The most important part is for Huawei to protect its core business, the telecom. Few days ago, I suggested Huawei should split HiSilicon. Actually even before the embargo, I already thought that maybe it is better to let go of HiSilicon. HiSilicon has the potential to be the qualcomm of China. Under Huawei, it refused to sell chips to other Chinese companies, probably partly due to not wanting to provoke the US, partly not wanting to let the competitors to have its chips. I think that is stifling HiSilicon potential to grow. Now with the embargo, I double down on the call for the splitting HiSilicon from Huawei. I could see why Huawei want to keep HiSilicon. It probably want to use it as vehicle to do R&D on chip making, but this is long term project. Huawei could do it by setting up new division. Meanwhile, HiSilicon has amazing chips that it can't make and sell. I think it is a loss for HiSilicon, for its employees, and for China. HiSilicon will also have trouble retaining its brightest talents if they can't make profit.

Btw, Huawei plan to sell its server business. I wonder if it will affect Huawei cloud business.