Huawei and Qualcomm have signed a broad multi-year patent licensing deal covering 5G, computing, artificial intelligence and networking technologies. The companies announced the agreement on Monday.

The deal includes cross-licenses to both companies’ patent portfolios. Qualcomm will also purchase some of Huawei’s US patents in computing, AI and networking. It will close after regulatory approvals.

It is Huawei’s first patent licensing agreement with Qualcomm that covers 5G technology. It is also the first under which Huawei licenses and assigns patents in computing, AI and networking to the US chip designer.

Huawei shipped nearly 50 million smartphones in China in the first half of the year, and analysts say the Mate 80 series could help it cross 60 million annual shipments. The move signals that Chinese chipmakers are closing the gap in high-end mobile processors, according to industry watchers.

Huawei said its expected contract value from patent licensing deals has now crossed $6.9 billion. Financial terms were not disclosed. The agreement follows a Huawei-HP cross-licensing deal on Wi-Fi patents in August. Both companies said the deal reflects shared commitment to fair, reasonable and non-discriminatory licensing principles.