MediaTek seeks US consent for Huawei deals

By Backend Office, Desk Reporter
MediaTek Building
Representational Image

The Taiwan based chip designer MediaTek has requested the US government for special permission to continue supplying chips to Huawei as the trade sanctions were tightened earlier this month due to the US-China tensions.

In a brief statement, MediaTek reiterated,“ Its respect following relevant orders and rules on global trade, and has already applied for permission with the US side in accordance with rules.”

Amid the US-China tension, the Trump administration reinforced the restriction on Huawei in August. As per this restraint, the company was banned to use tools or equipment which were made with American technology. If the company has to use any of the American components, the supplier will have to acquire a special license from the US government.

As per the reports, the restrictions have affected the Taiwanese chip designer company in the worst way which lost its share value in the market also. MediaTek has cleared that it would follow all the global trade regulations and has also applied to the US government to permit the supply of chips to Huawei after 15th September 2020.

MediaTek was receiving huge orders from the Chinese companies as the Taiwan Semiconductor Manufacturing Company (TMSC), the multinational contract chipmakers, said last month that it had ceased taking orders from Chinese telecommunication giants.

It seems doubtful whether the US government will sanction permissions as other chipmakers including Qualcomm also tried to obtain permission for the same in the past. The US restrictions against Chinese firms like Huawei and ZTE were firm and the new regulation affected their suppliers too.