Under the U.S. sanctions, huawei‘s cell phone business has been hit hard, and in order to survive, Huawei has not only turned to pig farming, but also started to take orders for fish farming and to get involved in the coal mining business.
Bloomberg reported on March 15 that after Huawei was sanctioned by the United States, it sought to make up for the decline in cell phone revenue in other industries, and not long ago took orders for a large fish farm in China’s coastal provinces and a large coal mine in Shanxi.
The fish farm, located in eastern China, is twice the size of New York’s Central Park and is covered with tens of thousands of solar panels equipped with Huawei’s converters to protect fish from excessive sunlight and to generate electricity, the report said.
Huawei’s coal mine customer, located in coal-rich Shanxi province, has installed wireless sensors and camera surveillance deep underground to monitor oxygen levels and possible machine failures in the mine, all supplied by Huawei.
Huawei is also involved in building cars, and in April 2021, new electric cars with optical radar sensors could make their debut at China’s biggest auto show.
At one point, Huawei had overtaken Samsung as the world’s largest smartphone maker. Now, a series of U.S. sanctions have almost completely ended Huawei’s otherwise lucrative consumer electronics business.
Under Trump‘s sanctions, Huawei has virtually lost access to the most advanced semiconductors, and in the fourth quarter of 2020, Huawei’s phone shipments plummeted 42 percent.
The current U.S. administration has continued Trump’s sanctions policy against Huawei, tightening the terms of previously approved export licenses and banning the supply of Huawei’s 5G-related products.
In a bid to survive, Huawei founder Ren Zhengfei has steered the company to increase its list of corporate customers in transportation, manufacturing, agriculture and other industries.
On the occasion of the Xinjiang New Year, Huawei machine vision field president Duan Aiguo broke the news in a micro headline that Huawei machine vision has launched a smart pig farming solution. The development direction of the farming industry is digital, intelligent and unmanned.
Huawei, the world’s leading converter supplier, is now relying on its cloud services and data analytics solutions to increase sales in this area to help the 190,000-employee company survive.
In February, Ren said at the inauguration of the Smart Mine Innovation Lab, sponsored in part by Huawei, “It should be very difficult for the U.S. to take us out of the list of entities. Now we just want to work more on our own and try to find opportunities that we can survive.”
Ren said revenue from the new business could be “almost this year” to offset a decline in the cell phone business, but the company did not provide specific figures.
Huawei’s consumer electronics division generated 256 billion yuan ($39 billion) in revenue from January to June 2020, accounting for more than half of the company’s total revenue. The company saw a slight increase in sales and profit in 2020 thanks to record orders for 5G base stations and strong smartphone sales in the first half of the year.
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