Huawei replaced more than 13,000 parts hit by US trade sanctions, says founder

The Huawei founder said the company replaced more than 13,000 parts in its products hit by U.S. trade sanctions, according to a transcript of a speech released Friday by a Chinese university.

According to the transcript released by Shanghai Jiao Tong University, Huawei founder Ren Zhengfei said that Huawei had over the past three years replaced all 13,000 components with domestic Chinese substitutes and redesigned 4,000 circuit boards to his products. He said printed circuit board production had “stabilized”.

The remarks, which Reuters could not independently verify, opened a window into Huawei’s efforts to bounce back from US trade restrictions. Since 2019, Huawei, a major supplier of equipment used in 5G telecommunications networks, has been the target of successive rounds of US export controls.

These controls have cut off both Huawei’s supply of chips from American companies and its access to American technological tools to design its own chips and have them manufactured by partners. Last year, the Biden administration also banned the sale of new Huawei equipment in the United States.

Ren made the remarks during an interview with Chinese technology experts on Feb. 24, the university said. The university released the transcript on its website on Friday. A U.S.-based Huawei representative did not immediately respond to a request for comment on Friday.

Ren said Huawei invested $23.8 billion (about Rs 1,96,425 crore) in R&D in 2022, and “as our profitability improves, we will continue to increase R&D spending.”

The reports come after analysts said Huawei showcased 5G telecom gear at an industry conference in Barcelona where all of its circuit board chips had their origins obscured.

© Thomson Reuters 2023