Huawei and Qualcomm have signed a broad, multiyear patent license agreement covering 5G, compute, artificial intelligence and networking technologies — a landmark deal that sees the US chip giant buying some of Huawei's American patents even as Washington's sanctions against the Chinese company continue.
What the deal covers
The agreement includes cross-licenses to the companies' patent portfolios across 5G, compute, AI and networking, together with Qualcomm's purchase of certain Huawei US patents in the areas of compute, AI, networking and other technologies, the companies announced on Monday. The transaction will close following receipt of the necessary regulatory approvals, and the financial terms were not disclosed.
The deal is historic for Huawei on two counts: it marks Huawei's first patent-licensing agreement with Qualcomm covering 5G technology, and the first agreement under which Huawei licenses and assigns patents in compute, AI and networking technologies to the US chip designer. Huawei said its expected contract value from patent licensing agreements so far has now exceeded $6.9 billion.
Huawei's patent power despite sanctions
The deal comes weeks after Huawei reached a cross-licensing agreement with HP covering patents used in Wi-Fi technology, and shows that the Chinese company remains a top patent holder in the information and communications technology field despite years of US sanctions that limited its access to advanced semiconductors. Huawei has ramped up R&D spending in recent years, as US trade restrictions since 2019 have limited its ability to buy advanced chips and crucial software.
Separately, Bloomberg reported that Qualcomm also agreed to license patents underpinning Huawei's novel LogicFolding chipmaking technique — a breakthrough architecture that boosts semiconductor performance by improving data transmission speeds, helping Huawei narrow the gap with industry leaders such as TSMC despite its lack of access to ASML's extreme ultraviolet lithography machines.
What the companies said
"This agreement not only demonstrates the value of Huawei's innovations, but also recognizes Qualcomm's foundational contributions to modern communication technologies." — Alan Fan, Huawei's Chief Intellectual Property Officer
"This agreement reaffirms industry recognition of Qualcomm's 5G technology leadership and the success of Qualcomm's 5G SEP licensing program." — John Han, Executive Vice President and General Manager of Qualcomm Technology Licensing
Both companies said the agreement reflects a shared commitment to intellectual property rights and licensing practices consistent with fair, reasonable and non-discriminatory (FRAND) principles.
A two-decade patent relationship
Huawei and Qualcomm have entered multiple agreements over the years, with the first one signed more than two decades ago. Huawei's first intellectual-property licensing payment was to Qualcomm in 2001, and its first IP licensing revenue was from Motorola in 2011. The company says its intellectual property licensing business has generated positive revenue since 2021, reflecting years of heavy investment in research and development.
Takeaway
A sanctioned Chinese giant licensing 5G and AI patents to America's leading chip designer — with patents flowing in both directions — is one of the clearest signs yet that in the patent wars, technological leverage matters more than geopolitics. The deal is a major validation of Huawei's R&D engine, and a reminder that the AI and 5G patent battles are far from over.
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