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Taiwan’s MediaTek pushes for permission to supply Huawei after U.S. curbs – Metro US

Taiwan’s MediaTek pushes for permission to supply Huawei after U.S. curbs

MediaTek chips are seen on a development board which is
MediaTek chips are seen on a development board which is used to help brew vinegar at the MediaTek booth during the 2015 Computex exhibition in Taipei, Taiwan

TAIPEI (Reuters) – Taiwanese chip designer MediaTek Inc <2454.TW> said on Friday it had applied to the U.S. government for permission to continue supplying China’s Huawei after new U.S. curbs take effect in mid-September amid rising China-U.S. tensions.

The Trump administration in August expanded its curbs on Huawei and banned suppliers from selling chips made using U.S. technology to the Chinese firm without a special licence.

MediaTek, which analysts said could be among the worst affected following the latest curbs, said it will follow related global trade regulations and has applied for the permission to ship to Huawei after Sept. 15.

“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,” it said in a brief statement, without elaborating.

Huawei declined to comment.

The U.S. move this month closes potential loopholes in its earlier May sanctions that could have let Huawei buy chips using U.S. techonolgy via third parties.

The curbs underscore the growing rift in Sino-U.S. ties as Washington presses governments to squeeze Huawei out, alleging the company would hand over data to Beijing for spying. Huawei denies it spies for China.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) <2330.TW>, <TSM.N>, the world’s largest contract chipmaker, said last month it had stopped taking new orders from the Chinese telecommunications and smartphone giant in May and does not plan to ship wafers after Sept. 15.

(Reporting By Yimou Lee; Additional reporting by Ben Blanchard, and David Kirton in Shenzhen, China; editing by David Evans & Simon Cameron-Moore)