Cancel
Business· TMT

Huawei to invest USD 1.4 bln R&D center in Shanghai

CKN
minutes 2019/08/07 04:24:44
2,269
Huawei, R&D, China-US trade war

Aug 07, 2019 (China Knowledge) - The world's largest telecommunications equipment supplier Huawei is to inject USD 1.4 billion in a new research and development (R&D) center in Shanghai's Qingpu district. The new plan aligns with the Chinese government's repeated calls for self-reliance on key technology.

The new R&D center, with a total area of about one square kilometer, will create 30,000 to 40,000 jobs.  The center will work on the R&D including chips for different devices, wireless networks, and the Internet of Things (IoT).

China's President Xi has stressed the significance of building up the country's R&D capability of new technologies since the China-US trade war started in 2018. Major Chinese tech firms such as Huawei, ZTE and DJI have suffered the fallout of the trade disputes. In May, the U.S place Huawei on the country's “entity list”, barring the company from buying products from American suppliers.

Huawei has been long committed to the R&D in new technologies, as an equivalent of over 10% of the company's sales revenue was spent on R&D over the past decade. Last year, more than 80,000 Huawei employees, making up 45% of the company's total workforce, participated in R&D.  Meanwhile, the firm spent 14.1% of the company's total revenue, amount to RMB 101.5 bln, on R&D.

Huawei now possesses 36 joint innovation centers and 14 R&D institutes around the world, among which Huawei's Shanghai R&D Center in the Pudong district is one of the largest.

Copyright © 2018 www.chinaknowledge.com

Send feedback or comments to: info@chinaknowledge.com

For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com

To access our page on Bloomberg, type CKFI

share