Earlier news broke out in the market that Huawei and MediaTek Co., Ltd. have reached a cooperation, and Huawei will purchase a huge order of chips for mobile phones through MediaTek.
Subsequently, the stock price of MediaTek, whose presence itself was not too high, soared because rival Qualcomm was unable to supply Huawei. This is the opportunity that MediaTek ushered in.
However, the US Department of Commerce announced the expansion of sanctions, which prevented Huawei from obtaining technical support from US companies.
Earlier news came out from the market that Huawei has placed an order for 120 million chips from MediaTek. It stands to reason that the orders reached before the restriction should not be restricted by the United States.
After the U.S. upgrades restrictions, companies such as MediaTek may not be able to provide Huawei with chips, which will also make it more difficult for Huawei to obtain chip products.
U.S. Secretary of State Pompeo said that the U.S will directly prevent Huawei from using alternative chip production and providing ready-made chips produced with tools obtained from the United States to circumvent US regulations.
Affected by upgrade restrictions, many chip manufacturers may not be able to cooperate with Huawei at present, not only MediaTek but also Realtek and Novatek.
MediaTek has not responded to the news about cooperation or orders before, but the expansion of sanctions did stimulate MediaTek.
MediaTek officially disclosed that the company has submitted an application to the United States in accordance with relevant regulations, and strives to continue to supply products to Huawei after September 15.
September 15, 2020, is the last time the United States has given Huawei for the transition. After this time, the United States and companies that use American technology will disconnect from Huawei.
Although MediaTek is not a US company, its chip R&D and manufacturing technology also contains US technology, so it is also controlled by relevant US policies.
If MediaTek does not abide by the relevant policies of the United States, the US company will not be able to provide technical support to MediaTek, which may ultimately affect the development of MediaTek.