MediaTek applies for US permission to supply Huawei with chips

MediaTek applies for US permission to supply Huawei with chips

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Following the trade ban imposed on Huawei last year, the U.S. government granted the company a temporary general license (TGL) to conduct limited business with U.S. companies. The license was extended several times over the last year, but the last extension expired earlier this month and it wasn’t renewed further. Instead, the U.S. government further tightened its restrictions on Huawei and announced that all parties who wish to conduct business with Huawei would have to submit license applications for transactions previously authorized under the TGL. In keeping with the new requirements, Taiwan’s MediaTek has now applied for U.S. permission to supply Huawei with chips.

According to a recent report from Reuters, MediaTek has submitted an application to the U.S. government for permission to continue its business with Huawei after the new U.S. regulations take effect on September 15th. In a statement to the publication, the company said, “MediaTek reiterates its respect for following relevant orders and rules on global trade, and has already applied for permission with the U.S. side in accordance with the rules.” Analysts claim that MediaTek could be among the worst affected by the latest restrictions.

MediaTek has already stopped taking new orders from Huawei and doesn’t plan to ship chips to the company after September 15th, in case its application isn’t approved by the U.S. government. The latest restrictions imposed on Huawei by the Trump administration aim to close all loopholes that allowed the company to purchase U.S. technology from third-parties and they could have a drastic impact on the company. For the unaware, the U.S. government imposed trade restrictions on Huawei last year following allegations that the company was selling user data to the Chinese government for spying. Huawei has repeatedly denied these claims.

Source: Reuters