Huawei is in talks to sell part of its Honor smartphone unit


honor 30 pro plus review rear in hand

  • Huawei is reportedly in talks to sell off parts of its Honor unit.
  • It’s believed that Digital China, TCL, and Xiaomi are interested in the deal.

US sanctions against Huawei mean that the company’s smartphone business has suffered in a big way. Between its crippled in-house chipset division and the lack of Google support, it’s becoming increasingly tough for the firm to keep producing phones.

These troubles extend to its Honor sub-brand too, but Reuters now reports that Huawei is in talks to sell off parts of the Honor business in a deal potentially worth up to 25 billion yuan (~$3.7 billion).

The report, citing “people with knowledge of the matter,” alleges that Honor’s brand, research and development infrastructure, and associated supply chain management business could be sold under the deal. However, the newswire’s sources caution that this hasn’t been finalized yet.

It’s believed that Huawei will focus on higher-end phones due to the US sanctions. Honor has traditionally been focused on young and/or budget-conscious consumers.

Who would do Huawei the honor, then?

Reuters reports that Honor phone distributor Digital China is considered a front-runner for the deal. However, the newswire adds that TCL and Xiaomi are also in the running.

Selling part of Honor to another business theoretically means that US sanctions wouldn’t apply to Honor-branded devices produced as part of this arrangement. It isn’t immediately clear what this would mean for Honor devices released prior to a sale though.

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Furthermore, there’s no guarantee that the US government wouldn’t simply play whack-a-mole and apply sanctions to any company that acquires part of Honor. Huawei and Honor are intertwined in several ways, particularly when it comes to components used and research and development. So extricating large chunks of the sub-brand from its parent company will likely be a

Exclusive: Huawei in talks to sell parts of its Honor smartphone business


By Julie Zhu

HONG KONG (Reuters) – Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd <000034.SZ> and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to 25 billion yuan ($3.7 billion), people with knowledge of the matter said.

Embattled Huawei is resetting its priorities in the face of U.S. sanctions and will focus on its higher-end Huawei phones rather than the Honor brand which is aimed at young people and the budget conscious, they said.

The assets to be sold have yet to be finalised but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the people said.

The deal may be an all-cash sale and could end up smaller, worth somewhere between 15 billion yuan and 25 billion yuan, one of the people said.

Digital China, the main distributor for Honor phones, has emerged as the frontrunner but other prospective buyers include Chinese electronics maker TCL and rival smartphone maker Xiaomi Corp <1810.HK>, the people said.

The sources declined to be identified as the talks were confidential.

Huawei and TCL declined to comment. Digital China and Xiaomi did not respond to requests for comment.

The Honor brand was established by Huawei in 2013 but the business mostly operates independently from its parent. It competes with Xiaomi, Oppo and Vivo in China’s highly competitive budget phone market and its phones are also sold in Southeast Asia and Europe.

Kuo Ming-chi, an analyst at TF International Securities, has said that any sale by Huawei of the Honor smartphone business would be a win-win situation for the Honor brand, its suppliers and China’s electronics industry.

“If Honor is independent from Huawei, its purchase of components will no longer be subject to

Xilinx soars 17% on report rival AMD is in talks to buy it for $30 billion


a screen shot of a man: A Xilinx sign is seen during the China International Import Expo (CIIE), at the National Exhibition and Convention Center in Shanghai Reuters

© Reuters
A Xilinx sign is seen during the China International Import Expo (CIIE), at the National Exhibition and Convention Center in Shanghai Reuters

  • Chip producer Xilinx leaped as much as 17% on Friday after The Wall Street Journal reported Advanced Micro Devices is in talks to buy the firm for more than $30 billion.
  • A deal could come together as soon as next week and mark the latest major acquisition in the semiconductor industry, sources told The Journal.
  • Xilinx closed Thursday with a market cap of nearly $26 billion, making the potential takeover price an appealing prospect for shareholders.
  • Should the deal go through, it would fortify AMD’s standing in the communications technology space and help it better compete with rival firm Intel.
  • Watch Xilinx trade live here.

