logo
Huawei seeks AI chip deals in Middle East, Southeast Asia: Report

Huawei seeks AI chip deals in Middle East, Southeast Asia: Report

The Hindu3 days ago
Huawei Technologies is attempting to export small amounts of AI chips to the Middle East and Southeast Asia, as it looks to establish itself in markets dominated by U.S. chip designer Nvidia, Bloomberg News reported on Thursday.
The Chinese telecom giant has reached out to potential customers in the United Arab Emirates, Saudi Arabia and Thailand about purchasing its older-generation Ascend 910B AI chips, the report said, citing people familiar with the matter.
China's strongest competitor to leading U.S. chipmakers is offering the chips in the low thousands, though the exact number remains unclear, according to the report.
No deals have been finalised yet, the report said, adding that parties in the UAE have not shown interest, while the status of talks in Thailand is unclear.
Representatives for the government of Thailand and the Saudi government's media office did not immediately respond to Reuters requests for comment. Huawei did not immediately respond to Reuters request for comment.
The company is also trying to attract customers with remote access to CloudMatrix 384, a China-based AI system built with more advanced Huawei chips, which it is not currently ready to export due to limited supplies, the report said.
The Middle East has emerged as a booming market for AI chips, with several U.S. technology firms such as Nvidia announcing deals.
President Donald Trump had secured $600 billion in commitments from Saudi Arabia for U.S. companies during a tour of the region in May.
Huawei is also focused on selling 910Cs, its advanced AI chip product, to Chinese firms that cannot access best-in-class American chips, the report said.
Successive U.S. administrations have sought to restrict China's access to advanced American chip technology, citing concerns that it could be used to strengthen Beijing's military.
"With the current export controls, we are effectively out of the China datacenter market, which is now served only by competitors such as Huawei," an Nvidia spokesperson said.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

This smallcap auto component co's stock rises 3%; Emkay upgrades to 'Buy'
This smallcap auto component co's stock rises 3%; Emkay upgrades to 'Buy'

Business Standard

time32 minutes ago

  • Business Standard

This smallcap auto component co's stock rises 3%; Emkay upgrades to 'Buy'

Suprajit Engineering, auto component, and equipment maker, shares were in demand on Monday, as the stock advanced 2.9 per cent in trade on BSE. It registered an intraday high at ₹461.9 per share. At 12:44 PM, Suprajit Engineering's share price was trading higher by 1.3 per cent at ₹454.4 per share on the BSE. In comparison, the BSE Sensex was down 0.46 per cent at 82,123.68. The company's market capitalisation stood at ₹6,232.6 crore. The 52-week high of the stock was at ₹639.95 per share and the 52-week low of the stock was at ₹352.05 per share. Emkay upgrades Suprajit Engineering to 'Buy' Domestic brokerage Emkay Global Financial has upgraded its rating to 'Buy' from 'Add' on Suprajit Engineering. The brokerage has fixed the target price at ₹550 per share, implying an upside of around 22 per cent. The brokerage notes that despite a sharp turnaround in performance and global positioning, the company remains attractively valued—with the India business alone justifying the current ₹61,000 crore market capitalisation. 'Suprajit's standalone business trades at ~21x FY26E earnings, compared to ~28x for domestic peers. This offers both valuation comfort and downside protection,' the brokerage said in its latest note. 'Crucially, its global operations, which contribute 52 per cent of revenues, are being valued at near-zero despite five years of structural groundwork.' Over the past few years, the company has emerged as the second-largest global player in control cables, behind Japan's Hilex, through strategic acquisitions such as Wescon, Kongsberg LDC, and SCS. These moves have expanded its global reach and positioned it well for market share gains amid industry consolidation. Notably, profitability in the global business is turning around, with H2FY25 margins crossing the double-digit mark despite macroeconomic headwinds. The SCS acquisition—once a stressed asset—is now witnessing customer traction and improved growth, particularly in Morocco. The company expects SCS to turn Earnings before interest, tax, depreciation, and amortisation (Ebitda)-positive by Q4FY26, with a mid-term margin potential of 6–10 percent. Emkay projects a 9 per cent revenue Compound Annual Growth Rate (CAGR) for Suprajet's global division over FY25–28, with margins expanding to 10.9 per cent by FY28 from 5.6 per cent in FY25. Domestic business looks beyond cables In India, Suprajit commands over 80 per cent market share in control cables for two-wheeler original equipment makers (OEMs) and has posted a 10 per cent revenue CAGR and 11 per cent profit after tax (PAT) CAGR over the last five years. But the company is now evolving 'beyond cables', with aggressive research and development (R&D)-led forays into electronics, brakes, instrument clusters, and actuators. Breakthrough order wins from both traditional and electric vehicle (EV) players—including seat activation chipsets for Jaguar Land Rover and electronic grips for a leading Chinese EV OEM—highlight SEL's growing relevance in next-gen mobility solutions. The domestic business is expected to maintain double-digit growth, with substantial upside from the brakes segment and faster scale-up of Phoenix Lamps Division (PLD). These optional growth levers are not yet priced into the stock, Motilal Oswal notes. Outlook and valuation Overall, Emkay Financial projects revenue, Ebitda, and PAT CAGR of 9 per cent, 21 per cent, and 48 per cent respectively over FY25–28, with return on equity (RoE) improving to 19 per cent and near-zero net debt. Though near-term macro concerns have led to 6 per cent cut in FY26/27 earnings estimates, the firm remains bullish on Suprajit's medium-term prospects.

