20 January 2021
Qualcomm and Honor are reportedly in talks to reach a chip purchase agreement. Once finalized, Qualcomm will supply the chips to Honor. A source close to Qualcomm has reportedly conveyed that the negotiation between Qualcomm and Honor is very optimistic and the two companies are close to reaching a supply cooperation agreement. This suggests the two companies are in advanced talks already and Qualcomm may start supplying the chips to Honor anytime soon.
Reportedly, the upcoming V40-series by Honor will use the pre-stocked MediaTek chips only. So, expect to see Honor using the Qualcomm Snapdragon chips in some other series coming in 2021 if the said deal gets finalized in the near future.
Last month, the US government granted a license to Qualcomm so that the latter could resume its business with Huawei, a company that still exists on the entity list. The permission was to sell 4G mobile chips to Huawei. This was the only exemption given to the US-based Qualcomm. But this is still not enough to survive and do business in the US. Unfortunately, Honor was bearing the brunt of this US-Huawei ban as well. So, Huawei had to relinquish its sub-brand Honor so that the latter could survive and continue its work with the US-based companies.
For those who are uninitiated, Honor was formerly owned by Huawei but the latter sold it to Shenzhen Zhixin New Information Technology Co. Ltd last month.
It is good to note that Honor will now be able to do business directly with Qualcomm and other suppliers as well. This is a great milestone for the company. With new plans and strategies in mind, Honor may lead better and secure a top position for itself in the growing smartphone market in China, at least.