Qualcomm the biggest supplier of mobile phone chips is granted permission to sell 4G chips to Huawei. According to the report by Reuters the company has got permission on Friday. During the Trump administration, the government has imposed a ban on companies to work with Huawei.
A spokeswoman of Qualcomm mentioned to Reuters about their license for some of their products which include some 4G products. They didn’t mention any specific 4G devices Qualcomm is allowed to sell to Huawei.
In May 2019, White issued an order to all US companies to stop business with the Chinese based company Huawei. This decision was due to national security reasons. From then onwards Huawei phones were not getting the Google services. Despite not getting Google services the company still stood out to be the top-selling phones of that year.
In May this year, they have tightened the restrictions to get a license if they use the US technology or equipment to make semiconductors. And later in September, they began foreign semiconductors to get a license to sell chips even if it is not for Huawei. All these situations have got the downfall of sales in Huawei phones in the last month to Samsung. The company has even announced that they are running out of chips because of the US sanctions. They even said that this year might be the last generation of Huawei Kirin high-end chips.
Stacy Rasgon a Business analyst mentions that this will only have a “limited impact” as the license was for only 4G chips. The consumers are now looking more to buy a 5G ready phone more than a 4G phone. She even mentions that it is still unclear whether Qualcomm will get a license to sell 5G chips or not.
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