Qualcomm has received permission from the US government to sell 4G-compatible mobile chips to Huawei, Reuters reported. This development has undoubtedly opened a hole in the Trump administration’s ban on doing business with Chinese companies. Although there is no clear statement about which products will be sold on the Qualcomm front, statements made to Reuters indicate that this is for mobile devices.
In May 2019, the White House issued an administrative order banning US companies from doing business with Chinese companies, including Huawei, citing national security concerns. In May this year, the Department of Commerce imposed restrictions obliging all semiconductor manufacturers to obtain a license from the United States when using US equipment or technology to make chips for Huawei. So much so that even foreign companies had to obtain a license for the sale of chips designed for Huawei.
The Chinese company announced that their processor chips were about to run out due to the sanction. Despite all these sanctions, Huawei was able to close July as the world’s largest smartphone seller, thanks to its sales in China. However, last month it had lost its turn to South Korean Samsung.
While Qualcomm’s license to sell to the Chinese company only covers 4G, it is unknown whether it will apply to 5G chips that will be included in new devices.