After Huawei had its chip supply from TSMC cut off, the Chinese company had started looking into multiple alternatives. One such alternative was the known chipmaker MediaTek, which would supply the smartphone maker with 5G chips. But it seems the deal isn’t exactly set in stone as MediaTek has yet to promise chip supply to Huawei.
According to a new report, MediaTek hasn’t confirmed the increased chip supply order, keeping the current situation in mind. In view of the recent sanctions by the US Government and the related human resource investment the chipmaker would have to make for Huawei, it seems that the deal has not been confirmed. At the moment, MediaTek has declined to comment on this situation or the rumors.
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A few sources close to the industry also pointed out that Huawei had already received 5G base stations and mobile processor 5nm chips from TSMC, even before the US sanctions had been proposed. In other words, the Chinese tech giant has a sufficient stock for now, which should also aid in development for the next two years. Thus, the short term business opportunities for others in the mobile chip business, like MediaTek, is relatively low.
Furthermore, the recent policies being enforced by the US may also hinder the supply of chip giants like Qualcomm and MediaTek, both of which are known suppliers of 5G enabled mobile processors. Notably, another major concern the industry faces is that while the new regulations do not impact the chipmakers directly, they may soon hinder their 5G operations if they function against the best interest of the US government.
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(Via)
