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Huawei Seeking Growth inCloud Computing, Launches Server Chipset
| 01/07/2019
Chinese tech company
Huawei is seeking growth avenues as it aims to venture into cloud computing and enterprise services. This
latest development comes as the equipment business of the company comes under
increased scrutiny in the U.S as concerns rise over the influence of the
Chinese government on the firm. The company has also launched a new chipset for
use in servers as China continues to push for more companies in the country to
manufacturer chips instead of importing them.
Entry into cloud computing space could affect AWS, Azure, and
Google Cloud
Amazon Web Service,
Microsoft Azure, and Google Cloud Platform are the leading cloud computing
platforms in the world, and the entry of
Huawei could have a negative impact on both their stock prices and their
revenues.
In February 2010,
Microsoft announced the launch of its cloud computing service, Azure, with the
announcement affecting Amazon’s position as the leader in this sector. The
price of Amazon’s stock AMZN experienced a sell-off following the announcement,
with the price plummeting to $113.82 from a daily high of $124.86.
Qualcomm, others to experience a decrease in chips order from Huawei
Huawei Technologies Co Ltd[HWT.UL] launched a new chipset for use in servers earlier today. The chipset dubbed Kunpeng 920 was designed by its subsidiary Hi Silicon is set to boost the credential of the company as a semiconductor designer.
Huawei has previously relied on chipmakers such as Qualcomm Inc. (QCOM.O) to help manufacture chips used in their modem.
The announcement that Huawei has launched a server chipset affected the price of QCOM as it dropped 13 points to reach a pre-market price of $56.47.
Despite this latest development, Huawei revealed that it is not looking to become a company solely focused on manufacturing chips. Ai Wei, who is in charge of strategic planning for Huawei’s chipsets and hardware technology stated that “It is part of our system solution and cloud servicing for clients … We will never make our chipset business a standalone business.”
The company is already known for manufacturing the Kirin series of smartphone chips used in its high-end phones. It also manufactured the Ascend series of chipsets for artificial intelligence computing that was launched in October last year.