(Oct 5): Qualcomm Inc has agreed to license patents underpinning Huawei Technologies Co’s novel LogicFolding chipmaking technique, a win for the Chinese company and its push to advance in overseas artificial intelligence (AI) markets.

The multiyear deal is part of a cross-licence agreement between the two chipmakers, spanning technologies related to 5G devices, AI services, near- and co-packaged optics and networks, a Huawei spokesperson said on Monday.

The agreement with Qualcomm helps validate the Shenzhen-based company’s chipmaking capabilities. Huawei sees its new architecture as a breakthrough that boosts semiconductor performance and helps it narrow the gap with industry leaders such as Taiwan Semiconductor Manufacturing Co. That approach focuses on improving data transmission speeds to make up for China’s lack of access to ASML Holding NV’s extreme ultraviolet lithography machines, the gold standard for production of cutting-edge chips.

Huawei, which unveiled its LogicFolding approach just months ago, is one of a handful of companies seen as key to China’s ambitions to lead in AI and reduce reliance on foreign technology including Nvidia Corp accelerators. While hamstrung by US export curbs on advanced technologies, Huawei and its partners are exploring ways to design and produce the chips vital to data centres and AI development.

Before the US tightened restrictions on Huawei during President Donald Trump’s first term, the Chinese company sourced some smartphone chips from Qualcomm. Since Washington cut off Huawei’s access to advanced foreign chipmaking technology, Huawei has increasingly turned to domestically designed and manufactured semiconductors.

Huawei has also long been one of the world’s most prolific patent developers, particularly in wireless networking. In recent years, it’s stepped up efforts to earn revenue off its library of intellectual property, including licences to foreign companies.

The company did not disclose the value of the cross-licence agreement with Qualcomm. The deal is subject to US Federal Trade Commission review under the Hart-Scott-Rodino Antitrust Improvements Act, which applies to deals valued at more than US$133.9 million (RM546.64 million). Huawei expects the overall contract value of all its patent licensing agreements to exceed US$6.9 billion following the deal with Qualcomm, the spokesperson said.

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