Bangkok--15 Jan--Francom Asia
Full-on AI technology will be deployed at the future factory, said Huawei founder.
Huawei Technologies, world's dominant fifth-generation network equipment maker, has plans to build a large-scale 5G production plant in Europe to enhance collaboration with European countries, its founder and CEO Mr. Ren Zhengfei recently told the Globe and Mail. The chief executive said the future plant corresponds with the firm's overseas expansion plan as its 5G equipment business now focuses on acquiring contracts with operators in the continent.
During an interview with Agence France-Presse, Huawei's Chairman Mr. Liang Hua confirmed Mr. Ren's statement saying that the firm is planning to manufacture its own components at a production site in Europe in the future. "We are conducting a feasibility study to open a factory in Europe for 5G production" Mr. Hua declared. "The choice of country will depend on that study," he added. While there is no deadline for it yet, the chairman hinted that it could happen very soon."
Although labor and operational costs for factories in Europe will be higher than those in Southeast Asia and Mexico, Mr. Ren confirmed that, for a stronger tie with nations in the continent, cost is not his concern. "Cost is not our consideration, strategic needs are," explained the founder, adding that AI will be fully applied to its future factories, resulting in less labor cost. With a large-scale 5G facility, Mr. Ren believed the company will be able to win more trust, create more jobs, and deepen its collaboration with European countries.
Huawei's business with European network operators has been nothing but strong and steady. Last July, the company revealed that almost 60 percent of its commercial 5G contracts are from Europe. Huawei in 2018 made 204.5 billion yuan (THB889 billion) from business in Europe, the Middle East and Africa — its largest market outside China, making up 28 percent of its total revenue that year.
In November, Mr. Ren told CNN Business that, despite US pressure, European countries will make up their own minds when it comes to 5G equipment. "Many carriers in Europe have been using Huawei's equipment for more than ten years, so they have thorough understanding of us," said Mr. Ren. "They will persuade their government to greenlight Huawei and open their domestic markets to us," he added.