ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Huawei crackdown

Huawei's 5G business contracts top 1,000, spanning 20 industries

Deputy Chairman Ken Hu touts segment's growth at Shanghai mobile expo

Huawei Technologies' French headquarters: The Chinese telecom equipment maker says its 5G network business is growing.   © Reuters

SHANGHAI -- Huawei Technologies has signed more than 1,000 corporate 5G contracts, the Chinese telecom equipment leader revealed Tuesday, as the company expands its network business to offset its shrinking smartphone operations.

Huawei "incubates 5G applications with partners across a wide range of domains like manufacturing, health care, finance and transportation," Deputy Chairman Ken Hu said at the opening ceremony of MWC Shanghai, Asia's largest mobile device trade show.

Huawei has a track record in building China's 5G network, along with related operations, and it appears to be landing more 5G orders in other Asian countries, Africa and elsewhere.

"With these partners, Huawei is exploring how 5G can help different industries go digital more effectively," Hu said, adding that the tech giant has sealed contracts with businesses across more than 20 industries.

The U.S. has been urging allies to bar Huawei from participating in their fifth-generation wireless infrastructure, citing national security concerns tied to the company's communications equipment.

The U.S. Department of Commerce imposed tighter trade restrictions against Huawei in September, which undercut the company's access to semiconductors and disrupting its smartphone. Huawei sold off its budget smartphone brand Honor in November.

Huawei continues making midrange and high-end smartphones, but it remains unclear whether the company will secure the parts necessary to keep up production. Huawei has notified suppliers that orders for components will drop by 60% this year, Nikkei reported Thursday.

On the other hand, 5G equipment uses fewer semiconductors than smartphones. Huawei says it has stockpiled enough components to sustain this business for the short term.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more