Cai Lixing, the chief executive of MediaTek, confirmed at a legal briefing meeting a few days ago that he has temporarily stopped shipping products to ZTE, raising doubts about whether the market will suffer further impact on the follow-up operations of MediaTek. MediaTek said that it has actively prepared To submit documents to the International Trade Bureau, apply for export licenses, as soon as possible after approval.
The MediaTek speech system stated that Taiwan has listed ZTE and related companies ZTE Kangxun as objects of export control for high-tech goods. The reason is that Taiwan must abide by the provisions of international trade law and it is also a basic procedural issue. It is not aimed at specific companies. As an example of Japan's trade frictions, Taiwanese manufacturers must also obtain official permission before shipping their products, and reiterated that MediaTek is currently actively preparing documents for the submission of a shipping permit to the International Trade Bureau.
According to the announcement of the Bureau of International Trade, on April 23, a letter was sent to all industry associations to tell manufacturers that they must obtain a certification permit before exporting products to ZTE. If it does not involve the development of nuclear weapons, biological weapons, and chemical weapons, the Trade Bureau will issue certifications. The certificate will be issued within 3 to 5 working days. If there is any doubt, the relevant authority will be invited to review and issue the certificate within 10 to 15 working days.
The supply chain stated that since MediaTek's products exported to ZTE are low-end and mid-range mobile phone chips used in consumer electronics, if MediaTek's delivery status goes well, it will have the fastest opportunity to return shipments to ZTE within 2 to 3 weeks.
Although MediaTek currently suspends its supply to ZTE, the major trend in the improvement of MediaTek's operating constitution remains unchanged. Cai Lixing said at the Law Conference recently that MediaTek's gross margin will be expected to reach 36 to 39% this year. Since the establishment of the company, the lowest point of 33.5% has continued to rise. Observing the gross margin of 38.4% paid in the first quarter of this year, we can observe that Mediatek's operating conditions have continued to improve.