Briefing: Huawei launches new chip as it seeks growth in cloud computing

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Huawei launches server chipset as China pushes to cut reliance on imports – Reuters

What happened: Chinese telecommunications giant Huawei on Monday launched a server chipset dubbed the Kunpeng 920. Designed by Huawei’s chipmaking subsidiary HiSilicon, the chipset marks an increased push to boost its credentials a semiconductor designer. However, Huawei stipulated that it has no intention of becoming solely a chipmaking company, saying the newly launched tech is part of its “system solution and cloud servicing for clients.”

Why it’s important: Huawei has seen increased international scrutiny of its telecommunication equipment, from which it receives a considerable portion of its revenue. The company now seeks growth avenues in cloud computing to offset the lack of trust abroad. The launch of the chip serves to increase capabilities in this area. The move also falls in line with China’s push to decrease its reliance on foreign-made technology following a ban on ZTE sourcing American components last year. ZTE said the ban could have crippled its business and later paid fines and replaced its executives to have it lifted.