Daily Management Review

Taiwanese MediaTek files a request for a license in the USA


Taiwan-based MediaTek has applied for a special license in the US to be able to continue selling chips to the Chinese tech company Huawei after US sanctions were extended against it, the Central Taiwan News Agency reported.

MediaTek is the largest non-manufacturing company in Taiwan that develops microelectronic chips for wireless communications and digital multimedia devices.

According to the agency, MediaTek confirmed its readiness to comply with the rules of international trade. If the company does not obtain a license, it will not be able to sell Huawei chips after September 14th.

Earlier, US Secretary of State Mike Pompeo announced the expansion of sanctions against the Chinese telecommunications company Huawei. The US Department of Commerce has added 38 more Huawei subsidiaries to the "blacklist". In addition, the agency has expanded the scope of the amendments, according to which foreign companies using US equipment to make chips must obtain a license in the US before supplying certain chips to Huawei.

The United States accuses Huawei of cooperation with the military and intelligence of the PRC and possible surveillance of customers and convinces a number of countries not to use Huawei infrastructure and equipment when switching to the 5G cellular standard. The Chinese company says the accusations are unfounded, politically motivated and violate the principles of market competition.

source: bloomberg.com