Qualcomm and Huawei announced on Monday, 5 October, a multi-year cross-licensing agreement covering 5G, computing, artificial intelligence and networking, with Qualcomm also buying selected US patents from Huawei. The Qualcomm Huawei patent deal needs regulatory approval before closing; the companies have not disclosed its value or a timetable, according to their announcement republished by Zawya.
Reuters reports that this is Huawei’s first licensing deal with Qualcomm to cover 5G. It also includes Qualcomm’s purchase of certain Huawei patents in the US, in areas including computing, AI and networking.
Qualcomm Huawei patent deal covers licences and patent sales
The announcement combines two types of intellectual-property transaction. A cross-licence gives each company rights to use patents in the other’s portfolio under agreed terms; a patent purchase transfers ownership of specific patents. Huawei has not named the patents being sold or said how broad the rights are.
The companies list 5G, computing, AI and networking as the areas covered by the cross-licences. Bloomberg Law reports that the agreement also touches near- and co-packaged optics, and says Qualcomm has agreed to license patents underpinning Huawei’s LogicFolding chipmaking technique.
Bloomberg Law reports that Huawei sees LogicFolding as a way to improve semiconductor performance. The announcement includes no test results or quantified performance gains, so the licensing agreement is not independent evidence that the technique outperforms rival manufacturing methods.
Huawei’s Alan Fan, chief intellectual property officer, described the agreement as recognition of each company’s work in communications technology:
“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
The deal is about patents, not a sale of Huawei’s semiconductor business. SCMP reports that the announcement involves no other business cooperation. Huawei says the transaction will close after the necessary regulatory approvals, but the announcement does not identify the patents’ commercial applications or the agreement’s financial structure.
Huawei and Qualcomm’s licensing relationship changes direction
Huawei first paid Qualcomm to license patents in 2001, Reuters reports. Nikkei Asia reports that, once the new arrangement takes effect, Qualcomm would become a net payer to Huawei for the first time. The companies have not published royalty rates, purchase prices or a comparison of what each side will pay, so the precise balance cannot be independently calculated.
Qualcomm’s patent business has also involved agreements with other technology companies. Its renewed patent licence with Apple, covered previously by tbreak, is a separate arrangement from the companies’ modem supply relationship. The Huawei agreement differs because it explicitly includes a purchase of Huawei’s US patents as well as reciprocal licensing.
The agreement arrives as Huawei looks to monetise a large intellectual-property portfolio despite US restrictions that have limited its access to advanced chips and software. Reuters reports that Huawei’s licensing business has generated positive revenue since 2021, and that Huawei expects the total value of its patent-licensing agreements to exceed $6.9 billion once the Qualcomm deal is completed. That figure is for Huawei’s wider licensing agreements, not the disclosed value of this deal.
Huawei is also building out its own compute infrastructure. The company has previously outlined a 3D data-centre design built around as many as 100,000 Ascend cards, a separate part of its effort to expand AI computing capacity.
Regulatory approval is the remaining hurdle
Huawei and Qualcomm say the transaction needs regulatory approval before it closes. Nikkei Asia reports that the deal will face a review in the US, but neither company has named the reviewing authorities or given a completion date.
The agreement is a notable change in the companies’ licensing relationship, but its practical reach will depend on the patents covered, the terms that remain undisclosed and the approvals still required. For now, the public announcement confirms a cross-licence across several technology fields and Qualcomm’s planned purchase of selected Huawei patents; it does not reveal what either side will pay.
What does FRAND mean in the announcement?
FRAND stands for fair, reasonable and non-discriminatory. Huawei and Qualcomm say their licensing practices will follow those principles, but the statement does not disclose royalty rates or patent-by-patent terms.
Does the agreement change US export restrictions on Huawei?
No change to export restrictions was announced. The deal concerns patent rights, not permission to supply chips or software to Huawei, and the transaction still needs regulatory approvals.
Is this Huawei’s first patent-licensing deal with a US company?
No. Reuters reports Huawei reached a patent-licensing deal with HP in August 2026. The new agreement is its first licensing deal with Qualcomm to cover 5G, not Huawei’s first agreement with a US company.
When did Huawei first earn income from patent licences?
Reuters reports Huawei received its first patent-licensing income from Motorola in 2011. That milestone is separate from Reuters’ report that Huawei’s overall IP-licensing business has generated positive revenue since 2021.
