Because Of Being Blocked By The US, Huawei Has Given Up On Selling Its Server Business

Huawei is reportedly set to sell its main server business soon. (photo: doc.unsplash)

JAKARTA - As a result of being blacklisted by the United States (US), Huawei will reportedly soon sell its main server business. The company is known to have been blocked in the country since 2019.

The plan to sell its server division, Huawei said, was because it failed to acquire chips for the unit due to US trade restrictions.

Bloomberg reported, sources familiar with the matter revealed that the Chinese tech giant is in advanced talks to sell its server business based on the x86 architecture. Huawei will also sell its server units to a consortium in which at least one of the buyers is backed by the government.

The company has taken its chips from Intel, but due to trade restrictions, Huawei is now unable to receive chips from the chipmaker. Huawei was placed on the US Entity List and was also labeled a national security threat in 2019.

Since then, citing Gizmochina, Thursday, November 4, the China-based company has always been subject to restrictions in every step of its business, including the question of cutting off its chip supply from TSMC. As a result, Huawei's smartphone business has dropped dramatically as it cannot manufacture its own chips or get supplies from other chip manufacturers.

Another possibility, this sale will be worth billions of yuan. Several new buyers have also emerged in recent months, including buyers from the government and the private sector. Unfortunately, Huawei has not responded to this.