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