Thread: Chinese telecom pledges $6 BILLION in orders to CA firms

Chinese telecom pledges $6 billion in orders to CA firms

Qualcomm, Broadcom and Avago to get supplier deals

Written by
Mike Freeman
noon, Feb. 17, 2012
Updated 12:08 p.m.

Huawei, a Chinese communications network equipment and mobile phone maker, said Friday that it expects to award supplier contracts totaling $6 billion to California companies Qualcomm, Broadcom and Avago over the next three years.

The company made the announcement as part of the U.S. China Business Cooperation Forum taking place Friday in Los Angeles. Government officials from both countries are attending.

“This $6 billion contract will boost the job created and economic development in the U.S.,” said Charles Ding, president of Huawei North America, in an interview.

Huawei has fought an uphill battle to break into the U.S., particularly with network equipment, because of federal government concerns over whether the company poses a national security risk.

Members of Congress have express concerns about the company’s activities in the U.S., and its ties to the Chinese government. The U.S. Department of Commerce last year blocked Huawei from participating in a project to build a dedicated national wireless network for police, fire and other public safety agencies, citing security reasons. Huawei was founded in 1988 by a Chinese Army officer.

Huawei already buys products from Qualcomm, Broadcom and Avago, including Qualcomm’s wireless modems for mobile phones.

The Chinese company’s network equipment business in the U.S. was flat last year, but it’s mobile handset business tripled as it focused on selling more affordable smart phones, said Bill Plummer, vice president of external affairs.

The additional deals with Qualcomm and others “reflects something very unique about communications information technology industry,” Plummer added. “It is truly global, and it is utterly interdependent.”

Huawei opened 13 locations in the U.S. starting in 2001, including an office in San Diego. It employs about 1,700 nationwide.

Chinese telecom pledges $6 billion in orders to CA firms | UTSanDiego.com

From Wikipedia

Huawei Technologies Co. Ltd.

Huawei (officially Huawei Technologies Co. Ltd.) is a Chinese multinational networking and telecommunications equipment and services company headquartered in Shenzhen, Guangdong, China.[3] It is the largest China-based networking and telecommunications equipment supplier and the second-largest supplier of mobile telecommunications infrastructure equipment in the world (after Ericsson).[4][5]

Huawei was founded in 1987 by Ren Zhengfei and is a private company owned by its employees. Its core activities are building telecommunications networks; providing operational and consulting services and equipment to enterprises; and manufacturing communications devices for the consumer market.[6] Huawei has over 110,000 employees, around 46% of whom are engaged in research and development (R&D).[7][8] It has 20 R&D institutes in countries including China, Germany, India, Russia, Sweden and the United States, and in 2010 invested CNY 16,556 million in R&D.[9][10]

In 2010, Huawei recorded revenues of US$28 billion.[11] Its products and services have been deployed in more than 140 countries and it currently serves 45 of the world's 50 largest telecoms operators.[12]

Huawei - Wikipedia, the free encyclopedia