Daily Management Review

Taiwan's MediaTek Seeks US Permission To Continue To Supply Huawei


With the new curbs on the Chinese telecom giant Huawei by the United States set to take effect from September amid rising tensions between the United States and China, Taiwanese chip designer MediaTek Inc wants to continue to supply to the Chinese company. For this purpose, the Taiwanese company has applied to the US government for permission to continue supplying, the company said on Friday.  
In August this year, the already existing bans and curbs on Huawei were expanded by US President Donald Trump’s administration. In the latest ban order, the Trump administration has banned all suppliers from selling chips that are made with the use of technology of American companies to the Chinese firm without getting an approval from the US government for a special license.
According to analysts, the latest Trump administration ban and curbs on Huawei could hit MediaTek the worst among all of the suppliers of the Chinese company. 
The company has applied for permission from the US government to continue to make shipments of its products to Huawei after September 15 since it is following related global trade regulations, MediaTek said.
"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.
No comments on the issue from Huawei were available.
The August ban order by the Trump administration, according to analysts, essentially closes all possible loopholes that were present in its earlier sanctions issued on May this year, according to which the Chinese company could still continue to purchase from third parties chips that were made with the use of technology from American companies.
The latest action on Huawei by the Trump administration reflects the growing tensions between the US and China with the US trying to push its allied countries to impose ban on the Chinese company over allegations that the telecom equipment of Huawei had backdoors that could be used by Chinese spy agencies to spy on Western countries. According to Trump, Huawei could also potentially hand over data to Beijing as per Chinese laws therefore creating a national security threat for countries suing the company’s equipment for telecommunications.
Huawei denies it spies for China.
Accepting new orders from the Chinese telecommunications and smartphone giant Huawei had been stopped in May by Taiwan Semiconductor Manufacturing Co Ltd, the largest contract chipmaker of the world, the company said and added that it did not plan to make any new shipments to Huawei after September 15.