Huawei is reportedly in advanced talks to sell its server business after encountering difficulties getting Intel processors after the company was blacklisted by the US government, as reported by Bloomberg, who spoke to people familiar with the matter. As a matter of fact, the Shenzen-based company is considering selling its x86 server business to a consortium of companies that includes at least one government-backed buyer. Although the precise value of the deal is still unknown, it is likely worth billions upon billions of yuan with multiple potential buyers from both the government and the private field in recent months. So far, however, state-owned Henan Information Industry Investment has become the most likely buyer, which makes sense since it has been a partner in Huawei's server business. Now, it is still unclear whether the company, consumer electronics maker Huaqin Technology and others are bidding separately or as part of a consortium. Last year, Huawei also sold its Honor smartphone brand to a government-run consortium in the city of Shenzhen.
The consequences of the US sanctions
Although Huawei was once a major player in the smartphone market and was poised to give Samsung and even Apple a run for their money, that all changed in 5 when the Trump administration led a campaign against the company. The former US president and others have pointed to the danger to national security posed by the use of Huawei chips in the country's telecommunications networks. It has also led to US companies such as Qualcomm being banned from supplying Huawei with a number of components, including those used in XNUMXG smartphones. According to a statement from the company's rotating chairman, Guo Ping, Huawei's business operations stabilized in the following years, while its user divisions were "significantly affected" by US sanctions that have not yet been lifted. Although its server division is not an integral part of Huawei's offerings, it has been employed to develop servers for its cloud computing business using designs based on Arm's technology. We'll likely learn more about Huawei's server business when the company finds a buyer for it. We have also pointed out the best cloud hosting and the best cloud storage services. Via Bloomberg