Semiconductors firm MediaTek now says that it will apply to the Taiwanese government to get a export permit to ship its products to Chinese tech manufacturer ZTE.
About a week ago, the Bureau of Foreign Trade began requiring companies doing business with ZTE to suspend any shipments and begin filing paperwork. Reuters reports that the bureau is checking on whether shipments are related to “nuclear bombs, chemical bombs and the like.” After allegedly breaching terms of a settlement over US sanctions violations, ZTE is currently serving a 7-year moratorium from importing US products — the company vows to fight against the Commerce Department ruling.
MediaTek is the second-largest manufacturer of mobile applications chipsets and may become the primary source of systems-on-chips to ZTE as it cannot source hardware from US-based Qualcomm. The Taiwan-based company wrote in a stock exchange filing that it will “follow the law and proceed with smooth shipping.”