At the Huawei Global Analyst Conference 2021 in Shenzhen yesterday, Huawei’s rotating chairman Xu Zhijun revealed some information regarding Huawei’s chip inventory. According to him, all customers around the world are “squeezing their sweat for Huawei”. With the company set to unveil the Huawei P50 series, many can not help but ask a very important question. How long can Huawei’s chip inventory sustain the company?
Xu Zhijun said, first of all, Huawei’s chip inventory can support the company to live longer. He further said that Huawei is a large semiconductor procurement company, and China is a huge chip market. “There may be many companies in China that are worried that they will be like Huawei in the future. With such a large demand, I believe that some companies will invest and find ways to meet the needs of Huawei and other domestic companies in the chip field. I believe this day will come”.
From his statements, it appears that Huawei is not releasing smartphones for business presently. The company is releasing these devices to stay afloat. Huawei simply wants to survive and not releasing any phone within a year will kill the company’s smartphone business.
Huawei will not leave the U.S. entity list anytime soon
According to Xu Zhijun, the US restrictions on Huawei have undermined the trust system of the global semiconductor industry chain. It is also causing panic stocking by global companies. This is eventually leading to global semiconductor supply shortages.
Huawei believes that no one can predict how the market will move in the future. This is because there are so many uncertainties that companies have to cope with. Huawei’s solution to this problem is simple “rebuild global trust and restore cooperation in the global industrial chain”. However, who will take up the responsibility for this? That’s a question that begs an answer.
Furthermore, Xu Zhijun said that Huawei will not leave the U.S. entity list anytime soon. He claims that Huawei is aware of this and the company has plans in place. Huawei’s overall strategy now revolves around how Huawei develops under the entity list.
Xu Zhijun said that Huawei’s goal in 2020 is to survive. In 2021, the goal remains the same – to survive. He said “We hope that this year we still have time to think about it and see if we can live better. After checking, we found that there is still hope for survival, but we hope to live better”.