Qualcomm Inc on Friday obtained a license from the U.S. authorities to promote 4G cell phone chips to China’s Huawei Applied sciences Co Ltd, an exemption to U.S. commerce restrictions imposed amid rising tensions with China.
“We obtained a license for a variety of merchandise, which incorporates some 4G merchandise,” a Qualcomm spokeswoman instructed Reuters.
Qualcomm and all different American semiconductor corporations had been pressured to cease promoting to the Chinese language expertise agency in September after U.S. commerce restrictions took impact.
The spokeswoman declined to touch upon the particular 4G merchandise Qualcomm can promote to Huawei however mentioned they had been associated to cellular gadgets. Qualcomm has different license functions pending with the U.S. authorities, she mentioned.
In the previous Huawei was a comparatively small chip buyer for Qualcomm, which is the most important 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 U.S. commerce restrictions that blocked its entry to chip design software program and fabrication instruments. Trade analysts imagine Huawei’s stockpile of chips bought earlier than the ban might run out early subsequent yr, crippling its good telephone enterprise.
Bernstein analyst Stacy Rasgon mentioned the Qualcomm license would have a “restricted influence” as a result of it solely covers 4G chips whereas shoppers are shifting to newer 5G gadgets. Rasgon mentioned it’s nonetheless unclear whether or not U.S. officers will grant Qualcomm licenses for 5G good telephone chips.
Representatives for Huawei and the U.S. Division of Commerce, which grants the licenses, didn’t instantly return requests for remark.
Different U.S. corporations equivalent to Micron Know-how Inc had been additionally stopped from promoting to Huawei and have mentioned they’ve utilized for licenses. Intel Corp has additionally mentioned it has a license to promote to Huawei.