Huawei Secures 4G Patent Deal for Volkswagen Cars

On Wednesday, Chinese telecom vendor Huawei said that it has secured a major licensing deal with Volkswagen. This deal will allow the latter to use the former's 4G tech in connected vehicles.

Huawei Puts its Foot in the Door of the Automotive Industry

The telecom vendor further added that the deal is the largest of its kind in the automotive industry. The company has no choice but to move into businesses like intelligent vehicles, after US sanctions blitz its original network equipment and smartphone business lines.

For the time being, neither party has disclosed financial terms. However, the Chinese telecom vendor said that the agreement included a licence under Huawei's 4G patents. This will cover Volkswagen vehicles equipped with wireless connectivity.

Since 2019, Huawei has faced huge sanctions that saw it cut off from the US market. What's more, the telecom vendor suffered great supply chain losses. The US also actively pressured allies to ban or remove Huawei gear from their national telecoms systems. To its credit, the telco has denied the accusation since forever; the US has failed to provide any supporting evidence for its claims, too.

Since the telecom vendor has been unable to cope with the sanctions, it has moved on to other business segments. Now, it seems like the company has made intelligent cars its priority. It seems logical in retrospect; the company has expertise in connectivity solutions. Also, Huawei has further expertise in AIoT devices, and software solutions.

However, the company is targeting other verticals as well. Besides intelligent cars, it has plans to move into software, as well as enterprise and cloud computing. This has seemed for of a need of the hour than a plan; it recently developed a mobile phone OS after US sanctions took away its access to the Android ecosystem.