China: Huawei Technologies has agreed to a multi-year patent licensing deal with Qualcomm covering artificial intelligence, 5G, computing and networking technologies, the Chinese technology company said on Monday.
The agreement includes Qualcomm’s purchase of certain Huawei US patents related to computing, AI and networking. Huawei said the deal is its first patent licensing agreement with Qualcomm to include 5G technology.
What does the Huawei-Qualcomm patent deal include?
The agreement covers a broad range of technologies and is expected to increase the total value of Huawei’s patent licensing agreements to more than $6.9 billion once completed.
Huawei said its intellectual property licensing business has generated positive revenue since 2021, reflecting years of investment in research and development.
The company has significantly increased its R&D spending in recent years as US trade restrictions have limited its access to advanced chips and key software.
Why is the Qualcomm agreement important for Huawei?
The deal expands Huawei’s licensing relationships in key technology sectors and follows a separate multi-year Wi-Fi patent agreement with US computer maker HP announced in August.
Huawei said its relationship with Qualcomm dates back to 2001, when it made its first licensing payment to the US chipmaker. The Chinese company received its first licensing income in 2011 from Motorola.
The latest agreement comes as Huawei continues to expand its intellectual property business amid ongoing US-China technology restrictions and efforts to strengthen domestic technology capabilities.