MediaTek Stock 30 Million Chips for Huawei are in Vain

MediaTek Stock 30 Million Chips for Huawei are in Vain

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) today further escalated restrictions on Huawei and its non-U.S. affiliates on its “Entity List” to use U.S. technology and software to produce products at home and abroad.

Under the latest ban, Huawei will be prohibited from purchasing “parts,” “components,” or “equipment” that are developed or manufactured based on U.S. software or technology, unless a U.S. license is obtained. It also means that the path previously used to maintain operations by sourcing third-party non-US chips is blocked.

This is because the vast majority of current chips are based on U.S. EDA software designs. Besides, it is worth noting that the current global foundry, there are a large number of U.S. semiconductor equipment, so the chips produced by these foundries, are also based on U.S. technology to produce “parts”, “components”? There are indeed some uncertain questions here.

What is certain, however, is that the introduction of this new U.S. ban will not only put Huawei in an even greater predicament (there may be no chips available in the future) but will also have a significant negative impact on the global supply chain, especially on Huawei’s global suppliers, when the manufacture of Huawei’s chips has previously been restricted by the United States.

As a result of the ban, the Kirin chip could not be produced and there was a supply shortage, so Huawei’s mid-range models mostly used MediaTek chips. However, with the upgrade of the U.S. ban on August 17, Huawei’s use of MediaTek chips has now become very difficult.

Specifically, the U.S. Department of Commerce issued a revised version of Huawei’s ban, further restricting Huawei’s use of U.S. technology and software to produce products, while adding 38 Huawei subsidiaries to the list of entities prohibited from playing the role of the purchaser, intermediate consignee, and final consignee, and effective immediately.

Today, according to blogger broke the news, MTK (MediaTek) would have helped Huawei stocked 5G chips can not ship, and now have to resort to OPPO, Vivo, Xiaomi’ open case.

The blogger further said: “MediaTek originally in the fourth quarter would have helped Huawei stocked 30 million sets of mobile phone chips, and now the 30 million sets can only beg the 3 project assistance.”

Previously, MediaTek responded to the U.S. Huawei ban: “The Company has always complied with global trade-related laws and regulations and is closely monitoring changes in U.S. export control rules and is consulting with outside legal counsel to obtain the latest regulations in real-time for legal analysis to ensure compliance with the relevant rules. Based on the assessment of available information, there is no material impact on the Company’s short-term operating position.”

From MediaTek’s statement, MediaTek must also comply with the U.S. ban. This also means that MediaTek’s phone chips may be cut off from Huawei. After all, MediaTek can’t do without the US EDA software either.

Finally, the blogger has also said bluntly that there is no Hess chip, there is no alternative to Hess’s main chip, to memory (memory) Samsung, Hynix shipments must also apply with the U.S. Huawei began with suppliers of other peripheral ic under the revision order, including PA (power amplifier), RF (radio frequency), Power (power), lenses (lens)…Related.

MediaTek Stock 30 Million Chips for Huawei are in Vain

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