(MENAFN) Huawei Technologies Co. Ltd's founder, Ren Zhengfei, has announced that the company has replaced over 13,000 parts in its products that were affected by US trade sanctions. The remarks were made during a talk to Chinese technology experts on February 24, 2022, and were posted on the website of Shanghai Jiao Tong University. In the speech, Ren stated that Huawei had replaced the 13,000 components with domestic Chinese substitutes and had redesigned 4,000 circuit boards for its products. He also noted that the production of circuit boards had "stabilized." However, Reuters could not independently verify Ren's claims.
Huawei, a major supplier of equipment used in 5G telecommunications networks, has been the target of successive rounds of US export controls since 2019. These controls have cut off Huawei's supply of chips from US companies and its access to US technology tools to design its own chips and have them manufactured by partners. The Biden administration also banned the sale of new Huawei equipment in the US last year.
Ren's announcement provides some insight into Huawei's efforts to overcome the impact of US trade restrictions. The company has been working to replace US components with domestic alternatives and redesign its products to reduce its dependence on American technology. Ren's remarks suggest that these efforts have been successful, with the company replacing a significant number of parts and stabilizing production of circuit boards.
Despite the challenges posed by US trade sanctions, Huawei has continued to invest heavily in research and development. Ren revealed that the company invested $23.8 billion in R&D in 2022, and that it plans to increase spending on R&D as its profitability improves.
The reports come after analysts noted that Huawei showcased 5G telecommunications equipment at an industry conference in Barcelona, in which all of the chips on its circuit boards had their origins obscured. This suggests that Huawei has been successful in finding alternative suppliers for the chips it needs to manufacture its products.
Overall, Ren's remarks provide a glimpse into Huawei's efforts to overcome the impact of US trade sanctions and continue to innovate and invest in research and development. The company's success in replacing US components with domestic alternatives and redesigning its products suggests that it remains a major player in the telecommunications industry, despite the challenges it faces from US export controls.
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