Huawei has now gained permission to use 4G versions of Qualcomm's top Snapdragon chips, despite how hard the US tries to punish them for being a threat to national security, as reported by Phone Arena.
In addition, Huawei has now a patent to develop its own Extreme Ultraviolet (EUV) lithography machine. The EUV will be used to etch circuitry patterns on wafers, along with billions of transistors inside chips.
Currently, ASML, a Dutch firm is the leading EUV lithography supplier, but they are not allowed to sell machines to China. Now, with Huawei's patent, it could help China's SMIC eventually compete with TSMC and Samsung Foundry. Currently, SMIC is said to have the ability to produce 7nm chips for cryptocurrency mining but is limited to a 14nm process node for smartphone chips.
Huawei Continues to Fight Back
Despite the US sanctions that limits Huawei in the US market, it continues to innovate. A report by Reuters stated that Huawei will generate more patent income from royalties than it pays out to license other firm's patents.
The company has signed or renewed 20 patent licensing deals this year. In addition, the companies that are reaching out to Huawei were non-US automakers who want to improve the communications capabilities of their cars. These automakers are Mercedes-Benz, Audi, Porsche, and BMW.
Even if Huawei is producing fewer devices, they are still getting paid from their cross-licensing deals. The firm also agreed to extend its licensing deal with Nokia.
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Still A Long Way to Go
Huawei has still a long way to go to catch up, and their full-year 2022 patent licensing revenue won't be computed until some time next year.
Huawei, a global leader in telecom equipment and consumer electronics, will have to develop its own chips, especially if they are barred from using American chips. There are also challenges ahead. Huawei must differentiate itself from other chip firms. It has to do this while it continues to battle with the US government over whether its products are a threat to national security.
But with the company continue to push the envelope, it is starting to become a force to be reckoned with in the smartphone market. For now, Huawei will be just content to continue to reap the benefits of its cross-licensing deals.
Huawei is laying down the groundwork for the future. With their patent for EUV lithography, Huawei may be preparing for the next generation of chip making technology. So, it can maintain its global operations when the restrictions placed on them by the US government loosen up, or if they can be lifted all together. The company is also working on its own operating system, which may be a replacement for Android if one were needed.
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