Huawei will start building the first mobile phone equipment factory in Europe in 2024. The plant would headquarters in Brumath, near Edinburgh, France. The project is moving ahead despite some European governments restricting the use of equipment made by the Chinese company, citing safety concerns.
Huawei announced in 2020 that it would open its first factory in France to provide 5G technology across Europe. The plan has an initial investment of about 200 million euros—about 215 million dollars—. But the COVID-19 pandemic delayed everything.
A French government source said Reuters WHAT The factory will be operational in 2025. Huawei, however, has not confirmed any schedule or other details about it.
The Chinese technology company said in 2020 that the French factory would initially create 300 jobs. Its long-term projection is estimated at 500 workers. The previously stated goal was to create 1 billion euros in mobile network technology solutions annually.
The factory is mainly responsible for the production of mobile base stations, according to the plans of 2020. Although they are not central to the infrastructure of the 5G network, it is a way of telling Europe that it is not dangerous. Huawei, like other Chinese technology companies, has faced accusations of collaborating with the Chinese government. The declared fear is that their 5G networks will be used for surveillance by third parties.
Huawei restrictions in Europe
By the end of 2022, the United States Government will ban the sale and import of new Huawei and ZTE equipment because represents “an unacceptable risk” to national security. The new development of this trade war, which began during the administration of former President Donald Trump in 2019, caused a sharp decline of almost 70% in Huawei’s revenue in 2022.
Several European countries have also decided to exclude Huawei and ZTE from deploying their 5G networks for security reasons. One thing that the European Commission considered “fully justified”, according to a statement from the Commissioner for Internal Market and Services, Thierry Breton. The agency confirmed in August that it would restrict the two Chinese teleoperators’ access to European Union programs and funding instruments.
The French government, for its part, told telecom operators in 2020 who want to buy 5G equipment from Huawei that they cannot renew the licenses for the equipment when they expire. However, China’s Vice Premier He Lifeng said in July this year that France has decided to extend Huawei’s 5G licenses to some cities.
“We hope that France will strengthen the tone of friendly cooperation between China and the European Union,” said He Lifeng, after meeting French Economy Minister Bruno Le Maire in Beijing. China is France’s third largest trading partner, behind the European Union and the United States.
When its factory was first announced in Europe, Huawei explained that it has a demonstration center which will show the wireless base station production, software loading and testing process. The center, the company said in 2020, will be open to operators, governments and other authorities. He emphasized that the project will improve the technical competitiveness of European industry and improve the stability of local supply chains and infrastructure.