Huawei: chip deliveries from Qualcomm allowed – with one problem

Last week there were already indications that the sanctions against Huawei could receive an important exception. As Reuters reported over the weekend, this has now been done, but still includes at least one important limitation.

Qualcomm has obtained a licence from the US government that allows the chip specialist to supply processors to Huawei. A Qualcomm spokeswoman told Reuters that they have been granted a licence to sell various products – some of which are 4G chips. There was no mention of chips with 5G technology, which are being used in more and more new smartphones or tablets.

The spokeswoman also did not specify exactly which 4G chips were involved. However, applications for further licenses are still pending, so Huawei's hope for Qualcomm's 5G solutions may not be completely buried yet.

Huawei: Still no 5G chips from Qualcomm

Reuters also spoke with Stacy Rasgon, an analyst with Bernstein. Rasgon said that the new license would have only a "limited impact" on Huawei because it only covers 4G chips. According to the analyst, it is still unclear whether Qualcomm will also receive a license from the US government to supply 5G-capable chips for smartphones.

Representatives of Huawei and the United States Department of Commerce did not want to comment on the report to Reuters.

Last September, Qualcomm and several other U.S. companies were forced to suspend deliveries to Huawei after sanctions against the Chinese company came into effect. In the meantime, Intel, as well as Qualcomm, is said to be allowed to supply Huawei again.

In recent weeks, there have also been reports that Huawei is busy taking chip production into its own hands.

Source: Reuters