U.S semiconductor gaint Qualcomm, have decided to re-establish the trade with Huawei.
Qualcomm CEO Steve Mollenkopf confirmed that his company has now resumed trade with Huawei. According to Mollenkopf, Qualcomm is also looking to secure a long-term supply deal with the Huawei but did not disclose what components are being sold.
Back in July regarding Huawei-US trade tensions, the US Department announces that the commerce will begin issuing special licenses to companies that wish to keep their business ties with the Chinese tech giant.
But one of the main point in emphasis was that US companies would only be allowed to sell widely available components, a category which includes mobile chipsets.
In August Huawei was granted a new 90-day extension to its temporary trade license agreement to trade with US companies. According to Commerce Secretary Wilbur Ross, more than 50 companies applied special licenses to distribute to Huawei in the past three months. Out of $70 billion that Huawei spent for components in 2018, around $11 billion went to US companies like Qualcomm, Intel, and Micron, mostly for memory chips for its smartphones and 5G antennas.
As Huawei produces its own chipset but it still relies on Qualcomm for a sizeable chunk of its devices.