Huawei To Sell Key Server Division Due To U.S. Blacklisting

Huawei Technologies Co (HWT.UL) is in advanced talks to sell its x86 server business after the U.S. blacklisting of the company made it difficult to secure processors from Intel Corp (INTC.O), Bloomberg News reported on Tuesday.

The Chinese telecoms giant is selling the server business to a consortium that includes at least one government-backed buyer, the report said, citing people familiar with the matter. 



Analyst View
You would recall that a disconnect between the US and China came to a head during the Donald Trump administration and an executive order was issued to prevent the Huawei equipment in the US due to the fact that it was classified as pervasively unsafe. Though Huawei requested for the use of a risk-mitigation process to convince the US but the Donald Trump administration rejected it.

The blacklisting of the company, therefore, places a spanner in the company's engagement within or without a US organisation.