The manicured lawns and carefully sculpted buildings of Huawei Technologies Co’s (華為科技) headquarters are a far cry from the sweatshop image of southern China’s factory belt.
In place of rows of migrant workers hunched over production lines or sewing machines, engineers hover in front of NASA-style giant screens pinpointing any problems in the technology giant’s global network of telecoms systems.
Across the Silicon Valley-style campus, besuited executives wander through a training center designed by British architect Norman Foster, while potential customers are wowed by new electronic gadgetry in a huge showroom.
“[The campus shows] we are trying to look like an international company,” said Ross Gan (顏光前), Huawei’s head of corporate communications.
Huawei, which was founded just 21 years ago by a former People’s Liberation Army engineer, is the kind of company China needs if it wants to shift its economy from being the world’s workshop to a creator of genuine global brands.
The country has enjoyed a staggering boom in the last 30 years by churning out cheap toys, clothes and gadgets.
But for the past 10 years it has been looking to emulate Japan and South Korea, and move from cheap processing of other people’s ideas to nurturing a new Sony or Samsung. But Chinese brands still do not roll off the tongue.
Huawei, whose core business of manufacturing goods like mobile phones for foreign firms and providing huge technology infrastructures remains intact, is at the forefront of this attempt to shift direction.
Last year it made 1,737 patent applications, more than any other company in the world, but Gan said the key to the company’s success as a brand depends on transferring those into profitable products.
It produces one of the world’s leading dongles, a device that allows laptop users to get Internet access wherever they are, and has created an Islamic cellphone that gives a daily Koran reading and points users toward Mecca when they need to pray.
The firm is part of efforts in Guangdong’s factory-belt to change growth models.
The annual Fortune magazine list of the world’s top 500 firms by revenue this year included a record 34 from China excluding Hong Kong. However, all of them were state-owned and operating in often restricted markets or monopolies.
Xu Yan (徐岩), an associate professor at Hong Kong University of Science and Technology’s business school, said the protected or monopoly-controlling state-owned behemoths have prevented China from developing new brands.
“The state-owned companies are slow,” Xu said.
But times are changing, he said.
“Many high-tech companies, like Huawei, cannot survive if they do not innovate,” Xu said.
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort