Huawei Said to Sell Key Server Division Due to U.S. Blacklisting
- Firm backed by government will likely participate in takeover
- Chinese tech giant couldn’t buy x86 chips because of sanctions
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Huawei Technologies Co. is in advanced talks to sell its x86 server business after the U.S. blacklisting of the company made it difficult to secure processors from Intel Corp., the latest blow to the Chinese technology giant from American sanctions, according to people familiar with the matter.
The Shenzhen-based company is selling the server business to a consortium that includes at least one government-backed buyer, the people said, asking not to be identified because the negotiations aren’t public. The precise value of the deal couldn’t be learned, but it’s likely billions of yuan, they said.