Huaweiplans to sell its budget smartphone unit Honor as the firm reels from US sanctions that have throttled its chip supplies, reported Caixin.
The Shenzhen-based technology giant has been in talks with potential buyers, including distributors and state-backed funds that Huawei does business with, sources in some of the companies told Caixin.
Honor’s current management would continue to run the firm after it is sold, the sources said.
The divestment plan comes after US sanctions effectively cut off the tech giant’s supply of high-end semiconductors, including Huawei’s self-developed Kirin chipset that it makes with a third-party manufacturer, which are vital to its smartphones’ competitive edge.
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