LONDON – Avago, Broadcom and Qualcomm have been awarded three-year chip deals by Huawei Technologies Co. Ltd. worth $6 billion.
Huawei (Shenzhen, China), a leading mobile phone, networking and telecommunications equipment and services company, that is also closely associated with HiSilicon Technologies Co. Ltd. (Shenzhen, China), a fabless chip company formed in 2004 by the spin-off of Huawei's ASIC design center. Huawei said the three-year OEM contracts awarded to the U.S. companies will directly and indirectly create tens of thousands of jobs for U.S. business while contributing to growth and development opportunities for California.
Huawei has declined to break out the amounts in the individual company contracts. Qualcomm (San Diego, Calif.) said it would be supplying Snapdragon pplication processors and multimode modems to Huawei under its contract.
"The U.S. holds the leading position in the ICT industry, and when coupled with Huawei's long-term dedication to innovation in the U.S. market, the result is a strategic collaboration to develop a more diversified, balanced and healthier global ICT ecosystem," Ms. Chen Lifang, senior corporate vice president of Huawei, in a statement.
Since the establishment of U.S. operations in 2001, Huawei has place procurement contracts with 280 U.S. technology companies worth more than $30 billion, the company said. These contracts have covered software, ICs and services, the comp. Huawei said its 2011 procurement in the U.S. was up 8 percent compared with 2010 and that the latest contracts were a signification addition to the business that Huawei was already doing with Avago (San Jose, Calif.), Broadcom (Irvine, Calif.) and Qualcomm.
"Avago has methodically built up our wireless portfolio of power amplifiers, filters and RF front-end modules to support mobile phone applications and cellular infrastructure equipment, and this serves as an excellent validation of the leading performance and value our technology brings to customers," said Bryan Ingram, vice president and general manager of the wireless semiconductor division of Avago Technologies, in the same statement.
"Huawei is an important global customer and is a growing leader in the wireless industry. Qualcomm is pleased to be working with Huawei, supplying our leading family of Snapdragon processors and multimode broadband modem products, and we look forward to Huawei's continued success," said Cristiano Amon, senior vice president of Qualcomm, in the same statement.
What Huawei is going to benefit if they create jobs in US. There are some number of engineers and engineering executive in Huawei which are as good as US engineers and executives. If their intention is to build a leading communication equipment vendors, would they rather home grow their technical competency? Unless they are absorbing the talents who leave Cisco & Juniper.
"Huawei said the three-year OEM contracts awarded to the U.S. companies will directly and indirectly create tens of thousands of jobs for U.S. business while contributing to growth and development opportunities for California. "
what about the loss of jobs at Cisco & Juniper ?
This is nothing shocking as this seems the regular inventory purchase of Huawei. Huawei is the largest telecom manufacturing company of the most populated country so the inventory will be also very huge. But it is really a big deal as it speaks the duration of 3 years.
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