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Huawei to Invest $436 Million in Own Computing Ecosystem

By Zhao Runhua / Jul 24, 2019 11:56 AM / Business & Tech

Photo: VCG

Photo: VCG

Embattled Chinese telecom giant Huawei is accelerating the construction of a computing ecosystem for both its own infrastructure and its partners’.

Huawei’s “Kunpeng” is already well known for its server chips.

But according to rotating chairman Eric Xu, also known as Xu Zhijun, over the next five years Huawei will invest 3 billion yuan ($436.13 million) in Kunpeng to improve its developers’ tools, open-source operating systems, and developer access to related projects.

Xu said he expects the move to allow Huawei and its partners to “build a computing ecosystem around Kunpeng” and then provide infrastructure and applications such as cloud services that are “based on the Kunpeng processors” for “various industries.”

In January, Huawei launched Kunpeng 920, a server chip built on global chip designer Arm Ltd.’s architecture. Huawei said during the launch that the chip — serving Huawei’s own data center server TaiShan — could represent the industry’s highest performance.

Huawei has been investing heavily in R&D to preserve its tech independence, a cause made more urgent by the Chinese giant’s temporary addition in May to a U.S. blacklist that banned it from acquiring key technology and components from American companies. Huawei rolled out a new chip for mid-range phones in June, and is recruiting the world’s “geniuses” with “top-level salaries,” company head Ren Zhengfei wrote in a widely circulated internal letter seen by Caixin and other Chinese media outlets.

Contact reporter Zhao Runhua (runhuazhao@caixin.com)


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