Qualcomm to supply Huawei 4G chips only, not 5G

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Qualcomm Huawei

Qualcomm may be officially supplying components for Huawei. We mentioned this last week and now more details are surfacing. Qualcomm may be able to supply to Huawei and continue business as it was able to obtain a license from the US government. The US trade ban has been making things more difficult not only for American firms and Huawei but also for those companies overseas that use American technology. A number of brands have been working with Huawei for years but their businesses may be affected especially in the coming year unless a big change is going to happen.

There is no official announcement but sources are saying an export license has been obtained by Qualcomm from the US. The license is not for 5G chips though. It’s only for 4G processors.

The information is from KeyBanc analyst John Vinh who also has other sources. They have been saying that any supplier may have a hard time getting a license especially if it’s anything related to 5G, specifically, 5G chips.

Qualcomm will be able to supply 4G processor apart from Mediatek. It is good news but it’s something that could be “modestly incremental”. Meanwhile, Huawei may need to look for other suppliers or alternative solutions or technologies.

The Chinese tech giant has been changing its business strategy to remain in the game. We believe it will still last but not without any effect of the trade ban on its numbers. Huawei has been mentioned to be selling off the Honor unit to the Shenzen government. Everything is up in the air so let us wait and see.

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