Home » Xiaomi goes shopping and for Huawei the green light on chips made in the USA

Xiaomi goes shopping and for Huawei the green light on chips made in the USA

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Chinese big techs ready to jump on the bandwagon of the deal of the century, the electric and above all hyper-connected car. While the pace of partnerships between manufacturers, suppliers and players of technologies in the field of software and artificial intelligence is growing to guarantee the key components of the car of the future. This is confirmed by the two latest moves by Xiaomi and Huawei, after that of Baidu, the Google of the Dragon, which has allied itself with the manufacturer Geely to create an autonomous vehicle within three years.

Xiaomi will buy the Californian startup Deepmotion for about 77.4 million dollars to focus on the use of artificial intelligence in autonomous driving. The Beijing-based company is now the world‘s second-largest smartphone maker after overtaking Apple. Revenues increased 64% to 87.79 billion yuan ($ 13.6 billion) in the quarter ended June, surpassing the average estimate of 85.01 billion yuan.
Co-founder and CEO Lei Jun is banking heavily on the project to build level 4 self-driving electric vehicles and the company has announced an initial investment of $ 10 billion over the next decade in the sector (not a huge amount, when compared to investments by tens of millions of Volkswagen, Daimler, BMW, but comparable to the effort announced by Renault. It will take years, however, before we see a Xiaomi in circulation.

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Shares of Xiaomi slid up to 4.7%, their biggest intraday decline in a month, after investors again punished Chinese tech stocks. The title was also weighed down by persistent concerns about Xiaomi’s growing spending on electric vehicles. Since the beginning of the year, thanks to the decline in the tech sector, the decline has been more than 30%.

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Partial green light for Huawei

The United States has approved license applications worth hundreds of millions of dollars for the Chinese telecommunications company, still blacklisted by the Washington government, for the purchase of chips dedicated to automotive components. The halt to Huawei came from the Trump administration, targeting the sale of chips and other components used in its network device and smartphone businesses, a decision that heavily reflected on the Chinese company’s accounts and market shares. The Biden administration has tightened the hard line by denying licenses to sell chips to Huawei for use in or with 5g devices.

But in recent weeks and months the United States, Reuters wrote, has granted licenses (lasting four years) that authorize vendors to sell chips to Huawei for vehicle components such as video screens and sensors. The Shenzhen-based company would have ready orders of up to $ 2 billion. Although a spokesperson for the US Department of Commerce said the government continues to consistently enforce licensing policies “to restrict Huawei’s access to raw materials, software, or technology for activities that could harm US national security, and foreign policy interests “. The US has also campaigned to persuade allies to exclude Huawei from their 5G networks for spying reasons. Huawei has always rejected the allegations.

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