Huawei, Qualcomm Sign Multi-Year AI and 5G Patent Deal

China’s Huawei Technologies has reached a broad multi-year patent licensing agreement with Qualcomm covering key technologies including artificial intelligence, 5G, computing and networking, strengthening the companies’ intellectual property relationship.

Under the agreement announced Monday, Qualcomm will also acquire certain U.S. patents from Huawei related to AI, computing and networking technologies. The transaction marks the first patent licensing agreement between Huawei and Qualcomm that specifically includes 5G technology.

Huawei said the latest Qualcomm deal is expected to lift the total value of its patent licensing agreements to more than $6.9 billion once the transaction is completed. The Chinese technology giant has increasingly turned its extensive patent portfolio into a source of revenue after years of substantial investment in research and development.

Huawei said its intellectual property licensing operations have generated positive revenue since 2021. The company has significantly increased R&D spending in recent years as it works to develop domestic alternatives to technologies affected by U.S. trade restrictions.

Washington has imposed restrictions on Huawei since 2019, limiting the Chinese company’s access to advanced semiconductors, chipmaking technology and critical software. The measures have pushed Huawei to invest more heavily in areas such as AI chips, telecommunications equipment, computing infrastructure and other advanced technologies.

Huawei and Qualcomm have a long history of patent-related transactions. Huawei made its first patent licensing payment to Qualcomm in 2001. A decade later, in 2011, Huawei received its first patent licensing revenue from Motorola.

The latest agreement with Qualcomm also follows another major intellectual property deal announced by Huawei in August with HP Inc.

The Qualcomm partnership highlights the growing commercial importance of Huawei’s patent portfolio as technologies such as 5G, artificial intelligence and advanced computing become increasingly interconnected. It also demonstrates how intellectual property licensing continues to provide Huawei with an international revenue stream despite ongoing U.S. technology restrictions.