Huawei ban: MediaTek applies to produce chips

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  • The US-led Huawei ban rules will be updated on September 15th to close a few loopholes.
  • MediaTek announced on Friday that it has officially applied for permission to continue shipping chips to Huawei.
  • If MediaTek is no longer licensed after September 15, Huawei will no longer be able to buy MediaTek chips
  • Although it has been well over a year since the Huawei ban began the drama never seems to end. Recently, Huawei admitted that it could no longer produce its Kirin chipsets, which power all major smartphones. With Qualcomm and Samsung not available as alternative options due to the ban, it was assumed that the Chinese company MediaTek would sell Huawei the silicon it needed.

    Related Topics: The Huawei Ban Explained: Everything You Need to Know

    However, on September 15, 2020, the United States will fill some loopholes in the ban, that would even prevent MediaTek from working with Huawei. MediaTek announced today that it has officially applied for a license to continue shipping chips to Huawei (via Reuters).

    If the Trump administration rejects the proposal, it is unclear how Huawei could move forward.

    Huawei ban: The company needs processors

    Of course, Huawei cannot manufacture smartphones without processors. It can no longer produce its own business and the only large company available that can produce silicon at the level it needs is MediaTek. If MediaTek doesn't get its license, there's no telling what could happen.

    MediaTek today confirmed that it intends to comply with the Huawei ban rules. "MediaTek reiterates its respect for compliance with the relevant rules and regulations for world trade and has already applied for approval from the US side under the rules," it said in a statement.

    Related: MediaTek Chip Guide: Everything You Need to Know

    MediaTek and Huawei are both Chinese companies. It is not impossible that they will choose to ignore the ban and work together. After all, China is unlikely to punish either company for doing everything it can to keep Huawei afloat.

    This is all speculation at the moment, but something has to happen at some point. The United States is tightening the noose at Huawei. It's just a matter of time before something clicks into place.

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