Huawei builds new center worth $1.4 billion

Huawei new R&D center has 100 coffee shops, with full facilities to attract foreign researchers.

Huawei new R&D center in Shanghai. Photo: Shanghai Municipal People’s Government.

According to Jiefang Daily, Huawei has completed the construction of a research and development (R&D) center worth about $1.4 billion in Jinze Town, Qingpu District, Shanghai (China). Called the Lianqiu Lake R&D Centre, it is expected to attract many foreign scientists thanks to its benefits.

The central campus consists of 8 blocks and 104 buildings, forming a complex of laboratories, offices and entertainment areas, connected by internal rail. While a number of bridge construction and greening projects are being completed, signage, roads and transportation systems have been completed.

During a meeting in January, Yang Xiaojing, the leader of Qingpu County, said about 30,000 employees would move to Huawei new R&D facility to research semiconductor technology, wireless networking and the Internet of Things (IoT).

According to an announcement from the local government, Huawei new facility in Shanghai, which covers an area of about 160 hectares, serves as a global R&D hub, and is expected to operate from this year.

“We want to create a suitable space for foreign scientists to work and live,” Mr. Ren Zhengfei, CEO of Huawei stated during the 2021 internal meeting.

According to SCMP, Huawei leaders came up with the idea of privileges to attract young foreign talent, including more than 100 coffee shops spread across the facility.

Huawei R&D infrastructure expansion project has been hampered since 2022 due to restrictions from the U.S. government, leaving American leaders at Chinese chip companies in a precarious position.

Although the U.S. did not elaborate, one of the regulations includes “restricting the ability of Americans to assist in the development or production” of chips at “certain semiconductor facilities in China” without a license.

The areas of the R&D center are connected by a rail system. Photo: Shanghai Municipal People’s Government.

Despite the limitations, Huawei suddenly returned to the smartphone market from August 2023 with a phone model using a 7 nm chip. The move was highly appreciated in China, but caused concern for the United States because of Huawei limited access to technology.

According to its 2023 annual report, Huawei has invested 23% of its total revenue ($22.7 billion) in various R&D projects. About 114,000 employees, or 55% of the workforce, are involved in R&D activities.

In early July, Reuters reported that US President Joe Biden’s administration had revoked eight licenses for several US companies exporting to Huawei.

In the smartphone market, Huawei expects to break the dominance of Android and iOS in China when it releases HarmonyOS Next, the operating system is not expected to support the installation of Android applications. In the first quarter, Huawei surpassed Samsung, becoming the world’s best-selling folding screen smartphone company.