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【Depth】In the 34th month of sanctions, what is Huawei doing?

As we all know, Huawei is a company that likes research and development very much. Huawei's R&D investment has long dominated the first place in the country, and it is often several places ahead of the second place. Even worldwide, Huawei's R&D investment can rank in the top five. In the past five years, Huawei has invested a total of 590.7 billion yuan in research and development. The peak came in 2020, when Huawei invested 141.893 billion yuan in research and development.

【Depth】In the 34th month of sanctions, what is Huawei doing?

■ Huawei's R&D expenses are equivalent to the sum of 2-5 people

What does this number mean? According to the national scientific and technological funding statistical bulletin released by the Ministry of Science and Technology, in 2020, the mainland invested a total of 2,439.31 billion yuan in research funds. Among them, the R&D investment led by enterprises is about 1,867.3 billion yuan. In other words, Huawei's investment accounts for about 7.6% of the R&D investment of all companies in the country. Even in 2021, when revenue fell sharply by 29%, Huawei still invested 125.9 billion yuan in research and development, and research and development accounted for nearly 20% of revenue.

Under the continuous high-intensity investment in research and development, Huawei is actually a company with over-technology. The glory of going out independently is probably the best example. In just one year, glory has grabbed the third place in China from others, and can only say "Oh, Mom and Dad have given me a lot of not much, enough for me to run around in this era, enough for me to live ~~".

【Depth】In the 34th month of sanctions, what is Huawei doing?

■ Honor got too much from Huawei

With the blessing of a large number of technologies, Huawei has continuously adjusted its business focus and tried its best to make up for the sanctioned part of the consumer business. I summarized Huawei's adjusted center of gravity into three directions, namely B-end, C-end and F-end, that is, -

Business

Customer

Investment (Finance)

Let's talk about them one by one.

To understand how Huawei is working on the B side, there is a very simple way, that is, to see which legions Huawei has established.

In April last year, Huawei established the Coal Mine Corps, and in October of the same year, Huawei established the Data Center Energy Corps, the Smart Photovoltaic Corps, the Customs Port Corps, and the Smart Highway Corps. In February this year, Huawei set up 10 more reserve corps, namely interactive media (music), sports health, display core, campus network, data center network, data center base, site and module power supply, airport rail, power digital services, and government affairs Netcom. In this way, there are 5 regular troops and 10 reserve troops. At first glance it seems a little confusing, without any logic or rules. But if you study it carefully, you will find that there is a little law implied in it.

【Depth】In the 34th month of sanctions, what is Huawei doing?

■ Huawei's PV inverter market share ranks first in the world

The three regular armies of coal mines, customs ports, and smart roads and airport track reserves are typical 5G application expansions. Ren Zhengfei once personally inspected the coal mine, and then Huawei began to engage in 5G mining with coal mining companies. There is even a special operating system called "Mine Hong" for the coal mining industry. The port is a very typical closed environment with a simple internal operating mechanism. It is not only suitable for the layout of 5G, but also can be combined with artificial intelligence technology to engage in special applications in closed scenarios. I remember that there was a scene where no one was hoisted and it was very suitable. In the past, container lifting operators were hard and tiring. Now with the technical support of 5G +AI, the operator can sit in the air-conditioned room and remotely control the command tower crane to operate. This not only reduces the difficulty of work, but also reduces the cost of personnel.

■ The application of smart ports is being fully developed

The establishment of these four legions seems to be relatively abrupt, but in fact, Huawei has been sticking to the national policy. The first two digital application scenarios of the 14th Five-Year Plan are smart transportation and smart energy. Behind it are intelligent manufacturing, smart agriculture, smart education, smart medical care, smart cultural tourism, smart community, smart home and smart government. Do you look like smart healthcare? Does government affairs look like smart government? The whole house intelligence of the C-end is not like a smart home? What kind of smart factories, hospital medical care, and agricultural digitalization will Huawei produce in the future.

■ There are 7 more in the back, which are too long to be cut off

Both data center energy and smart PV legions should theoretically belong to the digital energy business. But there are five reserve corps: campus network, data center network, data center base, site and module energy, and power digital services. Hey, that's interesting. If you think of these 7 legions as a whole, it should not actually be called digital energy, but rather

Carbon Neutral Corps

Carbon neutrality is one of the continent's most recent pushes, and a clear route to carbon peaking by 2030 and carbon neutrality by 2060 has been proposed. The concept of carbon neutrality is huge, and there is certainly more than one way to achieve its ultimate goal, but it requires multiple paths to work together. One of the paths can be simply summarized as "more green electricity, more green electricity". Therefore, on this path, the mainland has put forward a state-level resource mobilization strategy that is no less than the west-to-east gas transmission and south-to-north water diversion .

