Qualcomm Still Wants to Sell Chips to Huawei for 3 Reasons
The U.S. Commerce Department added Chinese tech giant Huawei, the world's largest telecommunications equipment maker, to a trade blacklist last year. That restriction barred any American company from selling products to Huawei without obtaining a special license.
However, Qualcomm (NASDAQ: QCOM), the world's largest mobile chipmaker, recently petitioned the Trump administration to loosen some of those restrictions and allow it to sell its smartphone chips to Huawei. Qualcomm argues the blacklist should target only Huawei's leading position in the networking equipment market and not the smartphone market -- where it ranks second globally behind Samsung (OTC: SSNLF).
It's unclear if Qualcomm's lobbying campaign will succeed, but investors should understand the chipmaker's three main motivations.
Source Fool.com
