Huawei founder and CEO Ren Zhengfei is said to have urged staff at the Chinese tech giant to transform the company into a major software force in order to mitigate the impact of the devastating US sanctions. In an internal memo seen by Reuters, Ren said Huawei should focus on software as the industry “is out of US control and we will have greater independence and autonomy.”
Huawei is currently unable to mass produce much of its hardware products due to sanctions barring U.S. companies from doing business with it. The company has stockpiled chips and components in an attempt to mitigate the penalties, but the reserves are limited and in some cases will quickly obsolete. Huawei is also blocked from using Google applications and services on its smartphones. The Biden administration has not suggested canceling Trump-era sanctions, although the United States has relaxed its rulings against other Chinese companies like Xiaomi and TikTok.
Because of this climate, Ren reportedly told employees that Huawei needed to focus on software, including MindSpore, its cloud-based AI platform, and its HarmonyOS operating system for various devices. The company plans to compete in major markets other than the United States. “Once we dominate Europe, Asia-Pacific and Africa, if American standards don’t match ours and we can’t enter the United States, then the United States cannot enter. in our territory, ”Ren wrote, according to Reuters.
It may not be long before a significant part of Huawei’s software strategy is revealed. Today, the company uploaded a promotional image to WeChat to announce a major HarmonyOS-related announcement for June 2. The operating system has yet to launch on smartphones, with the initial focus being IoT devices and TVs when it is released early.