Source: Adobestock

It has been rumored that Huawei is to sell its server business, and reportedly the local branch of China’s State-owned Assets Supervision and Administration Commission of the State Council will take over. Huawei has not officially confirmed the move, but an insider revealed that Huawei had no intention to relinquish its server business, despite suffering setbacks at production. US sanctions mean that Huawei is facing difficulties to source a stable supply of x86 chips from Intel, resulting in much instability in its server business.

The insider admitted that chip production has been so severely hindered that even if Huawei got the license to use Intel’s x86 architecture, it would be unable to produce them. Even though the company intends to keep its in-house Kunpeng 920 chips, based on ARM’s architecture, it requires the 7nm manufacturing process only offered by Samsung and TSMC. Kunpeng 920 was announced as early as 2018 and mainly serves Huawei’s cloud business.

Last year, Huawei and Intel announced the x86-based FusionServer Pro 2488H V6 server, signalling that Intel had obtained the permission to supply Huawei. The latest developments, if confirmed, would mean the US is again tightening the grip on Huawei.