HiSilicon is a chip design division at Huawei, not a profitable company, and Huawei has no profit claims on it, Huawei's rotating chairman Xu Zhijun said at an analyst conference Monday, adding that it will keep the team as long as Huawei can afford it.
"This team can keep researching, developing, and preparing for the future," Xu said.
Huawei massively increased its inventory reserves in 2020 in response to US sanctions, leading to a reduction in cash flow.
As for how much inventory Huawei has left in reserve, Xu said they can still satisfy enterprise customers, but not forever.
"Therefore, Huawei will be more focused and focus on key customers, in order for Huawei to live a little longer," he said.
Xu said Huawei is a big customer in the semiconductor industry, and China is a huge chip market, and there are probably many companies here that are worried about the future like Huawei.
"Faced with such a large demand, we believe there will always be companies to invest and find ways to meet the needs of Huawei and other Chinese companies in the chip sector," Xu said.
The US restrictions on Huawei have undermined the system of trust in the global semiconductor chain, causing panic stockpiling by companies around the world and ultimately leading to global semiconductor supply constraints and shortages, he said.
Whether these restrictions will trigger a new global economic crisis in the future is also unknown, it's the fundamental answer in rebuilding global trust and restoring global industry chain cooperation, according to Xu.