Huawei to build ecosystem for server chips

Huawei Technologies Co Ltd said on Tuesday it plans to invest 3 billion yuan ($436 million) over the next five years to build an ecosystem for its ARM-based server chips as the Chinese company beefs up its prowess in semiconductors.

Xu Zhijun, the rotating chairman of Huawei, said the investment will be used to bolster its leading IT infrastructure and encourage applications based on its Kunpeng processors for all industries by teaming up with a wide range of partners.

Huawei's ARM-based central processing unit, called the Kunpeng 920, was unveiled in January. It is designed to meet the exponentially growing demand for bigger computing capabilities while slashing power consumption.