Huawei, which has been suffering from the harsh restrictions imposed by the United States for years, and which has also been affected by the shortage of semiconductors, could sell its server division due to inability to acquire Intel processors, according to Bloomberg has advanced.
Due to the US veto promoted by Donald Trump and which continues under the Joe Biden administration, the company has very limited business with US companies. Among them, the aforementioned processor manufacturer, who sold chips for the x86 servers of the Asian firm. Although the restrictions have been active for months, Huawei could count on a reserve of processors to continue its business . However, its stock is running low.
The Shenzhen firm appears to have a number of interested buyers and is currently in talks with a Chinese consortium , including “a government-backed buyer.” Sources familiar with the matter revealed to the aforementioned media that some of these companies, such as a state-owned company from Zhengzhou, have already been partners in Huawei's server division. However, it is not known whether this and the others mentioned, such as Huaqin Technology, are part of the group of companies or act independently. The figure is also unknown.
Huawei wants to do with its server business the same as it did with Honor
George Zhao, CEO HONOR Device Co, Ltd. Selling the server division would mean a “liberation” of this business and the opportunity to resume business relationships, since by being part of another company, it would not be affected by the restrictions of the United States . It is a process very similar to the one you carried out a few months ago with Honor, which already operates as an independent brand.
Honor, in particular, was sold to a Chinese consortium for about 100 billion yuan (12.8 billion euros), according to Reuters. Months later, the former Huawei brand appeared with a catalog of high-end smartphones. These stand out, above all, for including 5G processors and Google services. Precisely, two of the most important absences in Huawei phones.
Huawei, meanwhile, continues to notice US restrictions on its smartphone division . Currently, the company may do business with Qualcomm, who distributes limited processors with 4G connectivity. However, along with supply problems due to the shortage of semiconductors, the Chinese firm continues to notice a decrease in the number of shipments. According to data from Counterpoint, during the fourth quarter of 2021 it barely sold 5.8 million units, 84% less than last year.
