Despite Semiconductor Chip Supply Shortage... Chinese Huawei "Stockpiled Enough for 2 Years"
Ken Hu, Huawei Rotating Chairman, Reveals at the 'Huawei 2020 Annual Report' Presentation Event on the 31st
Ken Hu, Huawei Rotating Chairman, is answering media questions at the 'Huawei 2020 Annual Report' presentation event on the 31st (Korean time).
View original image[Asia Economy Reporter Cha Min-young] Amid the ongoing global semiconductor chip supply shortage, Ken Hu, Huawei's rotating chairman, expressed confidence on the 31st (Korean time) by stating that "we have stockpiled enough semiconductor chips for two years."
Ken Hu, Huawei's rotating chairman, said at the 'Huawei 2020 Annual Report' presentation event that "to respond to the (U.S.) unfair sanctions, we mobilized a lot of cash to stockpile (inventory) for two years."
Ken Hu also added, "It was inevitable to do so to satisfy customer demand," and "the current inventory is sufficient to meet the needs of our corporate customers."
He introduced that the operational status of HiSilicon, Huawei's semiconductor design subsidiary, is also stable. HiSilicon designs and develops proprietary application processors (APs) installed in Huawei smartphones. The AP is a core component known as the "brain of the smartphone."
Ken Hu said, "HiSilicon is operating quite stably," and self-assessed, "Huawei's position remains as an 'Information and Communications Technology (ICT) system equipment supplier,' and HiSilicon possesses excellent design capabilities."
He continued, "I am confident that supply chains based on global cooperation will be the most fundamental trend in the future development of supply chains," and added, "We will continue to pursue open innovation."
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On the same day, Huawei also released its 2020 annual report. Huawei announced that despite U.S. sanctions in 2020, it achieved sales of 891.4 billion yuan, an increase of 3.8% compared to the previous year. During the same period, net profit rose by 3.2% to 64.6 billion yuan. The operating profit margin declined for two consecutive years, from 10.2% in 2018 to 9.1% in 2019, and 8.1% in 2020.
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