Huawei Reconsiders Future of Its New French Factory Amid Europe’s Tougher Stance

Huawei is reassessing the future of its newly completed manufacturing plant in eastern France as slow 5G deployment and growing restrictions on Chinese telecom equipment reshape its European plans. The €200 million facility near Strasbourg, finished in September, remains unused, with officials and executives suggesting the company is undecided about proceeding. The plant was meant to produce wireless base-station equipment and create up to 500 jobs, marking Huawei’s first manufacturing site in Europe.

Europe’s political climate has shifted significantly since the project was announced, with several governments toughening their stance on Chinese technology. Germany recently moved to ban Chinese components from future 6G networks, while broader EU measures aim to phase out Chinese telecom equipment. These developments, combined with sluggish 5G uptake, have placed Huawei in a difficult strategic position. Local authorities also cancelled a previously agreed €800,000 subsidy due to persistent uncertainty around the project’s future.

Sources say Huawei is considering “all options,” including selling the 52,000-square-metre site, with industrial groups already touring the facility. Security concerns and policy shifts have slowed the company’s ambitions in Europe despite its 35–40% market share in 4G and 5G equipment. While its European prospects dim, Huawei is experiencing strong growth in other sectors such as smartphones and smart-driving technology, prompting analysts to suggest the company may redirect resources where demand is rising fastest.

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