Huawei Technologies Co. is in an “advanced stage of negotiations” to sell its server business. This was reported by Bloomberg with reference to sources familiar with the situation. The sale of the x86 server division is forced. In the context of the sanctions imposed on Huawei by the US authorities, the company lost the ability to purchase processors for these servers from Intel Corp.
The potential buyer of Huawei’s server business is a consortium that includes at least one state-owned company – Henan Information Industry Investment Co. Ltd, the current Huawei server manufacturing partner. The amount of the upcoming deal is unknown. Company representatives declined to comment on the agency’s message.
The sanctions continue to have a serious impact on what was once China’s largest technology company. She already had to separate the Honor smartphone brand into a separate company and sell it. In addition, the company recently announced its fourth consecutive quarterly revenue decline – this time by 38%.
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