09 November 2021

Huawei sells x86 server business as it chases self-sufficiency

In yet another shift away from its traditional hardware business, Huawei has sold its x86 server unit to a state-owned Chinese firm.

China company registration data confirms that the sale to Henan Information Industry Investment Co. Ltd., owned by the Henan provincial government, concluded on November 5. The size of the transaction has not been disclosed.

Huawei's server business, like its once high-flying handset division, has been hit badly by US sanctions, which prevent it from obtaining the Intel chips that power 90% of the world's servers.

Update from The Register (12 Nov 2021): US President Joe Biden has signed The Secure Equipment Act yesterday, legislation that prevents US regulators from even considering the issuance of new telecom equipment licenses for companies deemed security threats - which means the likes of China's Huawei and ZTE .


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