Huawei Technologies has inked a deal with the Volkswagen Group and a supplier that will see its wireless technology used in 30 million VW Group models.
The licensing deal will provide the German automaker with access to Huawei’s 4G technologies and patents that are required for features like advanced driver-assistance systems and infotainment displays. This is Huawei’s largest deal it has reached in the automotive industry as it looks to expand its business.
“We welcome that a leading ICT (Information Communication Technology) company has granted one of our suppliers a license to standard-essential mobile communications patents,” VW said in a statement. “This licensing in the supply chain is a model of how the increasingly close cooperation between the mobility industry and the information and communications industry can succeed.”
After the U.S. barred Huawei from selling its devices in the country due to it being branded a national security threat, the technology giant has been venturing into other business sectors and is expected to also move into software in addition to enterprise and cloud computing.
As noted by Nikkei Asia, Huawei is China’s largest holder of standard essential patents for 4G and 5G communications technology and is looking for customers in the automotive industry to license the technology to. The company expects to generate more than $1 billion in patent licensing fees for the three years through 2021. Moreover, it has entered into more than 100 patent license agreements in the past 20 years.
The senior executive at Huawei’s smart vehicle unit, Wang Jun, recently revealed that the company wants to develop true driverless passenger cars by 2025 and has already invested $1 billion into electric vehicle and self-driving car technology research.