Huawei’s Enterprise Market Expansion Attempt to Benefit Taiwan’s ICT Supply Chains

Taipei, March 26, 2012 (CENS)--Huawei Technologies Co., a world leading ICT supplier headquartered in mainland China, will place orders with Taiwan’s supply chains in a big way in line with its aggressive goal of boosting sales of its enterprise equipment operation to US$15-20 billion in 2015 from current US$3.9 billion.

The company would record higher outsourcing to Taiwan in 2012 than in 2011, when which it purchased NT$110 billion (US$3.6 billion at US$1:NT$30) worth of products from Taiwan. In 2010, Huawei contracted Taiwanese manufacturers to supply NT$99.5 billion (US$3.3 billion) of products.

To quickly gain more market share worldwide, Huawei has decided to increase contracts to Taiwan for ICT products, including severs, switchers, routers, mobile phones, network connectivity cards, tablet PCs and touch screens. The company’s global vice president for enterprise business operation, Jia Cholong, stressed that Taiwan is a strong logistics backup for his company’s aggressive global plan.

The company’s contract suppliers in Taiwan include Hon Hai Precision Industry Co., Ltd., Accton Technology Corp., Unizyx Holding Corp., Gemtek Technology Corp., Alpha Networks Inc., and Unimicron Technology Corp.

Jia emphasized that Huawei will team up with distribution channels of local markets worldwide to expand market pie in international enterprise ICT sector, instead of acting as a price killer.

He noted that the company’s enterprise ICT operation saw sales rise to US$3.9 billion in 2011 from US$2 billion in 2010 and US$100 million in 2009. The company aims at shooting the No.2 title in enterprise ICT market and No.3 spot in cloud-computing market in 2015.

The company’s enterprise ICT products include video conferencing equipment, data center, cloud solution, switching equipment, router, firewall, and servers.

In line with its aggressive market plan, the company will double its marketing staff to 20,000 worldwide by the end of this year. In Taiwan, it now has 200 marketing staffers and will open Huawei Certified Datacom Associate (HCDA), Huawei Certified Datacom Expert (HCDE) and Huawei Certified Datacom Profession (HCDP) centers to verify telecom equipment for it.