The new rule from the Trump administration stated that chip manufacturers such as TSMC cannot use American know-how to make semiconductors for Huawei, accusing the Chinese company of undertaking “malign activities contrary to U.S. national security and foreign policy interests.” Since U.S. equipment, software and materials are an irreplaceable part of chip manufacturing, the edict meant that Huawei can no longer use its own chips in its devices.
But Huawei’s smartphones, routers, switches and other hardware can use chips designed by outside parties, even if they’re manufactured with American technology.
Enter MediaTek. 联发科技股份有限公司
It designs 5G chips for both smartphones and base stations, and has them manufactured by TSMC, making it the perfect replacement for the Huawei-designed chips that can no longer be made.
Already a supplier to the Chinese company, MediaTek’s orders from Huawei are reported to have jumped after the restrictions, spurring analysts to raise their outlook for 2020 revenue by 14% and for next year by 29%.
