Despite security concerns surrounding Huawei's alleged espionage activities, the Chinese telecom giant reportedly has big plans for Taiwan, as it aims to buy out multiple Taiwanese manufacturers in the near future, according to recent statements of Yung Hai, the general manager of Taiwan's sole Huawei distributor, Xunwei Technologies.
Yung made the remarks at the opening of a photography exhibition in Taipei on Aug. 1 to promote the new Huawei P30 Pro handset. In his remarks, he claimed that Huawei will play a very important role in the future development of Taiwan's electronics industry, but said that he is unable to reveal details of which companies Huawei plans to purchase.
The statements from the general manager of Huawei's Taiwanese distributor come as the Tsai administration prepares to release a blacklist of Chinese telecom products, including Huawei, which are forbidden from use in government agencies. Yung also expressed confidence that Huawei would play a major part in Taiwan's 5G roll-out as soon as early 2020.
The timing of Yung's remarks and his optimism for Huawei's future in Taiwan are somewhat alarming, given the increased scrutiny of Huawei across the globe. Huawei's presence in Taiwan is especially suspect, where concerns are mounting over Chinese influence in Taiwan's economy and popular media ahead of the presidential election in January 2020.
In his Aug. 1 address, Yung declared that it is currently 'not convenient to discuss details' of Huawei's potential business deals in Taiwan. However, there is reason to suspect that the Taiwan Semiconductor Manufacturing Company (TSMC) may be one of Huawei's major partners in negotiating a future Huawei manufacturing base within the country, as TSMC recently came under fire for its decision to continue supporting the embattled Chinese telecom company.
Yung also stated that Huawei's sales figures in Taiwan have recovered faster than expected following a downturn in the first half of 2019. This comes after Huawei handset sales reached a new low in June, after two major Taiwanese telecom providers decided to stop selling Huawei phones once stock ran out.
However, Chunghwa Telecom and Taiwan Mobile appear to have changed their minds about selling Huawei devices to Taiwanese consumers, judging by Yong's statements. He referred to reports that the company's mobile phone sales in Taiwan have dropped sharply as 'fake news.'
Digitimes reports that Huawei has offset initial losses from the U.S. imposed trade ban by significantly increasing 'purchases from Taiwan IC supply chain partners, with annual purchases to exceed US$20 billion.' It is also worth noting that TSMC's market outlook for the second half of 2019, corresponded with precisely the same rebounding sales figures which Yung celebrated in his Aug. 1 address.
Whatever 'partners' Huawei intends to buy out to establish a local manufacturing base in Taiwan, and whatever the extent of the company's anticipated involvement in Taiwan's future 5G roll out, Huawei's plans will almost certainly be contingent upon the outcome of Taiwan's presidential election in January 2020.
Yung also briefly addressed Google's severing of business ties with Huawei, which now precludes Huawei from using the Android operating system for smart phone devices. Yung said that if Google does not lift the ban soon, then Huawei is prepared to proceed with "plan B," although Yung offered no details on the forthcoming "plan B" operating system.
© Pakistan Press International, source Asianet-Pakistan