September 30, 2022
MediaTek pushes for permission to supply Huawei after US sanctions

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

In August the Trump administration expanded its sanctions on Huawei and banned suppliers from selling chips made using US technology to the Chinese firm without a special license.

MediaTek, which analysts said could be the worst hit after the latest sanctions, said it would comply with relevant global trade rules and has applied for permission to ship to Huawei after September 15.

“MediaTek reiterates its respect for complying with the relevant orders and regulations on global trade, and has already applied for permission with the US side in accordance with the regulations,” 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 allowed Huawei to buy chips using US technology through third parties.

The sanctions underscored a growing rift in Sino-US relations as Washington pressured governments to oust Huawei, accusing the company of handing over data to Beijing for spying. Huawei denies spying for China.

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

© Thomson Reuters 2020

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