Qualcomm on Friday received a license from the US government to sell 4G mobile phone chips to China’s Huawei Technologies, an exemption to US trade restrictions imposed amid rising tensions with China. “We received a license for a number of products, which includes some 4G products,” a Qualcomm spokeswoman told Reuters.
The American company didn’t say which chips were allowed, although the 4G nature makes clear these aren’t the company’s higher-end, 5G-equipped modems or processors.
Until the trade ban, Huawei was using its in-house Kirin chips for high-end phones and Qualcomm’s Snapdragons for budget models. Qualcomm reportedly asked for permission to keep selling those chips with claims that non-US rivals would simply fill the gap.
Huawei’s phone business is still in trouble no matter what 4G chips Qualcomm sells. With limited access to foreign silicon and a lack of cutting-edge Chinese chip manufacturing, the company may have to radically scale back its mobile strategy. It’s even rumored to be selling its budget Honor brand. Exceptions like Qualcomm’s might keep the business alive, but not necessarily much more.
