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Huawei Chip Deal: Who's Got It?

Light Reading
News Analysis
Light Reading
4/28/2003

Back in February, officials at Silicon Access Networks Inc. crowed about a design win inside a core router for Huawei Technologies Co. Ltd., with further wins to follow. Now, competitors are saying that the startup is just one of a handful competing for the business and that a signed design win is more hope than reality -- accusations that Silicon Access denies.

One competitor, requesting anonymity, told Light Reading that Huawei was as surprised as anyone to see the contract win announced and that Huawei assured them a final decision had not been made (see Silicon Access Nabs Huawei).

"We were actually in China meeting with them at the time of the press release. We asked them what's going on, they were, like, 'No, we haven't made a decision yet!' " the competitor says. "I know Huawei is intrigued with this product and they may use it, but at the time of the announcement it was hardly a done deal."

Silicon Access officials stand by their story. Chief operating officer Rex Naden wouldn't elaborate much, citing Huawei's reluctance to publicly disclose its plans, but he says Silicon Access "absolutely" has a signed contract with Huawei, with revenues on the way.

"What I can say is that we have an extremely deep and long-lasting relationship with Huawei, and it's gotten a lot deeper since we last talked to you. Nothing's changed," Naden says.

Naden theorizes the rumor's being spread by less successful competitors trying to save face. "Clearly there are some competitors that are really scared. I can't blame them."

At press time, Light Reading was unable to reach Huawei for comment.

Competitors concede that Silicon Access could still win the contract, but they remain adamant that Huawei hasn't made its choice yet.

This much appears certain: Huawei would like to use an off-the-shelf network processor and traffic manager for an upcoming core router with 10-Gbit/s ports. A switch fabric might be part of the deal, too; sources say Huawei hasn't committed on whether to use its own fabric.

Huawei had settled on the PowerNP network processor from IBM Corp. (NYSE: IBM). But IBM reportedly has pulled development of that product, choosing instead to design network processors from its PowerPC chips.

The Huawei win might be more symbolic than substantive, in any event. It's unclear what volumes would come of Huawei's 10-Gbit/s box. Moreover, Huawei aggressively squeezes down prices, limiting the profits for its vendors. "They do lead with price on every conversation," the Silicon Access competitor says. "It's like a broken record."

Naden also declined to comment on Silicon Access's headcount, saying the figure is still the same as it was in February. But, like every telecom-related company, Silicon Access has had to make cuts. In 2000, when engineering talent was hard to come by, officials boasted of having a staff of more than 200 and a maelstrom of unsolicited resumés still pouring in.

At least 150 of the staff were cut last year, according to analyst firm The Linley Group, and the company removed a switch-fabric chipset from its roadmap. But the company had enough support to raise $39 million a year ago, bringing its funding total to an estimated $124 million (see Silicon Access Closes $56m 3rd Round and Silicon Access Raises $39M). — Craig Matsumoto, Senior Editor, Light Reading

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wolfmanmaster
wolfmanmaster
12/5/2012 | 12:09:27 AM
re: Huawei Chip Deal: Who's Got It?
HuaWei has made a deal with Intel and QQ Technology. HuaWei is going to use a cluster of 4 IXP2400 glued together by QQT's SWI chip. Intel and QQT are jointly developing the firmware for this configuration.

The contract was signed more than a month ago.

WM
dljvjbsl
dljvjbsl
12/5/2012 | 12:09:24 AM
re: Huawei Chip Deal: Who's Got It?

What operating system does Huawei use?


What possible difference could that make? A more important question would revolve around the types of power supplies that they use.
edgecore
edgecore
12/5/2012 | 12:09:24 AM
re: Huawei Chip Deal: Who's Got It?

What operating system does Huawei use?
edgecore
edgecore
12/5/2012 | 12:09:22 AM
re: Huawei Chip Deal: Who's Got It?

?

It makes a huge differences when you look at the sw that Intel has to deliver to Huawei for the IXP2400...a lot of it is target OS specific..
tekweeny
tekweeny
12/5/2012 | 12:09:16 AM
re: Huawei Chip Deal: Who's Got It?
What operating system does Huawei use?


You haven't heard from all the articles? It's IOS, bugs and all!
RoutedWorld
RoutedWorld
12/5/2012 | 12:08:54 AM
re: Huawei Chip Deal: Who's Got It?

> HuaWei has made a deal with Intel and QQ
> Technology.

Great information. This will make it much easier for Cisco and HuaWei to share code now since both are probably using the IXP2400 and IXP2800. :)

I'm sure both companies use more then just one solution to build systems (AMCC/MMC, Boadcom, Marvell,...).

> The contract was signed more than a month ago.

Contract signed? No decision has been made? This smells like a bunch of Marketing VP's that don't have anything to do. I love to read this crap as much as the next person but this sounds like pure bashing to me.
huaweisneighbor
huaweisneighbor
12/5/2012 | 12:06:40 AM
re: Huawei Chip Deal: Who's Got It?
I don't think Huawei is going to use any of them. Huawei just keeps them around so Huawei has enough time and information to "Huawei" them.

HN
issey
issey
12/4/2012 | 11:18:40 PM
re: Huawei Chip Deal: Who's Got It?
http://www.lightreading.com/do...
mdwdm
mdwdm
12/4/2012 | 11:18:39 PM
re: Huawei Chip Deal: Who's Got It?
Well,
That Intermittent Operating System of cisco's
is still worth $100 Billions.


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