Qualcomm and Huawei agree to multi-year patent deal

Qualcomm and Huawei have entered into a multi-year patent licensing agreement covering 5G, artificial intelligence, computing, and networking technologies. This marks the first licensing agreement between the two companies that includes 5G technology.

As part of the deal, Qualcomm will also purchase certain US-based patents from Huawei in the fields of computing, AI, and networking. The agreement remains subject to regulatory approvals. While the specific financial terms of the Qualcomm deal were not disclosed, Huawei’s total expected value from all its patent licensing agreements is projected to exceed $6.9 billion.

The partnership comes as Qualcomm seeks to diversify its semiconductor business beyond smartphones into automotive and data center applications. For Huawei, the licensing revenue follows significant long-term investments in research and development, which increased following US trade restrictions in 2019.