Huawei is in "advanced talks" to sell server business

According to a new Bloomberg report, Shenzhen-based Huawei is in "advanced talks" to sell its x86 server business.

File photo: Huawei servers in Shenzhen, China

Huawei to sell its server business?

The reason behind this is the US so-called "entity list" technically blacklisted the company making it difficult to secure processors Intel.

The report said that the Chinese tech giant is selling the server business to a consortium that includes at least one government-backed buyer. The people who said this asked Bloomberg not to be identified because the negotiations aren't public. The value of the deal is unknown at the moment, but it's likely billions of yuan (CNY), they said.

According to the report, several buyers from the government and the private sector emerged in recent months. Some of them are Henan Information Industry Investment Co. Ltd., a Zhengzhou-based state-owned firm and a part of Huawei's server business and a leading player, Consumer electronics maker Huaqin Technology Co. Ltd., and an asset management company representing the Hubei provincial government.

It's unclear whether the companies are bidding separately or as a part of the same consortium.

Huawei declined to comment. The potential buyers didn't respond to Bloomberg's request for comment.

In November 2020, Huawei also sold its smartphone brand unit HONOR to a consortium to ensure its own survival.

Source: Bloomberg