8.3 billion yuan, Huawei has made up its mind, and the UK s hopes are completely shattered

Mondo Finance Updated on 2024-01-29

8.3 billion yuan, Huawei has made up its mind, and the UK's hopes are completely shattered

Huawei has been deeply involved in the UK for many years, and with the emergence of 5G technology, the UK has even chosen to cooperate with Huawei to build 5G networks.

On the one hand, Huawei's world-leading 5G technology enables Huawei to provide end-to-end services. On the other hand, 4G in the UK also uses a lot of Huawei's technology, which can be seamlessly upgraded to Huawei's 5G, saving time and effort.

However, the UK has abandoned Huawei's 5G equipment and technology, and despite acknowledging that Huawei's 5G equipment and technology are safe, it has not yet chosen to continue with Huawei's 5G equipment, and the UK has decided to withdraw Huawei's 5G equipment.

Faced with this situation, Huawei is also determined to move forward.

As we all know, Huawei spent 8.3 billion yuan in 2018 to build an R&D base near Cambridge, England, and spent 37 million pounds just to buy the land it hopes to use as an international PV headquarters.

Since the UK has given up Huawei's 5G equipment and technology, and it is also related to the US export controls on Huawei's related chip technology, Arm has made it clear that the latest architecture technology is in line with US export rules, but Arm cannot ship it yet.

According to people familiar with the matter, Huawei has abandoned the idea of establishing a global R&D center and a global headquarters for optoelectronic chips in the United Kingdom.

According to foreign reports, Huawei has abandoned plans to build this research park.

That's because Huawei received planning permission in 2020 and promised to complete the first phase of construction in 2021, but construction has yet to begin.

On the other hand, South Cambridgeshire lawmakers said Huawei did not respond to their requests. Huawei responded that it was still conducting a detailed assessment, which means a lot of things. However, some foreign media believe that Huawei has made up its mind.

Huawei's decision dashed Britain's hopes, as it meant that if Huawei abandoned the project altogether, the UK would lose more than tens of billions of dollars.

First of all, after entering the Internet era, Xiaoying has lagged behind in Internet technology, and the only thing that can be taken away is ARM, but ARM actually belongs to SoftBank's assets.

That's why the UK has been a place for international giants to invest and develop in the UK, especially in the internet technology sector.

Huawei's initial plan to invest £1 billion to build a global R&D center and optoelectronic chip headquarters will not only improve the lack of R&D centers for large Internet companies in the UK, but also promote the UK's technological development in the field of optoelectronic chips.

After all, Huawei's optoelectronic chip technology is the world's leading, the United States hopes that Huawei can share related technologies, and optoelectronic chips are the future development trend, and the Netherlands has invested 1.1 billion euros in the field of optoelectronic chips.

This means that Huawei's decision to abandon the investment has caused direct losses to the UK in excess of tens of billions of dollars.

Secondly, Huawei plans to invest £10 to build a global R&D center, which will not only bring more jobs to the UK, help it cultivate relevant optoelectronic chip talents, but also promote the development of industrial chains such as optoelectronic communications.

According to the data, the global optical communication and network equipment market is expected to grow from $22 billion in 2022 to $44.5 billion in 2032, and optoelectronic chips are mainly used in the field of optical communication.

If the UK fails to seize this opportunity provided by Huawei, it will not only lose the UK in the field of optical communications, but will also disconnect the UK from the world's leading optical communication technology.

Finally, the UK's cooperation with the US to implement relevant export controls has caused a large number of British chewing gum companies to be dissatisfied, and more than 25 chewing gum companies have jointly announced that they will require subsidies from the UK or move their factories out of the UK.

At first glance, more than 25 chip companies jointly announced subsidies, but in fact, they still want to continue to ship to Huawei, and they don't want to be controlled by others anymore.

That's why there is a claim of $8.3 billion, Huawei insists on going its own way, and the UK's hopes are completely shattered.

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