Qualcomm got US government approval for …

Qualcomm has obtained a license from the US government to sell 4G mobile phone chips to China’s Huawei Technologies group, an exception to Washington’s trade restrictions in the context of mounting tensions in relations with Beijing, Reuters reports.

“We have been licensed for a number of products, including some 4G products,” a Qualcomm spokesperson said.

In September, Qualcomm and all other US semiconductor manufacturers were forced to close sales to Huawei following Washington’s trade restrictions.

The spokesperson declined to say which 4G products Qualcomm might sell Huawei, but said they were related to mobile devices.

Qualcomm has filed additional licensing applications, pending a response from the US government.

In the past, Huawei was a relatively small customer for Qualcomm chips, which is the world’s largest supplier of mobile phone chips.

Huawei uses its own chips on its flagship phones, with Qualcomm chips being used for cheaper models.

Huawei’s ability to design its own chips was impacted in September when U.S. trade restrictions blocked its access to cup design software and manufacturing equipment.

Analysts believe Huawei’s stock of chips purchased before the restrictions can be exhausted early next year, which will affect its smartphone business.

Bernstein analyst Stacy Rasgon said Qualcomm’s license will have limited impact, as it only covers 4G chips, while buyers turn to 5G devices. It is unclear whether US officials will license Qualcomm chips for 5G smartphones.

Representatives of Huawei and the US Department of Commerce, which grants the licenses, declined to comment.

Other US companies, such as Micron Technology, have stopped selling to Huawei and have announced that they have applied for licenses. Intel in turn announced that it has a license to sell products to Huawei.

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