By Bloomberg News | Updated on Oct 06, 2026 at 03:40 AM
Qualcomm Inc. has agreed to license patents related to Huawei Technologies Co.’s novel LogicFolding chipmaking technique as part of a wide-ranging pact, a win for the Chinese company’s technological ambitions.
The two companies signed a multiyear cross-license agreement that spans technologies related to 5G, compute, AI and networking, according to a statement. The deal also includes near- and co-packaged optics, as well as patents pertaining to LogicFolding, a technique the Chinese company touted as a chipmaking breakthrough earlier this year, a Huawei spokesperson said.
The agreement with Qualcomm helps validate the Shenzhen-based company’s technological portfolio. Qualcomm, which also purchased US patents from Huawei as part of the deal, said its cross-licensing agreement is not related to LogicFolding. Patents often cover underlying technologies that can be used in multiple processes.
Huawei, which unveiled its LogicFolding approach to much fanfare just months ago, is one of a handful of companies seen as key to China’s ambitions to lead in AI and reduce reliance on foreign technology including Nvidia Corp. accelerators. While hamstrung by US export curbs on advanced technologies, Huawei and its partners are exploring ways to design and produce the chips vital to data centers and AI development.
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Before the US tightened restrictions on Huawei during President Donald Trump’s first term, the Chinese company sourced some smartphone chips from Qualcomm. Since Washington cut off Huawei’s access to advanced foreign chipmaking technology, Huawei has increasingly turned to domestically designed and manufactured semiconductors.
The Shenzhen-based company seeks to use its new chip architecture to boost semiconductor performance and narrow the gap with industry leaders such as Taiwan Semiconductor Manufacturing Co. That approach focuses on improving data transmission speeds to make up for China’s lack of access to ASML Holding NV’s extreme ultraviolet lithography machines, the gold standard for production of cutting-edge chips.
Huawei has also long been one of the world’s most prolific patent developers, particularly in wireless networking. In recent years, it’s stepped up efforts to earn revenue off its library of intellectual property, including licenses to foreign companies.
The company did not disclose the value of the cross-license agreement with Qualcomm. The deal is subject to US Federal Trade Commission review under the Hart-Scott-Rodino Antitrust Improvements Act, which applies to deals valued at more than $133.9 million. Huawei expects the overall contract value of all its patent licensing agreements to exceed $6.9 billion following the deal with Qualcomm, the spokesperson said.