Thursday, November 23, 2017

Qualcomm, Foxconn, Apple, China Telecom drive Chinese province’s data economy to ¥25bn

Data centre builds by Huawei, Apple, China Telecom, China Mobile and China Unicom also responsible for economic growth.

Data businesses in the Guian New Area, Guizhou province, have led the region to double down year-on-year on its data market which in 2016 was worth ¥25bn ($3.6bn).

The Guian New Area is a national-level economic zone launched three years ago located between Guiyang and Anshun, in the Southwestern Chinese province.

Location of the Guizhou province (dark blue).

Location of the Guizhou province (dark blue).

The area was created by Beijing as a pilot zone for developing the country’s data industry and comprises 1,795km2 of land covering 20 towns or townships of four counties in the two cities. It is one of the five new areas developed under China’s Western Development Program and the eighth national-level new area in China.

One of the largest industries in the newly created area is technology and big data businesses have been responsible for driving the economy’s growth.

Within the ¥25bn, ¥11.07bn correspond to total production capacity., fuelled by big data businesses.

Projects that have contributed to the area’s growth include industrial parks built by Foxconn Technology Group and Shenzhen Same Information Industry Co, with more projects to be completed soon.

In 2016, Foxconn produced ¥6.4m worth of handsets, 5.83 million video game controllers, and 180,000 Nano touch screens, representing a combined business value of more than ¥1bn, or combined end value worth ¥8.9bn.

Also last year, Qualcomm created a joint venture with the Guizhou government to develop advanced chipsets for servers. The JV, Guizhou Huaxintong Semiconductor Technology, has set up its headquarters in Guian New Area.

China’s top three telecom operators – China Telecom, China Mobile, and China Unicom, have all completed construction of the first phase of their data centres, and have put them into operation. The second phase of the projects by China Telecom and China Unicom will launch soon.

Tech firms including HTC, Sowei, Inspur have also launched their projects in Guian New Area, while more projects are in the pipeline, including Huawei’s global data centre and Apple’s Asia Pacific data centre.