Carried out a company Huawei is building stakes in Chinese semiconductor companies and other tech companies, as the world’s largest telecommunications equipment maker strengthens its supply chain in the face of US pressure.
Public records showed that (Habo InvestmentsFounded by Huawei in April 2019, it has concluded 17 stakes in Chinese technology companies since August of last year.
The investment arm was established in response to what Huawei’s rotating chairman, Guo Ping, described last week as a crackdown from the United States after escalating restrictions that cut Huawei’s supply of many external chips and effectively prevented it from building its own products.
“Given that Huawei is only one company, we are using investment and technology to help our supply chain partners become mature,” he said.
The company emerged as a focal point in the deterioration of relations between the United States and China with the administration of President (Donald Trump), claiming that Beijing could use its equipment for espionage, which the Chinese company has repeatedly denied.
Huawei’s investment efforts also coincide with intensified government efforts to boost China’s semiconductor sector, which continues to lag behind chip producers such as the United States, South Korea and Taiwan.
While the investments may help Huawei in the future, analysts say it hasn’t done much yet to address supply chain gaps that are undermining its previously thriving smartphone business.
One Chinese chip investor said: “It takes a long time, but it doesn’t have many options, so it should invest abroad.
Most of Habo Investment’s deals in chip-related Chinese startups, a few of which have become part of Huawei’s supply chain.
Vertilite, which was founded in 2015 and secured investment from Huawei this year, makes VCSEL sensors to support facial recognition technology in cameras.
However, many of the companies Huawei has supported are still at an early stage in their development Most of these companies are small companies that specialize in what they do, but they are not necessarily globally competitive.
Shoulder Electronics manufactures RF filters that enable wireless communication, but has not yet achieved compatibility with advanced 5G phones.
3Peak, which also received investment from Habo this year, is making ADC switches that are used in wireless base stations.
The Habo portfolio also includes companies outside of Huawei’s core communications operations, and numerous investments in chip companies, raw materials and battery technology point to ambitions in self-driving cars.
Habo usually holds stakes between 5 and 10 percent, as the deposits show.