Qualcomm Gets US Permission to Sell 4G Chips to Huawei in Exception to Ban

Qualcomm on Friday acquired a license from the US authorities to promote 4G cell phone chips to China’s Huawei Technologies, an exemption to US commerce restrictions imposed amid rising tensions with China.

“We received a license for a number of products, which includes some 4G products,” a Qualcomm spokeswoman informed Reuters.

Qualcomm and all different American semiconductor corporations have been compelled to cease promoting to the Chinese know-how agency in September after US commerce restrictions took impact.

The spokeswoman declined to touch upon the precise 4G merchandise Qualcomm can promote to Huawei however stated they have been associated to cell units. Qualcomm has different license functions pending with the US authorities, she stated.

In the previous Huawei was a comparatively small chip buyer for Qualcomm, which is the largest provider of cell phone chips. Huawei used its personal house-designed chips in its flagship handsets however used Qualcomm chips in lower-priced fashions.

Huawei’s potential to design its personal chips was thwarted in September by US commerce restrictions that blocked its entry to chip design software program and fabrication instruments. Industry analysts imagine Huawei’s stockpile of chips bought earlier than the ban might run out early subsequent 12 months, crippling its sensible cellphone enterprise.

Bernstein analyst Stacy Rasgon stated the Qualcomm license would have a “limited impact” as a result of it solely covers 4G chips whereas customers are shifting to newer 5G units. Rasgon stated it’s nonetheless unclear whether or not US officers will grant Qualcomm licenses for 5G sensible cellphone chips.

Representatives for Huawei and the US Department of Commerce, which grants the licenses, didn’t instantly return requests for remark.

Other US corporations reminiscent of Micron Technology have been additionally stopped from promoting to Huawei and have stated they’ve utilized for licenses. Intel has additionally stated it has a license to promote to Huawei.

© Thomson Reuters 2020

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