Huawei's Device Business Recovery: The Power of Independent Innovation
After several years of trough, Huawei's device business is making a strong comeback with its self-developed chips. This road to recovery is a testament to Huawei's determination to persist in independent innovation in difficult times, and also demonstrates the strategic vision of the technology giant's multi-field layout and comprehensive development.
As the world's leading supplier of communications equipment, Huawei has long invested heavily in chip research and development. As early as 2004, Huawei set up a dedicated chip design department to build independent and controllable chip technology. In 2012, Huawei launched its first self-developed baseband chip, Balong, marking a key step in Huawei's chip independence. Since then, Huawei has increased its investment in chip research and development, and made breakthroughs in many fields such as mobile phone SoCs, 5G baseband chips, and AI chips.
When the U.S. government imposed sanctions on Huawei, prohibiting it from using U.S. chip technology, Huawei's road to chip autonomy encountered a severe test. With years of technology accumulation and a strong determination to innovate independently, Huawei finally launched the Kirin 9000, the first 5nm 5G mobile phone chip, in 2020. This chip not only has excellent performance, but also adopts independent intellectual property rights, marking a decisive breakthrough in Huawei's chip autonomy.
With the strong strength of self-developed chips such as Kirin 9000, Huawei's mobile phone business has begun to rejuvenate. In 2023, the Huawei Mate 50 series phones have won wide acclaim from consumers for their excellent performance and innovative design. Data shows that in 2023, Huawei mobile phones will regain their leading position in the domestic market. This is undoubtedly a strong confirmation of the return of the king of Huawei's terminal business.
Just as Huawei's device business is recovering, internal personnel changes and new challenges in the automotive business are also coming. Yu Chengdong's resignation as CEO of Huawei's Device BG is widely interpreted as Huawei's hope that he can focus on the development of the automotive business. The decision may have something to do with the rear-end collision of the M7, which raised questions about the safety of the M7's autonomous driving assistance system.
Internal adjustments: new challenges for the automotive business
As Huawei's rotating chairman, Yu Chengdong has always been one of Huawei's core leaders. He not only led the development of Huawei's mobile phone business, but also was responsible for driving Huawei's layout in emerging fields such as automobiles. Yu Chengdong's resignation as CEO of the Device BG is seen as a major personnel adjustment within Huawei.
The direct cause of this adjustment may be related to the rear-end collision of the M7 car. In June 2023, a Wenjie M7 equipped with Huawei's autonomous driving assistance system AEB (automatic emergency braking) rear-ended the car in front of it on the highway, injuring three people. After the accident was exposed, the safety of the M7's autonomous driving technology was questioned, and Huawei had to explain and apologize to the public for the incident.
The accident undoubtedly cast a shadow over Huawei's automotive business. As the head of the automotive business, Yu Chengdong needs to spend more energy to deal with this crisis and promote the sustainable development of the automotive business. The resignation of the CEO of the terminal BG may be so that Yu Chengdong can concentrate on the automotive business.
The automotive business has been one of the emerging areas that Huawei has focused on in recent years. As early as 2019, Huawei established the Intelligent Vehicle Solutions Business Unit and began to penetrate the automotive industry. In 2021, Huawei launched its first self-developed automotive operating system, AOS. With its technological advantages in the fields of communications and chips, Huawei is expected to occupy a place in the field of intelligent and connected vehicles.
The M7 accident also reminds us that the automotive industry is fundamentally different from the communications industry. Automotive products are related to life safety, and have higher requirements for the reliability and stability of technology. Huawei's automotive business still has a long way to go, and it needs to make long-term and arduous efforts.
Through this personnel adjustment, Huawei hopes to inject new vitality into the automotive business and eventually make it another important growth pole in addition to the mobile phone business. The development of the terminal business will also be led by the new leadership team to maintain its benign development momentum.
Advancing in multiple fields: Huawei's strategic layout
Looking at the whole incident, we can see that Huawei is in full bloom in many fields. On the one hand, with the power of independent innovation, Huawei's device business is being revitalized. On the other hand, Huawei is also actively deploying in emerging fields such as automobiles to seek new growth momentum.
This multi-domain development strategy is the key to Huawei's ability to sustain development in a volatile external environment. As a technology company, innovation is Huawei's lifeblood. Only by constantly innovating and innovating independently can we be invincible in the ever-changing field of science and technology.
Huawei's diversified business layout will also help Huawei diversify risks and achieve sustainable development. When a certain field encounters a bottleneck in development, other fields can play a supporting role, so as to ensure the healthy operation of the company as a whole. This "full-fledged" development model is an important reason why Huawei has been able to re-emerge after several years of cold winter.
Huawei's strategy of advancing in multiple fields has also brought new challenges. Different fields have different business logic and technical requirements, and Huawei needs to have corresponding professional capabilities and management experience. This requires Huawei to make corresponding adjustments in terms of talent development and organizational structure to meet the new development needs.
Huawei is undergoing a process of self-transformation and rebirth. Through independent innovation, Huawei's device business has been revitalized. Through internal adjustments, Huawei has injected new impetus into emerging businesses. By advancing in multiple fields, Huawei has achieved sustainable development. This courage and execution of self-innovation is the fundamental reason why Huawei has been able to survive in a turbulent environment.
Looking at the whole incident, we can see that Huawei is going through a process of self-transformation and rebirth. On the one hand, with the power of independent innovation, Huawei's device business is being revitalized. On the other hand, Huawei is also actively deploying in emerging fields such as automobiles to seek new growth momentum.
This multi-domain development strategy is the key to Huawei's ability to sustain development in a volatile external environment. As a technology company, innovation is Huawei's lifeblood. Only by constantly innovating and innovating independently can we be invincible in the ever-changing field of science and technology. Huawei's diversified business layout will also help Huawei diversify risks and achieve sustainable development.
This process is also accompanied by internal adjustments and new challenges. Yu Chengdong's resignation as CEO of Terminal BG may be related to the rear-end collision of the M7 car, which warns us of the high requirements for technical reliability and stability in the automotive industry. Huawei needs to make corresponding adjustments in terms of talent training and organizational structure to meet the new development needs.
Huawei is undergoing a process of self-transformation and rebirth. Through independent innovation, Huawei's device business has been revitalized. Through internal adjustments, Huawei has injected new impetus into emerging businesses. By advancing in multiple fields, Huawei has achieved sustainable development. This courage and execution of self-innovation is the fundamental reason why Huawei has been able to survive in a turbulent environment.