In the face of enormous pressure from the United States, Huawei is increasing its investment in domestic technology industry, including increasing its stake in semiconductor and other technology companies to support its supply chain. According to public records, Huawei established Hubble Technology Investment Co., Ltd. in April 2019, since August last year, it has completed 17 transactions to invest in Chinese technology companies. The investment arm was set up in response to Huawei's restrictions, including cutting off the supply of many overseas chips, which effectively prevented Huawei from making its own chips.
"As Huawei is just a company, we use investment and technology to help supply chain partners mature," Guo said
Huawei's investment efforts coincide with the government's efforts to boost China's semiconductor industry. While these investments may help Huawei in the future, analysts say they have so far done little to address supply chain gaps.
"It's going to take a long time to work, but Huawei doesn't have many good options, so it has to move outward," said one Chinese chip investor Huawei declined to comment on the operations of its investment arm.
However, many enterprises supported by Huawei are in the early stages of development. Ivan Platonov (Ivan Platonov), an analyst at research firm EqualOcean tracking the Chinese chip industry, said :" Most of these companies are small niche companies, good at their own business, but not necessarily globally competitive ."
For example, Wuxi Haoda Electronics Co., Ltd., which makes RF filters to support wireless communications, has not yet achieved compatibility with advanced 5g mobile phones, and the company received investment from Hubble in January.
This year, we also received investment from Harper, which makes analog-to-digital converters (ADCs) for wireless network base stations. The U.S. company dominates this segment, according to a pre IPO prospectus released by srip prior to its listing in Shanghai. The company generated only 300 million yuan (US $43.99 million) in revenue last year. Snape did not immediately respond to an email requesting comment.
Harbert's portfolio also includes companies outside HUAWEI's core telecommunications business, and several investments in chips, raw materials and battery technology companies demonstrate their ambitions for autopilot.
At the end of last month, the company also completed its investment in open source China of Shenzhen company, behind which is gitee, a Chinese competitor of GitHub, an American coding platform. Code cloud did not immediately respond to an email requesting comment. According to the filing documents, Hubble usually buys 5-10% of the target's shares, although the valuation has not been disclosed.
The recent investment marks a change in Huawei's strategy to increase the frequency of such deals and to refocus on its domestic business rather than on overseas companies. In 2013, for example, Huawei acquired calopia, a optoelectronic company based in Ghent, Belgium. The following year, it acquired neul, a UK Internet of things chip maker.A former Huawei employee searching for a takeover target said:“Huawei likes to do its own research and development, so the investment or acquisition is only carried out when it is absolutely necessaryAnd it has also tended to invest in us or European technology companies in the past. "