February 17, 2012 / 10:15 PM / 8 years ago

Huawei to buy $6bln from Qualcomm, Broadcom, Avago

NEW YORK, Feb 17 (Reuters) - China’s Huawei Technologies Co Ltd said it would enter contracts worth $6 billion over the next three years to buy components from U.S. chip companies Qualcomm Inc, Broadcom Corp and Avago Technologies for its telecommunications products.

Huawei spokesman Bill Plummer declined to give details of his company’s specific commitments to each party or how the payments would be spread out over time.

The deals were announced as China’s Vice President Xi Jinping took in Los Angeles on the final leg of his whistlestop five-day U.S. tour, during which he promised greater access for U.S. corporations to the world’s No. 2 economy.

Plummer said Huawei has worked with about 280 U.S. companies since it started U.S. operations in 2001.

In 2011 Huawei paid $6.1 billion to U.S. suppliers, up from $5 billion the year before, while its sales grew to $32 billion in 2011 from $28 billion in 2010, Plummer said.

Qualcomm supplies Huawei with its Snapdragon application chips for mobile devices and radio chips, according to a statement from Huawei. It did not reveal the product details of its Broadcom and Avago agreements.

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