Huawei's European factory to boost supply chain efficiency

The China-based tech giants, Huawei, is set to build a factory in France to produce 4G and 5G wireless equipment to accelerate supply chain efficiency.

According to analysts, the new facility will allow Huawei easier access to its telecommunications carriers in Europe, while also easing concerns over alleged spying for China’s government.

Stéphane Téral, executive director of telecommunications research at IHS Markit, commented: “At this stage of the mobile industry, it is critical for Huawei to have a radio communications factory somewhere in Europe to relieve the pressure on the existing ones in China. “We clearly see firsthand the disruption the coronavirus crisis is creating.”

It is expected that the factory will produce €1bn worth of products annually, while also creating 500 jobs. 

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It is thought that the company chose France due to the country’s ideal geographic position, mature industrial infrastructure as well as its highly educated talent pool. Peter Liu, vice-president analyst at Gartner, said: “The European facility will improve Huawei’s efficiency because the company will be able to integrate itself into the supply chain in Europe.”

The news follows Huawei’s launch of its 5G Innovation and Experience Centre in London which encourages increased collaboration between businesses and innovators in the development of 5G ecosystems. Victor Zhang, Vice-President of Huawei, added: “With the opening of our 5G Innovation and Experience Centre in London we, as a leader of 5G, are taking another important step. What we have opened today will enable true collaboration amongst UK businesses and technologists and showcase the huge potential of 5G applications for both the private and business sectors.”

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