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Huawei diversifies businesses with establishment of four new business units

October 13, 2021 10:05 am

Chinese telecommunications giant Huawei Technologies has set up four new business units to expand its reach into new fields as its core smartphone and telecommunication equipment operations hit hard by U.S sanctions.

Details

According to an internal letter, Huawei has established four new business units to focus on the development of digital transformation products and services for customs and ports; smart systems for highways and the photovoltaic industry, technologies to reduce the energy consumption of data centers.

Leader for each new business units were selected from internal candidates. Xun Su, former president of Huawei’s enterprise digitalization and technological service, was promoted to head of the new ports and custom units. Ma Yue, former vice president of the Huawei enterprise business group (EBG), was named head of the new smart highways unit. Yang Yougui, president of Huawei’s middle east region, was promoted to head of new data center for energy consumption units.

The four business units would run parallel to Huawei's three major business groups (BG) – carrier network BG, enterprise BG and consumer BG, according to the internal letter. 

Context:

The establishment of the four new organization is Huawei’s latest move to strengthen diversification following the establishment of new business units that focus on digital transformation of China’s coal industry in February.

Huawei, the world’s largest telecoms equipment maker and former China’s biggest smartphone vendor, was hit hard by U.S sanctions and its core businesses struggled to solve chip shortage amid tighter U.S restrictions imposed last year . Its first half revenue came in at CNY320 billion, down 29.4 percent year-over-year, mainly driven by sharp decline in consumer business, which is one of the company’s main revenue drivers.