Huawei completes US$1.4 billion campus in Shanghai 'with 100 cafes' to lure foreign talent

Huawei Technologies has completed construction of its 10-billion-yuan (US$1.4 billion) research and development (R&D) centre in Shanghai, where company founder and chief executive Ren Zhengfei expected foreign scientists to be attracted by perks such as the more than 100 cafes on campus.

Located in Jinze, a town in Shanghai's Qingpu district, Huawei gave its new campus the name Lianqiu Lake R&D Centre by last Tuesday, according to an announcement on the municipal government's website that cited official media Jiefang Daily.

The campus comprises eight blocks and 104 buildings - making up a complex of laboratories, offices and leisure areas - connected via an internal railway system.

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While some bridge construction and greening projects are still being finalised, the development of signage, district roads and train service for the Lianqiu Lake campus had been completed, the Jiefang Daily reported last Thursday.

Huawei did not immediately respond to a request for comment on Monday.

Around 30,000 R&D personnel are expected to move into Huawei's new Shanghai campus to work on semiconductors, wireless networks and the Internet of Things, Qingpu district head Yang Xiaojing said at a government press conference in January.

Covering an area of 160 hectares, Huawei's Lianqiu Lake campus will serve as its global R&D hub and start operations this year, according to previous announcements by the local government.

"[We aim to] create an atmosphere suitable for foreign scientists to work and live in," Ren told employees in an internal meeting in 2021, which was later made public by Huawei.

He had envisioned perks like the more than 100 cafes on campus to attract young talent from overseas.

An aerial view of Huawei Technologies' Lianqiu Lake research and development centre in Shanghai on June 1, 2024. Photo: CFOTO/Future Publishing via Getty Images alt=An aerial view of Huawei Technologies' Lianqiu Lake research and development centre in Shanghai on June 1, 2024. Photo: CFOTO/Future Publishing via Getty Images>

US-blacklisted Huawei's domestic R&D infrastructure expansion shows the lengths that the Shenzhen-based company is taking to overcome stifling tech sanctions imposed by Washington.

US restrictions imposed in October 2022, however, put American executives at targeted Chinese chip companies in a precarious situation since Washington banned "US persons" from supporting those businesses.

While the US Department of Commerce does not mention employment, the rules "restrict the ability of US persons to support the development or production" of chips at "certain China-located semiconductor fabrication 'facilities' without a licence".

Privately-held Huawei made a surprise comeback in the 5G smartphone market last August, when it released a handset powered by a 7-nanometre processor - a breakthrough that was lauded on the mainland, but sparked intense scrutiny from Washington in light of existing tech access restrictions.

Last year, Huawei invested 23 per cent of its total revenue - or 164.7 billion yuan - in various R&D initiatives, according to the company's annual report. Around 114,000 employees, or 55 per cent of Huawei's workforce, are involved in R&D activities.

The Biden administration, however, has revoked eight licences this year that enabled some US companies to ship goods to Huawei, the world's largest telecommunications network equipment vendor, according to a Reuters report earlier this month.

Still, Huawei expects to break the dominance of Western mobile operating systems in mainland China when it releases HarmonyOS Next, which will end support for Android apps. In the first quarter, Huawei beat Samsung Electronics to become the world's bestselling foldable smartphone brand.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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