While suspected of espionage and being sanctioned in the United States, Huawei is increasing its investments in France. In December, we learned that the Chinese giant has a factory project in France. And that it is in the Brumath Business Park in the Grand-Est region that Huawei has decided to set up this factory.
“After a technical assessment, the Brumath Business Park was selected on the basis of key criteria for such an industrial project: location, surface area and extensibility, the industrial park and its infrastructures, the surrounding environment and the land availability “, explained the community of agglomeration of Haguenau, in December.
“With this factory located at the crossroads of Europe, Huawei enriches its presence on the continent, which is already strong with 23 R&D centers, more than 100 partner universities, more than 3,100 suppliers and an efficient supply chain”, had also recalled this one.
This week, Huawei finally launched the project of this production plant called “Huawei European Wireless Factory”. This launch is significant, given that this is the first such project outside of China for Huawei.
In this factory, Huawei will invest 200 million euros. But the manufacturer will not manufacture smartphones there, but rather the equipment that makes up the wireless base stations. These are important equipment for the global deployment of the 5G network.
Otherwise, Huawei indicates that initially, this factory will create 300 direct jobs. And ultimately, 500 direct jobs should be created. Moreover, the launch of the project is an opportunity for Huawei to recall the impact it has in the French tech world.
Currently, the Chinese giant has 1,000 employees in France and claims 12,200 indirect jobs generated by its activities. Otherwise, Huawei also has 6 R&D centers in France, and has 300 researchers.
“Today is a historic date for Huawei, because this event marks a new stage in our relations with France and on a larger scale with Europe”, said Catherine Chen, vice president and board member of Huawei.
Huawei, a company still struggling with smartphones because of US sanctions
When it comes to its smartphones, Huawei is still in trouble because of the sanctions imposed by Washington. While the manufacturer was targeting the first place in the market in 2019, it was targeted by a first wave of sanctions which deprived it of Google’s services and applications.
Then, in 2020, new sanctions fell. This time around, the Trump administration wanted to target the automaker’s supply chain.
Indeed, these new sanctions forced non-American companies, but which use American technologies or equipment, to apply for a permit to continue doing business with Huawei. As a result, Huawei is no longer able to order new Kirin chips from its supplier, for example.
But for now, Huawei seems to rule out an exit from the smartphone market. Recently, the automaker denied a rumor that it has a plan to sell its Mate and P brands to a Chinese consortium.
On the other hand, Huawei decided to sell the Honor brand, which was specialized in mid-range smartphones. Thanks to this sale, Honor is freed from American sanctions. And recently, it was able to present a new smartphone on which Google’s applications are installed (something which is currently impossible for Huawei).