MediaTek Pushes for Permission to Supply Huawei After US Curbs

The Trump administration in August expanded its curbs on Huawei and banned suppliers from selling chips made using US technology to the Chinese firm.

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MediaTek Pushes for Permission to Supply Huawei After US Curbs

The curbs underscore the rift in Sino-US ties as Washington presses governments to squeeze Huawei out

Highlights
  • Mediatek has applied for permission to ship to Huawei after September 15
  • The US move this month closes potential loopholes in its May sanctions
  • US alleges the company would hand over data to Beijing for spying

Taiwanese chip designer MediaTek said on Friday it had applied to the US government for permission to continue supplying China's Huawei after new US curbs take effect in mid-September amid rising China-US tensions.

The Trump administration in August expanded its curbs on Huawei and banned suppliers from selling chips made using US technology to the Chinese firm without a special licence.

MediaTek, which analysts said could be among the worst affected following the latest curbs, said it will follow related global trade regulations and has applied for the permission to ship to Huawei after September 15.

"MediaTek reiterates its respect for following relevant orders and rules on global trade, and has already applied for permission with the US side in accordance with the rules," it said in a brief statement, without elaborating.

Huawei declined to comment.

The US move this month closes potential loopholes in its earlier May sanctions that could have let Huawei buy chips using US techonolgy via third parties.

The curbs underscore the growing rift in Sino-US ties as Washington presses governments to squeeze Huawei out, alleging the company would hand over data to Beijing for spying. Huawei denies it spies for China.

Taiwan Semiconductor Manufacturing (TSMC), the world's largest contract chipmaker, said last month it had stopped taking new orders from the Chinese telecommunications and smartphone giant in May and does not plan to ship wafers after September 15.

© Thomson Reuters 2020


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