On the afternoon of September 23, it was reported that at today’s Huawei Full Connect Conference, Huawei Rotating Chairman Guo Ping, Huawei Consumer Business Cloud Service President Zhang Pingan and other executives accepted media interviews. Regarding the latest US ban, Guo Ping said that Huawei’s chip inventory is sufficient for 2B business, but mobile phone chips are still looking for a solution. If Qualcomm successfully applies for a license, it is happy to use Qualcomm chips on Huawei phones. In addition, Huawei has strong chip design capabilities and is willing to help credible supply chains to enhance their chip manufacturing, equipment, and material capabilities.
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 will strengthen Huawei’s determination to build an HMS ecosystem. In building the HMS ecosystem, Huawei will remain open. Whether it can cooperate with mobile phone manufacturers such as Xiaomi and OV is still being discussed.
Although Huawei is currently facing challenges, Guo Ping emphasized that the company’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. “The key to solving Huawei’s problem is outstanding talents. What do you rely on to turn sand into chips? It depends on outstanding talents. Huawei will continue to maintain business stability and attract outstanding talents in the future. As for the specific individual markets, they will adjust according to demand. “He says.
The following is an excerpt from the media dialogue:
1. Question: Question one, we know that before the latest US ban, Huawei has begun to stock chips. How long can Huawei’s stock chips support? Especially chips used in mobile phones and base stations. Question two, after these reserve chips are used up, what further plans does Huawei have to deal with?
Guo Ping:Thank you for your question. The increased sanctions imposed by the United States and the third revision of legal sanctions have indeed brought great difficulties to our production and operations. However, it is not until September 15 that each chip is reserved for storage, so The specific data is still in the evaluation process.
As for the “surplus food” of the “landlord”, we are quite adequate for the 2B business including base stations. Huawei hopes to combine connectivity, computing, artificial intelligence, and industry applications to create value for customers. This is huge Opportunity, as for mobile phone chips, because Huawei consumes hundreds of millions of mobile phone chips every year, we are still actively looking for ways to reserve mobile phone related products. We also know that many American companies are also actively applying to the US government.
As mentioned this morning, the government and enterprises are promoting “digitalization” and “intelligence”. The ICT industry has far greater opportunities than competition. I have also noticed that the Japanese media mentioned that the US ban on Huawei has also caused Japanese companies to lose up to one trillion yen. The American Semiconductor Association and the International Semiconductor Association also expressed concern about the US government’s ban, which is not only restricting the United States. In addition, semiconductor companies have also imposed great restrictions on the sales of chips by American companies. We also hope that the U.S. government can reconsider their policies. If the U.S. government allows us, we are still willing to buy products from American companies. We will continue to adhere to the “globalization” and “diversification” procurement strategy, mutual trust and mutual benefit in the ICT industry, and the division of labor and cooperation. It is the most conducive to global industrial development.
To tell a story of our own, in the 1990s, 100% of Chinese switches were non-Chinese products. The Paris Coordinating Committee imposed export restrictions on technology such as Signaling 7 and we were unable to obtain them. We started from the principle and finally made Huawei digital switches. I think that global openness and cooperation and the exchange of availability are the most beneficial to economic development.
2. Question: Recently, the US government has repeatedly claimed that Huawei, WeChat and other Chinese enterprise applications pose some threats to US national security, and have taken relevant measures. The US has also implemented the “Clean 5G Plan” before. What does this plan have for Huawei’s 5G global sales? influences? The news of Huawei’s recent cuts in research and development funds and layoffs in Australia has attracted more attention. Does Huawei consider withdrawing from Australia? What will happen in the future?
Wang Tao:“Clean5G plan” depends on how you define it. We know that in the digital age we need an objective and rational rule to promote our entire economic prosperity and enhance security, reliability, and mutual trust. As an enterprise, we hope that governments of various countries can rely on the certainty of rules and systems to point out the direction for the development of enterprises. In terms of 5G, how to define 5G, whether it is Clean, how to define whether 5G is safe, requires a rational standard, not a certain government or that Certain politicians can define what clean 5G is. At present, many countries and organizations have introduced laws, regulations and initiatives related to data protection and governance in cyberspace governance. In the middle, we see the “German Telecommunication Law Security Catalog”, the European Union GDPR, GSMA, 3GPP-led plans, etc. This is a governance method based on a rational and objective formulation of transparent rules.
