Sandeep Dikshit

Bangalore expansion awaits clearance

  • Outsources chip designing to U.S., Japan
  • Expects global sales of $10 billion

    SHANGHAI: Huawei Technologies is "concerned'' over the time taken by the Indian Government to clear two of its applications for foreign direct investment (FDI). The China-headquartered telecom major submitted the applications in March last year and put in a special request to speed up processing late last year.

    "However, the applications are still pending. There seems to be some misunderstanding. While there has been no Government response, we understand from media reports that there are some concerns about security,'' said company spokesman Fu Jun. He explained that Huawei is a "market driven company'' with employees owning 60 per cent of the company's shares.

    The company's first application is for expanding its Bangalore operations where it now employs 1,200 engineers. According to the original plan, the company wanted to expand the centre to 1,500 engineers by this year-end and recruit 500 more over the next two years.

    The centre develops software application and services and received the CMM-I certificate last year. The second application is for local manufacture of CDMA technology based wireless terminals. Besides Bangalore, its R & D centres are located in Silicon Valley and Dallas (the U.S.), Stockholm (Sweden), Moscow (Russia), Beijing, Shanghai, Nanjing, Shenzhen, Hangzhou and Chengdu in China.

    The company is also into chip designing, which it outsources for manufacturing to American and Japanese companies. It expects global sales to cross $10 billon (about Rs. 50,000 crore) this year, up from $8.2 billion last year. Terming itself a leader in providing next generation telecommunications networks, Huawei serves 28 of the world's top 50 operators in various ways. Its products and solutions include wireless products, core network products, network products, application and software, as well as terminals. Major products are based on Huawei's self-designed ASIC chips and shared platforms.