Huawei’s Journey Towards Independence: 90% of Pura 70 Parts Produced in China

In recent years, Huawei, the Chinese telecommunications giant, has been making significant strides towards achieving independence by manufacturing a substantial portion of its critical components domestically. With 90% of the Pura 70 parts produced in China, Huawei is positioning itself as a self-reliant player in the global technology landscape. This move not only showcases China’s growing technological prowess but also signifies Huawei’s determination to reduce reliance on foreign suppliers. Let’s delve deeper into this development and its potential implications for Huawei’s future.

Strengthening the Domestic Supply Chain

By manufacturing 90% of the Pura 70 parts in China, Huawei is taking a significant step towards strengthening its domestic supply chain. This approach allows the company to exert more control over the production process, ensuring quality standards are met while minimizing the risk of disruptions caused by geopolitical tensions or trade disputes.

Some suppliers are:

• OFILM
• HNLens Technology
• Goertek
• Sunny Optical
• BOE
• Goodix Technology
• Crystal Optoelectronics

Boosting Technological Independence

Reducing dependence on foreign suppliers positions Huawei as a more self-reliant entity in the technology industry. By manufacturing key components domestically, the company gains greater control over its intellectual property and reduces vulnerabilities associated with relying on external sources. This move aligns with China’s broader strategy of becoming a global leader in innovation and technology.

Mitigating Geopolitical Risks

Geopolitical tensions between nations have highlighted the vulnerabilities faced by companies operating in a globally interconnected world. By producing a significant portion of its components in China, Huawei aims to mitigate potential disruptions caused by trade restrictions or political conflicts. This strategic move allows the company to maintain a certain level of stability and continuity in its operations, safeguarding its position in the global market.

Challenges and Future Prospects

While Huawei’s efforts towards independence are commendable, they are not without challenges. The company needs to ensure that the domestic supply chain can consistently meet the stringent quality standards and technological advancements required. Additionally, Huawei must continue to invest in research and development to stay ahead in the highly competitive technology sector.

The forecast is that the Huawei Mate 70 line can reach the rate of 100% Chinese parts, but for that, Huawei needs to find a supplier capable of delivering the photo sensors that should replace Sony’s options. Currently, the Huawei Pura 70 Ultra model uses a Sony sensor, while the Kirin 9010 uses some Western equipment in its production. In fact, this is Huawei’s biggest problem: advanced machinery for assembling its processors.

Even so, the Chinese government has been injecting liquidity for local manufacturers to dominate the production of machinery and all the parts needed for a smartphone.

Also, as sales of the Pura 70 line may reach the record of the Mate 60, the expected trend is for Huawei to come out even stronger, completely leading the Chinese market (Which it currently leads with Apple at number three) and initiate the process of selling its devices globally again.

Despite these challenges, Huawei’s pursuit of independence is likely to have far-reaching implications for the company’s future. By reducing its dependence on foreign suppliers, Huawei can position itself as a formidable player in the global market, potentially reshaping the dynamics of the telecommunications industry.

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