Huawei and Qualcomm have formalized a long-term pact focused on cross-licensing of technologies across various areas, including artificial intelligence, computing, networks, and 5G. Furthermore, the agreement includes the acquisition of certain Huawei assets by the American company in the United States.
For Huawei, this arrangement signifies the recognition of its intellectual property, which is the result of years dedicated to research and development. The deal establishes reciprocal licenses between the catalogs of both corporations, with Qualcomm also acquiring Huawei assets in the US related to computing, networks, and AI.
This is the first agreement between the two companies that encompasses 5G technologies. Both parties stated that the negotiation will be conducted under FRAND principles, which mean fair, reasonable, and non-discriminatory licensing practices. The exact values and specific duration of the agreement were not disclosed.
Statements on the Agreement
Alan Fan, Huawei's Director of Intellectual Property, emphasized the recognition of both companies' contributions to the sector. He stated that the agreement 'not only demonstrates the value of Huawei's innovations but also recognizes Qualcomm's fundamental contributions to modern communication technologies.'
John Han, Executive Vice President and General Manager of Qualcomm Technology Licensing, highlighted Qualcomm's role in advancing wireless communication technologies. He commented that 'this agreement reaffirms the industry's recognition of Qualcomm's technological leadership in 5G and the success of its essential 5G patent licensing program.'
With the finalization of this operation, Huawei projects that the total amount of its intellectual property licensing contracts will exceed US$ 6.9 billion (approximately R$ 36 billion). The company reports that this activity has generated positive revenue since 2021, a result achieved after long periods of investment in R&D, which gained relevance due to trade restrictions imposed by the United States.
The restrictive measures in place since 2019 have limited Huawei's ability to obtain advanced chips and crucial software. In this context, the commercial exploitation of its intellectual property has become a source of income for the company. The agreement also aligns with Huawei's goals of strengthening its presence in the semiconductor segment, aiming to expand its portfolio and reduce the gap with TSMC, located in Taiwan.
Among the central aspects of the negotiation, it is noteworthy that the completion of the process remains dependent on the necessary regulatory approvals.