The Air India catastrophe should catalyse deep structural reform in the country
The Air India catastrophe should catalyse deep structural reform in the country

Mint

time34 minutes ago

  • Mint

The Air India catastrophe should catalyse deep structural reform in the country

Next Story Vikas Dimble , Prachi Mishra The aviation tragedy in Ahmedabad calls for economic introspection. India needs to ponder questions of public versus private ownership, market concentration versus competition and diversified versus focused conglomerates. Our take-off for Viksit Bharat may depend on getting the answers right. The Ahmedabad tragedy should serve as more than a moment of grief, it should catalyse the deeper structural reforms necessary for India's sustainable development. Gift this article The tragic Ahmedabad air crash shook the nation, but beyond the immediate grief lies a deeper call for introspection. This isn't about assigning blame, but rather about examining structural questions. The tragic Ahmedabad air crash shook the nation, but beyond the immediate grief lies a deeper call for introspection. This isn't about assigning blame, but rather about examining structural questions. The timing is significant—this accident occurred soon after Air India transitioned from public to private ownership, highlighting three fundamental challenges on India's runway toward developed nation status: How should we balance public and private sector roles? What is the optimal level of market concentration versus competition? And should India Inc embrace specialization or continue with diversified conglomerates that span multiple industries? These questions go beyond aviation, touching the very foundation of India's economic strategy. Yet, aviation provides a perfect case study for examining these broader challenges. Let us start with the public versus public ownership. Also Read: Digital twins of aircraft: A big leap for civil aviation? India is conspicuous with a disproportionately large public sector, compared to other emerging and advanced economies. India's stock market is heavily dominated by state-owned enterprises. But our aviation sector, which has undergone complete privatization, offers a contrast. Globally, aviation ownership models vary dramatically. West Asian carriers remain fully government-owned, Chinese airlines are government-dominated and some European carriers maintain partial government stakes—25% of British Airways' parent company, for instance, is owned by Qatar Airways. Meanwhile, the US mirrors India's approach of minimal government ownership. The privatization of Air India is considered one of the Indian government's most successful divestments. As the private sector takes control, the need for robust regulation becomes critical. The question is not a binary whether or not to privatize, but how to regulate businesses effectively, especially in industries where lives are at stake. The government's role must evolve from owner-operator to an ever more vigilant regulator in both public perception and reality. Also Read: A tale of two sectors: Aviation soars while railways crawl Coming to the dilemma of competition versus concentration, India's economy has long been marked by the outsized influence of family-owned business groups. Remarkably, several of the largest groups from the 1950s still dominate, with the composition of the top 25 largely unchanged since 2010. At their peak in 2012, these groups generated revenues equivalent to 20% of India's GDP. While their dominance has declined somewhat since then, in 2020 that figure was still over 15%—higher than in 2001. The aviation sector typifies these trends. In India, the combined market share of its top two airlines is larger than in other markets globally, far exceeding the share seen in the US, UK, China or Brazil. IndiGo and Air India, both privately owned, carried over 90% of air travellers last year. The US airline industry is also privately owned but its market has much more competition. While larger firms benefit from economies of scale and greater clout, extreme concentration can also stifle innovation and harm consumer interests. Indian policymakers have been on top of this challenge. The sector has been opened to fresh competition repeatedly, but the industry has shown high business