Huawei Technologies is reportedly seeking to sell its key server business. The company is trying to sell its server division as it fails to acquire chips for the unit due to the US trade restrictions.
According to a Bloomberg report, sources close to the matter revealed that the Chinese tech giant is in advanced talks to sell its server business based on the x86 architecture. The company had sourced its chips from Intel, but due to the trade restrictions, it is now unable to receive chip supply from the chipmaker. For those unaware, Huawei was placed on the US Entity List and was also labelled as a national security threat back in 2019.
Since then, the brand had faced further crackdowns by the US government and even had further restrictions placed on it that cut off its chip supply from TSMC. This caused its smartphone business to decline significantly since it couldn’t build its own chips or source them from other chipmakers. The Chinese telecommunications equipment maker is now apparently planning on selling its server unit to a consortium that includes “at least one government backed buyer,” as per the sources.
Unfortunately, the exact details of this deal like its valuation is currently unknown. But it is likely to be worth billions of Yuan. Furthermore, sources said that several new buyers have surfaced in the recent months, including buyers from the government and the private sectors. Although, Huawei has declined to comment on the matter, while the potential buyers have yet to respond for any comments.
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