Huawei Strengthens Its Overseas Expansion
On May 5, 2019, Financial Times, a British media reported that Huawei planned to build a chip developing factory in Cambridge, which is the British’s most important area to develop chips.
On May 5, 2019, Financial Times, a British media reported that Huawei planned to build a chip developing factory in Cambridge, which is the British’s most important area to develop chips. The Huawei’s factory has the capacity for 400 employees, and it's near the headquarter of ARM, which is the British’s largest technology company. According to a report in 2015, Huawei has 7 million square meter’s land accumulation globally, which makes a good preparation of its overseas expansion. With the developing of 5G technology, Huawei is actively occupying the international market shares. By the end of 2018, Huawei has signed 40 5G contracts with 25 countries, and its cloud service has covered more than 170 countries. Huawei plans to start the operation of the new factory in 2021, and more than 400 job positions could be created.
The U.S. government is trying to lobby its allies to ban Huawei from joining the 5G network construction. Countries such as Germany, Italy, and France all used to refuse Huawei to some degree. Recently, Huawei signed a “No-Spy” contract with the Germany government to guarantee that Huawei will never take the private info of Germany illegally. In Feb 2018, Huawei signed a 5-year purchase agreement with the British government, which values GBP 3 billion. From 2012 to 2017, Huawei kept investing British, and the total investment was GBP 1.3 billion. The new factory, which is located in Cambridge, belongs to Huawei’s investment plan in British. In addition, in 2018, Huawei invested more than GBP 6 million to famous British universities including the University of Cambridge, the University of, the University of Manchester and the University of York. Currently, Huawei owns thousands of employees in British, among which 120 employees are working near the Cambridge University.
Huawei began its overseas expansion in 1994, and Russia is Huawei’s first station. In 1994, Huawei sent a group of representatives to Russia for business investigation. 4 years later, Huawei built its first joint-venture company in Russia. After that, Huawei developed rapidly in Russia. In 2001, Huawei’s revenue in Russia exceeded USD 100 million for the first time. In Jun 2018, Huawei ranked 1st in terms of the smartphone sales volume.
After the success in Rissa, Huawei began to enter the markets of Asia, Africa and Latin America’s developing countries, and occupy the market shares of developed countries in North America and Europe. In 2017, Huawei’s overseas revenue occupied half of its total revenue, while the revenue came from Europe, Africa, and the Middle East occupied more than 27% of the total revenue. Meanwhile, Huawei also focuses on the Latin America market. In 1997, Huawei invested more than USD 30 million to establish the joint-venture enterprise in Brazil. In 2011, Huawei announced to build the research and development center in Brazil with USD 300 million. Huawei’s smartphone sales volume in Latin America keeps increasing as well. With the popularity and maturing of 5G technology, Huawei’s overseas expansion may have more opportunities.