Huawei Wins Industrial Land for $30 Million to Manufacture Smart Car Parts

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(Source: The Tech Portal)

On November 26, Chinese tech giant Huawei won 260,000 square meters of industrial land in Dongguan Songshan Lake for 188 million yuan ($30 million). The land’s industry type is for intelligent automobile parts manufacturing. According to the investment benefit agreement contract of the Dongguan Songshan Lake High Tech Zone project, the total investment of the project is no less than 2.4 billion yuan.

This is the second time Huawei has obtained industrial land in the last two months. In October, Huawei won industrial land in Longhua District, Shenzhen at a price of 298 million yuan, which is related to the new energy industry.

According to the announcement of Dongguan City Public Resource Trading, the development and construction period of the land is three years, from December 31, 2022 to December 31, 2025.

In fact, Huawei has been deployed in Songshan Lake area for a long time. Huawei’s terminal headquarter project is located on the west side of Songshan Lake, with a total investment of about 19.46 billion yuan. The project started in September 2014 and is planned to be completed in December 2022. It mainly provides products such as smartphones, mobile broadband and home terminals for consumers and operators.

Due to limits on its overseas business, Huawei’s smartphone sales declined. At present, Huawei is investing heavily in its smart car business.

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In September this year, according to Wang Jun, chief operating officer of Huawei’s Smart Car Solution Business Unit, the firm’s R&D investment in auto parts will reach $1 billion this year, and the R&D team will reach 5,000 people. “There are two main modes for Huawei to enter in the vehicle industry. The first is the Huawei Inside mode. Huawei has cooperated with BAIC Group, Changan and GAC Motor to support them to build their own sub-brands. The second is the traditional parts supplier mode, in which Huawei provides high-quality parts for customers and partners.