Taiwanese chipmaker MediaTek has now filed an application to seek permission from the US government to supply chipsets to Huawei for its devices.
Well, the trade ban imposed by the US government on Huawei is nothing new, only if you are not living under a rock. The trade ban imposed last year on allegations that it sells user data to the Chinese Jinping government.
Huawei has denied all the allegations as of now. But the US government is in no mood to let loose the Chinese smartphone giant without proper scrutiny.
In fact, it is taking all the steps possible to rise hurdles in the path of business for Huawei. However, fortunately for Huawei, the US government eased off a bit by granting a TGL to conduct limited business with U.S. companies.
TGL means a temporary general license that allows Huawei to perform business on a limited scale with companies in the US. Moreover, the US also banned all its suppliers to sell chipsets to Huawei.
This ease has expired last month, and the restrictions on Huawei has not gotten tighter. Notably, the parties who wish to conduct business with Huawei have to submit license applications.
TSMC has stopped taking orders for new chips from Huawei
Now a report by Reuters confirms that MediaTek has filed a license application. This permission will allow MediaTek to supply chipsets to Huawei.
Besides, if MediaTek gets approval, it can continue supplying chipsets with Huawei even after September 15. For the unaware, new U.S. regulations take effect on September 15th.
TSMC is the manufacturer of Kirin chipsets, which powers Huawei devices. However, before the new regulations that curb the potential loopholes in the previous rule come into effect, it has already stopped taking orders from Huawei.
Meanwhile, as per the application, MediaTek stated that it has filed for permission with the U.S. side under the new rules. This is pretty important for MediaTek. Because it has stopped taking orders from new orders from Huawei.
The revised rules would require all companies to gain a special license for any transaction with Huawei. So, the application seems in tandem to what it has applied for.
Note that Huawei's upcoming Mate 40 series devices will be the last flagship phone from the OEM to sport the Kirin chipset. The device is expected to officially unveil in the IFA 2020 next month.
So, a lot is riding for MediaTek on this application. And if this application gets rejected, the Taiwanese chipmaker will suffer severe consequences. We will wait on that and see for further developments in this regard.