Earlier today (28th August 2020), MediaTek announced that it had applied for a license with the US government to supply Huawei, despite recent sanctions restricting the Chinese tech giant’s supply chain.
For those unaware, the Trump administration further tightened the restrictions on Huawei. The move came to ban the company from using any American made tools or equipment without the supplier acquiring a special license from the US Government. Despite the sanctions being aimed at Huawei, the effects were also felt by the Taiwanese chipmaker, who lost its share value in the market as well.
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According to a Reuters report, analysts have stated that MediaTek might be among the worst affected companies from the recent curbs. The company has stated that it will follow the global trade regulations and has also applied for permission to supply Huawei after 15th September 2020. Since Huawei lost TSMC as its primary chip supplier, MediaTek has seen an increase in orders from the Chinese company, so it is clear why the company wouldn’t want to miss out on a major customer.
While it remains to be seen how the US government responds to this, it seems highly unlikely that MediaTek would be granted a special license. In the past, other chipmakers like Qualcomm had also attempted to obtain permission to trade with Huawei. The US has stood firmly against Chinese firms like Huawei and ZTE, with recent trade regulations that have even tested their relationship with their respective suppliers.
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