mortality, with a long list of airlines declared bankrupt or close to it; Sahara, Jet Airways, SpiceJet, Kingfisher and Go First tell a sobering tale of a harsh market. Why has competition withered in this sector? Is market size the determining factor (America's air traffic is five times that of India), or are there policy or market failures? Cost and efficiency determine survival, but consumer choices matter. Notably, both Air India and IndiGo rank low in global service standards. The transition from a state monopoly to private oligopoly outlines a delicate balance. While India needs stronger regulation in critical sectors, the broader economic imperative often calls for less onerous regulation; theEconomic Survey highlighted calls for greater deregulation and for government to get 'out of the way." Coming to the third issue of specialization versus diversification, economic theory suggests that countries should specialize in industries where they have comparative advantage. We can illustrate this through Bollywood: If Shah Rukh Khan, an economics graduate, specialized in economics, he would have been a successful economist. But even if he were to become the world's best economist, his 'opportunity cost' of missing a career as an actor would be too high, given the low wages he would earn compared to his earnings from cinema. Even with an absolute advantage in economics, his comparative advantage would lie in cinema. Specialization versus diversification represents a distinct strategic choice from concentration versus competition. Firms can maintain high market concentration while remaining either specialized or diversified. The jury is certainly out on this. Global trends reveal fascinating patterns. While emerging-market conglomerates are increasingly diversifying, those in advanced economies, particularly the US, are moving towards specialization. Emerging-market giants like the Tata Group in India (spanning salt to aviation), Samsung in South Korea and Fosun in China have expanded their sectoral reach dramatically, often doubling or tripling their presence across industries. Conversely, developed-market leaders like General Electric, Siemens and Johnson & Johnson have undergone significant consolidation or strategic splits. Most now operate as publicly traded entities with focused business models. So what is the path forward? What does it imply for India's aviation landscape—a three-way combination of private ownership, extreme concentration and the diversified nature of controlling conglomerates? This combination makes the sector distinctive globally but also potentially vulnerable. The stakes couldn't be higher. Markets often face efficiency versus equity trade-offs. Beyond that, there are efficiency and public safety trade-offs, at least in perception. Ultimately, there are no concrete recipes for success. That said, these questions are pertinent. As India marches towards Viksit Bharat, we must find appropriate answers. Our aviation sector's future—and by extension our broader economic strategy—depends on getting many balances right. The Ahmedabad tragedy should serve as more than a moment of grief. It should catalyse the deeper structural reforms necessary for India's sustainable development. Only through such introspection can we build an economy that is both dynamic and safe, competitive and responsible. The authors are, respectively, operations director, Ashoka Isaac Center for Public Policy (ICPP); and professor of economics, and director of ICPP, Ashoka University. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Love Island USA: Why contestants stay out of pool while camera rolls?
Love Island USA: Why contestants stay out of pool while camera rolls?

Hindustan Times

time34 minutes ago

  • Hindustan Times

Love Island USA: Why contestants stay out of pool while camera rolls?

American tourists are facing a challenging summer as the U.S. dollar has dropped significantly, recording its worst first half in over 50 years. The dollar has fallen 13% against the euro and 6% against the yen, making overseas travel more expensive. Despite this, many travelers remain undeterred, planning international trips while U.S. multinational companies may benefit from cheaper exports.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store