Date
16 October 2018
Huawei is committing more resources to R&D as it seeks to become a global leader in 5G technology, among other things. Photo: Reuters
Huawei is committing more resources to R&D as it seeks to become a global leader in 5G technology, among other things. Photo: Reuters

Huawei to boost annual R&D spending to at least US$15 bln

Huawei Technologies, China’s largest telecoms equipment and smartphone maker, said on Thursday that it will increase its annual spending on research and development (R&D) to between US$15 billion and US$20 billion.

That compares with a previous pledge to invest US$10 billion to US$20 billion annually on R&D, Reuters reports.

The enhanced spending plan comes as the Chinese firm seeks to be a global leader in 5G technology, the report noted. 

In 2017, Huawei spent 89.7 billion yuan (US$13.23 billion) on R&D, accounting for 14.9 percent of its total revenue. 

Huawei will dedicate 20-30 percent of R&D budget to basic science research, up from its previous expectation of 10 percent, the report said, citing a company statement.

The Chinese telecoms equipment giant is among the world’s top R&D spenders. About 80,000 of its employees, or 45 percent of its total workforce, are said to be engaged in research and development activities.

The increased spending comes as the US, Australia and Britain push back against Huawei’s network communications technology on security grounds amid increasing international political tensions, Reuters noted.

Huawei said on Thursday that it intends to charge fair and reasonable rates for its 5G intellectual property to facilitate the adoption of the new technology, which is expected to come into large-scale use in 2020.

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