After the imposition of American sanctions, Chinese giant Huawei bought shares in several technology companies to build a new supply chain for its smartphones and other devices. Reuters reports that the company is focused on building a Chinese supply chain without foreign companies.
Huawei Habo Investments, which opened in April 2019, has completed about 17 deals since August 2019. According to public data, these deals were aimed at purchasing shares from Chinese technology companies. Most deals are concluded with startups including Vertilite, Shoulder Electronics, 3Peak and others. According to unconfirmed information, Huawei Habo Investments usually buys 5-10% of shares in new companies.
Vertilite, founded in 2015, manufactures VCSEL facial recognition sensors. It is reported that Huawei has already used such sensors in several devices. The company Shoulder Electronics manufactures radio frequency filters for wireless communications, but still does not support 5G technology. 3Peak manufactures analog-to-digital converters for network base stations. In addition, Huawei Habo Investments also includes companies not related to telecommunications. The list includes companies producing chips, batteries and other equipment.
According to a former Huawei employee, the company has previously been engaged in research and development itself, referring to investments only as a last resort. It will take time for this investment to work, but Huawei has no other way.
However, analytics says that most companies are tiny and uncompetitive on a global scale. For example, the annual income of 3Peak in 2019 was only 44 million dollars.