Huawei: $6B Sugar Daddy for US Chipmakers

Qualcomm, Broadcom and Avago all score renewed three-year OEM deals worth $6B in total to supply Huawei with chips

Dan Jones, Mobile Editor

February 17, 2012

2 Min Read
Huawei: $6B Sugar Daddy for US Chipmakers

Huawei Technologies Co. Ltd. is doling out $6 billion in new chip contracts to three U.S. companies, the Chinese giant revealed Friday.

Avago Technologies Pte. , Broadcom Corp. (Nasdaq: BRCM) and Qualcomm Inc. (Nasdaq: QCOM) have been awarded three-year original equipment manufacturer (OEM) deals by Huawei, worth $6 billion in total. A spokeswoman for company told Light Reading Mobile that it won't reveal how the billions are split between the three contract renewals.

Qualcomm says that it will be supplying its Snapdragon mobile processors and multi-mode modems to Huawei. Avago says that it will be able to expand its mobile infrastructure portfolio with the new Huawei support. All three are all already silicon suppliers to the Chinese giant.

Why this matters
Huawei can't yet seem to get in on the action with major U.S. carrier infrastructure contracts, but it can splash the cash on American suppliers. The company says that since opening in the U.S. in 2001 it has partnered with 280 firms inking contracts worth more than $30 billion in all. 2011 marked an 8 percent increase in spending in the region year-on-year for the company.

For more
Read up on Huawei's recent North American moves:

— Dan Jones, Site Editor, Light Reading Mobile

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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