Taiwan-headquartered MediaTek requested special permission from the US government to continue to supply chips to Huawei, Reuters reported, after trade sanctions were tightened earlier this month.
In a statement viewed by the news organisation, MediaTek reiterated “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”.
Its request comes after the US Department of Commerce toughened restrictions on Huawei, declining to extend [1] a reprieve which had bypassed a ban on suppliers selling equipment made using US technology to the Chinese vendor originally imposed in May 2019.
Earlier this year, the US also closed off a loophole [2] which allowed Huawei to buy chips using US technology through third parties.
With its latest set of curbs, the US said a special licence would be required for any transaction in which Huawei or a listed affiliate is a “purchaser, intermediate or end user”, which appears to be what MediaTek has applied for.
Reuters cited analysts who stated MediaTek could be among the hardest-hit companies following the latest clamp down.
MediaTek applied to continue to supply to Huawei after 15 September, when the latest regulations take effect.
[1] https://www.mobileworldlive.com/featured-content/home-banner/us-clamps-down-on-huawei
[2] https://www.mobileworldlive.com/featured-content/home-banner/us-eats-into-huawei-chips-china-considers-counter
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