Qualcomm licenses Huawei patents in landmark 5G and LogicFolding chip deal

What is in the Qualcomm and Huawei patent deal?

Huawei and Qualcomm have struck a broad, multi-year patent cross-licensing agreement that covers 5G, artificial intelligence, and mobile computing technologies.

The deal is a significant milestone for both companies. It is Huawei's first patent agreement with Qualcomm to cover 5G standards, and includes licenses for Huawei's "LogicFolding" chip technology. Under the terms of the agreement, US-based Qualcomm will also buy a selection of Huawei's US patents covering computing, AI, and networking. The transaction is subject to regulatory approval before it can close.

Why is this deal significant for Huawei?

Once finalised, Huawei expects the deal to push the total value of its active patent licensing agreements to more than $6.9 billion. For Shenzhen-based Huawei, the deal represents a major success in its efforts to monetise its massive research and development library.

Cut off from advanced global supply chains by US trade restrictions since 2019, Huawei has poured money into domestic R&D to design its own chips and software. That investment is now paying off through licensing; the company's intellectual property business has been profitable since 2021.

How does LogicFolding chip technology fit in?

The deal follows Huawei's launch of its flagship Mate 90 smartphone series, which is powered by its new "LogicFolding" Tau Kirin 9050 Pro processor. Qualcomm's licensing of patents related to this technology signals a mutual recognition of design innovations coming out of Huawei's R&D labs.

"This agreement not only demonstrates the value of Huawei's innovations, but also recognises Qualcomm’s foundational contributions to modern communication technologies," said Alan Fan, Huawei's chief intellectual property officer.

Qualcomm has long been a dominant force in wireless licensing. John Han, general manager of Qualcomm Technology Licensing, said the agreement "reaffirms industry recognition of Qualcomm’s 5G technology leadership" while acknowledging Huawei’s continued innovation in 5G and other sectors. Both companies said the deal aligns with fair, reasonable, and non-discriminatory (FRAND) licensing standards.

What is the history between the two tech giants?

The agreement marks a full-circle moment for the two technology giants. Huawei first paid licensing fees to Qualcomm in 2001, back when it was a rising telecom equipment maker. It did not earn its own first licensing revenue until a decade later, in 2011, from Motorola. More recently, Huawei has been aggressively expanding its licensing network, securing a patent deal with HP Inc in August.