Count east and west

According to relevant estimates, the east and west will drive 400 billion to 500 billion yuan of investment every year. This cake is really not small, with Huawei's execution, it is really not difficult to get a 20-30% share. The seven legions combined are likely to bring Huawei nearly 100 billion yuan in revenue per year.

■ Qinghai's photovoltaic installed capacity is the third in the country

To sum up, the direction of Huawei's expansion to the B-side is extremely in line with national policies. It even gives me the illusion that "this policy is tailor-made for Huawei". Of course, this is impossible, it can only be said that Huawei's strategic department is really bull fork, and the ability to study policies is really strong.

The C-end business has become Huawei's largest revenue division under the leadership of Yu Dazui. Similarly, under the sanctions of the United States, the C-end business is also the most damaged. Until Kirin chips resume supply, it is almost impossible for consumer businesses to reinvigorate themselves. However, Yu Chengdong is obviously not a person who is easily defeated, so everyone saw some new things at the recent press conference. For example, whole house intelligence, such as the M5.

■ Kirin chip does not know when to see again

The whole house intelligence is theoretically a lot of market space, and the 14th Five-Year Plan is also mentioned. However, I have always felt that smart home is a pseudo-demand. So let's put this matter aside and talk about Huawei's car.

A year ago, the article [depth] Huawei, which does not build cars, has a dimensionality reduction blow to new energy vehicles, and I also said that Huawei will never build cars. It turns out that Huawei is good at punching faces. This series of qingjie is actually Huawei's own car, but it is just OEM with a well-off production line.

I guess Huawei really didn't want to build a car at the beginning, after all, it was sanctioned by the United States, and the financial pressure to rebuild the car was huge. However, after talking with the domestic OEMs for a while, it was found that if this business is counting on others, the early investment in the tram field is likely to be unable to be recovered. So under the strong impetus of Yu Chengdong, Huawei sold the automatic driving department and "had to" start the car-building journey.

The hardware quality of the M5 is not brilliant or crotch-pulling, and it is decent. But the Hongmeng car machine system is absolutely crushing all competitors. It can be said that overnight, all the advantages accumulated by the new car-making forces over the years have been wiped out and greatly surpassed.

Looking at the whole country, Huawei is probably the company that can do cross-terminal operating systems. Apple's car-making plan is stranded, and Huawei may be invincible in the field of smart car machines. Continue to look forward to the new models of the industry, and hope that Huawei can play the characteristics of the king of rolls and stir up the huge market of new energy vehicles, so that consumers can have more and better choices.

【Depth】In the 34th month of sanctions, what is Huawei doing?

■ Test drive M5, not bad, beyond imagination

Huawei's investment business is more interesting to say, due to space limitations can not be expanded, you can first take a look at the data I summarized earlier [data] Huawei's investment map. Here's a quick summary. The main purpose of Huawei's investment is to get the production capacity of products that it cannot produce or is not good at. And based on production capacity or orders, we will proactively request or help suppliers to improve their technical level.

In other words, although Huawei is making investments, making money is not the purpose, and production capacity is the true meaning. For a simple example, Tianyue Advanced's production capacity to Huawei increased from 1.11% in 2019 to 49.31% in the first half of 2021 after Huawei's stake. The increase is huge, and the proportion is already close to 50%. Why does Huawei want so much capacity? What can be done after these capacities? Leave a suspense ~ Later, I have the opportunity to write a separate article about Huawei's investment.

■ The related party is Huawei

In the end, I knew what everyone wanted to ask, but I really didn't know what was going on. Huawei is very low-key, and I am not a boiling ghost person. The only thing that can be known is that Huawei's research and development of chips has not stopped, and HiSilicon is also continuing to work hard to break through the blockade. At the beginning of the year, the hand saw the public account article of the Microelectronic Device Laboratory of the Chinese Academy of Sciences, saying that Li Ling's team and Huawei's HiSilicon team first proposed a new vertical circular channel device (CAA) structure to solve the density problem of indium gallium zinc oxygen (IGZO)-DRAM. The article was selected for IEDM2021 and received both the Highlight Paper and the Top Ranked Student Paper.

【Depth】In the 34th month of sanctions, what is Huawei doing?

■ Huawei has a special interest in researching next-generation storage materials

At the same time, Huawei's Olympus Award last year was awarded to four research teams, including Tsinghua University, Sun Yat-sen University, institute of microelectronics of the Chinese Academy of Sciences, and Shanghai Institute of Microsystems. It can be seen that Huawei is doing everything possible to unite all the forces that can be united to break through the US blockade.

In 2022, it's time for a little change~

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