Huawei to sell server business following US sanctions - report

The Chinese technology giant is reportedly looking to downsize due to US sanctions denying it access to components

Huawei Technologies is in advanced talks to offload its x86 server business after running into difficulty in securing processors from Intel Corp due to US sanctions.

The Shenzhen-HQ powerhouse is selling the server business to a consortium that includes at least one government-backed buyer, according to reports from Bloomberg, citing sources familiar with the matter.

The American news outlet named further potential buyers, including Zhengzhou-based Henan Information Industry Investment, a partner of Huawei's server business, and consumer electronics maker Huaqin Technology.

It added a value for the deal has not been revealed, but is thought to be worth billions of yuan, according to sources.

The Chinese technology giant has tapered off IDC's Worldwide Quarterly Server Tracker in recent quarters, failing to make the top five global market-share revenue leaders.

The company also saw revenues fall for a fourth consecutive quarter in Q3 2021 as its overseas smartphone and telecom-equipment businesses continued to wrestle with US blacklisting, reports Bloomberg.

Revenues slumped 38 per cent to CNY 135.4bn (€18.3bn) in the three months ended in September.

Huawei has been contacted for comment.