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Qualcomm wants approval from the U.S government to sell 5G chips to Huawei

By Cookie Monster - on 11 Aug 2020, 12:00am

Qualcomm wants approval from the U.S government to sell 5G chips to Huawei

Qualcomm warns the U.S government that the trade ban against Huawei could do more than harm than good for the company. 

According to a presentation reviewed by The Wall Street Journal (WSJ), the U.S trade ban against Huawei will not stop the Chinese company from obtaining 5G chips from Qualcomm's rivals. If Qualcomm is not allowed to sell 5G chips to Huawei, it could potentially lose as much as $8 billion a year.

“If Qualcomm is subject to export licensing, but its foreign competitors are not, US government policy will cause a rapid shift in 5G chipset market share in China and beyond,” the San Diego company was quoted as saying.

Sources told WSJ that Qualcomm rivals MediaTek and Samsung would benefit from a situation where Qualcomm is unable to sell chips to Huawei. In fact, there are reports of Huawei sourcing mobile chips from MediaTek and UNISOC

Even if the U.S government grants approval for Qualcomm to sell 5G chips to Huawei, there is no guarantee that the Chinese company will sign a deal with the chip maker. After all, the Chinese government has announced plans to reduce its reliance on foreign technology

Source: WSJ via Android Authority