Huawei Technologies (Ireland), the Irish subsidiary of the Chinese multinational that has been the focus of national security concerns internationally, saw a drop in turnover last year, new accounts show.
Turnover dropped to €176.6 million, from €195.7 million in 2022, according to the accounts, which say the company is “continuing to develop Ireland’s 5G network infrastructure”. Pretax profits in 2023 were €7.6 million.
Turnover in 2022 was a substantial jump on turnover in 2021 (€132 million) but the trend changed during 2023. The review of principal risks and uncertainties facing the group in the accounts does not mention geopolitical tensions.
Last year the Government introduced the Communications Regulation and Digital Hub Development Agency (Amendment) Act 2023 which includes national security measures recommended by the National Cyber Security Centre. The Chinese ambassador to Ireland, He Xiangdong, publicly criticised the legislation as it was passing through the Oireachtas.
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The move came as a number of European Union (EU) countries introduced laws enabling their governments to restrict access to their 5G network by companies deemed to be a national security risk.
In the UK, the government opted to remove Huawei equipment from the core 5G network and in the US the Government has banned products by Huawei and other Chinese telecoms companies.
Ireland accounted for €98.8 million of the turnover of Huawei Technologies (Ireland) in 2023, the accounts show, with the rest of Europe accounting for €41 million, and the rest of the world €38.5 million. The previous year had a similar spread of turnover.
The company “has helped to build Ireland’s digital infrastructure through fibre broadband networks, 4G networks and the company is continuing to develop Ireland’s 5G network infrastructure,” according to the accounts.
The principal activities of the company during 2023 were “the provision of telecommunications equipment and services to the Irish carrier network and enterprise market,” they say.
The IDA-supported company received government grants of €2 million, according to the accounts. In 2022, Huawei announced it was establishing its first European cloud hub in Ireland.
It has research links with Trinity College Dublin, Dublin City University, University College Dublin, University College Cork, and University of Limerick, and also works with Science Foundation Ireland.
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