MediaTek Licensed to Resume Supply to ZTE

MediaTek confirmed that after nearly two weeks of review, it successfully obtained permission from Taiwan’s Ministry of Economic Affairs’ International Trade Bureau to resume shipments to China’s mainland communications and mobile phone brand factory ZTE.

However, the industry believes that although the Ministry of Economic Affairs released the Taiwanese factory to ship ZTE, the U.S. restrictions on ZTE's seven years (the U.S. may not ship to ZTE) are still in existence. Now U.S. business still holds many key technologies or zero. Components, ZTE Terminal products can still be observed.

On April 17, the U.S. Department of Commerce issued a seven-year ban on export control to ZTE, a communications equipment factory in the Chinese mainland, and asked all US companies not to sell components to ZTE. The Ministry of Economic Affairs’s International Trade Bureau subsequently wrote the associations on the 23rd. Require related businesses to ship to ZTE, must apply according to the import and export control regulations, and then obtain the goods after passing through. The major domestic component manufacturers have recently suspended shipments to ZTE completely, one by one by the International Trade Bureau.

MediaTek confirmed yesterday that it has successfully obtained permission to resume shipments to ZTE.

The supply chain pointed out that American companies holding key technologies are still subject to the U.S. Department of Commerce’s seven-year embargo rule and cannot ship to ZTE; non-U.S. companies do not violate regulatory exports as long as they receive technology licensed from U.S. companies. Technology category, can still ship.

At present, Taiwan’s practice is to apply for a system. Manufacturers with shipping requirements must submit their applications on their own. MediaTek examines and approves, and on behalf of the government, is releasing companies that qualify for shipment.

The industry believes that for Qualcomm, a competitor unable to ship for seven years, MediaTek can ship to ZTE and it will have a chance to replace it. However, the ecosystem of component products is complex and American companies have a key or exclusive position in many areas. It is the mobile phone's operating system or communication high-end chip, etc. It is still necessary to observe when the future ZTE's communication or handset and other terminal products resume formal shipment.

2016 GoodChinaBrand | ICP: 12011751 | China Exports