenue growth. In the first quarter of this year, Kirin chip is the first one to surpass Qualcomm in the domestic market share.

But at the end of the day ,Huawei's only one

How does Huawei balance its investment company with its own business?

A senior chip industry practitioner who did not want to be named said that these enterprises invested by Hubble have such common features:

First, the market scale of the field involved is very small, but it is also indispensable for the chip industry;

Second, they have mastered the key technologies in their own fields or can replace the technologies provided by foreign manufacturers;

The three areas are all areas Huawei does not want to do, which is also the most important point.

Taking optical devices as an example, optical devices are the core components of chips. The performance limitation of optical products is also the obstacle of innovation of network and switching equipment.

Nowadays, optical devices are becoming an increasingly large part of the material list of optical transmission equipment, switches and routers. On the other hand, the main problem of optical device and module industry is that it is only a small part of a very large industry.

Haoda electronics is one of the few domestic companies that can partially replace skyworks in technology and products.

On the third point, a person close to Huawei said that the standard of Huawei's work has always been to make a big market and business. For example, in the vertical scenario of the chip field, the demand for chips from mobile phones, servers and security is very large, and the market space is also very potential.

In addition, as mentioned above, most of the enterprises invested by Hubble will get orders from Huawei. It can be said that if these enterprises develop, they are supported by Huawei in the early stage.

Sometimes it's not an advantage to rely on big trees, because there are certain risks in such enterprises, that is, what Huawei can give or take away at any time. Cambrian is a good precedent.

But the difference between the invested enterprises and Cambrian is that Huawei's current chip product line does not conflict with them, and Cambrian IP chips can be replaced by hisilic chips. In fact, it can be seen from this that Huawei only ordered orders for Cambrian before, but did not invest in it.

So, in a deeper sense, the field of Hubble investment also represents the business Huawei does not touch to some extent.

It's no exaggeration to say that every move of Hubble investment affects the hearts of semiconductor industry and investment institutions.

But when Tiger asked about the changes that Hubble's year-old investment has brought to the investment or semiconductor industry, several investors turned down or simply responded

Later, a person familiar with the matter told tiger sniff,

Why do you believe Huawei's choice and judgment? The person further explained that, unlike ordinary investment institutions, Huawei invests in enterprises not only for money, but also for orders and talents.

Taking the upcoming stock market as an example, in its prospectus, we can clearly see,

In addition, customer a began to purchase from srip in 2018 and began to invest in 2019. The products purchased are mainly signal chain analog chips, which are key components of 5g base station.

Even if it is not clear in the prospectus that customer a is Huawei, smart people can see that Huawei is the only one that can have such large-scale demand and large-scale procurement.

Some insiders said that this is not the case in the companies invested by Hubble. Conservatively speaking, at least 90% of the invested enterprises have received orders from Huawei.

In terms of talent, Hubble's most recent investment

This approach is not the same as the original rules of investment institutions in the field of semiconductors, but similar to Alibaba, Tencent, Baidu and other large Internet companies.

Generally speaking, investment institutions will pay attention to two main investment projects of hard technology: one is the background of the founders; the other is the core technology advantages. Secondly, we can judge according to the industry development and capital situation. In addition to considering the above points, bat will also integrate with its own business development and technical short board.

According to Chinanet, the process of Huawei's foreign investment is generally: after the business department finds that the technology a company possesses helps its business, it submits the subject matter to the enterprise development department, which will investigate and evaluate it and then submit it to the executive board for decision-making.

And it's worth mentioning whether it's Huawei pre-investment practices or follow-up

And it's also seen as Huawei.

In fact, before the establishment of Hubble, Huawei had a principle: no data, no application, no investment. So the establishment of Hubble investment represents that Huawei is breaking the principle in the cruel reality. It is not only its own, but also the industry's. after all, it is indestructible.

It should also be acknowledged that Hubble investment has been actively engaged in the chip industry, which also plays a significant role in promoting the development of domestic chips.

If the capital injection of some funds and investment institutions has put domestic chip companies on the road, then the rough rules of Hubble's investment in money and orders have led these companies to run on the high speed.

Of course, in the semiconductor industry, Huawei can do very limited in chip technology.

In its latest briefing, IC insights, the U.S. Market Research Institute, suggested that unless there is a mutation, the scale of China's domestic integrated circuit industry by 2025 might be only one-third of the 2025 target. This kind of industrial development speed is not enough to ensure the independent control of information technology industry.

For a long time, semiconductors have always been the key point of competition among big countries. At present, the chip industry is facing the limit of Moore's law. Who can break through the barriers first and who will bring variables to the international semiconductor industry. In addition to the United States, countries are looking forward to changes in the competitive landscape of the semiconductor industry.

There is no doubt that America

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