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Agence France-PresseJuly 8, 2021 12:43:34 PM IST
Huawei has signed a licensing agreement that will allow its 4G technology to be used in coupled vehicles manufactured by the Volkswagen Group, a Chinese technology giant said on Wednesday. The deal is at its largest in the automotive industry, it added. It comes as the company aggressively moves into intelligent vehicles and other new industries after U.S. sanctions forced its traditional grid devices and smartphone business lines.
Huawei did not provide financial terms or identify a VW supplier, but said the agreement included a license under the Huawei 4G patents covering Volkswagen vehicles with wireless connectivity.
VW later issued a statement saying: “We are pleased that a leading ICT company (telecommunications technology) has granted one of our suppliers a license for standard-essential mobile phone patents.
Wireless connection in future Volkswagen Group vehicles will be introduced with Huawei 4G technologies. Photo: Volkswagen
“This licensing in the supply chain is a model of how ever closer cooperation between the mobility industry and the ICT industry can succeed.”
By marking Huawei as a security threat, the United States has prevented the company from entering the huge U.S. market, cut it off from global supply chains, and pressured allies to ban or remove Huawei switches from their national telecommunications systems.
Huawei has denied the allegation, saying the United States has never provided any evidence.
In response, the company, the world’s largest provider of telecommunications networks and formerly the top three smartphone providers, has turned to other business segments to survive.
In addition to supplying technologies to smart car manufacturers, it has tilted plans to move into the software sector as well as business and cloud services.
Last month, it also launched its own domestic mobile operating system, as U.S. sanctions prevented it from using Google’s Android system on smartphones.
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