Home » Business » How US maker sells new Chips to China’s Huawei
huawei

How US maker sells new Chips to China’s Huawei

Huawei: Qualcomm Inc has announced Friday it  received a license from the U.S. government to sell 4G mobile phone chips to China’s Huawei Technologies Co Ltd.

Advertisement

The company said this represents an exemption to U.S. trade restrictions imposed amid rising tensions with China.

“We received a license for a number of products, which includes some 4G products,” a Qualcomm spokeswoman told Reuters.

Reports have it that Qualcomm and all other American semiconductor companies were forced to stop selling to the Chinese technology firm in September after U.S. trade restrictions took effect.

The spokeswoman said they were related to mobile devices. Qualcomm has other license applications pending with the U.S. government, she said.

In the past Huawei was a relatively small chip customer for Qualcomm, which is the biggest supplier of mobile phone chips. Huawei used its own house-designed chips in its flagship handsets but used Qualcomm chips in lower-priced models.

See also: US blacklists 38 Huawei affiliates

Huawei’s potential to design its own chips was thwarted in September by U.S. trade restrictions that blocked its access to chip design software and fabrication tools. Industry analysts believe Huawei’s stockpile of chips purchased before the ban could run out early next year, crippling its smartphone business.

Bernstein analyst Stacy Rasgon said the Qualcomm license would have a “limited impact” because it covers only 4G chips while consumers are shifting to newer 5G devices. Rasgon said it is still unclear whether U.S. officials will grant Qualcomm licenses for 5G smartphone chips.

Representatives for Huawei and the U.S. Department of Commerce, which grants the licenses, declined to comment.

READ ALSO  Aid Doesn’t Solve Economic Problems, Nigeria’s Entrepreneurs Key to Africa’s Prosperity - U.S. Consul General Pierangelo

Other U.S. companies such as Micron Technology Inc were also stopped from selling to Huawei and have said they have applied for licenses. Intel Corp has also said it has a license to sell to Huawei.

huawei
Huawei’s consumer business chief Richard Yu has also confirmed it has developed an alternative to Android

Share This:

Leave a Reply

Your email address will not be published. Required fields are marked *

*

x

Check Also

Treepz

Treepz acquires Ugabus, seals new $2.8m funding

Treepz says its acquisition of a ...

china

New report says China overtakes US in global wealth race

China has overtaken the US as ...

Innovectives

Innovectives to empower 1 million SMEs in 5-year plan

Innovectives has launched a 5-year mandate ...

Konga, Access Bank announce 30-day free delivery of essential food

Konga and Access Bank Plc. are ...

Chinese new program to promote Mandarin in Nigeria

Chinese company has launched a new ...

Skip to toolbar