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ALGERIA/Huawei says it has two suppliers for each component used in its products

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Like any other smartphone manufacturer, Huawei also works with other high-tech companies to purchase the technologies needed to manufacture its products. Recently, the company revealed that it has put in place a « two-supplier » program that reduces supply disruptions.

« In the context of globalization, I do not think that the components used in a company’s products are 100% self-produced. So we started a business called « Sustainable Business Management » 10 years ago. Strategy, which means we have two sources of supply for each component, « said senior vice president Victor Huawei in an interview with the Xinhua News Agency.
For example, after the publication of the Honor 20 Pro flagship product, an American component supplier suddenly stopped delivering the component for this phone and, in this condition, Honor immediately activated its backup provider.
Although the company obtained the component from its backup provider, the immediate drop of the smartphone provider was slightly affected.
On November 7, 2018, at the 12th Huawei Main Suppliers Convention in Shenzhen, China, 700 participants from 150 global suppliers and relevant Huawei executives attended the convention.
A total of 92 suppliers were honored at the convention, including 33 US companies, 22 Chinese companies, 11 Japanese companies, 10 Taiwanese companies and 16 companies from countries and regions such as Germany, South Korea and Hong Kong.
Among Huawei’s US suppliers are Qualcomm, Intel and Microsoft, among others, while Sony and Fujitsu are among the Japanese companies and TSMC, Hon Hai and MediaTek among the Taiwanese manufacturers on the list. Meanwhile, suppliers based in mainland China include BOE, Shenzhen Tianma and Lixun Precision, among others.
According to a previous report, in 2018, Huawei had spent about $ 70 billion buying components on the $ 11 billion that it represented for US companies, including Qualcomm, Intel, and Micron Technology Inc.