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Huawei Technologies Co. Ltd. continues to thrive in network infrastructure despite facing international sanctions. In 2024, the company deployed over 100,000 5G-A base stations globally, with significant expansions in Europe and the Middle East, driven by a surge in AI-related mobile traffic, which increased more than 33 times in China last year.
Artificial intelligence is rapidly evolving, presenting significant opportunities for telecom operators, according to Huawei executives. The average daily usage of AI model tokens in China has surged 33-fold in eight months, with expectations that mobile internet traffic driven by AI will exceed current levels by 3.5 times by 2030. To capitalize on this growth, telecoms must transform their business models and enhance their infrastructure to fully leverage the revenue potential of AI traffic.
Huawei Technologies Co. Ltd. is set to deepen its presence in Qatar, expanding its focus from telecommunications to the burgeoning artificial intelligence sector. Zhu Shenggao, vice president of AI at Huawei Cloud Middle East and Central Asia, emphasized the company's extensive experience in AI, which positions it to support Qatar's government and businesses effectively.
Honor, the Chinese smartphone maker spun off from Huawei, has announced a $10 billion investment over five years to enhance its AI capabilities and compete with Apple and Samsung. This initiative includes a partnership with Google to develop an AI device ecosystem and a commitment to seven years of Android updates for its flagship Magic series smartphones. Honor aims to expand its market share beyond China, having increased its global presence from 1.7% in 2023 to 2.3% in 2024.
Chinese tech giants, including Huawei, ZTE, and Xiaomi, are set to showcase their innovations at MWC Barcelona 2025 from March 3 to 6, highlighting advancements in AI, 5G, and IoT. The event is expected to attract over 101,000 visitors and 2,700 exhibitors, emphasizing China's commitment to global collaboration in technology. Smaller firms like Lierda will also present cutting-edge solutions, such as 5G RedCap modules, reinforcing the significant role of Chinese companies in the global tech landscape despite ongoing challenges.
Taiwan Semiconductor faces geopolitical strain as the U.S. scrutinizes Huawei's access to its chips, raising concerns over national security. The U.S. has imposed stricter penalties for regulatory violations, while Taiwan Semiconductor has suspended shipments to certain Chinese clients amid rising tensions. Despite these challenges, the company remains committed to its $65 billion investment in Arizona fabs and aims to strengthen U.S. trade and defense ties.
Huawei is set to unveil a new smartphone powered by its HarmonyOS Next in March, featuring a "new form factor" and advancements in hardware, software, and app ecosystem. The announcement has led to a surge in related stocks, with speculation suggesting the device may be a foldable smartphone. Huawei aims to transition all its smartphones and tablets to HarmonyOS Next this year, following the release of the Mate 70 series.
Avatr Technology and Huawei Technologies have enhanced their partnership in smart electric vehicle development, transitioning to the Huawei Inside Plus model. This collaboration involves Huawei participating in the entire development cycle of new models, with a joint project team of around 300 employees. Avatr aims to achieve monthly break-even this year and has set a sales target of 220,000 units, including 15,000 for international markets.
Huawei has significantly increased its AI chip production yield to approximately 40%, doubling from a year ago, making its Ascend chip production line profitable for the first time. The company aims to reach a 60% yield, the industry standard, as it seeks to challenge Nvidia's dominance in China's AI chip market. Despite U.S. sanctions limiting access to advanced technology, Huawei plans to produce 100,000 910C processors and 300,000 910B chips this year.
Xu Ke, a former standout of Huawei's 'Genius Youth' program, has joined Nanjing University as a tenure-track associate professor to advance AI research. His focus will be on data intelligence, visual analytics, and human-computer interactions, reflecting a trend of tech talent moving into academia to enhance China's capabilities in AI and semiconductor technology. This shift aims to foster innovation and strengthen China's position in these critical fields.
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