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Huawei, Volkswagen supplier enter 4G licensing deal as US sanctions-hit telecoms giant widens business

  • Huawei has agreed to license its 4G mobile technology to an undisclosed supplier of German carmaker Volkswagen
  • The company expects its technology to be deployed in more than 30 million Volkswagen vehicles with wireless connectivity

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Technicians work in the final inspection line of German carmaker Volkswagen's electric ID. 3 car in Dresden, Germany, on June 8, 2021. Photo: Reuters
Huawei Technologies Co has agreed to license its 4G mobile technology to a supplier of Volkswagen, the world’s largest carmaker, as the Chinese telecommunications giant moves to diversify its business to help overcome crippling trade sanctions imposed by the United States.

The deal is Huawei’s biggest patent licensing agreement in the car industry, as its 4G mobile technology is expected to be deployed in more than 30 million Volkswagen vehicles with wireless connectivity, according to an announcement from the Shenzhen-based company on Wednesday. It did not provide the identity of the Volkswagen supplier.

Industry insiders said the company in the Huawei licensing deal is Rolling Wireless, one of the world’s leading suppliers of 4G and 5G network access devices to the car industry. Luxembourg-based Rolling Wireless did not immediately respond to a request for comment.
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Volkswagen also declined to identify the supplier, but confirmed the transaction. “This licensing in the supply chain is a model of how the increasingly close cooperation between the mobility industry and the information and communications industry can succeed,” a Volkswagen spokesman said on Wednesday in an emailed statement to the South China Morning Post.

The transaction, the financial terms of which were not disclosed, marks a major win for Huawei, which has sharpened its licensing push amid tighter restrictions foisted by Washington last year on the company’s access to advanced chips developed or produced using US technology, from anywhere.
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Workers wait for attendees by the entrance to the private Huawei Technologies Co pavilion on the opening day of the MWC Barcelona trade show in Barcelona, Spain, on June 28, 2021. Photo: Bloomberg
Workers wait for attendees by the entrance to the private Huawei Technologies Co pavilion on the opening day of the MWC Barcelona trade show in Barcelona, Spain, on June 28, 2021. Photo: Bloomberg

“As an innovative company, we own a leading patent portfolio for wireless technologies, which creates great value for the automotive industry,” said Song Liuping, legal officer at Huawei, in a statement on Wednesday. “We are pleased that key players from the automotive industry recognise that value. We believe this licence [for our advanced mobile technology] will benefit consumers worldwide.”

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