Chinese tech giant Huawei Technologies is set to build a new research and development center in the UK. According to local media reports, the UK is expected to issue Huawei planning permission for its proposed 400 million-pound ($494 million) new facility.
The same reports claim that the new research and development center will mainly be used to develop new chips that will be used in network technologies such as 5G. The facility will be located just 11 kilometers from Cambridge and right in the heart of the UK's Silicon Fen area. Huawei's new facility will be in close proximity to several other prominent high-tech businesses, including those that deal with advanced technologies such as biotech, electronics, and software.
The South Cambridgeshire District Council is expected to issue Huawei permission to begin construction of its new facility sometime this week after having met to discuss the company's proposed first-phase plans. The expected approval comes just months after the UK had decided to ignore the US' call to ban Huawei from the development of its 5G infrastructure.
In January, British authorities had decided to continue allowing Huawei to do business in the country and to let it help in the development of the country's 5G rollout. However, the UK had placed a few restrictions, including banning Huawei from supply highly-sensitive components.
The issue of Huawei's involvement in the UK's 5G infrastructure development once again became an issue last month after British Prime Minister Boris Johnson announced plans of phasing out Huawei by 2023. Huawei responded by submitting an open letter to the British Public, which it had published on June 8. The company called on the government to reconsider its decision given its continued commitment to only supply the best equipment to UK mobile and fiber broadband providers.
In the letter, Huawei noted that it had been supplying UK broadband and mobile network providers for close to 20 years already and it has been supporting the country throughout its 3G and 4G development eras. Huawei explained that it is willing to play the same vital role in helping the country move into the 5G era. Huawei Vice-President Victor Zhang stated that the company remains to be a privately owned business that I committed to helping build a better connected UK.
In a separate interview, Zhang warned that the UK economy could stand to lose billions of pounds in lost growth if it were to remove Huawei's equipment from its existing telecommunications network. He claims that this will be detrimental to the country's economic recovery, particularly after it had been battered by the recent coronavirus pandemic.
