Huawei will spend $15 to $20 billion on R&D in 2018, up from $13 billion last year

26 July 2018

In 2017 Huawei spent $13.23 billion on Research & Development, 14.9% of its revenue. That made it one of the biggest spenders on R&D behind the likes of Amazon ($22.6B) and Alphabet ($16.6B). A huge portion of the company’s workforce – 45% – is dedicated to research.

Going forward it will put even more into R&D – Huawei has pledged to spend between $15 and $20 billion. Of that, 20% to 30% will go to basic science research (even though the original expectation was for 10%).

Beijing Research Center Inside the Shanghai Research Center
Beijing Research Center • Shanghai Research Center

Huawei believes it owns 10% of the essential patents for 5G (set to go big in 2020). It will license it under Fair And Reasonable (FRAND) rates. 5G will be a global push, but some governments (the US, the UK and Australia) have raised security concerns about using Huawei equipment.