Reuters just reported that HUAWEI’s US research and development arm, Futurewei Technologies, separated its operations from its corporate parent after the HUAWEI Trump ban kicked in.
Here is a look at what happened, and why Futurewei cut ties with HUAWEI.
What Is Futurewei?
Futurewei Technologies is HUAWEI’s US-based research and development company.
With offices in Silicon Valley, Seattle, Chicago and Dallas, it employs hundreds of people, and has deep ties with US universities.
Thanks to its research partnerships and grant programs with at least 50 US universities, Futurewei now has over 2,100 patents in telecommunications, 5G, video and camera technologies.
What Did Futurewei Do?
After HUAWEI and its 68 global affiliates were placed on the US Entity List, Futurewei moved to separate its operations from HUAWEI :
- banning HUAWEI employees from its officers
- moved Futurewei employees to a new IT system
- forbidden Futurewei employees from using the HUAWEI name or logo in communications
However, Futurewei remains a fully-owned subsidiary of HUAWEI Technologies.
Recommended : The HUAWEI Trump Ban – Everything You Need To Know!
Why Did Futurewei Cut Ties With HUAWEI?
There are a few reasons why Futurewei cut ties with its own parent company, HUAWEI :
- As a US company, it is forbidden by the HUAWEI Trump ban to export technology to its own parent company. So there is no longer an advantage to maintain official ties.
- Most importantly, it helps Futurewei maintain research partnerships with US universities.
The University of California-Berkeley suspended funding, but allows its researchers to continue working with Futurewei employees who are US citizens or legal permanent residents.
Stanford “paused” new funding agreements with Futurewei in December 2018, but continues to work with Futurewei under existing research agreements.
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