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.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
POWER BUILDUP: Powered by Nvidia’s B200 Blackwell chips, the data center would support MediaTek’s computing power demand and business growth, the company said Smartphone chip designer MediaTek Inc (聯發科) yesterday launched a new artificial intelligence (AI) data center with a maximum capacity of 45 megawatts to meet its rising demand for computing power required to develop new advanced chips for AI applications. The company has completed the first-phase computing power buildup at the data center in Miaoli County’s Tongluo Township (銅鑼), providing 15 megawatts of capacity to support its research and development (R&D) capabilities, despite an industrywide shortage of key components, MediaTek said. Supply constraints have plagued a wide range of key components, including memory chips, solid-state drives, power supply units and central
TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
RSS