Qualcomm has received a licence from the US government to sell 4G mobile phone chips to China's Huawei. A spokesperson for Qualcomm said Qualcomm has other licence applications pending with the US government.
Other US companies such as Micron Technology and Intel have said they have applied for licences as well. Qualcomm has other license applications pending with the U.S. government, she said.
In the past Huawei was a relatively small chip customer for Qualcomm, which is the biggest supplier of mobile phone chips. Huawei used its own house-designed chips in its flagship handsets but used Qualcomm chips in lower-priced models.
Huawei's potential to design its own chips was thwarted in September by U.S. trade restrictions that blocked its access to chip design software and fabrication tools. Industry analysts believe Huawei's stockpile of chips purchased before the ban could run out early next year, crippling its smartphone business.
Bernstein analyst Stacy Rasgon said the Qualcomm license would have a "limited impact" because it covers only 4G chips while consumers are shifting to newer 5G devices. Rasgon said it is still unclear whether U.S. officials will grant Qualcomm licenses for 5G smartphone chips.
