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.
EXPANSION: The investment came as ASE in July told investors it would accelerate capacity growth to mitigate supply issues, and would boost spending by 16 percent ASE Technology Holding Co (ASE, 日月光投控), the world’s biggest chip assembly and testing service provider, yesterday said it is investing NT$17.6 billion (US$578.6 million) to build a new advanced chip packaging facility in Kaohsiung to cope with fast-growing demand from artificial intelligence (AI), high-performance-computing (HPC) and automotive applications. The new fab, called K18B, is to commence operation in the first quarter of 2028, offering chip-on-wafer-on-substrate (CoWoS) chip packaging and final testing services, ASE said in a statement. The fab is to create 2,000 new jobs upon its completion, ASE said. A wide spectrum of system-level chip packaging technologies would be available at
Taiwan’s foreign exchange reserves hit a record high at the end of last month, surpassing the US$600 billion mark for the first time, the central bank said yesterday. Last month, the country’s foreign exchange reserves rose US$5.51 billion from a month earlier to reach US$602.94 billion due to an increase in returns from the central bank’s portfolio management, the movement of other foreign currencies in the portfolio against the US dollar and the bank’s efforts to smooth the volatility of the New Taiwan dollar. Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民)said a rate cut cycle launched by the US Federal Reserve
HEAVYWEIGHT: The TAIEX ended up 382.67 points, with about 280 of those points contributed by TSMC shares alone, which rose 2.56 percent to close at NT$1,400 Shares in Taiwan broke records at the end of yesterday’s session after contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) hit a fresh closing-high amid enthusiasm toward artificial intelligence (AI) development, dealers said. The TAIEX ended up 382.67 points, or 1.45 percent, at the day’s high of 26,761.06. Turnover totaled NT$463.09 billion (US$15.22 billion). “The local main board has repeatedly hit new closing highs in the past few sessions as investors continued to embrace high hopes about AI applications, taking cues from a strong showing in shares of US-based AI chip designer Nvidia Corp,” Hua Nan Securities Co (華南永昌證券) analyst Kevin Su
Nvidia Corp’s major server production partner Hon Hai Precision Industry Co (鴻海精密) reported 10.99 percent year-on-year growth in quarterly sales, signaling healthy demand for artificial intelligence (AI) infrastructure. Revenue totaled NT$2.06 trillion (US$67.72 billion) in the last quarter, in line with analysts’ projections, a company statement said. On a quarterly basis, revenue was up 14.47 percent. Hon Hai’s businesses cover four primary product segments: cloud and networking, smart consumer electronics, computing, and components and other products. Last quarter, “cloud and networking products delivered strong growth, components and other products demonstrated significant growth, while smart consumer electronics and computing products slightly declined,” compared with the
RSS