- Huawei’s largest R&D center is likely to be operational later this year
- The company hopes the massive R&D center will help it attract global research talent and grow in spite of US sanctions
- The center spans 1.6 million square meters and will have its own road network along with a small railway network and elevated bridges
Chinese telecom gear vendor Huawei has completed the construction of its $1.4 billion research and development (R&D) center in Shanghai, which is likely to play a crucial role in advancing its technology leadership ambitions.
This center, which is divided into eight districts and will be able to house around 30,000 personnel, will be Huawei’s largest research center globally. It will cover 1.6 million square meters and will have its own road network along with a small railway network and elevated bridges. The project started in 2021 and took around three years to complete.
“The Huawei Qingpu project has been completed and this hub of research and innovation has been officially named the Huawei Lianqiu Lake R&D Center. As Huawei’s largest and most heavily invested R&D base globally, the completion of the Lianqiu Lake R&D Center marks another milestone in Huawei’s technological innovation and industrial upgrading,” said the statement on the Qingpu Government website.
Fierce reached out to Huawei for more information but the equipment maker declined to comment.
Why the new R&D center matters?
At the new center, Huawei will focus on research on semiconductors, wireless networks and the Internet of Things (IoT). Combining research from different areas under one roof is likely to help the vendor streamline its operations.
“In the future, this site will become a core node in Huawei's global R&D network, attracting top talent, nurturing cutting-edge technologies and helping Huawei achieve greater breakthroughs in key technological fields such as 5G, cloud computing and artificial intelligence, contributing to the advancement of the global technology industry,” said the statement.
The new R&D center will become operational later this year and will play a crucial role in helping the company attract global talent. Last year, the company’s R&D spend touched CNY164.7 billion ($22.81 billion), about 23.4% of its revenue. Further around 55% of Huawei’s employees are involved in R&D activities.
This center is crucial for Huawei, as it needs to strengthen its R&D efforts to better position itself to address the US sanctions imposed on it. The US imposed sanctions on Huawei in October 2022, making it difficult for Huawei to hire and work with US citizens.
Technology leadership is crucial for Huawei as it seeks to improve its global position even as sanctions make it tough for it to grow its market share. Last year, it released a 5G phone powered by an advanced 7-nanometer chip manufactured in China.