We welcome multiple parties to jointly formulate unified, implementation and rule-based network security or data protection rules to jointly solve a new challenge in the digital world facing the entire society. This is conducive for each country to select technology suppliers and promote its overall social competitiveness under this clear legal and regulatory framework, instead of defining what is “Clean5G” based on a specific purpose.
The impact of “Clean5G” We believe that our countries, our customers, and our various operators will make their clear choices based on factual and rational rules. We have not seen a clear impact on our 5G business, and as the world’s leading 5G supplier, we are more focused on how to use our leading technology and solutions to create greater value for our customers and their customers This is the organic integration of five different technologies using 5G as the core as mentioned by Mr. Guo this morning, and the integration of “5 machines” to jointly enable the digitalization of the industry. This is our current key point.
You mentioned your second question about Australia. Australia is a very small market, not a market that we are particularly focused on. Huawei has always tilted high-quality resources to high-quality customers. We use limited resources to serve customers who really need us. To enable customer success, as for a specific market, we will make appropriate adjustments according to market conditions.
3. Question: While Huawei is waiting for US chip suppliers to apply for a license, what does Huawei do to deal with the current situation? Will the development of Huawei Hongmeng operating system and Huawei mobile services slow down in the future? With the implementation of the US ban, the growth rate of Huawei’s mobile phone shipments will decline. Apart from that, does Huawei consider cooperating with other Chinese mobile phone manufacturers to market? For example, cooperation with Xiaomi, OPPO, vivo, etc.?
Zhang Pingan:What we have to do now is how to continue to do well in other aspects of innovations under restricted conditions. These innovations include various smart terminal forms in the future. Our R&D team has to think about it, although we will be subject to certain restrictions in the chip field. One.
Second, we see that we still have 700 million users, and we can still provide many innovative businesses and services for 700 million users. We hope that we can continue to serve users well through our HMS, and we also hope that through our operating system, we can continue to research and develop and have different innovations in the next generation of operating systems.
Just asked if we will slow down our pace, which strengthens our determination to build the HMS ecosystem. We believe that the ecology has always been very open, because all the ecological digital services and ecological platform systems we do ultimately serve global users. I think we will also work with all smart hardware manufacturers to see how we can better create a better ecological platform, and don’t let developers switch back and forth on different platforms. We will also actively discuss with them whether HMS can cooperate with them. These are all in the process of discussion.
4. Question: This year, due to the huge impact of the new crown epidemic on the global economy, Huawei’s business has also been affected to a certain extent. China has proposed a “domestic and foreign dual cycle” strategy to boost the economy. What strategy does Huawei plan to adopt next? Will there be adjustments to domestic and foreign businesses? Which foreign markets are more important?
Guo Ping:This year’s epidemic has brought a very significant impact on the global economy, and Huawei is no exception. The theme of our conference is “5-machine coordination”. Technology is used to create value. In the face of large-scale epidemics, respond to the epidemic and resume production after the epidemic. It should be said that ICT-related technologies have played an active role. .
For example, maintaining unimpeded connections during the epidemic is the basis for disaster relief. In many major areas of China abroad, Huawei and Huawei’s partners are responsible for supporting emergency expansion in many areas during this process, so that people can Get better connections.
At the same time, its online office, online medical care, and online education have all played a positive role during the epidemic. This is also the synergy of multiple technologies between Huawei and Huawei’s partners, which has played a positive role. In the process of resuming production after the epidemic, ICT technology has also changed everyone’s living habits in many areas. For example, even after the epidemic in China has basically passed, everyone has been online through video, through 5G video, through online education, and online office. It has become the norm. During the epidemic, we and overseas customers. I have counted it. The frequency of communication has not decreased but increased. Therefore, in fact, connection is a foundation of the entire digital economy. We believe that the epidemic will further strengthen everyone’s The need for computing. Of course, these technologies need to be deeply integrated with the scenes of various industries. This is also an important challenge for Huawei and its partners around the world to face the development of the digital economy, and it is also a major opportunity.
