SAN FRANCISCO (US) – In what is seen as an exception to US trade curbs imposed in the wake of worsening ties with China, Qualcomm Inc secured the licence from the US government on Friday to sell 4G mobile phone chips to Huawei Technologies Co Ltd of China.
“We received a license for a number of products, which includes some 4G products,” a company spokesperson said.
After the curbs came into effect in September, all US semiconductor firms such as Qualcomm had to stop selling products to the Chinese firm.
Although the exact nature of products the firm can sell to Huawei is not known, the spokesperson said they were related to mobile handsets. Qualcomm has other licences pending with the government.
Earlier, the Chinese company was just a small chip customer for Qualcomm, the biggest supplier so far. Huawei made use of its in-house developed chips in its flagship devices. But it used Qualcomm chips in lower-priced models.
Washington’s trade embargo on Huawei scuttled its potential to design its own chips as access to chip design software and fabrication tools was blocked. According to analysts, Huawei’s stockpile of chips bought before the ban could be exhausted early next year.
According to Bernstein analyst Stacy Rasgon, the licence secured by Qualcomm would have only a limited impact as it covers just 4G chips. On the other hand, customers are shifting to newer 5G devices. It remains to be seen if the government gives Qualcomm licences for 5G smartphone chips.
