On April 13, at the Huawei global analyst conference held yesterday, xuzhijun, the rotating chairman of Huawei, delivered a keynote speech on “flying across the clouds is still calm”. It describes Huawei’s goals this year, and how and where Huawei should go in the future? Xu Zhijun mainly introduced Huawei’s key strategic measures for the future, mainly in five aspects:
·Optimize industrial mix and enhance industrial resilience
·Promote the full play of 5g value, define 5.5G, and drive the continuous evolution of 5g
·Focus on users to create a seamless smart experience in the whole scene
·Reduce energy consumption and realize a low-carbon society through technological innovation
·Strive to solve the problem of continuous supply
The first measure is to optimize industrial mix and enhance industrial resilience.Huawei is in an era full of uncertainty, whether it is geopolitics or repeated epidemics, including the US sanctions against Huawei. In this case, industrial resilience is the basic guiding principle of Huawei. Since last year, Huawei has been optimizing its industrial portfolio to enhance its industrial resilience, mainly in the following aspects:
1. Enhanced software. The first point is to improve the software engineering ability. At the end of november2018, Huawei’s board of directors passed a decision to invest $2billion to improve Huawei’s software engineering capability.
“It has been nearly two years now. The improvement of the entire software engineering capability has achieved gratifying results, and we will continue to invest unswervingly to raise the software engineering capability of the entire Huawei Company to a higher level within a five-year cycle. It is precisely because of the results achieved in the past two years that we hope to further use the improvement of software capability to reduce the demand and dependence on chips and enhance the competitiveness of our products 。”
The second point is to study the opportunities in the software industry. Once these opportunities are found, Huawei will increase investment and increase the proportion of software and service revenue.
“The reason why we recently adjusted the organization and cadres of cloud and computing BG is that we believe that the core of cloud is software. We hope to strengthen the organization of software and decouple it from hardware. At the same time, we will increase investment and better look to the future to achieve the growth of the software industry.”
2. Create and increase investment in industries that are relatively less dependent on advanced processes. For example, the optical technologies invested by Huawei have been mainly used for communication. Later, it was found that these technologies can be used not only for optical communication, but also in more fields besides communication, including optical desktop display, vehicle mounted head up display, laser headlights, and optical fiber sensors.
“Generally speaking, we use these technologies to expand new opportunities and open up innovative industries, but do not do what the industry already has. We hope to meet the needs of consumers and enterprises with innovative product forms.”
3. Continue to increase investment in the intelligent auto parts industry, especially in autonomous driving software.
Xuzhijun preached, “We believe that whether it is driverless, autonomous, intelligent networked vehicles, or the four modernizations of automobiles, the core is whether the autonomous driving software can truly make the automobile realize autonomous driving, and further realize unmanned driving in the future. We hope that through strong investment in autonomous driving software, we can promote networking, intelligence, electrification and sharing in the automotive industry, promote the integration of the automotive industry and the ICT industry, and bring long-term benefits to Huawei Sustained strategic opportunities. “
Huawei is positioned as a supplier of incremental parts for automobiles. Huawei’s strategy is to help car companies build “good cars” and “good cars”. Recently, yuchengdong is also trying to help car companies sell good cars. Huawei is committed to investing in autonomous driving software. Its goal is to realize the unmanned driving of cars. Once it is realized, it will subvert almost all industries related to cars, which is also the most disruptive industrial change visible in 10 years.
The second measure is to promote the full play of 5g value, define 5.5G and guide the continuous evolution of 5g.By the end of 2020, more than 140 5g networks have been released worldwide, and the number of 5g users has exceeded 330million. The global 5g network construction progress has exceeded expectations. Huawei believes that 5g to C is needed to achieve 5g business success, that is, how 5g meets the needs of consumers, and 5g to B, that is, how 5g meets the needs of all walks of life. The two develop in parallel.
Xuzhijun believes that the most important thing is to strengthen the development of 5g to C, accelerate the development of the number of consumer users, accelerate the migration of users from 4G to 5g, and let 5g network carry more traffic. At the same time, accelerate the improvement of 5g to B solutions, strengthen the large-scale commercialization process of 5g to B, and realize the social value of 5g.
In terms of 5g to B, by 2020, Huawei had participated in the practice of more than 3000 innovation projects around the world, and signed more than 1000 5g to B project contracts with operators and partners in more than 20 industries.
At present, the progress of 5g to B is mainly in the Chinese market. Huawei has participated in most of these projects. Among them, great progress has been made in manufacturing, steel, coal, port and other industries, which has not only improved efficiency, but also brought social value. The value of 5g to B is slowly being reflected.
“Based on these practices, our main task in 2021 is to support and adapt to the key needs of the industry, such as high reliable network connection, large uplink capacity, delay guarantee certainty, as well as the planning, construction, maintenance, optimization and other service capabilities of enterprises’ massive and small-scale networks, so that more enterprises, more industries and faster benefit from 5g to B.”
“Based on these current business practices, we also found that 5g can not meet all the needs of all walks of life today. We believe that 5g standards need to continue to evolve in order to give full play to the value of 5g core technology. At Huawei mbbf2020, we put forward the vision of 5.5G, which is a milestone for 5g’s next development.”
5g was originally aimed at three scenarios: first, large bandwidth, second, multiple connections, and third, low latency. Huawei hopes that 5.5G can further expand the application scenarios on this basis, including UCBC (uplink ultra wideband), rtbc (broadband real-time communication) and HCs (Communication aware fusion).
