MediaTek has formally requested permission to supply Huawei with chips ahead of important September 15 ruling

MediaTek has formally requested permission from the US government to continue supplying Huawei with smartphone and tablet chips ahead of an important September 15 ruling. This could be Huawei’s last hope of manufacturing smartphones.

Chinese manufacturer, Huawei, has been struggling with a ban instigated by the United States in May 2019 preventing it from conducting business with any US-based organization. This includes companies such as Intel, Google, and Qualcomm, although the US government started a licensing system for businesses wishing to work with Huawei. Apparently, this licensing service has received over 125 applications but to the best of my knowledge, none of these have been approved. This means Huawei has no access to businesses with the technology able to manufacturer the Kirin family of System-on-Chips. Currently, the only viable option for a business that does not rely on American technology appears to be MediaTek, which neatly gives me the segway into today’s story: MediaTek has applied for a license from the US government to allow it to work with Huawei.

According to the source, Reuters, MediaTek issued a short statement including its respect for the US-led ban on sharing technology with Huawei, “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.” This news follows the announcement that the TSMC – Taiwan Semiconductor Manufacturing Company, one of the leading global contract semiconductor manufacturers – will not supply Huawei with chipsets after September 15. This is the date of the next stage of bans for businesses wishing to supply Huawei with technologies.

If the US denies the license, this could mean the end for Huawei’s successful smartphone and tablet manufacturing business, as it would no longer have the means to acquire the sophisticated System-on-Chips (or SoC) at the heart of every device. This would be another blow to Huawei, which has had to rapidly and dramatically change its business model over the last fifteen months – but the Chinese business has shown itself to be responsive and highly adaptable. Still, it appears to be running out of options, at least in the short term – but the situation could change very quickly in the coming months.

Source: Reuters

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