MediaTek approved to sell chips to ZTE | ZTE welcomes a turnaround?

According to the latest news, MediaTek has obtained a permit for the export of goods to ZTE approved by relevant authorities in Taiwan, and shipments with ZTE resumed normal. This was after US suppliers were prohibited from selling components to ZTE. A boost boosted by ZTE.

A spokesman for Taiwan-based supplier MediaTek Technology Co., Ltd. said on Monday that the company had obtained approval from Taiwan's relevant authorities on Friday and will resume exporting chips to ZTE. An official from the Taiwan Ministry of Economic Affairs also confirmed that it had already made a request to MediaTek. The technology issued an export license, which is responsible for issuing export licenses. The official said that several other Taiwanese companies are still waiting for export permits, but he did not disclose the names of these companies.

In the context of ZTE’s refusal by the United States, US chip suppliers will have an impact on ZTE’s shipments. Although it was previously speculated that MediaTek may be able to make up for the knife at this time, it turned out that MediaTek can’t be successful in the face of huge business opportunities. Motivated.

Publicly, the U.S. Department of Commerce announced last month that it will completely ban U.S. companies from selling components, goods, software and technology to ZTE for 7 years until March 13, 2025, on the grounds that ZTE violated U.S. restrictions and sold U.S. to Iran. The technical sanctions clause, the 7-year ban, shocked the technological circle. ZTE said that this cut off the company’s key components and endangered the company’s survival.

Although Taiwanese companies such as MediaTek are not directly covered by the US ban, the International Trade Bureau of Taiwan’s 'Ministry of Economic Affairs’ clearly stated that ZTE and ZTE Kangxun have been included in the strategic export control of high-tech goods and requested ZTE Taiwanese companies conducting communication services must apply for permits before they can continue exporting to ZTE. At that time, MediaTek’s CEO Cai Lixing also stated that the Taiwan authorities currently do not allow MediaTek to provide any smart phone components to ZTE.

Of course, MediaTek did not give up its efforts. On April 28th, MediaTek once stated on the official Weibo that there was a related case in which ZF issued the shipment to ZTE. According to the requirements of the relevant agencies of the economic authorities in Taiwan, MediaTek is actively preparing relevant Document, Application for a license for ZTE's export of goods in order to obtain the export license of goods as soon as possible, and continue to ship smoothly.

According to the National Grid of China, the products of MediaTek's exports to ZTE are mainly concentrated in chips, Wi-Fi modules, etc. Overall, ZTE's business accounted for a relatively small proportion of its revenue, and MediaTek's recovery of chips for sale does not work for ZTE. Solve all problems, but MediaTek’s resumption of the sale of chips is undoubtedly an important part of ZTE's efforts to repair its supply chain. For MediaTek, the next seven-year ban will also bring unlimited possibilities. Under such business opportunities, licensing The question MediaTek is bound to do its best to apply.

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