US Approves Qualcomm to Sell 4G Chip to Huawei Despite Sanctions

Qualcomm has received permission from the US to sell 4G mobile chips to Huawei, an exemption to the Trump administration’s ban on doing business with a Chinese company, Reuters Reported. Qualcomm did not specify which products it allows Huawei to sell, but was told Reuters They were related to mobile devices.

In May 2019, the White House barred US companies from doing business with Chinese companies such as Huawei due to national security concerns. In May of this year, the Commerce Department tightened restrictions to require any foreign semiconductor manufacturers to obtain a license from the US if they use American equipment or technology to make chips for Huawei. Effective in September, the US began requiring foreign semiconductor manufacturers to sell chips if not designed for Huawei glasses – intended for Chinese company use.

Huawei said that in August it was running out of processor chips due to US restrictions. Richard Yu, CEO of Huawei’s consumer business unit, said at the time that “this year could be the last generation of Huawei Kirin high-end chips.”

Despite restrictions from the US, Huawei became the world’s largest smartphone vendor in July, thanks to strong sales in China. But Samsung lost the top spot last month; Huawei’s shipments declined 24 percent year-over-year in October, while Samsung saw a 47 percent increase in shipments.

Qualcomm’s license to sell to Huawei only covers 4G chips, Reuters Note, and it is unclear whether its license will apply to 5G chips, which will be included in the new devices.

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