October 8, 2026, (Inside AI) — Huawei and Qualcomm have signed a multi-year patent cross-licensing agreement covering 5G, AI, computing, and networking technologies. The deal, announced on October 5, also includes Qualcomm's purchase of certain Huawei U.S. patents in those fields. The companies said the agreement follows fair, reasonable, and non-discriminatory (FRAND) licensing principles.
The transaction still requires regulatory approvals, including a review under the U.S. Hart-Scott-Rodino antitrust law. The arrangement is limited to patents and does not include other business cooperation. According to Huawei, this is the companies' first patent license agreement covering 5G technologies.
The agreement arrives as Huawei continues to expand its patent portfolio and assert its intellectual property in global markets. Qualcomm, a leading chip designer, holds a vast array of patents essential to mobile and AI technologies. The cross-license allows both companies to use each other's patented technologies without fear of infringement lawsuits.
This deal is notable because it is the first 5G patent agreement between the two firms. It also covers AI and computing, areas where both companies are investing heavily. For Qualcomm, the purchase of Huawei's U.S. patents could strengthen its position in those fields. For Huawei, the agreement may provide access to Qualcomm's patented technologies and potentially reduce licensing costs.
The financial terms of the deal were not disclosed. The companies did not specify which patents Qualcomm is buying or how many. The agreement is subject to regulatory approval, which could take months. The Hart-Scott-Rodino Act requires companies to report certain mergers and acquisitions to the Federal Trade Commission and the Department of Justice for antitrust review.
Huawei has been under U.S. sanctions since 2019, which restrict its access to American technology. However, patent licensing is not directly covered by those sanctions. This deal shows that Huawei and Qualcomm can still collaborate in certain areas. It also highlights the importance of patent portfolios in the tech industry, where cross-licensing agreements are common to avoid litigation.
Qualcomm has a long history of licensing its patents to device makers. The company generates significant revenue from licensing. Huawei, despite sanctions, has continued to develop its own technologies and has become a major patent holder. In 2022, Huawei announced it would start charging royalties for its 5G patents. This agreement with Qualcomm may be part of that strategy.
The deal could have implications for the broader tech industry. As AI and 5G become more integrated, companies that hold key patents will have leverage. Cross-licensing agreements like this one can help reduce legal disputes and foster innovation. However, the regulatory review could raise concerns about market concentration. The Hart-Scott-Rodino review will examine whether the deal harms competition.
Neither company provided further details about the agreement. It is unclear how the patents will be used or if they will lead to new products. The companies said the agreement is limited to patents and does not include other business cooperation. This means they are not collaborating on research or development.
The agreement is a rare example of cooperation between a U.S. company and a Chinese company that has been blacklisted by the U.S. government. It may signal that patent licensing is a separate matter from national security concerns. However, the regulatory review could still be contentious. The U.S. has been tightening restrictions on Chinese tech companies, and this deal may face scrutiny.
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Huawei and Qualcomm have not commented on the potential impact of the deal on their businesses. The agreement is subject to approval, and it is possible that regulators could block it or impose conditions. The companies said they expect the deal to close, but no timeline was given.
This is not the first patent agreement between the two companies. In 2019, they signed a short-term patent licensing deal. That agreement was reportedly worth $1.8 billion. The new agreement is multi-year and covers more technologies. It is a sign that both companies see value in cross-licensing their patents.
The deal also comes as Qualcomm faces competition in the 5G chip market. The company is diversifying into AI and automotive chips. Huawei is also developing its own chips and AI technologies. The cross-license could help both companies avoid legal battles and focus on innovation.
For now, the agreement is pending regulatory approval. The companies have not said when they expect the review to be completed. The Hart-Scott-Rodino review typically takes 30 days, but it can be extended if regulators request more information. The deal could be approved without conditions, or it could face challenges.
This agreement is a significant development in the tech industry. It shows that even companies with different backgrounds can find common ground in patent licensing. It also underscores the importance of intellectual property in the AI and 5G era. As the industry evolves, such deals may become more common.
