Taiwan’s MediaTek given permission to resume microchip exports to ZTE

Taiwanese chip company MediaTek has received permission from authorities to resume sales to ZTE Corp after the US government banned American companies from selling parts to the Chinese telecom equipment and smartphone maker. 

Taiwan’s Ministry of Economic Affairs on Friday granted an export permit to MediaTek, which supplies chipsets for ZTE smartphones, while several other Taiwanese companies are waiting for similar approvals, The Wall Street Journal reported on Monday. 

A spokesperson from MediaTek confirmed on Tuesday that the company has received a permit to ship to the Chinese telecoms maker. ZTE did not immediately respond to a request for comment.

Taiwanese companies, though not directly covered by the US ban, were required to obtain an export permit before selling to ZTE after Taiwan’s Bureau of Foreign Trade classified ZTE and its subsidiary ZTE Kangxun Telecom as “controlled export targets”.  

MediaTek announced on April 28 that it was applying for an export permit at the request of the bureau, one day after the company denied media reports that it was barred from selling to ZTE at the request of the Taiwan government.

MediaTek derived US$10.5 million, or 0.63 per cent, of its revenue from ZTE in the third quarter of last year, according to Bloomberg data. Up to 11 Taiwanese companies are suppliers to the Chinese telecom firm, according to Bloomberg.