Chipmaker Xilinx surged as much as 17% on Friday after The Wall Street Journal reported Advanced Micro Devices is in talks to buy the firm for more than $30 billion.


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A deal could come to fruition as soon as next week and bring the latest major takeover in the semiconductor industry, according to the report. Still, there is no guarantee an agreement will be reached, and talks previously froze before a recent restart, sources told The Journal.

Xilinx closed Thursday with a market cap of nearly $26 billion, making the proposed deal an enticing proposal for its shareholders. The early Friday rally placed shares at their highest point since July 2019.

Read more: ‘A paradise for growth investors’: A Baillie Gifford fund manager overseeing almost $2 billion explains why investors are underestimating Japanese stocks — and shares his 3-part strategy for picking winners

AMD shares sank as much as 3.5%. Still, shares are up nearly 90% year-to-date as investors flood tech stocks amid virus-fueled demand.

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AMD said to be in advanced talks to buy Xilinx in over $30 billion deal


A close up image of a CPU socket and motherboard laying on the table.

Narumon Bowonkitwanchai | Moment | Getty Images

Advanced Micro Devices is in advanced talks to buy rival chip maker Xilinx in a deal that could be valued at more than $30 billion, the Wall  Street Journal reported late Thursday, citing people familiar with the matter.

A deal, which could mark the latest big tie-up in the rapidly consolidating semiconductor industry, can come together as soon as next week, the newspaper reported.

AMD has seen a higher usage of its products recently, driven in part by an overall surge in chip demand due to a global shift to work from home, and market-share gains from larger rival Intel.

A spokeswoman for Xilinx declined to Reuters request for comment, while AMD did not immediately respond.

San Jose, California-based Xilinx makes programmable chips used in data centers to speed up tasks such as artificial intelligence work and in 5G telecommunications base stations.

The company’s business suffered a setback last year when key customer Huawei Technologies Ltd was blacklisted by U.S. officials, preventing it from buying chips from U.S. companies.

Government officials have since added other China-based companies, including some Xilinx customers, to the list.

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AMD is in late-stage talks to buy rival chipmaker Xilinx: report


Advanced Micro Devices (AMD) is in late-stage talks geared toward acquiring rival processor giant Xilinx, reports suggest.

According to the Wall Street Journal, the discussion, now in “advanced” stages, could be valued at over $30 billion. 

The publication reported on Thursday that an agreement could be finalized as early as next week. 

However, sources close to the matter added that discussions had previously “stalled” before restarting, and so there is no concrete guarantee that an acquisition bid would be accepted or go ahead at all. 

See also: AMD unveils Ryzen 5000 processors, including ‘the world’s best gaming CPU’

Over this year, AMD has launched a variety of new processors including the AMD Radeon Pro 5000 gaming processors, Ryzen & Ryzen Pro 4000G, and the enterprise Epyc 7Fx2 series. 

The company has enjoyed a surge in share price over the past 12 months, rising from roughly $28 in October 2019 to $86.51 at the time of writing and market close. 

Analysts suggest that Arm’s price-to-earnings ratio reveals the stock is overpriced, despite the company enjoying growth over 2020 — as the pandemic rages on — and achieving a market value that now tops $100 billion. 

Whether or not the stock price will devalue in the future, for now, Santa Clara, Calif.-based AMD is enjoying increased demand for PCs, consoles, and devices that are powered by AMD processors, as noted by the WSJ. 

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In turn, this may have encouraged Arm to try and acquire a rival by using its shares as leverage, tradeable assets, or currency. 

San Jose, Calif.-based Xilinx is a developer of “dynamic” processor technology and is the creator of field-programmable gate arrays (FPGAs), programmable system-on-chip designs (SoCs), and ACAP, a scalable compute acceleration platform for intelligent