Qualcomm to pay Huawei for patents for the first time under 5G and AI licence deal

Huawei Technologies announced on Monday, 5 October 2026 that it has signed a multi-year patent cross-licensing agreement with Qualcomm covering 5G, computing, artificial intelligence and networking. Under the deal, the American chip designer will, for the first time, be the net payer to the Chinese company, reversing a relationship in which Huawei has paid Qualcomm for its technology for about 25 years. Qualcomm will license more than 680 Huawei patents and buy certain Huawei-owned US patents, a purchase that is subject to regulatory approval. Financial terms were not disclosed.

For most of the mobile era, the flow of money in wireless technology ran one way: phone makers around the world, Chinese ones included, paid Qualcomm for the right to use its patented 3G, 4G and 5G inventions. That licensing business has been one of Qualcomm's most profitable lines. A deal in which Qualcomm pays Huawei is a clear sign of how much patented technology the Chinese company has built up, despite years of US export restrictions that cut it off from many American suppliers.

It also shows that patent strength now comes from more than radio standards. Huawei has invested heavily in chip design and packaging methods to work around limits on its access to the most advanced manufacturing. Reports that the portfolio includes patents tied to its chip technology suggest that some of the ideas Huawei developed under pressure now have commercial value even to a US rival.

For businesses, the deal is a reminder that technology rivalry between the United States and China does not stop companies on both sides from trading in intellectual property when it suits them. Patent cross-licences reduce the risk of costly lawsuits and let both firms build products without fear of infringement claims. The part of the deal that involves Qualcomm buying US patents will still need clearance from American regulators, which may take time.

For India, the agreement matters because Indian smartphone and telecom equipment makers pay licence fees to the holders of 5G patents. A shift in who holds valuable 5G and chip patents changes the bargaining landscape for Indian manufacturers and shows the long-term payoff of sustained research spending.

Short-term: The two companies avoid patent disputes over the covered technologies. Qualcomm's purchase of US patents awaits regulatory review. Investors will look for any mention of the deal's cost in Qualcomm's next results.

Long-term: Huawei strengthens its position as a major earner from technology licensing, not just a seller of phones and network gear. Other device makers may face Huawei licence demands, and the balance of 5G patent power could tilt further towards China.

Who is affected: Qualcomm and Huawei, phone and network equipment makers worldwide, including Indian manufacturers that pay 5G royalties, and US and Chinese regulators overseeing technology trade.

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