(Yicai) Oct. 8 -- Chinese tech giant Huawei Technologies and US chipmaker Qualcomm have signed a multi-year, broad patent license agreement that includes cross-licensing of their respective patent portfolios covering technologies such as fifth-generation wireless technology, computing, artificial intelligence and networking, the companies said on Oct. 5.

The agreement includes cross-licenses to the companies’ patent portfolios, while Qualcomm will also purchase certain US patents from Shenzhen-based Huawei covering computing, AI, networking and other technologies, Qualcomm said.

The transaction is subject to necessary regulatory approvals. The financial terms of the agreement were not disclosed.

Qualcomm also said assertions that the agreement was related to Huawei's chip architecture LogicFolding were not accurate. Separately, San Diego-based Qualcomm has agreed to purchase certain Huawei non-cellular US patents across multiple technology areas.

The agreement reflects the firms’ commitment to intellectual property rights and licensing practices consistent with fair, reasonable and non-discriminatory, or FRAND, principles, Qualcomm said.

The agreement recognizes Huawei’s continued innovation and intellectual property in 5G and other technology fields, said John Han, executive vice president and general manager of Qualcomm Technology Licensing.

The deal demonstrates the value of Huawei’s innovations and recognizes Qualcomm’s contributions to modern communication technologies, said Huawei Chief Intellectual Property Officer Alan Fan.

Chinese brokerages see opportunities in domestic AI computing and optical interconnects as Huawei accelerates its AI infrastructure development. China International Capital Corp. said the company’s faster Ascend chip rollout could boost domestic computing investment, while TF Securities expects its NPO-based SuperPoD to drive demand for optical components.

Editor: Kim Taylor