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Qualcomm reportedly gets license to sell chips to Huawei on one condition

Although it is too early to say, things seem to be getting a little better for the beleaguered Huawei. The regulations that prevent you from obtaining products and components from US companies are still in effect, but reports indicate that exceptions to these are being granted more flexibly based on whether or not these products are used for 5G businesses. from Huawei. Now, another report says that Huawei may soon be able to get its hands on the much needed Qualcomm silicon, but that it depends on the fate of the Honor subsidiary.

In short, American companies are prohibited from doing business with Huawei and its many subsidiaries, including Honor and HiSilicon, as part of the trade dispute between the U.S. and China. This has put great strains on Huawei’s component supplies, especially for one of the most important parts of any electronic product, semiconductors and processors. In response, Huawei stored these components, but analysts believe it will only last until the beginning of 2021.

Previous reports indicate that there is a loophole in favor of the US Department of Commerce’s export restrictions. If components and parts, such as smartphone screens and image sensors, for example, are not used directly for Huawei’s 5G business, they can more easily obtain a license exception. This may give the company a relief, as it will be able to continue manufacturing smartphones for the time being, as long as it also has access to this critical component.

A somewhat superficial report from China provides that answer, claiming that Qualcomm may have already obtained this permission to sell chips to China. This deal, however, allegedly requires Huawei to sell its subsidiary Honor, as Qualcomm will not be able to meet the needs of both smartphone manufacturers at the same time. Huawei traditionally uses a mix of Qualcomm and Kirin chips in its phones, but has also started researching MediaTek since the United States ban.

However, there is still no official confirmation that these companies, including Qualcomm, Samsung and Sony, have actually received licenses to sell to Huawei, so it is not yet out of danger. The political landscape may be changing in the U.S. soon, but Huawei has always been viewed with suspicion, even in previous administrations.

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