Reportedly, Huawei will focus on software to withstand US pressure?

Reuters reports that Huawei founder Ren Zhengfei called the company's staff to 'dare to lead the world' in software amid US sanctions.

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Huawei internal Memo leaks

In an exclusive, Reuters reports that it has seen a Huawei Internal memo where company founder Ren Zhengfei has called on the company's staff to "dare to lead the world" in software as the company seeks growth beyond the hardware operations that suffered because of US sanctions.

These sanctions were put into place by former US President Donald Trump which placed Huawei on an export Blacklist back in 2019. This move effectively barred the company from accessing critical US-origin technology that impeded the company's ability to design its own chips and source components from outside vendors.

In the memo, Ren said that the company was focusing on software because future development in the field is fundamentally "outside of US control and we will have greater independence and autonomy." In the short term, Huawei will have difficulty in producing advanced hardware and has decided to shift focus to building software ecosystems such as its new HarmonyOS operating system, cloud AI system Mindspre and other IT products.

Ren also said that the software push would still depend on finding the right business model and that the company should adopt an open-source approach or "absorb nutrients" from open source communities.

"Once we dominate Europe. the Asia Pacific and Africa, if US standards don't match ours, we can't enter the US, then the US can't enter our territory," the memo said.

Recently, rotating chairman Eric Xu in April said that the company would invest more than USD 1 Billion this year in its intelligent driving business. 

Reuters also says that several sources said that the company is also expanding its smart car partnership with state-owned Chongqing Changan Automobile Co Ltd to include the design and development of auto-use semiconductors.

What do you guys think?

Source: Reuters