How does Huawei reshape its supply chain in the digital age? How much R&D investment is needed for this?

Tech 2023-05-10 02:28:24 Source: Network

Wen | Spring Ends PeaceEditor | Wen ZhiyuanHuawei Labs officially released the company's "Secret Weapon" in August 2019, which took nearly 10 years to develop and continuously invested 50 billion yuan in the Hongmeng OS system.Hongmeng OS is mainly aimed at distributed operations of the 5G Internet of Things,Mainly used in products such as smartphones and tablets

Wen | Spring Ends Peace

Editor | Wen Zhiyuan

Huawei Labs officially released the company's "Secret Weapon" in August 2019, which took nearly 10 years to develop and continuously invested 50 billion yuan in the Hongmeng OS system.

Hongmeng OS is mainly aimed at distributed operations of the 5G Internet of Things,Mainly used in products such as smartphones and tablets.

Hongmeng OS is similar in performance to Android systems and can connect applications from Android systems to Hongmeng OS.

Currently,Huawei is gradually building its own ecosystem, and the Hongmeng system is gradually improving to reach the level of Android.

1 Huawei's mobile service ecosystem replacing Google's ecosystem

(1) Huawei Mobile Service Ecological Research and Development Investment

In 2018, Huawei has started preparing for the globalization process of the application market.

In May 2019, companies using US technology were limited by the US entity list to provide services to Huawei.

Therefore, Huawei cannot use either the Android system or the Google ecosystem in the United States that connects to the system.

In response to the termination of Google's ecosystem supply, in 2019, Huawei increased its efforts to build a fully open HMS (Huawei Mobile Service Ecosystem).

We have invested over 50 billion yuan in the global research and development, construction, and connectivity of mobile service ecosystems.

From 2019 to 2021, Huawei's ecosystem underwent five upgrades,More than 7 billion yuan has also been invested in the promotion of mobile ecology.

In the future, Huawei's HMS mobile service system will gradually replace Google GMS and enhance the company's position in the global supply chain.

It is expected to continue to invest nearly 10 billion yuan in the development of an ecosystem of industrial alliances within the next five yearsCollaborate with partners from various fields around the world to jointly establish a prosperous ecosystem for the technology industry.

It is precisely because of Huawei's strong R&D capabilities and financial support, as well as its strong continuous R&D capabilities, that the company is able to develop alternative products for US supply interruption technologies and systems.

And continuously build and consolidate the global supply chain, strengthen strategic alliances and cooperation,Promote the global development of Huawei's ecosystem.

The strong force of R&D investment has accelerated the relief of Huawei's supply shortage in the United States.

(2) Promotion of Huawei's mobile service ecosystem

Huawei's new ecosystem promotion based on the enterprise supply chain alliance investment model is an international strategic alliance approach.

And using global supply chain theory, focusing on the central enterprise and collaborating with upstream and downstream enterprises,Ensure timely access to resources such as production materials, marketing channels, and advanced technology for overseas operations through external research and development investment and cooperation.

Connecting and promoting Huawei's ecosystem worldwide through supply chain communication channels is also Huawei's special response model to US restrictions.

Not only can it strengthen mutual collaboration and integration between global supply chains, but also strengthen strategic alliances,It can also promote the new ecosystem of Huawei mobile services and promote the development of enterprise operator business.

In addition to the common cross-border mergers and acquisitions, the overseas R&D investment model in China also meets the strategic requirements of promoting internationalization in the communication equipment manufacturing industry.

Huawei first utilized the overseas R&D investment model for external investment, and established R&D centers in multiple countries around the world.

Promote the internationalization of research and development,Expand overseas markets and widely absorb talents from all over the world to make sufficient reserves for technological innovation.

As of 2018, Huawei has established 16 research institutes in Germany, Russia, Japan, Canada, and domestic cities, with each institute establishing a research center locally.

Huawei has joined multiple standards and development research organizations,The numerous R&D patents obtained by Huawei are inseparable from the contributions of its research centers established around the world.

The Huawei HMS ecosystem emerged under the constraints of the United States and overseas research and development investment strategies, and continues to be promoted worldwide.

The overseas construction of Huawei's system also determines Huawei's sales business of 5G mobile phones in the international market.

In order to achieve stable growth in corporate revenue and profits, and enable new systems and platforms to bring revenue and value to the enterprise.

Huawei is preparing to invest approximately 7 billion yuan in the future and various resources to create the "Huawei Brilliant Plan",Strengthen the construction and promotion of Huawei's ecosystem, and attract global developers to provide ecological support.

The purpose of strengthening overseas research and development investment is also to build a better software and hardware ecosystem,Let Huawei's ecosystem gradually replace Google's ecosystem.

(3) Core chip semiconductor research and development

At the beginning of the US restrictions in 2018, Huawei's chip supply chain was the first to be hit.

