Huawei Technologies is in advanced discussions to sell its x86 server business after the U.S. blacklisting of the firm made it impossible to get processors from Intel, according to Bloomberg. It’s the latest blow to the Chinese technology giant from American sanctions.
According to Bloomberg, Huawei is looking to sell its server business to a Chinese consortium. Remarkably, one of the possible bidders is a state-owned corporation. Earlier in Huawei’s history, Chinese government offered the company assistance as well. Henan Information Industry Investment, a subsidiary of the state-owned Henan Investment Group, wants to invest in the server sector this time. Hubei Province is also a member of the group.
A few years ago, Huawei had surpassed IBM as the world’s third biggest server manufacturer. At the time, the yearly growth rate was also much greater than the vendor’s competitors. Huawei was aggressively updating its x86-based conventional servers to intelligent systems, with the flagship offering being the x86 FusionServer Pro. Now, the server division of the Shenzhen-headquartered firm is being sold to a consortium that would include at least one government-backed bidder, according to undisclosed sources.