Huawei reports 427 billion yuan in 1H revenue

Huawei reports 427 billion yuan in 1H revenue

Huawei Technologies Co. Ltd. reported a strong first-half (1H) revenue of 427 billion yuan (approximately $67.1 billion USD), according to the company's latest earnings report. The Chinese tech giant attributed its robust performance to strong demand for its AI and 5G technologies.

In parallel with its financial achievements, Huawei is also making significant strides in the development of artificial intelligence (AI) chips. The company plans to begin production at a dedicated plant for AI chips by the end of this year, with two additional facilities slated to launch in 2026 [1]. This initiative aims to reduce China's reliance on foreign semiconductor companies, particularly Nvidia, which has faced scrutiny due to security concerns.

The new AI chip plants are designed to support Huawei's operations, but their ownership remains unclear. The combined output from these facilities could potentially exceed the current production capacity of similar lines at China's top chipmaker, Semiconductor Manufacturing International Corporation (SMIC) [1]. SMIC itself is planning to double its manufacturing capacity for 7 nanometer chips next year, with Huawei being its largest customer.

Huawei's push into AI chip production comes amidst growing global competition in the semiconductor industry. The company's efforts align with China's broader strategy to enhance its technological self-sufficiency and reduce its dependence on foreign technology. This initiative underscores Huawei's commitment to innovation and its strategic importance in the global tech landscape.

References:
[1] https://www.business-standard.com/world-news/china-plans-to-triple-ai-chip-production-to-cut-reliance-on-nvidia-report-125082700683_1.html