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Qualcomm to pay Huawei in first 5G patent cross-licensing deal

Qualcomm to pay Huawei in first 5G patent cross-licensing deal

Money Moves

Multi-year deal covers 5G, AI, and computing; Qualcomm disputes net payer reports. FCC proposes barring Chinese labs from testing US-market devices.

October 7th, 2026: FCC proposes ban on Chinese labs testing US-market devices

Overview

Updated Oct 16

Huawei and Qualcomm announced a multi-year cross-license on October 5. It covers 5G, computing, and artificial intelligence, plus Qualcomm's purchase of some Huawei U.S. patents. Financial terms were not disclosed. The deal is subject to U.S. regulatory approval.

The deal is the first between the two to cover 5G. Huawei paid Qualcomm for 25 years; Qualcomm denied reports that the new deal makes it the net payer. Both companies kept financial terms private, and the deal needs U.S. regulatory approval.

Why it matters

The deal reverses 25 years of patent payments and tests whether U.S. export controls can coexist with Huawei earning licensing revenue from an American company.

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Key Indicators

$6.9B
Cumulative value of Huawei's patent licensing deals
Expected to exceed this once the Qualcomm deal closes.
165,000
Huawei's active granted patents worldwide
As of 2025, according to the company.
25
Years since Huawei first paid Qualcomm
Huawei took its first Qualcomm license in 2001.

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People Involved

Cristiano Amon
Cristiano Amon
Chief executive of Qualcomm
Overseeing the patent cross-licensing deal with Huawei. Qualcomm denies net payer reports.

Organizations Involved

Huawei Technologies Co., Ltd.
Huawei Technologies Co., Ltd.
Technology company
Chinese telecom equipment maker, on U.S. Entity List since 2019. In cross-licensing deal with Qualcomm covering 5G, AI, and computing.

Chinese multinational that holds a large portfolio of 5G standard essential patents. In cross-licensing deal with Qualcomm.
Qualcomm
Qualcomm
Semiconductor company
U.S. chipmaker and major patent licensor. In cross-licensing deal with Huawei covering 5G, AI, and computing.

American company that designs wireless technology and licenses its patent portfolio. Deal with Huawei covers 5G, AI, and computing.
Commerce Department Bureau of Industry and Security
Commerce Department Bureau of Industry and Security
Federal Agency
Administers the Entity List that includes Huawei

The agency that administers U.S. export controls, including the Entity List designation restricting Huawei's access to American technology.

Timeline

2001 October 2026

11 events Latest: October 7th, 2026 · 1 month ago Showing 8 of 11
Tap a bar to jump to that date

  1. FCC proposes ban on Chinese labs testing US-market devices

    Latest Regulatory

    The Federal Communications Commission said it will vote on a proposal to prohibit Chinese laboratories from testing electronic products for the U.S. market.

  2. Qualcomm denies reports it will be net payer to Huawei

    Dispute

    Qualcomm said reports characterizing it as a net payer under the agreement are inaccurate and that claims the deal relates to Huawei's LogicFolding chip technology are untrue.

  3. Huawei and Qualcomm announce broad patent cross-licensing deal

    Agreement

    The two companies announce a multi-year cross-license covering 5G, AI, computing, and networking, with Qualcomm paying Huawei for the first time.

  4. Huawei's Qualcomm license expires

    Licensing

    Huawei's patent license with Qualcomm expires; Qualcomm stops counting Huawei royalties in its revenue.

  5. U.S. revokes Qualcomm's license to sell to Huawei

    Regulatory

    The Commerce Department revoked Qualcomm's license to export 4G and certain other integrated circuit products to Huawei, cutting off the chip supply relationship.

  6. Huawei's licensing business turns profitable

    Financial

    Huawei's intellectual property licensing unit begins generating more revenue than it pays out for other firms' patents.

  7. Qualcomm and Huawei settle dispute

    Settlement

    The two companies settle a back royalty dispute and sign a new long-term global patent license agreement.

  8. U.S. places Huawei on Entity List

    Regulatory

    The Commerce Department adds Huawei to the Entity List, restricting its access to American technology.