Xuzhijun said that 5g is just a starting point today. We can continue to move forward along 5g, define 5.5G first, expand from three scenarios to six scenarios, and better meet the needs of all walks of life.
The third measure is to create a seamless smart experience in the whole scene with the user as the center.Huawei’s mobile phone business has been greatly affected by the US sanctions, but Huawei’s commitment to consumers has not changed. Huawei will focus on users and continue to create a full scene, personalized and seamless experience around high-frequency application scenarios such as smart home, smart office, smart travel and sports health, as well as audio-visual entertainment. Based on harmonyos and HMS, Huawei, together with developers and ecological partners, continues to enrich the two ecosystems of hardware and services.
At the same time, Xu Zhijun mainly introduced Huawei harmonyos, which is a distributed operating system for all scenarios. At present, the operating system has been applied in Huawei smart screen, intelligent wearable, and vehicle and machine equipment. Next, harmony OS will be applied on mobile phones. At present, 20 hardware manufacturers and 280 application manufacturers have jointly participated in the ecological construction. It is expected that 40+ mainstream brands and 100million devices will become new entrances to the experience of harmony OS in 2021.
Huawei will continue to build a global ecosystem, and HMS has become the third largest mobile application ecosystem in the world. By the end of 2020, there were more than 2.3 million registered developers worldwide (300000 overseas developers), and more than 120000 applications based on HMS core. The number of overseas applications on the Huawei application market had increased by more than 10 times over 2019, serving 170+ countries / regions and more than 700million Huawei end users worldwide.
The fourth measure is to reduce energy consumption and realize a low-carbon society through technological innovation.Xuzhijun said that during this period, both carbon peak and carbon neutralization are particularly hot, which has become a global consensus. Huawei actively supports and participates in the fight against climate change. We believe that this is a major battle that has a bearing on the fate of mankind. Huawei’s greatest value is to help all walks of life continue to reduce energy consumption and strive to achieve a low-carbon society through technological innovation.
“If Huawei wants to achieve carbon neutrality, we can invest in a solar power station and generate as much electricity as Huawei consumes to achieve carbon neutrality. However, I think this does not give full play to Huawei’s advantages. Huawei’s greatest value is to help all industries reduce energy consumption through continuous technological innovation, and continuously reduce the energy consumption of terminal equipment, network equipment and communication equipment sold by Huawei, so as to contribute to the overall carbon neutrality.” Peak, carbon neutral, and make Huawei’s unique contribution to realizing a low-carbon society. “
The fifth measure is to strive to solve the problem of continuous supply.“I know that everyone is very concerned about this issue. Can Huawei continue to live after being sanctioned by the United States? How to solve the problem of Huawei’s supply?” Xuzhijun said.
He explained that as we all know, the design and manufacturing process of semiconductor products is very complex and requires very high R & D investment and capital expenditure. In this context, a highly specialized global industrial chain has been formed. Different regions play different roles in the industrial chain according to their own advantages, promoting the semiconductor industry to continuously realize technological innovation, reducing product prices, and benefiting global enterprises and consumers. Assuming that there is no global industrial chain cooperation in the future, but a fully self-sufficient local industrial chain will be established in each region, according to the report “strengthening the global semiconductor supply chain in an uncertain era” issued by the American Semiconductor Industry Association SIA, the world will need to increase the initial investment of at least US $1trillion, which will lead to an overall increase in semiconductor prices of 35% to 65%, and then lead to an increase in the cost of consumer electronic equipment.
“As you all know, at present, the price of chip OEM is rising. If the price of chip OEM rises, the price of chips will rise, and the price of consumer electronics will rise. Therefore, the price rise can be predicted in the next few years.”
In the past two years, the United States has imposed three sanctions on Huawei, which have done great harm to Huawei. However, it does more harm to the global semiconductor industry, undermines the trust system of the global semiconductor industry chain, and forces more countries and regions to consider the security of the semiconductor supply chain. At present, it can be seen that Europe, Japan and China are all increasing investment in semiconductors. In particular, Europe clearly emphasizes the need to realize the autonomy of semiconductors. In December last year, 17 countries, including Germany, France and Spain, issued a joint statement on the European processor and semiconductor technology plan, and decided to invest heavily in the development of European semiconductor capacity.
On the other hand, as a result of the US sanctions against Huawei, global enterprises, especially Chinese enterprises, have made panic stock up, from zero stock to three months, half a year, or even longer and longer stock up cycles. Because these enterprises believe that such a stocking strategy can cope with uncertainty.
However, over the years, the global industry has been pursuing zero inventory in the supply chain and working hard for it. However, this panic inventory is the core factor causing the global semiconductor supply tension and supply shortage this year. Originally, everyone used to have zero inventory and normal operation. Now every enterprise is basically in a mess when it prepares goods for a month. Therefore, the reason for the tight supply of semiconductors this year is that the United States has imposed sanctions on Huawei, resulting in panic stocking by global enterprises. The US sanctions against Huawei and other companies are becoming a global and industry wide supply shortage problem, and it is unknown that the global economic crisis will be triggered in the future.
Xu Zhijun stressed that it is still necessary to tie the bell. To return the semiconductor industry to normal order and avoid greater crisis, the fundamental answer is to jointly rebuild global trust and restore cooperation in the global industrial chain as soon as possible. He called on global leaders to pay full attention to potential huge risks, give full play to their political wisdom, jointly rebuild global trust and resume global industrial chain cooperation as soon as possible.
“If our entire global industrial chain can rebuild credit, resume cooperation and give full play to the advantages of the global industrial chain, Huawei’s problems may also be solved.”
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