Many chip manufacturers are forced to stop supplying Huawei chips,The mobile phone business using chips such as RF and baseband supplied by the United States has been affected.

However, in recent years, Huawei has been proactive and vigilant, continuously strengthening its investment in chip research and development.

Since the establishment of the "Spare Tire Plan" in 2012, Huawei's subsidiary, Hisense Semiconductor, has already started developing its own core chips.

Huawei continues to allocate over 400 million yuan annually for chip research and development investment,In June 2014, Huawei developed its first Kirin chip.

By 2021, over 12 billion RMB has been invested in chip development.

In the Huawei Kirin mobile phone chip series, the research and development of only one mid to high-end Kirin mobile phone chip took place from 2015 to 2018, consuming over 5000 engineering validation development boards.

More than 1000 semiconductor design and process experts took 36 months to develop,It is evident that the chip research and development project is vast and arduous.

And the development process of each chip will face various unimaginable difficulties, with the possibility of R&D interruption or failure at any time.

However, with the unremitting efforts and continuous R&D investment support of Huawei's R&D personnel,And with the help of research supply chains from around the world, every chip was successfully born and put into production.

In order to cope with the restrictions on chip supply interruption in the United States, Huawei has insisted on investing in chip research and development, launched the Kirin mobile phone chip and holds a patent. The research and development process and release status of Huawei's Kirin chip are also discussed.

The 9x phone released in 2018 became the first phone to be equipped with the latest Kirin chip developed by Huawei.

On September 6, 2019,Huawei has released the latest generation of flagship chips, Kirin 990 and Kirin 990, with two 5G chips.

Afterwards, Huawei's self-developed series of Kirin chips will also be applied to Huawei Mate series, P series, and Honor brand phones, striving to create an extremely fast 5G network experience for customers.

Huawei's large chip reserves and years of chip research and development have alleviated this supply interruption, allowing the mobile phone business to continue under the significant impact of chip supply interruption, reducing the impact on corporate revenue.

2 Consolidate long-term research and development and preparation of the supply chain

Huawei's R&D investment in responding to the supply shortage of chips and technology in the United States,Not only does it directly invest research and development funds in reshaping the core products and technical aspects of supply chain disruptions.

We are still preparing and planning for long-term R&D investment in consolidating the supply chain.

Analyze Huawei's long-term R&D readiness to respond to supply disruptions based on its global supply chain construction and reshaping, as well as its investment in R&D human resources.

1 Construction and reshaping of Huawei's global supply chain

(1) Construction of Huawei's Global Supply Chain

From the perspective of Huawei's operator business supply chain, Huawei began building the operator's supply chain overseas as early as 2011,As of 2021, there are a total of 60 overseas core operation suppliers, accounting for 65% of all core suppliers.

In 2018, Huawei signed 5G cooperation contracts with 26 leading operators in the world and established 10000 5G base stations in various regions.

After the United States upgraded its technology supply restrictions on Huawei in 2019, Huawei accelerated the reshaping of the global supply chain.

For the sustainable development of the enterprise's operational business,Huawei is constantly seeking high-quality suppliers worldwide to continue supporting the company's 5G operator business.

And strengthen cooperation with European suppliers, Canadian, Mexican and other suppliers.

The production capacity of the communication equipment manufacturing industry is easily constrained by poor supply chain management,Huawei's collaboration with global suppliers enables multinational companies to develop optimal resource allocation plans,It can transform the internal procurement mechanism of the enterprise into a management mechanism for external resources.

Meanwhile, long-term strategic cooperation with suppliers from various countries is conducive to Huawei's smooth operation in the local market,And strengthen long-term and stable cooperative relationships with the vast number of operators;

On the other hand, Huawei has established research and development alliances with multinational enterprises with technological advantages, which can re integrate global innovation resources and achieve mutual benefit and win-win situation for all parties.

Huawei's supply chain construction also reflects the company's proactive awareness and strong R&D technical reserves.

(2) The reshaping of Huawei's R&D supply chain

In 2019, even though Huawei was affected by US restrictions,But the enterprise focuses on developing the domestic market and gradually establishes a domestic research and development supply chain.

In the long run, in the constantly turbulent global political and economic environment, increasing domestic R&D supply chain investment can help enterprises resist the risks of overseas supply chains.

In April 2019, Huawei established a subsidiary of Hubble Investment, with the latest registered capital reaching 1.7 billion yuan.

Hubble Technology was specifically established by Huawei in response to chips, covering the research and development and production of third-generation semiconductors, wafer level optical chips, and other products.

Mainly focused on the research and development of high-tech products that Huawei relies heavily on in the US industrial chain.

While the restrictions in the United States continue to escalate, Huawei invested billions of yuan in domestic research and development supply chains from 2019 to 2020, especially for the supply of restricted products such as chips and semiconductors.

Through continuous investment and establishment of domestic supply chains, enterprises gradually form their own industrial supply chains to alleviate the impact of restrictive policies such as chips in the United States.

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