  9. Huawei halts royalty payments to Qualcomm

    Dispute

    Huawei stops paying royalties to Qualcomm amid a broader licensing dispute.

  10. Huawei receives first licensing income

    Licensing

    Huawei receives its first patent licensing income, from Motorola.

  11. Huawei takes first Qualcomm license

    Licensing

    Huawei, then a telecom infrastructure supplier, takes a royalty-bearing license from Qualcomm for wireless equipment.

Scenarios

1

US regulators approve the deal, Qualcomm pays Huawei

Likely Resolves by Q2 2027

Discussed by: Reuters, Nikkei Asia, industry analysts

The deal closes as announced. Qualcomm completes the purchase of Huawei's U.S. patents and begins royalty payments under the cross-license. This would mark the first time Qualcomm pays Huawei for patent rights, and it would push the cumulative value of Huawei's licensing agreements above $6.9 billion.

2

US regulators block or delay the deal

Possible Resolves by Q2 2027

Discussed by: TechSpot, MLex

The Committee on Foreign Investment in the United States (CFIUS) or the Commerce Department blocks the transaction on national security grounds, given Huawei's Entity List status. Qualcomm would be unable to complete the patent purchase, and the cross-license would not take effect.

3

Deal closes with material modifications

Possible Resolves by Q2 2027

Discussed by: TechSpot, industry analysts

The deal closes but with changes, such as the patent purchase being dropped or scaled back, or the cross-license terms being adjusted to address regulatory concerns. The core cross-license might still take effect, but the financial terms would differ from the October 5 announcement.

4

FTC clears patent purchase under Hart-Scott-Rodino review

Likely Resolves by End of 2026

Discussed by: Tom's Hardware, Bloomberg

The Federal Trade Commission reviews Qualcomm's purchase of Huawei's U.S. patents under the Hart-Scott-Rodino Act, which sets a $133.9 million transaction threshold this year. If the agency clears the deal without a second request, Qualcomm completes the patent purchase and the cross-license takes effect.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

July 2020

Qualcomm-Huawei settlement (July 2020)

Qualcomm and Huawei settled a back royalty dispute and signed a new long-term global patent license agreement. Qualcomm's fourth-quarter fiscal 2020 guidance included about $1.8 billion in payments due from Huawei under the settlement.

Then

The settlement resolved the dispute and established a new licensing framework between the two companies.

Now

It set the stage for the 2026 cross-licensing deal by normalizing the licensing relationship.

Why this matters now

The 2020 settlement was the direct precursor to the 2026 deal, establishing the licensing framework that the new agreement extends to 5G, AI, and computing.

April 2019

Apple-Qualcomm settlement (April 2019)

Apple and Qualcomm settled a bitter global patent dispute, with Apple paying an undisclosed sum and signing a multi-year chip supply and patent license agreement. The settlement ended litigation across multiple countries.

Then

Apple resumed using Qualcomm modems in its iPhones, and Qualcomm's licensing revenue stabilized.

Now

The settlement showed how major patent disputes in the wireless industry get resolved through cross-licenses and supply agreements.

Why this matters now

Like the Huawei deal, the Apple settlement involved a major company agreeing to pay Qualcomm for patent rights, illustrating the pattern of cross-licensing in the industry.

2014

Nokia's shift to patent licensing (2014)

Nokia sold its phone business to Microsoft and became a network equipment maker and patent licensor. Its patent portfolio, including standard essential patents, became a major revenue source.

Then

Nokia's licensing revenue grew as it monetized its patent portfolio.

Now

Nokia demonstrated that a company can thrive as a patent licensor even after exiting the consumer hardware business.

Why this matters now

Nokia's transition shows how patent portfolios can become standalone revenue engines, which is the model Huawei is increasingly following.

Sources

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Huawei Qualcomm Nikkei Asia The Business Times Livemint TechSpot Tom's Hardware Unite.AI MLex Slashdot tech-ish BigGo Finance ip fray The Street Huawei Central Yicai Global Tom's Hardware Huawei Central