5. Question: Just now a reporter asked Huawei about the possibility of layoffs in specific markets. I would like to ask about Huawei’s global plans. Based on the current situation, does Huawei adopt some crisis response methods to ensure its survival and respond to current considerations? Whether to consider layoffs or adjustments?
Guo Ping:Huawei’s current human, financial, and business development is basically stable. In the future, our company’s human resources policy will be stable. We will continue to attract the best talents. The key to solving Huawei’s problems is “outstanding talents” and turning sand into chips. What does it rely on? Relying on outstanding talents, Huawei will continue to maintain business stability and attract outstanding talents in the future. As for the specific individual markets, it will adjust according to demand.
6. Questions: We have seen strategies such as “no investment” mentioned at the Full Connect conference before. Under the pressure of the United States in the past year, we have seen whether Huawei uses Hubble to invest or establish funds with Shenzhen. In the face of repression, will you consider divesting the business through investment or spin-off, so that you can continue to protect the existence of these teams.
Guo Ping:Huawei’s core business focuses on “connection” and “computing.” Due to various pressures, we established our Hubble investment, which is a strategic investment in the supply chain. After all, Huawei is a company and we are not an industrial chain, so we will Through investment and Huawei’s technology to help the industry chain mature and stabilize.
7. Question: We noticed that Qualcomm is also applying to the US government for a license to provide Huawei with chips. Will Huawei consider using Qualcomm’s chips in Huawei’s flagship smartphones? Does Huawei plan to invest in chip manufacturing plants or wafer fabs?
Guo Ping:Qualcomm has always been an important partner of Huawei. We have been purchasing Qualcomm chips for the past ten years. I have also noticed that Qualcomm said that they are applying for an export license from the US government. If they do, we would be happy to use Qualcomm chips to make mobile phones. Huawei has strong chip design capabilities. We are also willing to help credible supply chains to enhance their chip manufacturing, equipment, and material capabilities. Helping them is also helping ourselves.
8. Question: How many 5G networks does Huawei build globally? Especially how many are there in Latin America?
Wang Tao:In recent years, we often see how many networks Huawei has deployed. In the past year, we have paid little attention to this number, because if we only deploy 10, 50, or 100 stations, this is not called deploying 5G networks. Now we are more concerned about how to achieve “5G campus coverage”. Only by achieving coverage can 5G services be truly developed, whether it is for consumers or in the 2B field, everyone can use the network. Many regions around the world have come to this point now, achieving continuous 5G coverage. The mayor of Shenzhen announced this morning that 46,000 5G base stations have been deployed in Shenzhen, but the number of base stations deployed in many regions around the world is still relatively small. As for our major operators in Latin America, their 5G deployment is still in the early stages, with a small number of 5G base stations, and we basically have no statistics in the real 5G commercial network.
Guo Ping added:5G is a kind of technology, technology is used to create value, so the theme of this conference is “5 machines” collaboration to create industry value. We warmly hope that the combination of 5G and other cloud, computing, artificial intelligence and other technologies and the combination of various scene-based applications can create value in both 2B and 2C scenarios, and create value that Huawei 5G can bring obvious benefits to customers , This successful practice will promote the next step of 5G landing and construction boom. We are also eager to see that Huawei users can obtain more obvious and better benefits than other competitors, to reflect Huawei’s leadership in 5G, to reflect Huawei’s collaborative efforts with other technologies, and to promote the better of our quality customers. Business success.
9. Question: Is it possible to make business adjustments in response to this year’s sanctions on Huawei, and is there any plan to set the priority of IoT and cloud business higher than that of Huawei’s mobile phone business?
Guo Ping:In the past few days of “915”, we are still evaluating the specific impact. Huawei’s business human resources policy will remain stable. We will continue to recruit outstanding talents to solve Huawei’s problems. As for the specific business plan, , We do not have a detailed plan to share with you. Thank you.