Samsung Acquires Licence for Key 5G Technologies From Huawei: Report

Huawei has also signed a global patent cross-licensing agreement with Oppo.

Written by Siddhant Chandra, Edited by Ali Pardiwala | Updated: 13 December 2022 16:16 IST

Samsung Acquires Licence for Key 5G Technologies From Huawei: Report

Photo Credit: Huawei

Huawei is expected to earn $1.3 billion in revenue from patent licensing between 2019 to 2021

Highlights

Huawei has licensed its technology to 20 firms in recent years
The agreement with Samsung is said to cover 5G, Wi-Fi, and codecs
Huawei’s revenue reportedly fell by 2.2 percent in 2022

Huawei was put on an export blacklist by the US government in 2019, which restricted its access to critical technologies of US origin. The company then made a shift towards patent licensing, reportedly expecting to earn $1.3 billion (roughly Rs. 1,075 crore) between 2019 and 2021. A recent report mentions that Huawei has licensed key 5G technologies to Samsung, likely to be related to the 5G modems featured in Samsung handsets. In addition, Huawei and Oppo have also announced a global cross-patent licensing agreement, as per the report.

According to a Nikkei Asia report (via Sammobile), Samsung has acquired licences for key 5G technologies from Huawei. These are believed to be intended for the 5G modems on Samsung smartphones, or Samsung Networks' 5G telecom infrastructure. In addition, Huawei has also announced the signing of a global patent cross-licensing agreement with Oppo, which is said to cover 5G, Wi-Fi, and audio-video codecs.

Huawei received a massive blow to its smartphone business when the US government under the then President Donal Trump blacklisted the company in 2019. The company's revenue fell by 2.2 percent in 2022 as per a recent report, due to new restrictions put in by the current US administration under President Biden.

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The Chinese tech giant has reportedly stepped up the development of network technology to reduce its vulnerability to such sanctions. Oppo and Samsung are believed to be among 20 firms to have agreed to license Huawei's technologies and patents in recent years. In November, the US Federal Communications Commission (FCC) banned the import or sale of communications equipment from Huawei and ZTE.

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As previously mentioned, Huawei expected to earn about $1.3 billion (roughly Rs. 1,075 crore) between 2019 and 2021 in revenue from patent licensing. The company is said to have earned around $2.5 (roughly 200) for every smartphone that used 5G technology developed by it.

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