Stefan Mileschin

American's loss is Mediatek's gain

Mediatek Inc has received an export permit from its government to sell components to ZTE Corp, a Chinese telecoms equipment maker subjected to restrictions in the United States.

For those who came in late, the US government last month banned American firms from selling to ZTE for seven years, saying the company had failed to comply with a settlement related to ZTE shipping US-made goods to Iran in violation of US sanctions.

Following the US ban, Taiwan had instructed local firms wanting to ship goods to ZTE to apply for permission before flogging gear to ZTE.

Mediatek has confirmed it had received the export permit last week to ship products to ZTE.

An official with Taiwan’s Bureau of Foreign Trade said the government had approved a permit for Mediatek, and that it had received applications from “several” other tech firms.

“We fully understand high-tech factories’ characteristic of fast-paced shipments of goods, we won’t create obstacles for the pace of their exports”, the foreign trade official told Reuters.

“Taiwan’s government has its own control mechanisms, which is independent of the way the US looks at it in a given situation,” the official said. “The mechanism will consider America and other advanced countries’ controls.”

Taiwan gave domestic companies permission to proceed with exports to firms on the government’s watch list.

He did not give names of the other companies that had applied for permission, but said chipmaker Nanya Technology Corp was not one of them.

Shipments to ZTE by Nanya Tech will be hurt in the short term given the government’s procedure, local media has reported.

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