2026-10-06 Commercial Times, Page A10
Huawei and Qualcomm Reach a Patent Licensing Agreement Covering AI, 5G, Computing, Networking, and Other Technology Fields; Qualcomm to Gain Access to Huawei’s “Logic Folding” Chip Technology
By Gao Lu / Summary of Reports
Huawei announced on October 5 that it has reached a multi-year patent licensing agreement with Qualcomm, covering technology areas such as artificial intelligence (AI), 5G, computing, and networking. Under the agreement, Qualcomm will acquire certain U.S. patents from Huawei as well as its “Logic Folding” chip technology. The transaction remains subject to regulatory approval, and neither party disclosed the deal value.
Huawei stated that this is the first patent licensing agreement between Huawei and Qualcomm to cover 5G technology, and forms part of a patent cross-licensing arrangement between the two companies. It encompasses technologies including 5G equipment, AI services, near-package optics, co-packaged optics, and networking. Upon completion of the agreement, the total contract value of all Huawei patent licensing agreements is expected to exceed $6.9 billion.
The license acquired by Qualcomm in this deal involves Huawei’s recently unveiled Logic Folding chip technology. U.S. media outlets noted that the agreement helps validate Huawei’s technological capability in chips and lays a foundation for its expansion into overseas AI markets.
Huawei views “Logic Folding” as a breakthrough to boost semiconductor performance. By increasing data transmission speeds, it partially offsets the limitations resulting from China’s inability to obtain ASML’s Extreme Ultraviolet (EUV) lithography machines—equipment widely regarded as critical for manufacturing cutting-edge chips.
Although the U.S. has maintained restrictions on Huawei’s access to advanced chips and key software since 2019, Huawei and its partners have continued to explore methods for designing and producing chips needed for data centers and AI.
Chinese media reported that this agreement also signifies a bridge over the previous patent licensing gap between Huawei and Qualcomm. Starting in the second quarter of fiscal year 2025, Qualcomm’s Technology Licensing (QTL) revenue no longer included patent royalties from Huawei, as their prior licensing agreement had expired.
Patent cooperation between the two companies has a long history. In July 2020, they signed a settlement agreement to resolve disputes arising from a licensing deal that expired at the end of 2019, while also entering into a new long-term global patent licensing agreement—enabling Qualcomm to recognize $1.8 billion in revenue that year.
From Huawei’s perspective, Chinese media analyzed that in addition to obtaining relevant technology licenses from Qualcomm, the deal monetizes Huawei’s intellectual property assets by selling certain U.S. patents. Meanwhile, Qualcomm uses the opportunity to bolster its patent portfolio in AI, computing, and networking.
The shifting roles of both companies have also drawn market attention. Huawei first paid patent licensing fees to Qualcomm in 2001 and received its first patent licensing revenue from Motorola in 2011. This latest agreement with Qualcomm follows closely on the heels of Huawei’s August announcement of a patent licensing partnership with HP.
Chinese financial commentators observed that against the backdrop of intensifying U.S.-China tech competition and decoupling, the expanded patent cooperation between Huawei and Qualcomm serves, to some extent, as a “reverse buffer” for bilateral tech cooperation. Patent licensing not only allows companies to turn technological assets into revenue, but also preserves space for cooperation alongside competition between U.S. and Chinese tech enterprises.