Huawei's Guo Ping: We Will Keep Investing in HiSilicon

Technology Author: Dixuan Lu, Ivan Platonov Editor: Luke Sheehan Sep 03, 2020 10:57 AM (GMT+8)

Against a harsh geopolitical backdrop, the tech giant is seemingly busy working its way out of the crisis.

Image credit: Huawei website

On September 1, Huawei's rotating chairman Guo Ping talked with new employees about a pertinent topic for now: 'Do not waste opportunities from a crisis.'

As the deadline set by the United States approaches, more companies have announced that they are unable to ship to Huawei – like Micron (MU:NASDAQ), TSMC (TSM:NYSE) and SMIC (688981:SH, 00981:HK). 

There is no doubt that HiSilicon, the core part of the ecosystem of Huawei, is the target of the US attack on the communication vendor. Suffering from pressure from the United States, Huawei is still not giving up HiSilicon.

In such a difficult time, Huawei achieved good performance in the first half of this year. According to its latest semi-annual financial report, Huawei achieved sales revenue of CNY 454 billion, a year-on-year increase of 13.1%, and its net profit margin increased from 8.7% last year to 9.2%.

Given that the domestic semiconductor industry chain is incomplete and advanced process techniques are backward, it will be hard for Huawei to move past the crisis in a short time.