Despite US sanctions, Huawei remains relevant and profitable thanks to patents
Along Sam D. Smith
Dec 26, 2022 09:09
Along Sam D. Smith
Huawei — the controversial Chinese electronics maker that has been at the center of several cybersecurity breaches and espionage accusations — is trying to rake in cash from automakers seeking to license its technology.
Mercedes-Benz, Audi, BMW, Porsche, Subaru, Renault, Lamborghini and Bentley have all reportedly signed technology patent deals with Huawei. Huawei estimates that 15 million of his 70 million vehicles produced worldwide will be equipped with its technology.
Huawei is battling US sanctions that have affected its smartphone business and its own semiconductor development. Patent licensing deals with other companies not only help Huawei generate much-needed revenue, but also enable it to continue doing business with foreign companies and markets, including the United States.
Read: Which smartphone maker can build the best EV?
Export restrictions prohibit Huawei from working with multiple global suppliers, but their patents are not subject to such restrictions. Allan Huang, Global Head of Intellectual Property at Huawei, said in an interview with Nikkei Asia: [export controls] Not a factor. ”
In fact, automakers aren't the only ones with deals with Huawei. The technology company will sign 20 new or enhanced patents in 2022, covering smartphones, connected cars and IoT technologies.
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Meanwhile, Huawei continues to expand its own automotive business, with its Avatr joint venture with battery maker CATL offering Chinese consumer models such as 11. Huawei's technology is present in other domestic cars, and the self-driving division has branched out into fantastic self-driving car technology.
When Nikkei Asia was asked to comment on the topic, an Audi spokesperson said the automaker "respects the intellectual property of third parties, requires such licenses, and complies with the law." If it is available, we are happy to license it."
