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Huawei will invest $ 436 million to create an ecosystem for its server chips

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Huawei will invest 3 billion yuan (436 million US dollars) in developing its own ARM-based server chips and associated ecosystem over the next five years to strengthen its semiconductor development skills.

According to Eric Xu, also known as Xu Zhijun, this investment will be used in Kunpeng to improve the tools of its developers, open source operating systems and access to related projects, ChinaDaily reported.
Introduced in Jaunay, « Huawei Kunpeng 920 » is an ARM-based server processor. It uses the 7 nm process, the processor was designed independently by Huawei based on an ARMv8 architecture license.

Xu said he hoped that this decision would allow Huawei and its partners to « build an IT ecosystem around Kunpeng », and then provide infrastructure and applications such as « Kunpeng processor-based » cloud computing services for « various sectors ».

Danny Mu, a research analyst, said ARM-based chips are aimed at special companies, which can be a good complement to Huawei’s IT business.
« Huawei is going in the right direction by stepping up its efforts to cultivate an ARM-based ecosystem, including software and applications, » Mu said.
According to previous reports, Huawei has sold more than 900,000 servers worldwide in 2018, bringing total shipments in the last six years to 3.56 million units.