Qualcomm (QCOM) - Get Report has been quietly pressuring the Trump administration to allow it to sell its chips and other electronics components to Huawei Technologies, despite current restrictions preventing U.S. companies from doing business with the Chinese phone maker.
The U.S. chipmaker has been lobbying the Trump administration to be given the green light to sell chips to Huawei that would be used in 5G phones, The Wall Street Journal reported, citing a presentation it says has been “circulating around Washington.”
Chipmakers from the U.S. are required to obtain a license from the Commerce Department to ship certain components to Huawei. Qualcomm said due to the restrictions its foreign competitors now have access to a market worth as much as $8 billion a year.
U.S. officials have for more than a year argued that placing restrictions on Huawei is necessary because they see it posing significant national-security risks regarding links to the Chinese government. Huawei has insisted from the get-go that it is not a threat.
Qualcomm’s response is that current restrictions risk channeling revenue to other foreign competitors rather than preventing Huawei from obtaining the parts.
Qualcomm last month said it had reached a settlement agreement with Huawei, as well as a new long-term, global patent license agreement, including a cross license granting back rights to certain of Huawei’s patents.
That announcement followed the San Diego-based company reporting better-than-expected quarterly results and positive future guidance, buoyed by $1.8 billion it will be receiving from Huawei as a result of the settlement agreement and patent deal, though that amount will be excluded from the company's non-GAAP results, Qualcomm said.
Shares of Qualcomm were up 0.21% at $108.48 in trading on Monday.