The U.S. Department of Commerce issued a seven-year export control ban to ZTE on the 17th of last month, requiring all American companies not to sell components to ZTE. Taiwan's 'Ministry of Economic Affairs'’s Bureau of International Trade subsequently issued an official document to MediaTek requesting To ship to ZTE, we must submit an application in accordance with the import and export control regulations.
In the past, the outside world originally used the relevant measures of the International Trade Bureau to cope with MediaTek, and MediaTek subsequently filed an application for approval. Today, it is reported that the South Asia Branch has also been subject to regulation, which means that the relevant incidents have extended from the mobile-phone communications related areas to the DRAM industry, which has caused great concern in the industry.
South Asia Branch confirmed that it has received relevant requests from government agencies and will apply to the 'Ministry of Economy' to sell key memory to ZTE in the near future. It is waiting for a reply from the Ministry of Economic Affairs.
South Asia Branch did not disclose the actual amount of ZTE’s monthly shipments. It merely stated that ZTE is a client of the company. Although the proportion of revenue is not high, according to the requirements of the 'Ministry of Economy', the application has been submitted for review as long as the other party guarantees The memory used will not be used to deliver to areas that violate the United States ban, or whether it can be sold to ZTE. However, in the short term, South Asia Branch’s shipment of ZTE has been delayed due to the application process.
The South Asian Branch emphasized that currently there is a shortage of DRAM supply, and the sources of goods are very popular. We do not worry that the US’s export control to ZTE will affect the business of South Asia Branch. However, if Huawei is also sanctioned by the United States, its impact may be greater than that of ZTE. Pay close attention to follow-up development.