Handset chip designer MediaTek Inc (聯發科) on Saturday said it is preparing to apply for a permit to continue exporting to ZTE Corp (中興通訊), after the government announced new restrictions on high-tech exports to the Chinese firm.
MediaTek plans to follow requirements set out by the Ministry of Economic Affairs in applying for the export permit, a company filing with the Taiwan Stock Exchange said, adding that it hopes to continue sending shipments to its customer with only minor disruption.
The ministry late on Friday announced new measures for shipments from local companies to ZTE and its subsidiary, ZTE Kangxun Telecommunications Ltd (中興康訊), two weeks after the US banned US companies from selling products to the two Chinese companies for seven years.
In a statement posted on the ministry’s Web site, the Bureau of Foreign Trade said it informed trade associations on April 23 that all Taiwanese companies that ship “strategic, high-tech commodities” to the two Chinese firms must obtain export permits from the ministry to clear customs.
Domestic companies would receive export permits in three to five days after applying if the goods being shipped to ZTE do not involve “nuclear, biotech or chemical developments for military weapons,” the bureau said.
However, goods that cause concern would necessitate other government agencies participating in the review, which would possibly delay receipt of the permits, with companies having to wait 10 to 15 days, the bureau added.
Asked if the government’s measures aim to bar local companies from doing business with ZTE, bureau Director-General Yang Jen-ni (楊珍妮) told the Chinese-language Liberty Times (sister publication of the Taipei Times) on Saturday that the permit requirements are to serve as a reminder for local companies of the “red line” drawn by the US government and ensure that their dealings with the Chinese firms are legal.
Taiwan in July 1995 started its strategic high-tech commodities export control system to adhere to a control list set by the Coordinating Committee for Multilateral Export Controls agreement, Yang said.
US trade sanctions were imposed on ZTE and its subsidiary on April 15, after they failed to comply with an agreement with Washington to discipline employees who had violated US restrictions on exports of US technology to Iran and North Korea, but instead paid them bonuses.
While the seven-year ban — which took effect on April 15 and is to continue through March 13, 2025 — might jeopardize ZTE’s development, MediaTek has little exposure to the Chinese firm, it told a teleconference on Friday, adding that the US penalties imposed on ZTE would have no significant effect on its short-term operations.
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