Earlier reports said that Taiwan's Ministry of Economic Affairs' International Trade Bureau issued a statement on its website that ZTE and ZTE Kangxun have been included in the strategic export control of high-tech goods.
MediaTek released its first-quarter earnings report for 2018 yesterday, with revenue of 49.654 billion New Taiwan dollars (about 10.645 billion yuan), down 17.8% from the previous quarter. Gross profit margin was 38.4%, an increase of 1 percentage point from the previous quarter. The profit was NT$1.99 billion (approximately RMB 414 million), an increase of 49.5% over the previous period. The net profit was NT$2.66 billion (approximately RMB 570 million).
In a subsequent conference call, Cai Lixing, CEO of MediaTek, stated that the Taiwan authorities currently do not allow MediaTek to provide any smart phone components to ZTE, and stated that the matter has limited financial impact on the company.
The following is the detailed text of MediaTek's Weibo:
Regarding the April 27 media report that MediaTek (our company) shipped ZTE, it states as follows: According to the requirements of the Taiwan International Trade Bureau of the Ministry of Economic Affairs, the company is currently actively preparing relevant documents to apply for export licenses of ZTE. With a view to obtaining the export license for the goods as soon as possible, shipments will continue smoothly according to the law.