Huawei has some of the fastest server and AI chips in the world.
The chips power a cloud IAAS system that #3 in China and the fastest growing in the world. As you can see from the map at left, Huawei is expanding across the Southern hemisphere, including Johannesburg. Instead of fighting in the larger markets, it is seeking out markets not as well served.
Germany isn’t on this map but actually has a very large Huawei cloud system. It belongs to Deutsche Telekom, but is primarily built by Huawei. DT has been aggressively promoting its European cloud, including in an alliance endorsed by Merkel and Macron.
The Financial Times reports that Huawei’s cloud is growing, especially in the government and state-owned enterprise market. FT believes that Intel has a license to continue shipping processors to Huawei dating to before August 17th that is not affected by the blockade. I am not able to confirm that.
Huawei will be able to fabricate Kunpeng processor chips at SMIC in 12/14 nm. That might require two chips compared to only one in TSMC’s advanced 7 nm process, a handicap but not a primary cost factor. The US believes it can block SMIC from shipping to Huawei, but that is unproven.
Huawei is making a multibillion dollar investment in building its cloud, including massive support for developers.