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Huawei Replaced Over 13,000 Parts Affected by US Trade Sanctions, Founder Says

The Huawei founder said the company has replaced more than 13,000 parts in its products that have been hit by US trade sanctions, according to a transcript of a speech released Friday by a Chinese university.

According to a transcript released by Shanghai Jiao Tong University, Huawei founder Ren Zhengfei said that Huawei has replaced 13,000 components with domestic Chinese replacements in the past three years and redesigned 4,000 circuit boards for its products. He said PCB manufacturing has “stabilized”.

The remarks, which Reuters was unable to verify independently, shed light on Huawei’s efforts to overcome US trade restrictions. Since 2019, Huawei, a major supplier of equipment used in 5G telecommunications networks, has been repeatedly subjected to US export controls.

This control deprives Huawei of both its supply of chips from US companies and its access to US technology tools to develop its own chips and manufacture them with partners. The Biden administration last year also banned the sale of new Huawei hardware in the US.

Ren made the remark in a conversation with Chinese technology experts on Feb. 24, the university said. The university posted the transcript on its website on Friday. A Huawei representative in the US did not immediately respond to a request for comment on Friday.

Ren said that Huawei has invested $23.8 billion (roughly Rs. 1,96,425 crore) in R&D in 2022, and “as our profitability improves, we will continue to increase R&D spending.”

The reports come after analysts said Huawei showed off 5G telecommunications equipment at an industry conference in Barcelona, ​​where the origins of all chips on its circuit boards were obscured.

© Thomson Reuters 2023

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