Huawei claims reduced US tech dependence as profits fall

Huawei executives report that the company has largely overcome its dependence on United States technology by developing its own operating system, HarmonyOS, and building a domestic Chinese supply chain for advanced chips. Yu Chengdong, Chairman of the Terminal BG, noted that Huawei resumed manufacturing smartphone chips in China in 2023 using domestic materials and processes.

In the AI sector, Huawei's Ascend chips have reportedly surpassed Nvidia in market share within China, according to data collected by the company. While Huawei is testing supply to certain international markets with high demand, current production capacity is prioritized to meet domestic needs.

Despite these technological strides, Huawei faces significant financial pressure. The company's semi-annual financial report shows a nearly 37% year-on-year decrease in net profit, falling to 23.428 billion yuan. This decline is attributed to rising costs for storage components, which have increased the cost of individual handsets by over $200. Yu Chengdong emphasized the necessity of survival, suggesting that product prices may need to be adjusted upward to offset these rising component costs and declining profit margins.