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SAN FRANCISCO: Qualcomm Inc received a license from the US government to sell 4G mobile phone chips to Huawei Technologies Co Ltd of China, an exemption from US trade restrictions imposed amid growing tensions with China.
“We received a license for several products, which includes some 4G products,” a Qualcomm spokeswoman told Reuters on Friday.
Qualcomm and all other US semiconductor companies were forced to stop selling to the Chinese technology company in September after US trade restrictions went into effect.
The spokeswoman declined to comment on the specific 4G products Qualcomm can sell to Huawei, but said they were related to mobile devices. Qualcomm has other license applications pending with the US government, it said.
In the past, Huawei was a relatively small chip customer for Qualcomm, which is the largest supplier of mobile phone chips. Huawei used its own house-designed chips in its flagship phones, but it used Qualcomm chips in lower-priced models.
Huawei’s potential to design its own chips was thwarted in September by US trade restrictions that blocked its access to chip design software and manufacturing tools. Industry analysts believe that chip stocks bought by Huawei before the ban could expire early next year, crippling its smartphone business.
Bernstein analyst Stacy Rasgon said Qualcomm’s license would have a “limited impact” because it only covers 4G chips, while consumers are switching to newer 5G devices. Rasgon said that it is not yet clear whether US officials will grant Qualcomm licenses for 5G smartphone chips.
Representatives for Huawei and the U.S. Department of Commerce, which licenses the licenses, did not immediately respond to requests for comment.
Other US companies such as Micron Technology Inc were also prevented from selling to Huawei and have said they have applied for licenses. Intel Corp has also said that it has a license to sell to Huawei. – Reuters
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