Chinese Firm Huawei to boost its yearly R&D budget to at least US$15 Bn

Company - Mohit Shah - Jul 27,2018

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chinese firm huawei to boost its yearly randd budget to at least us15 bn

China's Huawei Technologies Co. Ltd. finally decided to raise its annual research and development (R&D) spending between US$15 billion and US$20 billion, as the company battles to become a global forerunner in 5G technology.

It is an important announcement by the giant maker of telecommunications equipment, Huawei. It is important to note that the company has evolved, over the last three decades, from a seller of cheap telephone switches to a powerhouse partner to cell networks around the world. In order to maintain a competitive edge in this technological world, Huawei has been pouring a lot of money into research on 5G, or fifth-generation, wireless networks and patenting key technologies.

It has been reported that the company will dedicate 20 to 30 percent of that updated R&D budget to basic science research, up from its previous expectation of 10%, according to its statement on Thursday.  Huawei spokesperson also added that it intends to charge fair and reasonable (FRAND) rates for its 5G intellectual property to expedite the adoption of the new technology, which is expected to come into far-reaching use in 2020.

The privately held firm, which is also the biggest smartphone supplier in China, is placed among the world’s top R&D spenders. In fact, if we see the About 80,000 of Huawei’s employees or 45 percent of its total workforce, are engaged in R&D, the company said on its official website.

Earlier, the company has pledged an annual R&D budget of US$10 billion to US$20 billion, spent 89.7 billion yuan (US$13.2 billion) on this operation. With this move, Chinese companies led by Huawei are projected to own about 10 percent of the necessary patents for 5G worldwide, which is a significant jump in comparison to their share in the 4G and 3G times.

As reported, the increased spending comes majorly by a fact that Australia, United States, and Britain push back against Huawei’s network communications technology on security grounds amidst increasing international political pressures.