Huawei to Offer AI Support to Chinese Aviation, Steel Conglomerate Fangda

The deal between Huawei and Fangda comes as the Shenzhen-based technology giant is deepening its footprint in traditional industries

 

[ABS News Service/14.01.2025]

Chinese telecommunications gear giant Huawei Technologies will work with the steel and aviation industries to drive the use of digital and artificial intelligence (AI) technologies through a deal with industrial conglomerate Fangda Group Industrial.

Huawei signed strategic partnership deals on Friday with Hainan Airlines Holding and Fangda Special Steel Technology, both owned by Fangda Group. The collaboration focuses on smart transformation, trial applications of AI large language models (LLM), the low-altitude economy and other areas, according to a statement issued by the conglomerate, whose business interests also cover the carbon, healthcare and commerce sectors.

The deal between Huawei and Fangda comes as the Shenzhen-based technology giant is deepening its footprint in traditional industries to empower China’s conventional businesses with its AI and communication technologies.

Fangda chairman Fang Wei said the company hoped to further expand its collaboration with Huawei into its pharmaceutical business, based on the “long-term and in-depth cooperation” in aviation and steel, according to the statement published on Sunday.

While the aviation and steel segments under Fangda are very different industries, they both have the foundational need to develop AI and big data technologies, Huawei’s cloud chief Zhang Pingan was quoted as saying in the statement.

Privately held Huawei did not immediately respond to a request for comment on Monday.

According to a separate statement by Fangda Special Steel, the company will work with Huawei to build a steel industry model and tackle the challenges of applying LLMs in the industry.

The partnership will “promote the deep integration of digital technology with the firm’s core steel business operations”, and boost the company’s digitisation level and competitiveness in the market, Fangda Special Steel also said.

The new partnerships formed by Huawei, the world’s largest telecoms equipment supplier and one of China’s major smartphone vendors, came amid the company’s ongoing efforts to diversify its business into traditional industries by applying technologies such as cloud computing and AI.

Last year, Huawei struck a partnership with Sichuan Zigong Conveying Machine Group to expand the adoption of AI in heavy industries such as mining, bulk material transport and equipment manufacturing.

The company also deepened its integration with the auto industry by establishing Yinwang, a smart car joint venture focused on autonomous driving, the digital cockpit, auto lighting and vehicle control systems.

Huawei has been diversifying into new industries in China after US sanctions decimated its once-lucrative smartphone business. Barred from accessing US-origin technologies, the tech giant has stepped up efforts to reduce reliance on both foreign software and hardware, and is rebuilding its consumer business around the Mate 70 series smartphones with China-made processors.

Huawei’s rotating chairwoman Meng Wanzhou lauded the company’s triumphs in a new year message, highlighting breakthroughs in areas of heat dissipation, power supplies, high-speed transmission systems and chip reliability. Huawei operates a dozen research and development laboratories, where it works with partners to design semiconductors used for training AI models, including high-bandwidth memory chips.