Chinese technology giant Huawei has entered into a broad, multi-year patent licensing agreement with US chipmaker Qualcomm, covering key technologies including 5G, artificial intelligence, computing and networking.
The agreement, announced on Monday, includes cross-licensing of patents held by both companies, as well as Qualcomm’s purchase of certain Huawei patents in the United States covering computing, AI, networking and other technologies.
Huawei said the transaction remains subject to regulatory approvals, while the financial terms were not disclosed. The company described the agreement as its first patent licensing deal with Qualcomm covering 5G technology.
The deal is significant because Huawei and Qualcomm have historically been both competitors and major holders of technology patents used across the global telecommunications industry.
Their latest agreement allows both companies to gain access to each other’s intellectual property while providing a framework for the use of patented technologies in rapidly developing areas such as AI and next-generation connectivity.
The agreement is also based on licensing practices consistent with fair, reasonable and non-discriminatory, or FRAND, principles, which are commonly applied to standard-essential patents in the telecommunications industry.
Huawei said the deal is expected to push the total value of its patent licensing agreements beyond $6.9bn once completed, underscoring the growing commercial value of its intellectual property portfolio.
The Chinese company has significantly expanded its investment in research and development in recent years, particularly as US restrictions have limited its access to some advanced semiconductor technologies and critical software.
Huawei said it spent 192.3 billion yuan, equivalent to about $28.7bn, on research and development in 2025, representing 21.8 per cent of its total revenue. By the end of that year, the company held more than 165,000 active granted patents globally.
The company has increasingly sought to generate revenue from those patents through licensing agreements with other technology firms. Huawei said its intellectual-property licensing business has generated positive revenue since 2021.
Its licensing relationship with Qualcomm dates back more than two decades. Huawei made its first licensing payment to Qualcomm in 2001, while the company received its first licensing income from Motorola in 2011.
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The latest agreement follows another major licensing deal announced by Huawei in August with US technology company HP, covering patents related to Wi-Fi technology.
Huawei and Qualcomm also have a history of disputes over intellectual-property payments. In 2020, Huawei agreed to pay Qualcomm about $1.8bn in overdue licensing fees to settle a long-running disagreement between the companies.
For Huawei, the new agreement provides another avenue to monetise its extensive patent portfolio while demonstrating the value of its technology despite years of restrictions on its access to advanced US technologies.
For Qualcomm, the agreement gives it access to selected Huawei patents in computing, AI and networking while reinforcing its position in technologies beyond its traditional strength in mobile communications.
The deal comes as competition intensifies globally in AI, advanced computing and next-generation telecommunications, areas in which both companies are investing heavily.
Huawei has said it has signed more than 260 patent licensing agreements with major global technology companies over the past two decades, reflecting the breadth of its intellectual property portfolio.
The companies did not disclose the specific value of Qualcomm’s purchase of Huawei’s US patents or provide a timeline for completion of the transaction. Its finalisation will depend on obtaining the required regulatory approvals.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
